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ContentsForeword..........................................................................................................................................xvAcknowledgements......................................................................................................................xviiScope of this report........................................................................................................................xixTen key messages........................................................................................................................xxiiiAbbreviations and acronyms......................................................................................................xxviPART 1. THE CREATIVE ECONOMYChapter1. Concept and context of the creative concepts and definitions.............................................................................................................................................................................................................................. goods and services.......................................................................................................... industries........................................................................................................................ economics........................................................................................................................ industries........................................................................................................................ UNCTAD classification of the creative industries...................................................................... creative economy.................................................................................................................. creative class and creative entrepreneurs.............................................................................. cities............................................................................................................................ clusters, networks and districts...................................................................................... and creative commons.................................................................................................... economy.................................................................................................................. ecology.......................................................................................................................... Major drivers of the creative economy worldwide.......................................................................................................................................................................................................................................................................................................................................................................................................................................................................... The multiple dimensions of the creative economy............................................................ aspects...................................................................................................................... aspects............................................................................................................................ aspects.......................................................................................................................... development............................................................................................................ The cross-cutting nature of creative industries.................................................................. for concerted inter-ministerial policies................................................................................ for dialogue with multiple stakeholders................................................................................28CREATIVE ECONOMY REPORT 2010iiiContents
for institutional mechanisms.............................................................................................. creative economy in the developed world.................................................................... development implications: The Millennium Development Goals.................................................. creative economy: Linkages and development implications...................................... aspects of the creative economy.............................................................................. and technological linkages.............................................................................................. interactions...................................................................................................................... Traditional knowledge, culture and the creative economy................................................ creative economy in the developing world and transition economies.............................................................................................................................................................. Asia-Pacific region................................................................................................................47 Asia and the Middle East................................................................................................ America................................................................................................................................................................................................................................................................ European economies in transition.................................................................................... Creative economy and the green economy........................................................................ and biodiversity: A win-win solution..............................................................................66PART 2. ASSESSING THE CREATIVE ECONOMY: ANALYSIS AND the creative The need for systematic analysis........................................................................................ Organization of the creative economy................................................................................ structures............................................................................................................ matters.................................................................................................................... issues........................................................................................................................ power of social networks...................................................................................................... analysis of the creative industries...................................................................... organization analysis....................................................................................................-chain analysis....................................................................................................................-industry analysis................................................................................................................ analysis...................................................................................................................... analysis................................................................................................................ and intellectual property.............................................................................................. theory.......................................................................................................................... Structure of the creative industries.................................................................................... of small and medium-sized enterprises..................................................................83ivCREATIVE ECONOMY REPORT 2010Contents
-scale corporate enterprises................................................................................................ or quasi-public cultural institutions.................................................................................... artists and producers.................................................................................................. Distribution and competition issues.................................................................................... consumption patterns.................................................................................................. industries and regulation................................................................................................ An application of production-chain analysis: The music industry in sub-Saharan Africa.. an evidence-based assessment of the creative Why we need a new information base and why it doesn’t already exist.......................... Towards a reliable benchmark for the creative economy.................................................. The challenge of building an operational model of the creative economy........................ Measures: Their limitations and potential.......................................................................................................................................................................................................... use.................................................................................................................................. and value added.............................................................................................................. and intellectual property rights issues........................................................................ investment...................................................................................................................... Implementation of a Culture Satellite Account................................................................ Data sources and assessment tools: Why the current data are inadequate.................. The case for a trade model for the creative industries using a product classification methodology................................................................................ Comparative analysis of statistical methodologies for international trade of creative and cultural goods.......................................................................................... statistics for creative and cultural goods: selected methodologies...................................... comparison of statistics methodologies for creative and cultural goods........................ learned from the comparative studyanalysis.................................................................... Methodological basis for a unified measure of international trade of creative goods...... Main considerations..........................................................................................................119PART 3. INTERNATIONAL TRADE IN CREATIVE GOODS AND SERVICES trade in creative goods and services: Global trends and the scene................................................................................................................ industries: A new dynamic sector in world trade.............................................. Global trends in world trade of creative goods and services.......................................... trends in world exports.................................................................................................... trends in world imports.................................................................................................. players in the global market for creative goods....................................................................132CREATIVE ECONOMY REPORT 2010vContents
balance in creative goods................................................................................................ profiles on the creative economy.................................................................................. Regional economic groups in world markets.................................................................... Prospects for North-South and South-South trade in creative goods and services...... Global trends in international trade of creative industries, by sectors................................................................................................................................................................ arts........................................................................................................................ arts.............................................................................................................................................................................................................................................................. and printed media.......................................................................................................................................................................................................................................... media.............................................................................................................................. services...................................................................................................................... and licence fees........................................................................................................ industries....................................................................................................................163PART 4. THE ROLE OF INTELLECTUAL PROPERTY AND TECHNOLOGY role of intellectual property in the creative economy Introduction........................................................................................................................ are intellectual property rights?.............................................................................. property and the creative industries.............................................................. Geographical indications and appellations of origin.................................................................... and the creative economy................................................................................ Exclusive rights........................................................................................................................173 Moral rights.............................................................................................................................. rights.......................................................................................................................... Exceptions and limitations to copyright...................................................................................... Enforcement of copyright.......................................................................................................... The economics of copyright.............................................................................................. Commons licences: A fast-growing movement.............................................................. Contribution of the creative industries to the economy.................................................. Copyright, the creative industries and traditional cultural expressions.......................... communities and new technologies.......................................................................... Copyrights and new technologies...................................................................................... policy options......................................................................................................186viCREATIVE ECONOMY REPORT 2010Contents
, connectivity and the creative ........................................................................................................................ Connectivity and its wider impact.................................................................................... mobile revolution................................................................................................................ growth of Internet users in the South............................................................................ countries lag behind in terms of broadband connectivity............................................ shifts boost South-South trade and investment in ICT goods............................................ Measurement issues and creative content........................................................................ ICTs and their impact on the creative economy................................................................ growing importance of ICTs for the creative industries........................................................ Digitization.......................................................................................................................... Convergence and new business models.......................................................................... Impact across the production chain.................................................................................. Looking to the future..........................................................................................................203PART 5. PROMOTING THE CREATIVE ECONOMY FOR strategies for the creative ........................................................................................................................ role of public policies.................................................................................................. policy process.............................................................................................................. directions.................................................................................................................. of infrastructure.......................................................................................................... of finance and investment.......................................................................................... of institutional mechanisms.......................................................................................... framework and legislation........................................................................................ of exports markets................................................................................................ of creative clusters.............................................................................................. creative entrepreneurship........................................................................................ of effective data-collection measures.......................................................................... creative nexus for enhancing the creative economy .................................................... creative nexus model.......................................................................................................... measures for strengthening the creative economy..........................................-formal sector.................................................................................................................... arts............................................................................................................................ and medium-sized enterprises........................................................................................ cultural institutions.......................................................................................................... sector...................................................................................................................... policy action at the national level......................................................................228CREATIVE ECONOMY REPORT 2010viiContents
