I am not in favour of full state control of art (refer to the extreme example of North Korea), however it seems reasonable to expect that governments (central, local) will have an enlightened vision on the importance of art in society, for social coherence, innovation, education, science, and so forth. A vision that is translated in a certain policy and strategy. At the same time, allowing artists total freedom of expression and creativity.
On the artists’ perspective. I have discussed the political or societal engagement some artists demonstrate. Artists have the freedom to ‘dialogue’ with society or not. However, personally I cannot imagine that an artist will isolate him/herself completely from society. Always there will be some reference. And ideally an artist will seek to contribute to innovation and creativity to solve some of the societal problems.
It would be interesting to do a study on how governments and artists relate and interact, to get more grip on present realities.