Since the beginning of the second Trump administration, the United States has seen a strategic de-investment in the arts, from the call to defund the National Endowment for the Arts and Institute of Museum and Library Sciences to the complete defunding of the Corporation for Public Broadcasting. To artists and arts leaders such as myself, the message that the administration is sending seems clear: American military force takes financial precedence over the arts.

However, military force, or hard power, is not the only factor that affects the United States’ standing on the global stage. Soft power, on the other hand, encompasses the international influence from cultural outputs like movies, television, theatre, and video games. In just the last year, animated movies such as Japan’s Chainsaw Man  and China’s Nezha II have earned millions – the latter, billions – at the international box office, each earning a score of over 90% on Rotten Tomatoes. South Korean musical Maybe Happy Ending made its debut on Broadway this year, winning six Tony awards in the process, including Best Musical. By creating an impactful artistic product and affecting global popular culture, nations can sway international opinion in their favor.

In recent years, the United States has supported its own artistic production, and in turn its soft power through two primary avenues: by incentivizing artistic creation with tax breaks or tax-exempt status, or by directly funding artistic works through grantmaking. Historically, America was more active in cultural diplomacy, sending American artists across the globe to perform in countries like the USSR, China, and Russia — a program that the country still supports on a more limited scale. Meanwhile, nationwide grantmaking entities are defunded, and tax breaks for for-profit media ventures most often depend on state-specific priorities, other nations are seizing the opportunity to support their own artistic outputs. From providing funding to more rigorous legislation, countries from Nigeria to Japan to the United Kingdom are making the most of their soft power. In general, countries with notable artistic products strategically support their development in unique and targeted ways.

Developing guidelines for labor and artistic education standards

The economic value of Japanese entertainment content, including anime, currently rivals that of the country’s steel and semiconductor industries. As of 2022, anime produced an estimated worth of $10 billion USD, but Japan sees room for growth – the country aims for the industry to be worth almost $140 billion USD by 2033. In order to increase its cultural exports, Japan’s Ministry of Economy, Trade and Industry developed a report entitled “Grand Design and Action Plan for a New Form of Capitalism 2024.”

Related to the report, the government also established a Content Industry Public-Private Council. While not wanting to interfere with the creation of private content, the government is aware of the brutal working conditions that many animators are subjected to, including long hours and low pay. As a result, the Council aims to “address industry labor practices and business relationships to ensure that creators work in a healthy environment and receive appropriate compensation,” as the Japanese government describes. This would include a tentatively-named Industry-Academic Collaborative Anime Human Resources Training Committee. In order to bring new, talented workers into the industry, the Council is also developing guidelines for the necessary skills for anime creation and encouraging universities to include vocational programs and coursework in animation.

Nominating a singer and music executive for government office

As K-Pop began to emerge as a genre in the 1990s, South Korea “poured millions of dollars into forming a Ministry of Culture with a specific department devoted to K-pop,” according to NPR. However, the financial support from the government had not evolved with the music industry in the years since, even as the cost of producing K-Pop has grown.

In a distinct turn of events, just last month the President of South Korea nominated K-Pop record label founder and singer Park Jin-young to be the inaugural co-chair of the Presidential Committee on Popular Culture Exchange. The first time a singer “has been tapped for a ministerial-level government position,” the nomination was met with both hope and skepticism alike. Some believe that an insider in the role gives rise to the possibility that the government will address K-Pop’s rising production costs and financial sustainability. On the other hand, others are concerned that this might threaten the independence of the K-Pop industry and that it would diminish equity across the sector, favoring major players. For now, it may be too early to tell what long-term affects the nomination will have on the future of K-Pop as a cultural export.

Directly distributing money to filmmakers

Nollywood, or Nigeria’s film industry, produces over 2,500 films a year, making it the second most productive film industry worldwide. Like the Japanese government, the Nigerian government recognized Nollywood’s possible economic growth and set a goal for the industry to generate $100 billion in revenue. According to Nigeria’s Ministry of Art, Culture, Tourism, and Creative Economy, the government aims to increase filmmaking capacity through initiating international co-production on films and developing three funding arms for potential filmmakers to access: Creative Initiative Funding, a Bank of Industry, and an Investment in Digital and Creative Enterprises program.

These funding arms are attached to a broader scheme to promote Nollywood internationally, called Destination 2030: Nigeria Everywhere. Established in 2023 as the countries national soft power and tourism brand, the funding arms specifically compete with international investment from streaming services such as Netflix. While international streaming services incentivize Nollywood films created for a global audience, homegrown funding provides filmmakers with the flexibility to cater to Nigerians as their primary audience. As Nollywood continues to rise in popularity, other aspects of Nigerian culture, authentically communicated through film, can also gain more widespread attention.

Providing unbeatable tax breaks

Over 17 million people attended shows on the West End in 2023 and 2023, exceeding pre-pandemic attendance by almost 2 million. Even though the West End houses 39 theaters compared to Broadway’s 41, more than 5 million more people saw West End performances than Broadway shows in 2024, according the Society of London Theatre (SOLT). SOLT’s report also noted the financial benefit of a thriving West End: “For every £1 spent on a theatre ticket, an additional £1.27 flows into local businesses, including hotels, restaurants, and shops.”

In March of 2025, the UK government cemented a pandemic-era tax break for touring shows. The scheme provides tax relief for up to 45% of production costs — in comparison, New York’s tax incentive only provides credits for up to 25% of production costs, capped at $3 million per production. This tax break, combined with the fact that shows are three to five times cheaper to produce on the West End compared to Broadway, makes the London theatres a hot commodity for producers. In fact, there are not enough West End theatres to meet the demand for new productions. Consequently, regional theatres outside of the West End can potentially absorb that demand and benefit secondhand form the tax breaks. 

Making new technology accessible to citizens

While not as well-known as countries like America, Japan, and China, Sweden has been an underrated video game powerhouse. In the last fifteen years, Swedish video game companies have released widely popular and culturally influential games such as Candy Crush Saga, Minecraft, and Helldivers 1 and 2.

What makes the rise of Sweden’s video game industry so unique is the country’s distinct lack of direct support for the art form. While the government has lacked a coordinated effort to support the Swedish video game industry, many attribute the its massive and significant output to an entirely different area of government legislation: the Home PC Reform. In the 1990s, the Reform allowed Swedes to easily and cheaply lease computers, making the early technology accessible and commonplace in households. As a result of this access, citizens were able to get a head start in pursuing video game development.

Outside of the unforeseen consequences of Sweden’s Home PC Reform on the video game industry, these government tactics to invest in and support their cultural products are targeted and intentional. Countries have recognized the potential of each industry and determined appropriate methods of fostering creative production in response to their unique challenges. In fact, many of these governments recognize the economic advantages of supporting the arts in their countries. Not only are their reputations bolstered from their artistic output, but also these nations understand that the money they invest in the arts is in turn funneled back into their economy, government, and citizenry. While time may tell as to the extent of these initiatives’ successes on the international stage, one thing is certain: investing in the arts on a national scale is a vital step towards a rich and vibrant culture.

Written by Bria Weisz, a graduate student in the M.F.A. in Theatre - Arts Leadership program at Virginia Tech.