international dimension of creative-industries The international policy framework.................................................................................. UNCTAD: Creative industries on the economic and development agenda...................... X: Audiovisual services................................................................................................ United Nations Conference on the Least Developed Countries: Music................................ XI: Creative industries — A turning point...................................................................... XII: From the creative industries to the creative economy.............................................. WTO multilateral negotiations and implications for creative industries.......................... crisis and the international trading system.......................................................................... access, tariff and non-tariff barriers................................................................................ Agreement on Trade in Services.................................................................................... Agreement...................................................................................................................... of regional trade agreements for creative industries................................................ UNESCO cultural-diversity perspective.............................................................................. WIPO Development Agenda................................................................................................ UNDP: Engaging developing countries in the creative economy for development.......... ITC: Creating business opportunities for creative industries..........................................: Promoting biodiversity benefits for the creative industries.................................. learned and policy Lessons learned.................................................................................................................. Major findings .................................................................................................................... Definitions and concepts.......................................................................................................... Cross-cutting linkages.............................................................................................................. The creative economy in the developed world............................................................................ The creative economy in the developing world............................................................................ The value chain for creative products........................................................................................ Data issues.............................................................................................................................. Trade........................................................................................................................................ Connectivity and ICTs................................................................................................................ Policy towards the creative economy.......................................................................................... International context.................................................................................................................. options...................................................................................................................... Role of governments................................................................................................................ Role of creative entrepreneurs.................................................................................................. Role of civil society and the place of strategic alliances.............................................................. of international cooperation................................................................................................264References....................................................................................................................................265Statistical Annex..........................................................................................................................281viiiCREATIVE ECONOMY REPORT 2010Contents
LIST OF creative entrepreneur: Transforming ideas into successful business........................................................ creative city...................................................................................................................................... and creative clusters in China......................................................................................................: A cultural trip.................................................................................................................................. du Soleil: A very simple dream...................................................................................................... of the museum district of Paris................................................................................................-South sharing of creative experiences............................................................................................ carnivals.................................................................................................................................... remix............................................................................................................................................ of the Shanghai Creative Industry Center.................................................................................. passion for tango..................................................................................................................................: The economic contribution of culture...................................................................................... Jamaica as the home of reggae...................................................................................................... Bolshoi: A sublime gift to the world.................................................................................................... life and tradition: Thai silk..................................................................................................................-trade in Colombia..............................................................................................................................-ethical fashion and natural fibres........................................................................................................ Moroccan spa culture........................................................................................................................, moving to action...................................................................................................................... tecnobrega case................................................................................................................................ clusters......................................................................................................................................: Conservation tourism and pricing.................................................................................................. creativity blooms in South Africa.......................................................................................... of creative industries................................................................................................................ practices and business models particular to the audiovisual and music industries.................... and numbers.............................................................................................................................. as a key ingredient for growth.................................................................................................... da Vinci Code case.......................................................................................................................... collaborative approach to creativity and knowledge..............................................................................: A magic marriage between tradition and contemporary design................................................ management of copyright........................................................................................................ ICTs give rise to new business models.......................................................................................... and open-source software and the creative economy.................................................................................................................................................................................................................... creative industries: The Chinese way........................................................................................ currencies in Brazil................................................................................................................ Egyptian film industry: The waning of the “Hollywood of the East”?.................................................... Biennale of Contemporary African Art of Dakar.................................................................................. policy in action: The Nairobi Plan of Action..................................................................................229CREATIVE ECONOMY REPORT 2010ixContents
and soap operas.................................................................................................................... planet........................................................................................................................................ breakthrough to promote trade flows of cultural goods and services...................................................... tourism: Impressions of the Peruvian experience........................................................................ new model leading to sustainability and better futures..........................................................................: A creative response.............................................................................................................. Alphadi: The fashion caravan..................................................................................................................251LIST OF TABLES systems for the creative industries derived from different models............................................ of culture employment in selected creative cities........................................................................ Cities Network............................................................................................................................ in creative industries in the United States, 2003.......................................................................... of the European cultural and creative sector to the European national economies.................... of the cultural industries to GDP or GVA for five countries, various years.................................. of the cultural sector to the national economies of eight European countries, various years............ of contribution of creative/cultural sector with contributions of other sectors for eightEuropean countries (% of GDP)................................................................................................................ of the contribution of creative industries to GDP for five OECD countries.................................... of the African music industry...................................................................................................... chain in the cultural industries in Canada, 2002.............................................................................. analysis of statistical methodologies for international trade of creative/cultural goodsdefined by UNCTAD/UNESCO.................................................................................................................. of comparative analysis of international trade of creative/cultural goods as defined byUNCTAD/UNESCO.................................................................................................................................. trade of related creative goods/equipment and supporting materials of cultural goodsdefined by UNCTAD/UNESCO with the Harmonized System (HS) codes.................................................... services as defined by UNCTAD................................................................................................ of reporting countries between different versions of HS codes.................................................... model for creative economy trade statistics.............................................................................. and services of creative industries................................................................................................ categorization of creative goods.............................................................................................. exports of all creative industry (goods and services), by subgroup, 2002 and 2008........................ goods: Exports, by economic group, 2002 and 2008.................................................................. goods: Exports, by economic group and region, 2002 and 2008................................................ goods: Imports, by economic group, 2002 and 2008.................................................................. goods: Imports, by economic group and region, 2002 and 2008................................................ goods: Top 20 exporters worldwide, 2002 and 2008.................................................................. goods: Top 10 exporters among developed economies, 2008.................................................... goods: Top 10 exporters among developing economies, 2008....................................................133xCREATIVE ECONOMY REPORT 2010Contents
goods: Exports, by regional economic group, 2002 and 2008.................................................... goods: Exports of South-South trade, by regional group and product group, 2002 and 2008............ goods: All creative industries exports of South-South trade, by regional group and China,2002 and 2008.................................................................................................................................... crafts: Exports, by economic group and region, 2002 and 2008........................................................ crafts: Top 10 exporters among developed economies, 2008............................................................ crafts: Top 10 exporters among developing economies, 2008.......................................................... arts: Exports, by economic group and region, 2002 and 2008................................................ arts: Top 10 exporters among developed economies, 2008.................................................... arts: Top 10 exporters among developing economies, 2008.................................................... arts: Top 10 exporters among developed economies, 2008............................................................ arts: Top 10 exporters among developing economies 2008............................................................ and printed media: Top 10 exporters among developed economies, 2008................................ and printed media: Top 10 exporters among developing economies, 2008..............................: Exports, by economic group and region, 2002 and 2008............................................................: Top 10 exporters among developed economies, 2008................................................................: Top 10 exporters among developing economies, 2008................................................................ media. Exports, by economic group and region, 2002 and 2008...................................................... media: Top 10 exporters among developed economies, 2008.......................................................... media: Top 10 exporters among developing economies, 2008.......................................................... exports of creative services, 2002, 2005 and 2008 (in billions of $).......................................... imports of creative services, 2002, 2005 and 2008 (in billions of $).......................................... and licence fees: World exports and imports, 2002, 2005, and 2008........................................ goods: Exports, by economic group, 2002 and 2008 (in millions of $).......................................... goods: Imports, by economic group, 2002 and 2008 (in millions of $).......................................... contribution of copyright-based industries using WIPO methodology.......................................... of segments of ICT industries to global GDP, 2003-2007...................................................... dimensions of digital life.................................................................................................. on Measuring ICT for Development: Core ICT indicators........................................................ 20 audiovisual companies worldwide and their 2004 turnover.......................................................... of Local Exchange Trading Systems-LETS.............................................................................. goods: Imports, MFN applied and bound tariffs, 2002 and 2008................................................ goods: Imports, by groups of countries, MFN applied and bound tariffs, 2002-2008.................... goods: Imports, by developed economies, MFN applies and bound tariffs 2002-2008.................. goods: Imports by developing economies, by economic group, MFN applied and bound tariffs, 2002-2008................................................................................................................................ industries policy options............................................................................................................262CREATIVE ECONOMY REPORT 2010xiCOovenrtevinetws
