The legislators of most countries of the world differ three economic sectors:
- State organizations,
- Commercial enterprises and
- So-called 3rd sector, i.e. non-profit NGO's (non-governmental organizations).
In Ukraine the state organizations and NGO's have no right to profit activity - the former are funded by state or communal budget, and the latter are funded by grants from the budget, or from various foundations, or from commercial enterprises.
The budget granting in Ukraine is very restricted and chiefly concerns the state organizations in the capital - Kiev.
The enterprises' grants are taxed according to the Ukrainian law to such extent, that they are not advantageous and even dangerous for granters. Thus, the main source of the Ukrainian NGO's is granting from foundations, firstly from international ones.
Music is the topic of activity of organizations working in all the three sectors. The state sector in Ukraine includes: practically all educational institutions (schools, colleges, academies), all the orchestras, large choirs, state regional concert agencies (conventionally called "Filarmonias" what is impossible to directly express in English), which also deal with large state concert halls. This sector is managed by the Ministry of Culture, and in the regions and towns - by the regional and town departments of culture (sub-ordered also to regional state administrations and town mayors). The conventional ex-Soviet, now called "National" Unions of artists (first of all the Ukrainian Composers' Union) are also funded by the State budget, although according to their statutes they are now the independent NGO's. Practically, the Ukrainian State sector has very little changed and keeps being post-communist in its concept and methods.
The commercial sector related to music started to develop during the perestroika, and was legalized after Ukraine becoming independent. First of all, there are shops for music instruments and equipments, for CDs, audio- and videocassettes. Then, the private radios and TV channels. Also, private concert agencies, or independent managers, which are working as personal managers of Ukrainian musicians (existing only in Kiev pop area) or organizing events, concerts or tours (often under support of the State or other sponsors). Plus recording studios, sound and light agencies. Practically, this entire sector relies only to pop music (or serious music with pop features), and chiefly to foreign music (first of all, American and Russian). The supposed existence of strong factories producing millions of pirate CDs (problematized by foreign states' administrations) is unknown to Ukrainian musicians and has no importance for the development of Ukrainian music - not only in serious, but also in pop genres, and in general remains doubtful. There is now no publishing house for music in Ukraine, no regularly appearing music journals, etc., etc. It is difficult to do an exact assessment, but one can suppose that the total annual income of the commercial sector (including white, gray and black market) in Ukraine with 50 millions inhabitants can hardly exceed the income of the analogue sector in one large German city. So, the role of the commercial sector in Ukrainian musical life and development of Ukrainian musical culture is not a very important one.
The problem faced by Ukrainian NGO's (as well as little commercial enterprises) is a very difficult and relatively expensive procedure of their opening and functioning (perpetual controlling by many state control organizations, expensive bookkeeping and bank services etc). That is why only relatively large NGO's managed by experienced persons can exist here. So, practically only very few NGO's are active in Ukraine, but even they have managed to do many innovative things in Ukrainian musical life. For example, the Association New Music (Ukrainian ISCM member) has already held the 7th international festival "2 Days and 2 Nights of New Music" in Odessa, which has become an important event for New Music, known all over the world.
After first 10 years of Ukrainian independence, it is the time to try coordinating the activity of all the Ukrainian structures and organizations relying to music (also foreign organizations concerned with Ukraine). Without doubt, such coordination could be useful for all.
The problem is: how is it better to do?