Revised ICOLC Statement on the Global Economic Crisis and Its Impact on Consortial Licenses

The International Coalition of Library Consortia (ICOLC) is reissuing its Statement on the Global Economic Crisis and its Impact on Consortial Licenses to update information providers on the state of library and library consortia budgets in 2010. The statement has been endorsed by 120 library consortia around the world to date, including BC Electronic Library Network.

The updates below reinforce the ICOLC Statement in three substantial ways. 

1.    ICOLC did not overestimate the severity of cuts to library and library consortia funding levels in its original Statement.  Furthermore, we believe the worst may still be before us, as US state governments suffer the loss of stimulus funds and continued weak regional economies.  All parts of the world are facing negative economic repercussions from the European debt crisis.  The need for pricing restraint and options remains paramount.

2.    Fifty ICOLC member groups from around the world have participated in an anonymous survey to measure 2009 to 2010 price changes from over 30 major vendors and publishers of electronic databases and journals.  This survey reveals that 38% of the price changes provided price control in the form of 1% increases or less.  Seven percent (7%) of the price changes provided price reductions.  We wish to commend those suppliers who have worked with libraries and consortia to contain prices.  However, significant room for improvement remains.  Some suppliers have done a much better job of containing prices than others. We call upon the full range of suppliers to show price restraint in 2010-2011 to enable customers to sustain as many information resource licenses as possible.

3.    We take this opportunity to highlight the added potential negative impact of exclusivity on prices, as well as access.  A new Principle 3 on page 3 of this document expresses the strongly held belief of ICOLC members that, over the long-term, multiple distribution channels for licensed content provide the most affordable and suitable options for access across diverse library communities.

The complete text of the updated statement is available on the ICOLC website.

Excerpt from the Original January 2009 Statement

Written on behalf of the many library consortia across the world that participate in the ICOLC, this statement has two purposes. It is intended to help publishers and other content providers from whom we license electronic information resources (hereafter simply referred to as publishers) understand better how the current unique financial crisis affects the worldwide information community. Its second purpose is to suggest a range of approaches that we believe are in the mutual best interest of libraries and the providers of information services.

The ICOLC library consortia consider the current crisis of such significance that we cannot simply assume that libraries and publishers share a common perspective about the magnitude of the crisis and the best approaches to cope with it. ICOLC members have been exchanging perspectives about how the current economic recession will impact consortia and their libraries. We make the following forecasts about the impact of this crisis on libraries and library consortia.

1. We expect significant and widespread cuts in budget levels for libraries and consortia: reductions unlike the sporadic or regional episodes experienced from year to year, with real and permanent reductions to base budgets. It may not be uncommon for library and consortia budgets to decline by double digits year over year. We have yet to see the full effects, as many 2009 journal and database subscriptions have already been renewed. As of late 2008, many institutions have declared significant budgets cuts in all areas (content, staff, and operations) for 2009. Some consortia are experiencing significant economic impact in the current fiscal year; by calendar and fiscal 2010, the cuts will be in full force and widespread.

2. These cuts will be prolonged. The public and education sectors will likely lag in funding recovery. Once funding is withdrawn over multiple years, it will be years before budgets climb back toward pre-crisis levels.

3. Exchange rate fluctuations are complicating and in some cases amplifying the impact.

We encourage publishers to recognize these fundamentally different circumstances as we work together for the benefit of all parties. Library consortia are uniquely positioned to be the most effective and efficient means to preserve the customer base for publishers and create solutions that provide the greatest good for the greatest number. By working together, publishers and consortia can create the most effective pricing and renewal options and maintain the broadest base of subscribing libraries and services.

Background

The current global economic crisis is having a serious impact on library budgets around the world, and is anticipated to continue to impact for at least the next few years. In some regions, heavily reliant on the industries affected most immediately (banking and manufacturing), budget cuts have been swift and deep, often complicated by dramatically rising student enrollments as those who lose their jobs often decide to upgrade their education. BC ELN partner libraries have experienced both recent budgetary reductions and the effects of a recent, sudden 20% decrease in the value of the Canadian dollar, which significantly decreases the purchasing power of library collections budgets.

In recent decades, the scholarly publishing industry has enjoyed a relatively inelastic market. Each article is a kind of monopoly. Researchers need all the journals, and so if it is possible, regardless of difficulty, libraries will purchase all the journals. Publishers have been accustomed to raising prices every year above inflation levels; compounding effects means price increases far above inflationary levels over the years. In the current environment, this simply cannot continue. BC ELN is working with vendors and other library consortia to find the innovative solutions that are needed to ensure both ongoing access to, and needed support for, the services and resources that are essential to post-secondary learning and research.