LIST OF in today’s economy...................................................................................................................... of the 5Cs: Outcomes of creativity + 4 kinds of capital.................................................................. classification of creative industries................................................................................................ dimension of the creative economy......................................................................................-industry value chain.................................................................................................................... diagram of Porter’s model for clusters...................................................................................... of a music production chain in sub-Saharan Africa........................................................................ cycle.......................................................................................................................................... creative value chain.......................................................................................................................... 2009 Framework for Cultural Statistics domains........................................................................ summarized version of the online music value-chain............................................................................ mobile telephone subscriptions by main country groupings, 2003-2008........................................ Internet users by main country groupings, 2003-2008.................................................................. fixed broadband subscribers........................................................................................................ mobile broadband subscribers......................................................................................................193 of ICT goods by main region......................................................................................................193 size and growth of digital content sectors, 2007.......................................................................... flows to the cultural sector........................................................................................................ of monetary circuit applicable to the creative industries................................................................ creative nexus: The C-ITET model....................................................................................................225LIST OF CHARTS industries: Exports of creative goods, by economic group, 2008.................................................. industries: Exports of creative services, by economic group 2008.............................................. of world exports of creative goods and services, 2002-2008.................................................... of creative goods, by group, 2002.............................................................................................. of creative goods, by group, 2008.............................................................................................. of economic groups in world exports of creative goods, 2002........................................................ of economic groups in world exports of creative goods, 2008........................................................ of creative goods, by economic group, 2002, 2005 and 2008.................................................... of creative goods, by group, 2008.............................................................................................. goods: Exports from all developing countries, 2002 and 2008.................................................... goods: Top 10 trade surplus and deficit countries in 2002.......................................................... goods: Top 10 trade surplus and deficit countries in 2008.......................................................... industries: Exports of creative goods, by economic group and China, 2008.................................. goods: Exports, by economic group, 2002, 2005 and 2008........................................................ music revenues, 2004-2008........................................................................................................ arts: Exports, by economic group, 2002, 2005 and 2008...................................................... arts: Exports, by economic group, 2002, 2005 and 2008..............................................................149xiiCREATIVE ECONOMY REPORT 2010Contents
: Exports, by economic group, 2002, 2005 and 2008............................................................ and printed media: Exports, by economic group, 2002, 2005 and 2008..................................: Exports, by economic group, 2002, 2005 and 2008.................................................................... media: Exports, by economic group, 2002, 2005 and 2008............................................................ services: Exports, by economic group, 2008.............................................................................. services: Top 10 exporters of personal, cultural and recreational service among developed economies, 2008.................................................................................................................. services: Top 10 exporters of personal, cultural and recreational service among developing economies, 2008.................................................................................................................. and licence fees: World exports and imports, 2002, 2005, and 2008........................................ goods: Evolution of world exports, 2002 and 2008...................................................................... of the creative industries to GDP.......................................................................................... of groups of copyright-based industries to total of creative industries....................................181STATISTICAL ANNEXExplanatory Notes..................................................................................................................................................282Methodological explanations of the measurement of creative economy....................................................................282Example of Country Profile: Argentina and Turkey....................................................................................................288Distribution of developing economies by geographic region and economic grouping................................................296Distribution of developed economies and transition economies by geographic region................................................299Distribution of economies by trade group................................................................................................................300Part 1. Creative industries — Creative goods: World exports, by economic group and country/territory, 2002-2008................................ goods: Exports, by origin and product group, 2002, 2005 and 2008.......................................... goods: Imports, by origin and product group, 2002, 2005 and 2008.......................................... goods: Exports and imports, by trade group, 2002-2008............................................................316 goods: Exports, by trade group, as % of total exports of creative goods, 2002-2008.................... goods: Imports, by trade group, as % of total imports of creative goods, 2002-2008..................317Part 2. Creative industries — Creative of all creative services, by country/territory, 2002-2008.............................................................. of all creative services, by country/territory, 2002-2008.............................................................. of advertising and related services, by economic group and country/territory, 2002-2008............ of advertising and related services, by economic group and country/territory, 2002-2008............ of architectural and related services, by economic group and country/territory, 2002-2008.......... of architectural and related services, by economic group and country/territory, 2002-2008.......... of research and development services, by economic group and country/territory, 2002-2008...... of research and development services, by economic group and country/territory, 2002-2008......333CREATIVE ECONOMY REPORT 2010xiiiOverview
of personal, cultural and recreational services, by economic group and country/territory, 2002-2008............................................................................................................................................ of personal, cultural and recreational services, by economic group and country/territory, 2002-2008............................................................................................................................................ of audiovisual and related services, by economic group and country/territory, 2002-2008............ of audiovisual and related services, by economic group and country/territory, 2002-2008............ of other personal, cultural and recreational services, by economic group and country/territory, 2002-2008............................................................................................................ of other personal, cultural and recreational services, by economic group and country/territory, 2002-2008............................................................................................................345Part 3. Related Industries — Related Goods, Royalty and License Fee and Computer and Information goods: World exports and imports, by economic group and country/territory, 2002-2008.............. industries: Exports, by origin and product group, 2002, 2005 and 2008...................................... industries: Imports, by origin and product group, 2002, 2005 and 2008...................................... of royalties and licence fees, by economic group and country/territory, 2002-2008...................... of royalties and licence fees, by economic group and country/territory, 2002-2008...................... of computer and information services, by economic group and country/territory, 2002-2008........ of computer and information services, by economic group and country/territory, 2002-2008........382xivCREATIVE ECONOMY REPORT 2010Overview
ForewordThe United Nations published its firstacross the South and the growing share of Creative Economy Report in early 2008, at acreative sector trade which is coming from thetime when the world economy had been under-South. By exploring the factors behind thisgoing a period of expansion. The report growth and the potential for further expansionconcluded that the creative industries wereof the sector the report provides useful inputamong the most dynamic sectors of the worldinto the ongoing policy debate on feasible economy and offered new, high growth oppor-development options. tunities for developing countries. The report hasTimes of crisis offer opportunities tobeen widely used by policy makers, developmentlook at new options, approaches, and strategicpractitioners, and researchers . This report argues that while the Since the report was written, the worldcreative economy’s growth is not in itself aeconomy has been through turbulent , it does potentially offer more resilient,Virtually all regions and countries were affectedinclusive, and environmentally viable paths toby the global recession and progress towards therecovery. Even if there is no one-size-fits-all pre-Millennium Development Goals was put at , the report outlines how governmentsEven now, the global economy is fragile. can play a catalytic role by putting in place thepolicies, regulations, and institutions needed toThis report builds on the earlier analysisstrengthen their creative economies. of its predecessor, with new and improved data,showing how creativity, knowledge, culture, andOverall, the creative economy sectors cantechnology can be drivers of job creation, inno-contribute a lot to growth and prosperity, vation, and social inclusion. It suggests thatespecially for developing countries seeking toworld trade in creative goods and servicesdiversify their economies and build resilience toremained relatively robust at a time when overallfuture economic crisis. We commend this reportlevels of international trade fell. It analyzes theto all who are looking for innovative and rapid growth in the creative economy sectorssustainable development Panitchpakdi Helen Clark Secretary-GeneralAdministratorUnited Nations Conference United Nations Development Programmeon Trade and Development CREATIVE ECONOMY REPORT 2010xvForeword
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AcknowledgementsThe Creative Economy Reportseries is theunder the overall guidance of Edna dosresult of a partnership between UNCTADSantos-Duisenberg, the main co-writer ofand the UNDP Special Unit for South-Souththese reports. The Creative Economy Report 2010Cooperation. These policy-oriented reportswas prepared by a small but extremely devot-are the main output of the technical ed team of the UNCTAD Creative Economycooperation project “Strengthening theProgramme, composed of Sudip RanjanCreative Economy for Development”, a joint Basu, Cheng Shang Li (consultant), Sharonendeavour coordinated by Edna dos Santos-Khan (consultant), Carolina Quintana andDuisenberg, Chief, UNCTAD CreativeJulia Costa Souto (intern). Our special thanksEconomy Programme, and Franciscogo to the Head of the Development StatisticsSimplicio, Chief, Division for Knowledgeand Information Branch, Henri Laurencin,Management and Operations of the UNDPand his team, composed of David Cristallo,Special Unit for South-South Cooperation. Yumiko Mochizuki, Sanja Blazevi, YoannChaine, Ildephose Mbabazizimana and SoniaThe partnership expresses its sincereBlachier. Comments were received from Minagratitude to Yiping Zhou, Director, UNDPMashayekhi and Victor Ognivtsev, colleaguesSpecial Unit for South-South Cooperation,within the UNCTAD Division onfor his deep support to this initiative. WithoutInternational Trade. Our gratitude to vision and commitment, this work wouldAndrew C. Pratt for his academic reflections. not have materialized. In addition to facilitating the policyThe Creative Economy Reportspresent thedebate, the committed team of the UNDPUnited Nations system-wide perspective onSpecial Unit for South-South Cooperationthis innovative topic, as an example of multi-helped to make this publication possible. Asagency cooperation working as “One UN”part of the team of the UNDP Special Unitand with one voice. In preparing the 2010for South-South Cooperation, text was editededition, UNCTAD built upon previous con-by Christopher Reardon, with assistance bytributions made for the Creative Economy ReportElizabeth Smith, and Jennifer Bergamini was2008by five relevant United Nations bodies:responsible for the design and layout of thethe United Nations Conference on Trade publication. Administrative and secretarialand Development (UNCTAD), the Unitedsupport was provided by Clisse MedeirosNations Development Programme (UNDP)Ramos Perret at UNCTAD, LourdesSpecial Unit for South-South Cooperation, theHermosura-Chang at the UNDP SpecialUnited Nations Educational Scientific andUnit for South-South Cooperation, withCultural Organization (UNESCO), the Worldadditional support for communications Intellectual Property Organization (WIPO)provided by Michelle the International Trade Centre (ITC).The partnership extends its apprecia-The research and policy-oriented tion to colleagues at the collaborating organi-analysis presented in the two issues of thezations who provided updated inputs for theCreative Economy Report were carried outCREATIVE ECONOMY REPORT 2010xviiAcknowledgements
the boxes throughout the report. These CreativeEconomy Report 2010:Georges Poussin articles helped to bring pragmatism to theat UNESCO; as well as Dimiter Gantchev,Wpolicy-oriented analysis of this report andend Wendland and Brigitte Vezina evidence for some of the empirical arguments. at WIPO. The Creative Economy Report 2008and theThe Partnership expresses its sincereCreative Economy Report 2010were bothgratitude to all those who kindly accepted our financed by the UNDP Special Unit forinvitation to contribute with signed articlesSouth-South concrete cases and/or their experi-ences in the creative economy as illustrated inxviiiCREATIVE ECONOMY REPORT 2010Acknowledgements
Scope of this reportstrengths and weaknesses as well as challengesThe Creative Economy Report 2010 —and opportunities to be addressed, bearing inCreative economy: A feasible development optionis themind that it is important to reconcile nationalsecond policy-oriented report to present thestrategies with global international processes. United Nations perspective on this innovativetopic. The creative economy has become aThe first Creative Economy Reportcontin-topical issue of the international economicues to attract growing interest on the part ofand development agenda during this decade, governments, researchers and practitioners. Itcalling for informed policy responses in bothhas helped harmonize views, stimulate moredeveloped and developing and policy debate and refine the Adequately nurtured, creativity fuels culture,concept and its application. The popularity ofinfuses a human-centred development andthe publication was also due to the fact that itconstitutes the key ingredient for job creation,is publicly accessible via the Internet at no innovation and trade while contributing tocost ( andsocial inclusion, cultural diversity and environ- Today,mental sustainability. the Creative Economy Report 2008 tops a Googlesearch on this subject. As of the end of JulyThis report builds upon the findings2010, the report has been consulted moreand recommendations put forward by the firstthan 52,000 times via the Internet, and hasCreative Economy Report 2008 — The challenge ofbeen linked to from 1,080 websites all over theassessing the creative economy: Towards informed policy-world. Indications are that the report has had amaking,but goes a step further by deepeningpositive impact on creative industries profes-the analysis and bringing new insights on thesionals, artists and public opinion; the last twoimpact of recent developments on the creativeyears has seen a worldwide increase in theeconomy. Evidence from this report confirmsamount of research and the number of con-an important lesson from the economic crisis,ferences and publications on the topic of thenamely that the market, contrary to conven-creative economy. The Creative Economy Reporttional wisdom, does not have a near-miracu-2008has been the subject of debates by net-lous capacity to address socio-economicworks of academic and educational circles, hasimbalances. Thus, policies and actions to been adopted by a number of universities as afoster development should be rooted in a major reference for graduate-level courses,balanced role for policy interventions and thestimulating the revision of academic curriculamarket. In this context, the debate around thefor higher education in fields related to thedevelopment dimension of the creative econo-1arts and the creative , my gained momentum in search of a newan increasing number of governments, in development model better adapted to the newdeveloping and developed countries alike, arerealities of the contemporary society. Theidentifying the creative industries as a priorityCreative Economy Report 2010attempts tosector in their national development to this call by identifying trends,1The Creative Economy Report 2008 revisited: The Dutch being unnoticed,by the Research Group Arts and Economics, Utrecht School of Arts,Utrecht University, Netherlands, June ECONOMY REPORT 2010xixScope of this report
These have been the key motivations guidingreorient policies towards more equitable, this new publication. sustainable and inclusive growth strategiesable to accelerate socio-economic growth, cre-Obviously, there is a need for betterate jobs and raise living standards. Against thisunderstanding of the dynamics of the creativebackground, the creative economy is a feasibleeconomy in our globalized world. A moredevelopment option. holistic approach to development is needed. Itis time to take a step back from the global andThe world has changed. The crisis look more deeply at the local, identifyingprovoked a reality check calling for a morespecificities and identities of countries andeffective global governance system in whichrecognizing their cultural and economical dif-emerging countries are no longer outsiders. Asferences in order to capture their real needsglobal demand sharply contracted in the mostand surrounding environment. It seems cru-advanced countries, the fast-growing develop-cial to explore the linkages between creativeing nations performed relatively better, surviv-capacities, trade, investment and technology,ing the crisis with less damage. South-Southand see how this can translate into a vibrantregional trade and investments have been vitalcreative economy able to contribute to eco-to mitigating the effects of the global reces-nomic prosperity and poverty reduction. sion. While the traditional manufacturingindustries were seriously hit, the more knowl-The Creative Economy Report 2010incor-edge-based creative sectors were more resilientporates new reflections, additional researchto external shocks. In 2008, despite the 12and more in-depth analysis of the key cent decline in global trade, world trade ofIt captures economic, cultural, social andcreative goods and services continued itstechnological developments that took place atexpansion, reaching $592 billion and reflect-global level over the last two years, in particu-ing an annual growth rate of 14 per cent dur-lar the consequences of the financial crisis anding the period 2002-2008. This reconfirmsenvironmental degradation. Throughout thethat the creative industries have been one ofreport, the analysis, charts and tables havethe most dynamic sectors of the world econ-been updated with more recent statistics andomy throughout this decade. information, including more timely tradeanalysis showing the growing share of creativeThe current economic recovery remainsindustries products in world markets duringfragile, despite the mitigating period 2002-2008, and the state of playRecovery cannot depend solely on increasingup to in industrialized nations. Developingcountries should continue enhancing theirIn fact, there are a number of noveltiescreative capacities and progressively look forin the Creative Economy Report 2010,reflectingnew market opportunities in the South, wherenew realities. The most important is that thedemand is growing. The Creative Economy Reportworld economy faced the most severe reces-2010provides evidence that South-Southsion in 70 years in 2008-2009, which serious-trade in creative products and South-Southly undermined growth, employment and qual-investments in digital technologies are gradu-ity of life. The crisis pointed to the limita-ally increasing but have the potential totions of mainstream economic policies, givingexpand even faster if supported by enhancedclear signs of the need for profound econom-South-South cooperation. Developing coun-ic and financial reforms, new approaches totries are therefore encouraged to include cre-development strategies and better balanceative goods in their lists of products as theybetween the roles of the market and govern-conduct their negotiations under the Globalment. New development paths are needed toSystem of Trade Preferences. xxCREATIVE ECONOMY REPORT 2010Scope of this report
Advances were made in the UNCTADChapter 1explores evolving conceptsmethodology to process and analyse tradesuch as creative ecology, creative commons,statistics, enabling countries to generate theircollaborative creation, experience economyown country profiles on the trade perform-and soft innovation and expands the analysisance of their creative industries, as is illustrat-of the major drivers and multiple dimensions2ed in the statistical 6 reflectsof the creative economy. Chapter 2 introducesongoing work undertaken by WIPO at thea thoughtful reflection on the linkagessecretariat and at the intergovernmental the creative economy and the greenIt also analyses sensitive areas related to theeconomy, capturing ongoing policy debatescurrent controversial debates about the proson the implications of losses in biodiversityand cons of protection or the sharing ofand how creativity and biodiversity are a win-copyrights, and the new trend towards publicwin solution to promote sustainable develop-domain and new open sources for the ment and economic recovery. Moreover, itdistribution of intellectual property rights,presents an overview of recent developmentsincluding a section on the evolution of related to the creative economy in developingcreative commons. countries and economies in 3 analyses the organizational struc-In chapter 7 the focus is on the growingture of the creative economy, highlighting therole of technology and connectivity in thepower of social networks and their influencecreative economy. It starts by examining thein the distribution of digitized creative con-impact of the economic crisis on digital tech-tent through more flexible business , and presenting a fresh view on howChapter 4 features a comprehensive comparativethe diffusion of information and communica-analysis of current methodologies to collect,tion technology (ICT), and in particular theanalyse and disseminate economic indicatorsmobile revolution, is bringing progress forand statistics for the creative industries, takingdeveloping countries. The report presents evi-into account new models for cultural statisticsdence that digital technologies and ICT-and ongoing work carried out by internation-enabled services are stimulating the creational organizations and individual countries inand marketing of digitized creative productsthis regard. It also presents a refined method-through new business models, and that thisology developed by UNCTAD proposingconvergence and digitization is helping cre-better tools to gradually improve the compa-ative products from developing countries torability and reliability of trade statistics forreach global markets. Chapter 8 emphasizesthe creative industries; it is a work in progressthe importance of tailor-made national poli-aimed at improving market transparency. cies for strengthening the creative economyfor development gains. The report proposesChapter 5 deals with the internationalpolicy directions for the provision of financ-trade of creative goods and services. It showsing and investment for the creative industries,a recent picture of global trends for world andrecalling that most governments have publicregional trade flows of creative products cov-deficits and new financing options should beering the period 2002-2008. An in-depthexplored. As illustration, the concepts of atrade analysis is presented for the North-solidarity-based economy and the use ofSouth and South-South trade of creativealternative currencies for transactions in theproducts, with a special focus on the potentialcreative economy are presented as alternativefor further expansion of South-South trade,ways to promote creative entrepreneurship,and how the demand for creative products hasparticularly in the post-crisis period. Thebeen contributing to economic , the UNCTAD Global Database on the Creative Economy has also been updated and can be accessed at ECONOMY REPORT 2010xxiScope of this report
report reviews how networking and collabora-through negotiations under the Global Systemtion has made creative individuals and groupsof Trade Preferences. The chapter also gives amore proactive in shaping solutions for rein-brief review of progress made up to 2010vigorating the creative economy. It points outunder the implementation of the UNESCOthat appropriate institutional mechanisms andConvention on the Protection and Promotionregulatory frameworks should be in place as aof Diversity of Cultural Expressions and itsprerequisite for the optimal functioning ofimplications for the creative economy in devel-the “creative nexus” which aims to attractoping countries. Finally, it reviews new movesinvestors and creative business, stimulate theand steps taken by the international communi-use of new technologies and articulate tradety in the context of the implementation of thepromotion strategies for both the domesticWIPO Development Agenda. and global markets. Clustering and the cre-In conclusion, chapter 10 highlights theative nexus are essential to fostering creativelessons learned and proposes specific policyinnovation. options for enhancing the creative economy inChapter 9 presents an overview of the light of current developments. It notescurrent developments in global processes andhow policymaking at the level of communitiestheir impact for the formulation of multilater-and municipalities seems to be increasinglyal, regional and national policies in areas ofeffective in articulating results as compared torelevance for the creative economy. The reportnational strategies, due to the complexity ofobserves that the adverse effects of the finan-integrating inter-ministerial and cross-cuttingcial and economic crisis will make it nearlypolicy actions. Moreover, it observes how theimpossible for the poorest countries to achievegrowing impact of digital convergence and thethe Millennium Development Goals, in partic-power of social networks has brought a newular the target of halving extreme poverty bydynamic to the creative process locally and2015. The report sheds light on the state ofglobally, remixing the traditional with con-intergovernmental debates and multilateraltemporary cultural and creative expressions. negotiations and their repercussions for theThe ten key messages of this policy-creative economy up to 2010. It analyses, fororiented study are highlighted. The Creativeexample, the causes of the prolonged stalemateEconomy Report 2010brings evidence that thein the negotiations of the WTO Doha Roundcreative economy is indeed a feasible option toin the aftermath of the 2008-2009 crisis. Aadvance development in line with the section on market access and tariff barriersfar-reaching transformation of our a pioneering analysis demonstratingThe time has come to promote creativity andthat trade expansion for creative goods hasinnovation and shape a more holistic develop-been hampered by the high level of tariffs, anment strategy able to foster an inclusive andissue developing countries may wish to addresssustainable economic ECONOMY REPORT 2010Scope of this report
Ten key messagesThis policy-oriented report examines a2008 from $ billion in 2002. In the lightnumber of issues relating to the creative econ-of this positive evolution, developing coun-omy and its development dimension. Insteadtries are highly encouraged to include creativeof presenting an overview of the full report, agoods in their list of products and to con-summary of the 10 key messages is presentedclude negotiations under the Global System ofat the initial part of the report to provide aTrade Preferences in order to give even moresynthesis of the main findings and policy impetus to the expansion of South-Southrecommendations. The intention is to presenttrade in this promising quick glance at the key issues, and facilitateIII. A right mix of public policies andinformed, results-oriented choices are essential for harnessingI. In 2008, the eruption of the worldthe socio-economic potential of the creativefinancial and economic crisis provoked a dropeconomy for development gains. For develop-in global demand and a contraction of 12 pering countries, the starting point is to enhancecent in international trade. However, worldcreative capacities and identify creative sectorsexports of creative goods and services contin-with greater potential through articulatedued to grow, reaching $592 billion in 2008cross-cutting policies. Efforts should be — more than double their 2002 level, indicat-oriented towards the functioning of a ing an annual growth rate of 14 per cent over“creative nexus” able to attract investors, buildsix consecutive years. This is a confirmationcreative entrepreneurial capacities, offer betterthat the creative industries hold great potentialaccess and infrastructure to modern ICT for developing countries that seek to diversifytechnologies in order to benefit from globaltheir economies and leapfrog into one of thedigital convergence, and optimize the trademost dynamic sectors of the world economy. potential of their creative products in bothdomestic and international markets. A posi-II. The world economy has been receiv-tive spillover effect will certainly be reflecteding a boost from the increase in South-Southin higher levels of employment generation,trade. The South’s exports of creative goods toincreased opportunities for strengtheningthe world reached $176 billion in 2008,innovation capabilities and a high quality ofaccounting for 43 per cent of total cultural and social life in those industries trade with an annualgrowth rate of per cent during the 2002-IV. Policy strategies to foster the 2008 period. This indicates a robustdevelopment of the creative economy mustdynamism and developing countries’ fast-recognize its multidisciplinary nature — itsgrowing market share in world markets foreconomic, social, cultural, technological andcreative industries. South-South trade of cre-environmental linkages. Key elements in anyative goods amounted to nearly $60 billion, anpackage to shape a long-term strategy for theastonishing growth rate of 20 per cent overcreative economy should involve concertedthe period. The trend is also confirmed in theinter-ministerial actions to ensure that nation-case of creative services, whose share ofal institutions, a regulatory framework andSouth-South trade grew to $21billion infinancing mechanisms are in place to supportCREATIVE ECONOMY REPORT 2010xxiiiTen Key Messages
the strengthening of the creative and relatedproduction and service systems spanning theindustries. entire value chain. Today it is strongly influ-enced by the growing role of social . A major challenge for shaping poli-These new tools, such as blogs, forums andcies for the creative economy is related towikis, facilitate connectivity and collaborationintellectual property rights: how to measureamong creative people, products and value of intellectual property, how toPragmatic policymaking requires a betterredistribute profits and how to regulate theseunderstanding of who the stakeholders are inactivities. The evolution of multimedia creat-the creative economy, how they relate to oneed an open market for the distribution andanother and how the creative sector relates tosharing of digitized creative content, and theother sectors of the economy. Policies and ini-debate about the protection or sharing oftiatives should be specific rather than generic,IPRs became highly complex, involving and preferably not top-down or bottom-upgovernments, artists, creators and allowing for ownership and for partner-The time has come for governments to reviewships involving stakeholders from the publicthe limitations of current IPR regimes andand private sector, artists and civil them to new realities by ensuring aSchemes that are more inclusive and flexiblecompetitive environment in the context ofwill facilitate effective and innovative measuresmultilateral discourse. to revitalize the creative economy. VI. The creative economy cuts acrossVIII. Policies for the creative economythe arts, business and connectivity, drivinghave to respond not only to economic needsinnovation and new business models. The dig-but also to special demands from local com-ital era unlocked marketing and distributionmunities related to education, cultural identi-channels for music, digital animation, films,ty, social inequalities and environmental con-news, advertising, etc., thereby expanding thecerns. An increasing number of municipalitieseconomic benefits of the creative over the world are using the concept of The mobile revolution is changing the lives ofcreative cities to formulate urban developmentmillions of people in the developing world. Instrategies for reinvigorating growth with a2009 over 4 billion mobile phones were infocus on culture and creative activities. Theuse, 75 per cent of them in the South. Inmain principles can be adapted for rural areas2008 more than one-fifth of the world’s pop-and disadvantaged communities as a tool ulation used the Internet, and the number ofto generate jobs, particularly for youth,users in the South grew five times faster thanempower creative women and promote socialin the North. However, developing countriesinclusion in line with the achievement of are lagging in terms of broadband connectiv-the Millennium Development . For the creative industries, this is a con-Municipalities are therefore acting faster andstraint because many applications to stimulatemore astutely than the spheres of federal creative production and e-business do not rungovernment, which can be more constrainedwithout sufficient bandwidth. Therefore,by power issues and bureaucracy. Ideally, national and regional investment effortstarget plans of action for the creative econo-should be guided, in collaboration with inter-my should be shaped at all levels, from national agencies, towards better infrastruc-the community to the municipality to theture for broadband in the level, independent of order. It isVII. The creative economy is both frag-important, however, to reconcile cultural andmented and society-inclusive. It functionssocial objectives with instruments of trade,through interlocking and flexible networks oftechnology and tourism. xxivCREATIVE ECONOMY REPORT 2010Ten Key Messages
IX. In the aftermath of the crisis, theexplains why some creative sectors appearfirmness of the market for creative products ismore resilient to economic downturns anda sign that many people in the world are eagercan contribute to a more sustainable andfor culture, social events, entertainment andinclusive economic recovery. leisure. They are devoting a higher share ofX. Each country is different, each their income to memorable life experiencesmarket is special and each creative product hasthat are associated with status, style, brandsits specific touch and splendour. Nonetheless,and differentiation; this phenomenon, a sym-every country might be able to identify keybol of the way of life in much of contempo-creative industries that have not yet beenrary society, is rooted in the creative to their full potential so as to reapEvidence suggests that even during the globaldevelopmental benefits. There is no one-size-recession people continued to go to cinemasfits-all prescription; each country should for-and museums, listen to music, watch videosmulate a feasible strategy to foster its creativeand TV shows, play video games, etc. Even ineconomy, based on its own strengths, weak-times of crisis, creative products continue toness and realities. The time for action is as an integral part of our lives. ThisCREATIVE ECONOMY REPORT 2010xxvTen Key Messages
Abbreviations and acronymsACPAfrican, Caribbean and PacificANCOMAndean Common MarketAPECAsia-Pacific Economic CooperationAPTAAsia-Pacific Trade Agreement (former Bangkok Agreement)ASEANAssociation of Southeast Asian NationsBOPBalance of payments BSECBlack Sea Economic Cooperation OrganizationCACMCentral American Common MarketCAFTACentral American-Dominican Republic Free Trade AgreementCARICOMCaribbean CommunityCDCompact , insurance and freightCISCommonwealth of Independent StatesCOMESACommon Market for Eastern and Southern Africa (formerly PTA)COMTRADECommodity Trade Statistics DatabaseCSACultural Satellite AccountDACDevelopment Assistance Committee (of OECD)DCMSDepartment of Culture, Media and SportDVDDigital versatile disc (formerly digital videodisc)EBOPSExtended Balance of Payments Services ClassificationECCASEconomic Community of Central African StatesECEEconomic Commission for EuropeECOEconomic Cooperation OrganizationECOWASEconomic Community of West African StatesEFTAEuropean Free Trade AssociationESCAPEconomic and Social Commission for Asia and the PacificESCWAEconomic and Social Commission for Western AsiaEUROSTATStatistical Office of the European and Agriculture Organization of the United NationsFDIForeign direct on boardFOSSFree and open-source softwareFTAFree trade areaFTAAFree Trade Area of the AmericasG-77Group of 77GATSGeneral Agreement on Trade in ServicesGATTGeneral Agreement on Tariffs and TradexxviCREATIVE ECONOMY REPORT 2010Abbreviations and acronyms
GCCGulf Cooperation CouncilGDPGross domestic productGNPGross national productGVAGross value addedHIPCsHeavily indebted poor countriesIFPI International Federation of the Phonographic IndustryILOInternational Labour OrganizationIMFInternational Monetary FundIOMInternational Organization for MigrationIPRIntellectual property rightITCInternational Trade Centre ITUInternational Telecommunication UnionLAIALatin American Integration AssociationLDCLeast developed countryMDGMillennium Development Goal MERCOSURCommon Market of the SouthMFNMost-favoured nationMSITSManual on Statistics of International Trade in ServicesNAFTANorth American Free Trade elsewhere specifiedNGONon-governmental included elsewhereNPISHsNon-profit institutions serving householdsODAOfficial development assistanceOECDOrganisation for Economic Co-operation and DevelopmentOECSOrganisation of Eastern Caribbean StatesPRSPPoverty Reduction Strategy PaperR&DResearch and developmentRMBRenminbiRTARegional trade agreementSAARCSouth Asian Association for Regional CooperationSADCSouthern African Development CommunitySAMSocial accounting matrixSARSpecial Administrative RegionSIDSSmall island developing StateSITCStandard Industrial Trade ClassificationSMEsSmall and medium-sized enterprisesSNASystem of National AccountsTFYRThe former Yugoslav Republic of MacedoniaTNCTransnational corporationTRIPSTrade-Related Aspects of Intellectual Property RightsUEMOAWest African Economic and Monetary UnionUISUNESCO Institute for StatisticsUMAArab Maghreb UnionUN/DESA/SDUnited Nations Department of Economic and Social Affairs, Statistics DivisionUNAIDSJoint United Nations Programme on HIV/AIDSCREATIVE ECONOMY REPORT 2010xxviiAbbreviations and acronyms
UNCTADUnited Nations Conference on Trade and DevelopmentUNDPUnited Nations Development ProgrammeUNESCO United Nations Educational, Scientific and Cultural OrganizationUNHCRUnited Nations High Commissioner for RefugeesUNICEFUnited Nations Children’s FundUNWTOUnited Nations World Tourism OrganizationUSSRUnion of Soviet Socialist RepublicsVCRVideo cassette recorderWFPWorld Food ProgrammeWHOWorld Health OrganizationWIPOWorld Intellectual Property Organization WMOWorld Meteorological OrganizationWSISWorld Summit on the Information SocietyWTOWorld Trade OrganizationxxviiiCREATIVE ECONOMY REPORT 2010Abbreviations and acronyms
PARTThe Creative Economy1
2CREATIVE ECONOMY REPORT 2010
Concept and context of the 11creative concepts and definitions Fundamental to an understanding of the creativescientific creativity involves curiosity and a willingness toeconomy — what it comprises and how it functions in theexperiment and make new connections in problem-economies of both developed and developing countries —solving; and are the concepts of “cultural industries” and “creative indus- economic creativity is a dynamic process leading towardstries”. Much debate surrounds these terms. This chapterinnovation in technology, business practices, marketing,provides an overview of the development of the concepts ofetc., and is closely linked to gaining competitive advan-“creativity” throughout this decade leading to what becametages in the economy. known as the “creative economy”. Our intention is not toAll of the above involve technological creativity toreach a final consensus about concepts, but to understand itsgreater or lesser extent and are interrelated, as shown in evolution. It also considers the emergence of the associatedfigure . Regardless of the way in which creativity is inter-concepts of “creative class”, “creative cities”, “creative clus-preted, there is no doubt that, by definition, it is a key ters”, as well as the most recent innovative notions relating toelement in defining the scope of the creative industries andthe “experience economy” “creative commons” and “creativethe creative economy. ecology”. The major drivers of the growth of the creativeeconomy and its multiple dimensions are examined in theAnother approach is to consider creativity as a meas-light of recent developments including the world economicurable social process. From the economic point of view,crisis. This chapter also provides evidence on the economichowever, a relationship between creativity and socio-contribution of the creative industries to the economies ofeconomic development is not apparent, particularly thevarious advanced countries. Figure Creativity in today’s economy is no simple definition of “creativi-Scientificcreativityty” that encompasses all the various dimensions ofthis phenomenon. Indeed, in the field of psychol-ogy, where individual creativity has been mostwidely studied, there is no agreement as toTechnologicalwhether creativity is an attribute of people or acreativityprocess by which original ideas are , the characteristics of creativity indifferent areas of human endeavour can at least bearticulated. For example, it can be suggested that: EconomicCulturalcreativitycreativity artistic creativity involves imagination and acapacity to generate original ideas and novelways of interpreting the world, expressed inSource: KEA European Affairs (2006:42).text, sound and image;CREATIVE ECONOMY REPORT 20103CHAPTERConcept and context of the creative economy
extent to which creativity contributes to economic growth. Inpointed out that creativity is not the same as case, it is important to measure not only economic out-Originality means creating something from nothing orcomes of creativity but also the cycle of creative activityreworking something that already exists. Nowadays the con-through the interplay of four forms of capital — social cul-cept of innovation has been enlarged beyond a functional,tural, human, and structural or institutional — as the deter-scientific or technological nature to also reflect aesthetic orminants of the growth of creativity: the creative capital. Theartistic changes. Recent studies point to the distinctionaccumulated effects of these determinants are the “outcomesbetween “soft” and technological innovation but recognize3of creativity”. This is the framework of the creativity index,that they are are high rates of soft inno-1also known as the 5 Cs are debates about avation in the creative industries, particularly in music, books,possible establishment of a European Creativity Index to bearts, fashion, film and video games. The focus is mainly onapplied to the countries of the European Union; the proposalnew products or services rather than upon existing indices and suggests a model with 32culture-related indicators grouped in five pillars of creativi-ty: human capital, technology, the institutional environment, goods and servicesthe social environment, openness and diversity. The goal ofThe scope of the creative economy is determined bysuch an index would be to highlight the potential of includ-the extent of the creative industries. Defining “creativeing culture-based indicators in existing frameworks related toindustries”, however, is a matter of considerable inconsisten-creativity, innovation and socio-economic development withcy and disagreement in the academic literature and in policy-a view to assessing the creative performance of EU membermaking circles, especially in relation to the parallel conceptstates and facilitating “cultural industries”. Sometimes a distinction is madebetween the creative and the cultural industries; sometimesInterplay of the 5Cs: the two terms are used interchangeably. A sensible way toFigure Outcomes of creativity + 4 capitals proceed is to begin by defining the goods and services thatthese industries produce. Human capitalThe concept of “cultural products” can be articulatedif the notion of “culture” is accepted whether in its anthro-pological or its functional sense. It might be argued, for exam-ple, that cultural goods and services such as artwork, musicalManifestationsperformances, literature, film and television programmes, andStructural orof creativityCulturalinstitutional(outputs andvideo games share the following characteristics:capitaloutcomes)capital their production requires some input of human creativity; they are vehicles for symbolic messages to those who con-sume them, ., they are more than simply utilitarian inso-far as they additionally serve some larger, communicativeSocial capitalpurpose; and Source: A Study on Creativity Index, 2005. they contain, at least potentially, some intellectual propertythat is attributable to the individual or group producing thegood or service. Creativity can also be defined as the process by whichAn alternative or additional definition of “culturalideas are generated, connected and transformed into things2goods and services” derives from a consideration of the typethat are other words, creativity is the use of ideasof value that they embody or generate. That is, it can be sug-to produce new ideas. In this conceptual debate it should be gested that these goods and services have cultural value in1This model was developed by a research team at the Centre for Cultural Policy Research, University of Hong Kong, led by Prof. Desmond Hui. See A Study on Creativity Index (2005). “Boston's Creative Economy”. Available from (2010).4CREATIVE ECONOMY REPORT 2010Concept and context of the creative economy
addition to whatever commercial value they may possess andproposition that the cultural industries are simply those1that this cultural value may not be fully measurable in mon-industries that produce cultural goods and services, typicallyetary terms. In other words, cultural activities of variousdefined along the lines outlined above, has gained greatersorts and the goods and services that they produce are valuedacceptance. — both by those who make them and by those who con-In UNESCO, for example, the cultural industries aresume them — for social and cultural reasons that are likelyregarded as those industries that “combine the creation, to complement or transcend a purely economic and commercialization of contents which areThese reasons might include aesthetic considerations or theintangible and cultural in nature. These contents are typical-contribution of the activities to community understandingly protected by copyright and they can take the form ofof cultural identity. If such cultural value can be identified,goods or services”. An important aspect of the culturalit may serve as an observable characteristic by which to industries, according to UNESCO, is that they are “centraldistinguish cultural goods and services as compared with in promoting and maintaining cultural diversity and indifferent types of commodities. 6ensuring democratic access to culture”.This two-foldDefined in either or both of these ways, “culturalnature — combining the cultural and the economic — givesgoods and services” can be seen as a subset of a wider cate-the cultural industries a distinctive that can be called “creative goods and services”, whoseSimilarly, in France, the “cultural industries” haveproduction requires some reasonably significant level of cre-recently been defined as a set of economic activities that com-ativity. Thus the “creative” category extends beyond culturalbine the functions of conception, creation and production ofgoods and services as defined above to include products suchculture with more industrial functions in the large-scale man-as fashion and software. These latter can be seen as essential-7ufacture and commercialization of cultural commercial products, but their production does involvea definition seems to initiate a process leading towards asome level of creativity. This distinction provides a basis forbroader interpretation of the cultural industries than thatdifferentiating between cultural and creative industries, as isimplied by traditional notions of the “cultural sector”.discussed in the following sections. industriesMany politicians and academics, particularly inThe term “culture industry” appeared in the post-warEurope and Latin America, use the concept of “cultural eco-period as a radical critique of mass entertainment by mem-nomics” or the term “economy of culture” when dealingbers of the Frankfurt school led by Theodor Adorno andwith the economic aspects of cultural policy. Moreover,Max Horkheimer, followed subsequently by writers such asmany artists and intellectuals feel uncomfortable with the4Herbert that time, “culture industry” was aemphasis given to market aspects in the debate on the cre-concept intended to shock; culture and industry were arguedative industries and hence the creative economy. “Culturalto be opposites and the term was used in polemics against theeconomics” is the application of economic analysis to all oflimitations of modern cultural life. It continued to be used asthe creative and performing arts, the heritage and culturalan expression of contempt for the popular newspapers,industries, whether publicly or privately owned. It is con-5movies, magazines and music that distracted the with the economic organization of the cultural sectorIn the present day, there remain different interpreta-and with the behaviour of producers, consumers and govern-tions of culture as an industry. For some, the notion of ments in this sector. The subject includes a range of“cultural industries” evokes dichotomies such as elite versusapproaches, mainstream and radical, neoclassical, welfare8mass culture, high versus popular culture, and fine arts ver-economics, public policy and institutional commercial entertainment. More generally, however, theWhile the theoretical and economic analysis in this report4 Adorno and Horkheimer (1947), Marcuse (1991).5 Carey (1992).6 See Département des études, de la prospective et des statistiques (2006:7). 8 According to the definition by the Journal of Cultural Economics, an academic quarterly periodical published in cooperation with the Association of Cultural Economics International. CREATIVE ECONOMY REPORT 20105Concept and context of the creative economy
takes into account the principles of cultural economics as athe cultural industries arising from the critical-cultural-1discipline, the purpose is to better understand the dynamics ofstudies tradition as it exists in Europe and especially thecreativity and its overall interactions with the world economy,United Kingdom (Hesmondhalgh, 2002). This approachincluding its multidisciplinary dimension in which culturalsees the “high” or “serious” arts as the province of thepolicies interact with technological and trade and political establishment and therefore focusesattention instead on popular culture. The processes bywhich the culture of a society is formed and industriesare portrayed in this model via the industrial production,dissemination and consumption of symbolic texts or mes-Usage of the term “creative industries” varies amongsages, which are conveyed by means of various media suchcountries. It is of relatively recent origin, emerging inas film, broadcasting and the in 1994 with the launching of the report, Creative Concentric circles model is based on the proposi-Nation. It gained wider exposure in 1997, when policymakerstion that it is the cultural value of cultural goods that givesat the United Kingdom’s Department of Culture, Media andthese industries their most distinguishing set up the Creative Industries Task Force. It is note-Thus the more pronounced the cultural content of a worthy that the designation “creative industries” that hasparticular good or service, the stronger is the claim fordeveloped since then has broadened the scope of culturalinclusion of the industry producing it (Throsby, 2001).industries beyond the arts and has marked a shift in approachThe model asserts that creative ideas originate in the coreto potential commercial activities that until recently were9creative arts in the form of sound, text and image and thatregarded purely or predominantly in non-economic ideas and influences diffuse outwards through aA number of different models have been put forward inseries of layers or “concentric circles”, with the propor-recent years as a means of providing a systematic understand-tion of cultural to commercial content decreasing as oneing of the structural characteristics of the creative further outwards from the centre. This model hasThe following paragraphs review four of these models, high-been the basis for classifying the creative industries inlighting the different classification systems that they imply forEurope in the recent study prepared for the Europeanthe creative economy. Each model has a particular rationale,Commission (KEA European Affairs, 2006). depending on underlying assumptions about the purpose and WIPO copyright model. This model is based on industriesmode of operation of the industries. Each one leads to ainvolved directly or indirectly in the creation, manufacture,somewhat different basis for classification into “core” andproduction, broadcast and distribution of copyrighted“peripheral” industries within the creative economy, emphasiz-works (World Intellectual Property Organization, 2003).ing once again the difficulties in defining the “creative sector”The focus is thus on intellectual property as the embodi-that were discussed earlier. The four models are as follows: ment of the creativity that has gone into the making of UK DCMS model derives from the impetus inthe goods and services included in the classification. A dis-the late 1990s in the United Kingdom to reposition thetinction is made between industries that actually produceBritish economy as an economy driven by creativity andthe intellectual property and those that are necessary toinnovation in a globally competitive world. “Creativeconvey the goods and services to the consumer. A furtherindustries” are defined as those requiring creativity, skillgroup of “partial” copyright industries comprises thoseand talent, with potential for wealth and job creationwhere intellectual property is only a minor part of theirthrough the exploitation of their intellectual propertyoperation (see chapter 6). (DCMS, 2001). Virtually all of the 13 industries includedTable the industries included in eachin the DCMS classification could be seen as “cultural” inmodel. The UK DCMS model makes no distinction betweenthe terms defined earlier; however, the Government of thethe industries included, but the other three designate a groupUnited Kingdom has preferred to use the term “creative”of “core” industries, ., those whose inclusion is central toindustries to describe this grouping, apparently to sidestepthe definition adopted in each case. It is apparent that thepossible high-culture connotations of the word “cultural”. contents of the core differ markedly among these three mod- Symbolic texts model. This model is typical of the approach toels; for example, the creative arts, which are the epicentre of9 UNCTAD, Creative Industries and Development(document TD(XI)/BP/13, June 2004). 6CREATIVE ECONOMY REPORT 2010Concept and context of the creative economy
1Table Classification systems for the creative industries derived from different models 1. UK DCMS model2. Symbolic texts model3. Concentric circles model4. WIPO copyright modelAdvertisingCore cultural industriesCore creative artsCore copyright industriesArchitectureAdvertisingLiterature AdvertisingArt and antiques marketFilmMusicCollecting societiesCraftsInternetPerforming artsFilm and videoDesignMusicVisual artsMusicFashionPublishingPerforming artsOther core cultural industriesFilm and videoTelevision and radioPublishingFilmMusicVideo and computer gamesSoftwareMuseums and librariesPerforming artsTelevision and radioPeripheral cultural industriesPublishingVisual and graphic artWider cultural industriesCreative artsSoftwareHeritage servicesInterdependent copyright industriesTelevision and radioBorderline cultural industriesPublishingBlank recording materialVideo and computer gamesConsumer electronicsSound recordingConsumer electronicsFashionTelevision and radioMusical instrumentsSoftwareVideo and computer gamesPaperSportPhotocopiers, photographic equipmentRelated industriesAdvertisingPartial copyright industriesArchitectureArchitectureDesign Clothing, footwearFashionDesignFashionHousehold goodsToysthe concentric circles model, are regarded as peripheral in therelies on enlarging the concept of “creativity” from activitiessymbolic texts construction. having a strong artistic component to “any economic activi-ty producing symbolic products with a heavy reliance onThere is no “right” or “wrong” model of the creative10intellectual property and for as wide a market as possible”industries, simply different ways of interpreting the structur-(UNCTAD, 2004). UNCTAD makes a distinction betweenal characteristics of creative production. The attractiveness of“upstream activities” (traditional cultural activities such asthe various models may therefore be different, depending onperforming arts or visual arts) and “downstream activities”the analytical purpose. From the viewpoint of statistical data(much closer to the market, such as advertising, publishingcollection, however, a standardized set of definitions and aor media-related activities) and argues that the second groupcommon classification system are needed as a basis forderives its commercial value from low reproduction costs anddesigning a workable framework for dealing with the creativeeasy transfer to other economic domains. From this perspec-industries within the larger standard industrial classificationtive, cultural industries make up a subset of the creativesystems that apply across the whole . Creative industries are vast in scope, dealing with UNCTAD classification interplay of various sectors. These creative sectors range fromof the creative industriesactivities rooted in traditional knowledge and cultural her-itage such as art crafts, and cultural festivities, to more tech-A significant landmark in embracing the concept ofnology and services-oriented subgroups such as audiovisualsthe “creative industries” was the UNCTAD XI Ministerialand the new media. The UNCTAD classification of creativeConference in 2004. At this conference, the topic of creativeindustries is divided into four broad groups: heritage, arts,industries was introduced into the international economicmedia and functional creations. These groups are in turnand development agenda, drawing upon recommendationsdivided into nine subgroups, as presented in figure by a High-level Panel on Creative Industries andThe rationale behind this classification is the fact thatDevelopment. This topic is further elaborated in chapter 9. most countries and institutions include various industriesThe UNCTAD approach to the creative industriesunder the heading “creative industries”, but very few try to10 Ibid. CREATIVE ECONOMY REPORT 20107Concept and context of the creative economy
classify these industries in domains, groups or categories. YetHeritage. Cultural heritage is identified as the origin of all1doing so would facilitate an understanding of the cross-sec-forms of arts and the soul of cultural and creative indus-toral interactions as well as of the broad picture. This classi-tries. It is the starting point of this classification. It is fication could also be used to provide consistency in quanti-heritage that brings together cultural aspects from the tative and qualitative analysis. It should be noted that all tradehistorical, anthropological, ethnic, aesthetic and societalstatistics presented in this report are based on this classifica-viewpoints, influences creativity and is the origin of a tion. According to this classification, the creative industriesnumber of heritage goods and services as well as culturalcomprise four large groups, taking into account their distinctactivities. This group is therefore divided into two characteristics. These groups, which are heritage, arts, mediasubgroups:and functional creations, are described in figure . – Traditional cultural expressions:art crafts, festivals and cele-brations; and– Cultural sites:archaeological sites, museums, libraries,UNCTAD definition of the creative industriesexhibitions, creative industries: Arts. This group includes creative industries based purely are the cycles of creation, production and distribution of goods andon art and culture. Artwork is inspired by heritage, iden-services that use creativity and intellectual capital as primary inputs; tity values and symbolic meaning. This group is divided constitute a set of knowledge-based activities, focused on but notinto two large subgroups: limited to arts, potentially generating revenues from trade and intel-– Visual arts:painting, sculpture, photography andlectual property rights;antiques; and comprise tangible products and intangible intellectual or artistic– Performing arts:live music, theatre, dance, opera, circus,services with creative content, economic value and market objectives; puppetry, etc. stand at the crossroads of the artisan, services and industrial sectors; Media. This group covers two subgroups of media that pro-andduce creative content with the purpose of communicating constitute a new dynamic sector in world large audiences (“new media” is classified separately):– Publishing and printed media:books, press and other publica-tions; andFigure UNCTAD classification of creative industries – Audiovisuals:film, television, radioand other Cultural sites cultural expressionsFunctional group com-Archaeological sites, Heritage Art crafts, festivals museums, libraries, and celebrationsexhibitions, etc. prises more demand-driven and Visual arts Performing arts services-oriented industries creat-Paintings, sculptures, Live music, theatre, dance, photography and antiques opera, circus, puppetry, etc. ing goods and services with func- Arts tional purposes. It is divided into the following subgroups: Publishing and Audiovisuals printed media Creative industries Film, television, radio, Books, press and – Design:interior, graphic, fashion,other broadcasting other publications jewellery, toys; Media – New media:architectural, advertis-Design New mediaing, cultural and recreational, Software, video games, Interior, graphic, digitized creative contentfashion, jewellery and toys creative research and develop- Functional Creative services ment (R&D), digital and other Architectural, advertising, creations creative R&D, cultural related creative services. & recreational Source: UNCTAD 8CREATIVE ECONOMY REPORT 2010Concept and context of the creative economy
– Creative services:architectural, advertising, cultural andates positive externalities in various other sectors of the1recreational, creative research and development (R&D),economy. Another practical and methodological reason isdigital and other related creative in national accounts, sport is aggregated with recre-ational services. From the conceptual viewpoint adopted byThere is an ongoing debate about whether science andthe present report, sport is associated more with training,R&D are components of the creative economy, and whetherrules and competition rather than with creativity. Therefore,creative experimentation activities can be considered R& is not included in the UNCTAD classification ofRecent empirical research has begun to analyse the interac-“creative industries”.tions between research, science and the dynamics of the creative economy. In UNCTAD’s approach, creativity andknowledge are embedded in scientific creations in the creative economyway as in artistic creations. In order to nurture the creativeeconomy, it recommends that governments regularly assessRegardless of how the creative industries are definedthe conditions for technology acquisition and upgrading andand classified, there is no disagreement that they lay at theimplement and review their science, technology and innova-centre of what can be labelled in broader terms the “creativetion policies, including information and communicationseconomy”. The term “creative economy” appeared in 2001intechnologies (ICTs) and their implications for Howkins’ book about the relationship between creativi-12Lately, the term Science and Expansion of Sciencety and Howkins, “creativity is not new and(S2ES) has been used with different meanings. It is usuallyneither is economics, but what is new is the nature and therelated to Web -enabled scientific activities, but it hasextent of the relationship between them and how they com-also been related to the expansion of science by means ofbine to create extraordinary value and wealth”. Howkins’ usenew concepts and theories, or new modes of producingof the term “creative economy” is broad, covering 15 extending from arts to the wider fields of scienceand technology. According to his estimates, in the year 2000,UNESCO approached this matter in the context ofthe creative economy was worth $ trillion worldwide, andincreased cooperation between science and industry as wellit was growing at 5 per cent annually. For Howkins, there areas between the public and private sectors in the promotiontwo kinds of creativity: the kind that relates to people’s fulfil-of scientific research for long-term goals, prior to the dis-ment as individuals and the kind that generates a about the creative economy, in the context of theThe first one is a universal characteristic of humanity and isWorld Conference on Science in 1999. As pointed out in thefound in all societies and cultures. The second is stronger inDeclaration, the two sectors should work in close collabora-industrial societies, which put a higher value on novelty, ontion and in a complementary manner. However, from review-science and technological innovation, and on intellectualing follow-up activities, it seems that scientists from the property rights. public and private sectors have not yet articulated this coop-eration even if the private sector is a direct beneficiary of sci-There is no unique definition of the “creative econo-entific innovation and science education and an increasingmy”. It is a subjective concept that has been shaped through-proportion of funds for creative-industry-related scientificout this decade. There is, however, growing convergence on aresearch are financed by the private sector. core group of creative industries and their overall interactionsboth in individual countries and at the international and its role in the creative economy are alsoThis report adopts the UNCTAD definition of the “creativedebatable. Some classifications of creative industries include13economy”, which is summarized in the following . In most cases, this is because ministries of culture arealso in charge of sport matters. This is also justified by theFor countries in the developing world, recognition of thefact that sport is an important source of revenue and gener-development dimension of the creative industries and hence of11The World Multiconference on Systemics, Cybernetics and Informatics, held in July 2010 in Orlando, Florida (United States of America), addressed issues related to the second-order cybernetics and the systems (2001). 13Reference made to the definition by the UNCTAD Creative Economy and Industries Programme, ECONOMY REPORT 20109Concept and context of the creative economy
implementation in various Asian definition of the creative economy At the same time at UNESCO headquarters, workThe “creative economy” is an evolving concept based onwas proceeding on the preparation of a cultural diversitycreative assets potentially generating economic growthconvention whose provisions would specifically recognize theand development. contribution that cultural industries make to economic andcultural development in both industrialized and developing It can foster income generation, job creation and export earningscountries. The resulting Convention on the Protection andwhile promoting social inclusion, cultural diversity and humanPromotion of the Diversity of Cultural Expressions by the General Conference of UNESCO in It embraces economic, cultural and social aspects interacting withOctober 2005 and entered into force in March 2007 (see14technology, intellectual property and tourism 9). It is a set of knowledge-based economic activities with a developmentThus it can be seen that the concept of the “creativedimension and cross-cutting linkages at macro and micro levels toeconomy” has evolved along several paths over the last tenthe overall . It has emerged as a means of focusing attention on the It is a feasible development option calling for innovative, multi-role of creativity as a force in contemporary economic life,disciplinary policy responses and interministerial action. embodying the proposition that economic and culturaldevelopment are not separate or unrelated phenomena but At the heart of the creative economy are the creative industries. part of a larger process of sustainable development in whichboth economic and cultural growth can occur hand in creative economy has been more recent. The São PauloIn particular, the idea of the creative economy in the devel-Consensus arising from UNCTAD XI was a decisive step inoping world draws attention to the significant creative assetsthis regard. Subsequently, UNCTAD enlarged the focus of itsand rich cultural resources that exist in all developing coun-policy-oriented analysis, emphasizing four key objectives in itstries. The creative industries that use these resources not onlyapproach to the creative economy:enable countries to tell their own stories and to project theirown unique cultural identities to themselves and to the world To reconcile national cultural objectives with technologicalbut they also provide these countries with a source of eco-and international trade policies; nomic growth, employment creation and increased participa- To analyse and deal with the asymmetries inhibiting thetion in the global economy. At the same time, the creativegrowth of creative industries in developing countries; economy promotes social inclusion, cultural diversity and To reinforce the so-called “creative nexus” between invest-human , technology, entrepreneurship and trade; and To identify innovative policy responses for enhancing thecreative economy for development gains. creative class and creativeentrepreneursOther initiatives that have furthered the role of the cre-A broad interpretation of creativity also underliesative economy in development include a symposium held inNagRichard Florida’s descriptions of the emerging “creativeaur, India, in 2005, organized by UNESCO. The sympo-sium fclass” in society, a cohort of professional, scientific and artis-ocused on the role of cultural industries in develop-ment, with particular emphasis on the importic workers whose presence generates economic, social andtance of local15cultural dynamism, especially in urban specif-artistic and cultural activity as a means for economic empow-erment and poically, the creative class includes people in science and engi-verty alleviation. The recommendations of thisevent, known as the Jneering, architecture and design, education, arts, music andodhpur Initiatives, put forward a seriesentertainment whose economic function is to create newof strategies for data collection and industry development for14See also chapter (2002).10CREATIVE ECONOMY REPORT 2010Concept and context of the creative economy
ideas, new technology or new creative content. According togrowth, and he goes a step further by adding the third T, tol-1Florida: “Creativity is not intelligence. Creativity involves theerance, which is needed to attract human capital. Criticismsability to synthesize. It is a matter of sifting through data,have been raised about Florida’s work, including that theperceptions and materials to come up with something newrange of occupational categories to define the creative classand useful”. In his approach, the creative class also includesis too broad. Nevertheless, it is recognized that he has con-a broader group of creative professionals in business, financetributed to advancing a public discourse about the emergingand law. Whether they are artists or engineers, musicians orcreative scientists, writers or entrepreneurs, these workersAlong these lines, the notion of “creative entrepre-share a common creative ethos that values creativity, individ-neurs” is also gaining ground to characterize successful and uality, difference and merit. In sum, they are people who addtalented, entrepreneurial people who are able to transformeconomic value through creativity. The values of the creativeideas into creative products or services for society (see boxclass are individuality, meritocracy, diversity and openness. ). The terminology is actually derived from the concept ofstFlorida estimated that at the beginning of the 21“cultural entrepreneurship” as it deals with strategy formation,century, the creative class represented almost one-third of theorganizational design and leadership in a cultural in the United States of America and that the cre-Entrepreneurship in this sense is described as a new way ofative sector accounted for nearly half of all wage and salarythinking, a new attitude: looking for opportunities within theincome in this country, about $ trillion, as much as theenvironment of a cultural organization, regarding the cultural1618manufacturing and service sectors his mission as the starting point. According to Haggort,after17second book,Florida points out that we are entering thethe rise and development of arts management, cultural entre-creative age, as the rise of creativity is the prime factor of ourpreneurship became a leading organizational philosophy forsteconomy. He presents his “3 Ts theory” for economicthe 21century. Creative businesses are also more active ingrowth: technology, talent and tolerance. His theory differspromoting conventional theory since he argues that talent drivesBox A creative entrepreneur: Transforming ideas into successful business In the last 20 years, intellectual property has become increasingly important to businesses, and personal computers started appearing on every desk-top, employees morphed into knowledge workers, companies began to focus on knowledge management and key information was stored in knowledgebases connected – in theory – via knowledge networks. The result was the knowledge economy, a phenomenon that has transformed the business ofbusiness and helped entire emerging economies to compete globally. In this context, however, most of the “knowledge” on which the knowledge economy is built is actually just information – data, facts and basic businessintelligence. As management guru Tom Davenport once said, “Knowledge is information combined with experience, context, interpretation, and reflec-tion”. It is the knowledge derived from information that gives you a competitive edge. Many of us now live in an “information democracy” – if you haveaccess to a personal computer (PC) and the Internet, you can tap into almost all the information that is publicly available worldwide. Advanced softwareand Web services can help trace, slice and dice the information in ways that were impossible a decade ago. The emergence of low-cost PCs gave rise to a powerful network that has transformed opportunities for learning and communicating. The magical thingabout this network is not just that it collapses distance and makes everyone your neighbour. It also dramatically increases the number of brilliant mindswe can have working together – and this scales up the rate of innovation to a staggering degree. As more and more of the world's information, commerce and communications moves to digital form, it will open the door to a new world of connectedexperiences that link our interests and our communities into a seamless whole that extends across home, work, school and play. Already, a new gener-ation of technology is transforming expectations for how we will conduct business, communicate, access entertainment and much more. Increasingly,people envision a world of anywhere access – a world in which the information, the communities and the content that they value are available instantlyand easily no matter where they are. 16Florida (2004).17Florida (2005), The Flight of the Creative (2007).CREATIVE ECONOMY REPORT 201011Concept and context of the creative economy
1Box continued A creative entrepreneur: Transforming ideas into successful businessWilliam (Bill) H. Gates is chairman of Microsoft Corporation, one of the biggest companies in software services and business solutions in the world. WhenMicrosoft began in 1975, Mr. Gates and Paul Allen, co-founder of Microsoft, immediately recognized the implications of the microprocessor and its poten-tial to revolutionize the information and communication technology. In 1981, . selected the fledgling company to be the main supplier of operatingsystems for its first PC – Microsoft's first big step towards defining the software standards of the PC industry. Its Windows operating systems and Officeproductivity programmes are the dominant PC software. Microsoft had revenues of $ billion for the fiscal year ending June 2007 and employs morethan 78,000 people in 105 countries and addition, Mr. Gates founded Corbis, which is developing one of the world's largest resources of visual arts information – a comprehensive digital archiveof art and photography from public and private collections around the globe. He and his wife, Melinda, have endowed a foundation to support philan-thropic initiatives in the areas of global health and education. Sources: Carolina Quintana, UNCTAD secretariat. Creative cities use their creative potential in citiesways. Some function as nodes for generating cultural experi-The idea of a creative economy has also been appliedences for inhabitants and visitors through the presentation ofspecifically to the economy of cities, leading to the emer-their cultural heritage assets or through their cultural activi-gence of the concept of a “creative city”. This term describesties in the performing and visual arts. Some, such asan urban complex where cultural activities of various sortsBayreuth, Edinburgh or Salzburg, use festivals that shape theare an integral component of the city’s economic and socialidentity of the whole city. Others look to broader culturalfunctioning. Such cities tend to be built upon a strong socialand media industries to provide employment and incomesand cultural infrastructure, to have relatively high concentra-and to act as centres for urban and regional growth. In othertions of creative employment, and to be attractive to inwardcases, a more pervasive role for culture in the creative cityinvestment because of their well-established cultural facili-rests on the capacity of the arts and culture to foster urbanties. Charles Landry, in his seminal work on the concept ofliveability, social cohesion and cultural identity. The contri-the creative city, argues that cities have one crucial resource:bution of the creative sector to the economic vitality of citiestheir people. Creativity is replacing location, naturalcan be measured in terms of the direct contribution of theresources and market access as a principal key to urbansector to output, value added, incomes and employment anddynamism. Landry points out that, “Today many of thefurther through the indirect and induced effects caused, forworld’s cities face periods of transition largely brought aboutexample, by the expenditures of tourists visiting the city toby the vigour of renewed globalization. These transitionsexperience its cultural attractions. In addition, cities with anvary from region to region. In areas such as Asia, cities areactive cultural life can attract inward investment in othergrowing while in others, such as Europe, old industries areindustries seeking to locate in centres that will provide andisappearing and the value added in cities is created lessenjoyable, stimulating environment for what is manufactured and more through intellectu-19 al capital applied to products, processes and services”.19Landry (2000: xiii). 12CREATIVE ECONOMY REPORT 2010Concept and context of the creative economy
1Box The creative city The notion of “creativity” has moved centre-stage given the dramatic shifts in global terms of trade, the operating dynamics of the economy, the rise ofthe talent agenda and the repositioning of cities worldwide. Everyone is now in the creativity game. Creativity has become a mantra of our age, endowedalmost exclusively with positive virtues. At my last count, over 60 cities worldwide called themselves “creative city” from Creative Manchester to Bristoland, of course, Creative London in Britain. And ditto Canada: Toronto with its Culture Plan for the Creative City; Vancouver and the Creative City Task Forceand Ottawa’s plan to be a creative city. In Australia we find the Brisbane Creative City strategy; there is Creative Auckland. In the United States, there iscreative Cincinnati, creative Tampa Bay and the welter of creative regions such as creative New England. Partners for Livable Communities in Washington,., launched a Creative Cities Initiative in 2001; Osaka set up a Graduate School for Creative Cities in 2003 and launched a Japanese Creative CitiesNetwork in 2005; and since 2004, there has been Yokohama: Creative City. Even UNESCO, through its Global Alliance for Cultural Diversity, launched its Creative Cities Network in 2004, crowning Edinburgh as the first member for its literary creativity, and since then, over a dozen have followed. To simplify, there are four ways in which the term “creative city” has been creative city as arts and cultural infrastructure Indeed, on closer examination, most of the strategies and plans are in fact concerned with strengthening the arts and cultural fabric, such as support forthe arts and artists and the institutional infrastructure to creative city as the creative economy Increasingly, there is a focus on fostering the creative industries or creative economy, which is seen as a platform for developing the economy and eventhe city. At its core there are three main domains: the arts and cultural heritage, the media and entertainment industries, and the creative business-to-business services. The latter sphere is perhaps the most important since it can add value to every product or service. Design, advertising and entertain-ment in particular act as drivers of innovation in the broader economy and shape the so-called “experience economy”. The creative city as synonymous with a strong creative class Richard Florida, who introduced the term “creative class”, makes an important conceptual shift by focusing on the creative role of people in the “cre-ative age”. He argues that the economy is moving from a corporate-centred system to a people-driven one and companies now move to people and notpeople to jobs, and cities need a people climate as well as a business develops indicators to measure the attributes of places that attract and retain the creative class, which in turn attracts companies. Artists con-stitute one group at the core of this class, as are creative economy people and importantly, scientists, so the city with a strong creative class is broaderthan the first two definitions. Cities are locked in competition to attract, keep or grow their own creative classes, and the factors that contribute to this,such as good air connections, research capacity, venture capital investment, and clusters of producers, are all well known in the widely copied “SiliconSomewhere” model. The cities that are succeeding in the new economy are also the most diverse, tolerant and bohemian places. Cities that are investing heavily in hightechnology futures but that also are not providing a broad mix of cultural experiences will fall behind in the longer term. The central concern raises in1The Rise of the Creative Classis the “quality of place”, captured by inquiring: What’s there? Who’s there? and What’s going on?The creative city as a place that fosters a culture of creativityThe three definitions described above are helpful, but this is not what the “creative city” is exclusively concerned with. The “creative city” notion is broad-er than that of the “creative economy” and “creative class”. It sees the city is an integrated system of multiple organizations and an amalgam of cul-tures in the public, private and community sectors. It claims that in a period of dramatic change, the disparate bodies in a city need to each becomemore inventive and work together to address the challenges; otherwise, they will go backwards. 2The Creative Cityargues that “Cities have one crucial resource – their people. Human cleverness, desires, motivations, imagination and creativity arereplacing location, natural resources and market access as urban resources. The creativity of those who live in and run cities will determine future success. As cities became large and complex enough to present problems of urban management so they became laboratories that developed the solu-tions – technological, conceptual and social – to the problems of growth”. The idea of the “creative city” emerged in the late 1980s. It was a response to the fact that globally, cities had been struggling and restructuring as global terms of trade shifted to the East and elsewhere. When the “creative city” notion was more publicly introduced in the early 1990s, the philosophywas that there is always more potential in any place than any of us would think at first sight, even though very few cities, perhaps London, Tokyo, NewYork or Amsterdam, are comprehensively creative. It posits that conditions need to be created for people to think, plan and act with imagination in harnessing opportunities ranging from addressing homelessness to creating wealth or getting artists to unsettle conventional attitudes. The concept isthat ordinary people can make the extraordinary happen and that if everyone were just 5 per cent more imaginative about what they did, the impactwould be dramatic. CREATIVE ECONOMY REPORT 201013Concept and context of the creative economy
1Box continued The creative city In the “creative city”, it is not only artists and those involved in the creative economy who are creative. Creativity can come from anyone who address-es issues in an inventive way, be it a social worker, a business person, an engineer, a scientist or a public servant. In the urban context, interestingly, itis combined teams that, with different insights, generate the most interesting ideas and projects. This implies that the “creative city” is a place that isimaginative comprehensively. It has a creative bureaucracy, creative individuals, organizations, schools, universities and much more. By encouraging cre-ativity and legitimizing the use of imagination within the public, private and community spheres, the idea bank of possibilities and potential solutions toany urban problem will be broadened. The “creative city” requires infrastructures beyond the hardware – buildings, roads or sewage. Creative infrastructure is a combination of the hard andthe soft, including, too, the mental infrastructure, the way a city approaches opportunities and problems, the atmosphere and the enabling devices thatit fosters through its incentives and regulatory structures. The soft infrastructure needs to include: a highly skilled and flexible labour force; dynamicthinkers, creators and implementers; being able to give maverick personalities space; strong communication linkages internally and with the externalworld; and an overall culture of entrepreneurship whether this is applied to social or economic ends. This establishes a creative rub as the imaginativecity stands on the cusp of a dynamic and tense creative as an individual or organization is relatively easy, yet to be creative as a city is a different proposition, given the amalgam of cultures andinterests involved. This usually implies taking measured risks, widespread leadership, a sense of going somewhere, being determined but not determin-istic and, crucially, being strategically principled and tactically flexible. To maximize this requires a change in mindset, perception, ambition and will, and an understanding of the city’s networking capacity and its cultural depth and richness. This transformation has a strong impact on organizational cul-ture. It requires thousands of changes in mindset, creating the conditions for people to become agents of change rather than victims of change, seeingtransformation as a lived experience, not a one-off event. It requires bureaucracies that are themselves built environment – the stage, the setting, the container – is crucial for establishing a milieu. Essentially, the city is seen as a complex adaptive systemwhere a more holistic approach creates “systemic creativity” and where creativity is leveraged in the entire community. This milieu creates the mood of thecity, the atmosphere and its (2002).2Landry (2000).By Charles Landry, who wrote The Creative City: A Toolkit for Urban Innovators in2000and more recentlyThe Art of City-Makingin good example of a creative city is London; the creativeand business services and accounted for between 20 and 2520industries comprise the second biggest sector in the Londonper cent of job growth in the city over this . Between 1995 and 2001, London’s creative indus-provides some indicators regarding the creative workforce intries grew faster than any other major industry except financialsome major creative cities in recent Estimates of culture employment in selected creative cities CityReference yearCity population (000s) City population as %City cultureCity culture employ-of national population employment (000s) ment as % of nationalculture employment London20027,, York20028, (Ile-de-France)200311,: John C. Gordon and Helen Beilby-Orrin, International Measurement of the Economic and Social Importance of Culture,Organisation for Economic Co-operation and Development (OECD), from GLA Economics, quoted in The Work Foundation (2007:48). 14CREATIVE ECONOMY REPORT 2010Concept and context of the creative economy
Established in 2004, the UNESCO Creative CitiesMontreal is a case study for design-integrated processes1Network reflects a changing perception of culture and itsand the kind of development of cultural districts that canrole in society and as part of the economy. The idea for thealso be found in other parts of the world. The notion ofnetwork was based on the observation that while many cities“design” is fully integrated as part of the city’s urban plan-around the world realize that the creative industries arening strategy. In Montreal, design is not only about generat-beginning to play a much greater role in their local economicing wealth but also about improving the quality of people’sand social development schemes, they do not see clearly howlives. The Canadian authorities invited designers and archi-to harness this potential or how to engage the appropriatetects to redefine a new aesthetic/functionality of openactors in this development. spaces and to reinvent and redevelop neglected parts ofMontreal in order to make these more attractive to the citi-The main objective of the network is, therefore, tozens. The “Design Commerce Montreal” project invitedfacilitate the development of cultural clusters around thedesigners and architects to work on the look and feel world to exchange know-how, experiences and best practicesof shopping areas by redesigning numerous shops andas a means of promoting local economic and social develop-restaurants. ment through creative industries. In order to better target thedevelopment needs of specific sub-sectors within the culturalThe city of Popayan, Colombia, was appointed as theindustries, the Creative Cities Network devised seven themat-first UNESCO City of Gastronomy and it provides quite aic networks, and cities can choose one field on which to focusdifferent model for development. It has made extraordinarytheir efforts. Cities with established creative pedigrees in thestrides in formalizing its informal gastronomy industry. Byfields of literature, cinema, music, folk art, design, informa-facilitating access to space and other facilities, imposingtion technology/media arts or gastronomy can apply to joinmandatory hygiene regulations and publishing widely circu-the network. Cities are encouraged to consider their candida-lated restaurant and food surveys that include even the small-ture in fields that have the greatest potential for economicest food stands, Popayan has invigorated its economy andand social development. provided jobs and income to many people. This conscioussupport of the creative industries is giving individuals, In the current post-industrial era, there is an increasingfamilies and communities in Popayan the opportunity to economic role for cities and towns in the formulation ofcelebrate their distinctive recipes, rituals and ingredientslocal development strategies. Over the last few years, a grow-together in an international context — and in the process,ing number of cities in all parts of the world have been usingdiscover a new openness to the “creative cities” concept to revitalize socio-economicgrowth by encouraging creative capacities and attracting The Creative Cities Network started out by focusingcreative workers. The Creative Cities Network allows for syn-on the fine arts and core cultural industries such as literature,ergy and a comprehensive exchange of ideas with a view tomusic and folk art and on the need to build on a proven trackmeeting the needs of creative stakeholders across public, record within one of the cultural themes or and civil society sectors. This platform helps citiesHowever, the difficulties in demonstrating measurable take stock of their cultural industry strengths and needs in aeconomic results may have led to a more economics-basedcollaborative context that promotes greater communicationinterpretation of this requirement. As a result, the focus hasand cohesion on a local level. The network is open to allshifted from fine arts and tradition and their upgrading orcities that meet the requirements set by UNESCO and adornment effect on a city to a more innovative (design) andparticularly encourages cities that are not capitals, but thatmarket-driven (gastronomy) approach of developing creativehave historic and cultural resources and a link to one of theindustries within the cityscape (see table ).21thematic information about the application process is available from ECONOMY REPORT 201015Concept and context of the creative economy
to economize on their spatial inter-linkages, to reap the mul-1Table Creative Cities Network tiple advantages of spatially concentrated labour markets, totap into the abundant information flows and innovativeUNESCO Creative Cities Network potentials that are present wherever many different special-CityCountryThemeized but complementary producers are congregated, and soEdinburghUnited KingdomUNESCO City of Literatureon.” Iowa CityUnited StatesUNESCO City of LiteratureMelbourneAustraliaUNESCO City of LiteratureAs Michael Porter has argued (Porter, 1990), the pro-BolognaItalyUNESCO City of Music duction of creative goods and services under these circum-GhentBelgiumUNESCO City of Musicstances can be shown to enhance efficiency and productivityGlasgowUnited KingdomUNESCO City of Music22SevilleSpainUNESCO City of Musicgrowth and promote sustainable an urbanBerlinGermanyUNESCO City of Designcontext, this has been observed in traditional centres of Buenos AiresArgentinaUNESCO City of Designcultural production and creative activity such as London, LosKobeJapanUNESCO City of DesignAngeles, New York and Paris and, more recently, in the MontrealCanadaUNESCO City of DesignNagoyaJapanUNESCO City of Designmetropolitan surroundings of Bombay, Hong Kong, MexicoShenzhenChinaUNESCO City of DesignCity, Seoul and Shanghai. ShanghaiChinaUNESCO City of DesignAswanEgyptUNESCO City of Crafts and Folk ArtIt is not only in the major centres that such culturalKanazawaJapanUNESCO City of Crafts and Folk Artdistricts arise, however. In many parts of the world, similarSanta FeUnited StatesUNESCO City of Crafts and Folk Artprocesses are resulting in local concentrations of culturalChengduChinaUNESCO City of Gastronomyproduction that both provide economic empowerment forPopayanColombiaUNESCO City of GastronomyLyonFranceUNESCO City of Media Arts the community and reflect the traditional knowledge, skillsBradfordUnited KingdomUNESCO City of Filmand cultural traditions of the people. Some examples of suchSource: UNESCO Secretariat, June 2010production drawn from the developing world are cited bySantagata (2006): In Sigchos, Ecuador, a number of artisans produce pot-tery, woven goods and clothing reproducing old forms, clusters, networksdesigns and traditional districts In Aleppo, Syrian Arab Republic, micro- and small firmsThe growth of creative production within an urbangathered in small areas of the town produce green olive soapcontext derives partly from the existence of agglomerationaccording to a 3,000-year-old tradition. The technologyexternalities, the beneficial spillovers that accrue to firmsemployed is ancient, the product highly proximity to one another. It is not only in cities thatsuch effects can be realized. In principle, groups of creativeSantagata argues that cultural districts such as thesebusinesses might grow up in any location if the conditionsmay be able to establish collective intellectual property rightsfor development of a creative cluster exist. The tendency ofover the distinctive qualities of their particular output. Suchfirms involved in music, film, visual arts, fashion and designrights, which may, for example, be exercised in the form ofto converge in distinctive clusters reflects the economic, socialtrademarks, can act as a safeguard against illegal copying asand cultural interactions that develop between firms and thatwell as a stimulus to new business investment and the main-become essential to their survival and growth. As Allen Scotttenance of quality standards (see chapter 6).argues (Scott, 2005), “By clustering together, firms are able22Further discussion of the Porter model of creative clusters is in chapter 3. 16CREATIVE ECONOMY REPORT 2010Concept and context of the creative economy
1Box Cultural and creative clusters in China The importance of the creative economy in East Asia and particularly in the Hong Kong Special Administrative Region (SAR) of China and mainland Chinais reflected in the mushrooming of creative hubs and clusters in the region. In most cases, these are conversions of run-down and vacant factories thatused to house activities of the manufacturing industries that either died off or have been relocated to another district or city. The majority of these con-versions are initiated by the government, implemented either wholly by the government or in some form of public-private partnership. We will examinehere the situations in Hong Kong SAR and a policy directive, the Hong Kong SAR Government first employed the term “creative industries” in its Policy Address of 2003. A mapping exercise wascarried out, resulting in the report, Baseline Study of Hong Kong’s Creative Industries (Central Policy Unit and the Centre for Cultural Policy Research(CCPR) of the University of Hong Kong, 2003). Subsequent annual Policy Addresses reinforced this initial interest with concrete measures until January12005, when it was elaborated as the priority work of the then Chief Executive, Tung Chee Wah, for his remaining term of Home Affairs Bureau(HAB) of the Hong Kong SAR Government also produced a creativity index in the same year (HAB & CCPR, 2005). Jockey Club Creative Arts Centre – Hong Kong SAR The Jockey Club Creative Arts Centre project is the first of its kind initiated by the Government and supported by a few institutions, including a seed2donation of HK$70 million from the Jockey Club for the renovation of a vacant factory building into a creative arts seven-storey factory, witha gross floor area of about 8,000 sq m, is located in a very old district of public housing called Shek Kip Mei. The designer is to consider how to convertand transform the factory spaces into studios and other communal spaces for the tenants, who would be artists and entrepreneurs in the creative indus-tries. The Creative Arts Centre represents on a very small scale the ambitions of what the Government would like to do in a much bigger urban context:3the West Kowloon Cultural District, 40 hectares of reclaimed land on the west side of Kowloon Peninsula facing Victoria Harbour. West Kowloon Cultural District – Hong Kong SAR The West Kowloon Cultural District project was conceived at the end of the 1990s. An international idea competition was held in 2001 and the schemeof United Kingdom architect Norman Foster to cover the majority of the site with a glass canopy was chosen as the winner. Based on this concept, adesign brief was drawn up as an Invitation for Proposals from developers in 2003. The basic requirements were: (a) the plot ratio of development shouldbe about , giving about 700,000 sq m of gross floor area (but most submissions in the end exceeded this guideline, some even by as much as twotimes); (b) 30 per cent of the site should be used for art and cultural facilities, including four museums, four concert and performing venues, an outdoorgrand theatre with other art and gallery spaces; (c) the remaining area could be developed into retail, office and residential units; and (d) the developerwould have to build and operate this project for a period of 30 years before handing it back to the Government. In addition, there were two bindingrequirements: the project had to include the canopy and it was to be awarded in a single tender. Despite all the criticisms of the West Kowloon Cultural District project, it did bring about a brief renaissance of arts and culture in Hong Kong: develop-ers suddenly became very interested in organizing art and cultural events such as sponsoring the Pavarotti concert and the musical, “Phantom of theOpera”. World-class cultural institutions such as the Pompidou Centre and the Guggenheim Museum were both eager to have their branch museums inthe West Kowloon Cultural District. Arts and culture became useful tools even for branding of other real estate projects. Daishanzi Art District (Factory 798) – BeijingSince 2002, the Daishanzi Art District has been developed from the old Bauhaus-style Factory 798 (which produced electronic equipment for the 4military) designed by East German architects in the complex occupied a huge area of about 500,000 sq m but became obsolete under theeconomic reform at the end of the 1980s. In the early 1990s, while most of the sub-factories were vacant with 60 per cent of the total work force laidoff, avant-garde artists began renting spaces in the complex, which gradually attracted a clustering of art and publishing companies as anchor successful exhibitions and events such as the First Beijing Biennale in 2003 and the Daishanzi International Art Festival in 2004, the artists andcommunity managed to persuade the authority to keep the district as an artistic and creative hub. Dahuan (Great Circle) – BeijingThe 40 hectares of land for the development of the West Kowloon Cultural District is tiny compared with the plan to develop a cultural and creative indus-try park on the outskirts of Beijing near the Daishanzi area. The project is within the biggest and also the richest administrative district of the city,5Chaoyang District, which commissioned the author to do a strategic study for cultural and creative project is located in an area calledDahuan (or the Great Circle), which has been developed into a great cultural district, including the Chinese Film Museum, which opened in early :// Desmond Hui (2006), “From cultural to creative industries: Strategies for Chaoyang District, Beijing”, International Journal of Cultural Studies, 9:317-331. By Prof. Desmond Hui, Director, Centre for Cultural Policy Research, University of Hong ECONOMY REPORT 201017Concept and context of the creative economy
process, not only involving individuals, but also a and creative commons1socio-cultural domain of knowledge and a field. As perThere are a multiplicity of applications of theCsikszentmihalyi’s systems model of creativity, the domain isCommons theory, and despite the lack of agreement on a26a constituent factor in creativity,although it is importantdefinition, the concept has been increasingly used on valuesto keep in mind that domains change. Thus, collaborationthat relate to culture. A cultural commons is found when awith others seems to be the rule in creative process, sincegroup of people share an identity, as in the case of language,every creative idea builds on previous ideas of others. In thiscustoms and styles as well as rites and traditions. It is locat-context, it could be argued that important developments ined in time and space, either physical or virtual, and shared bythe arts are possible because of intensive cooperation or co-23a socially cohesive a system of intellectualcreation, as is the case in theatre, film, ballet, jazz improvisa-resources available in a geographical or virtual area, a cultur-27tion and new chapter 6, issues related to creativeal commons is the evolution of the more traditional cultur-collaboration is further district or cluster. Whether an image of a city, a local lan-guage or an artistic movement, a cultural commons is recog-nized in living cultures as the oral and intangible heritage economyhumanity. Living cultures are constantly changing. However,The term “the experience economy” appeared in 1999those who work against the local culture, particularly in pur-in the title of a book by B. Joseph Pine II and James of financial enrichment, can pose a challenge to the similar idea was explored in another 1999cept of cultural commons, and in certain cases become anbook entitled The Dream Society, by Rolf Jensen from theeconomic and a socio-political threat to the status quo. SuchCopenhagen Institute for Futures Studies in Denmark. Theis the case in some African rural areas that are remote fromconcept builds on the idea that in the near future, peoplethe centre of political and economic power and thus cut off24would be willing to allocate high percentages of their salariesfrom the main market suggests a needin order to have amazing life experiences. Their desire forto further explore the relationship between cultural com-emotional experiences would be linked to the consumptionmons and cultural districts on both the theoretical and prac-of creative products and services that should be highly tical and differentiated, as compared to a simple com-In the digital world, the concept of creative commonsmodity business. Having gotten its start in the Scandinaviancontinues to gain ground with the growing importance ofcountries, the concept is gradually being more widely assim-mobile phones, emails, blogs and highly collaborative Webilated, as evidenced by the growing sense that creative applications. Social networks and communities of usersbusinesses must orchestrate memorable events for their interact on virtual platforms, opening up new frontiers incustomers. The enriching experience would in turn be associ-information sharing, property rights and other fields relatedated with a customized lifestyle, status and the use of certainto the globalization of virtual networks and processes. Frombrands. This approach recognizes the difference between thethe economic and legal point of view, the debate over regu-pleasure and experience of going to an opera hall for a lating these new value creation channels, points to a need toperformance versus listening to an opera CD at home. Itrevisit issues related to the distribution of rights and respon-appreciates and capitalizes on the fact that when people go tosibilities. It is likely to require a shift of focus from a tradi-a restaurant, they go not just for the food, but for the multifac-tional property rights approach to a long-term perspective ineted experience of enjoying an evening in a charming atmos-which benefits are generated by collective action and by cre-phere, with good wine, company, conversation, music, etc. 25ativity issue is further examined in chapter the economic perspective, the experience econo-The recent trend towards “creativity in collaboration”my could be seen as a natural progression in the value-addedrests on the notion that creativity is essentially a social23Several research papers were debated at the first international workshop on cultural commons, organized by the Silvia Santagata Research Centre in collaboration with the University of Turin, Italy, in January 2010. 24Bocchino and Murpheree (2010). 25Carbone and Trimarchi (2010).26Csikszentmihalyi (1999).27Oostwoud Wijdenes (2009).28Pine and Gilmore (1999).18CREATIVE ECONOMY REPORT 2010Concept and context of the creative economy
chain of the creative economy. Much of the “luxury indus-stimulate creativity by exploring the local environment, pro-1try” fashion, cosmetics, spa care, etc. could also be categorizedmoting ecological literacy and greater awareness on the roleas “an experience business” in that it charges customers forof the arts within society, while contributing to the develop-29the feeling they get by engaging in it, or for the benefits theyment of more sustainable his 2009 book30receive from spending time in an activity. The experienceentitled Creative Ecologies, J. Howkinsexamines the relation-economy is one in which businesses can make fine differenti-ship between organisms and their environment. Observingations according to cultural diversity, aesthetics, memoriesthat several different species live together in an ecosystem, heand imagination. This also applies to tourism, arts and cul-emphasizes that creativity depends on a mix of four ecolog-ture, including music, the performing arts, cultural festivalsical conditions: diversity, change, learning and other activities related to the creative economy. TheHe describes the right place and the right habitat for hatch-potential of the experience economy can be seen in theing ideas and asserts that the best way to learn is to workgrowth of new media and social networking, in which pro-with people who are better and wiser than oneself. The argu-ducers and consumers not only interact but co-create by expe-ment draws on new ecological principles to show why someriencing and exchanging knowledge, know-how and prosper, or result in a new ecology of ideas, and othersfall by the wayside. In Howkins’ view, creative ecology is aniche where diverse individuals express themselves in a ecologytemic and adaptive way, using ideas to produce ideas; otherssupport this endeavour even if they don’t understand it. A fresh approach known as creative ecology reflectsthe ongoing thinking of creativity-led concepts. It aims drivers of the creative economy worldwideThe major drivers responsible for the extraordinaryresearch can be conducted to mutual benefit, current govern-growth in the creative industries worldwide can be found inment mechanisms do not necessarily support creativeboth technology and economics. The technological transfor-research practices and collaborative projects. Fortunately, amations in communications brought about by the digital growing number of countries are building platforms to stim-revolution and the economic environment within which thisulate innovative projects that involve science and creativityrevolution has taken place have combined to create the con-and incorporate open-source technology. Many use ditions for this growth. Some of the most significant driversmeetings, websites, training and awards to create a strongof growth in the creative economy are considered in morecommunity, and involve collaborations between knowledgedetail in sections , creative organizations in the application domainand civil society. For instance, in the Netherlands an ICT31innovation platformsupported by the Ministry Technology Economic Affairs and the Ministry of Education, Cultureand Science has been working with the information, commu-Many new knowledge chains lead from high science tonication and media industry to implement a strategichigh tech, as fundamental research is translated through sev-research agenda for the creative industries. Initiatives such aseral steps into marketable products and services. This kind ofthe Dutch “Living Labs” simulates creative outcomes intechnological product and process innovation is a constant inwhich technology, interactivity and communication help tothe creative economy, where research and development meth-make creativity visible and test concepts in real-life are diverse and differ from those used in science, in bothThe convergence of multimedia and telecommunicationscale and time. Despite the fact that academic and creative29Reference made to a creative ecology project developed to encourage learning by J. Aldridge, a visual artist involved in arts (2009).31IIP/Create is a Dutch foundation that brings together knowledge institutes, companies, non-profit institutions, creatives, platforms, sponsors and users. More information is availablefrom ECONOMY REPORT 201019Concept and context of the creative economy
34technologies has led to an integration of the means by which cre-process point is that markets rely on changes in1ative content is produced, distributed and consumed. This in turnaesthetics more than on changes in technology. In the creativehas fostered new forms of artistic and creative expression. At theindustries, there are very high rates of soft innovation. In thesame time, the deregulation of media and telecommunicationUnited Kingdom, for example, about half of the titles in the Topindustries and the privatization of state-owned enterprises in these40 album chart change each month, and bestselling video gamesspheres have opened the way for massive growth in private-sectorspend on average less than three weeks at the No. 1position. Bookinvestment, with consequent effects on output and employmentpublishing is worth almost £ billion. Each year the Britishacross the board. A number of countries have seized the opportu-economy sees the release of some 200,000 book titles, 33,000nities provided by these developments. To illustrate, the Republicmusic albums and around 830 new video games, the latter worthof Korea has ridden a wave of growth driven by its harnessing of£ billion. Given the commercial benefit of soft innovation tocontent creation to the new technologies in video games, anima-the overall economy, it seems logical to extend policies such as taxtion and other audiovisual services. As a result, Korean televisionincentives, public finance and labour market interventions to stim-programming exports, for example, tripled in value (from $ the creative to $ million) from 1999 to technology has brought about enormous growth range of media through which creative content is conveyed toconsumers, such as video-on-demand, music podcasting, stream-An increase in the demand for creative products hasing, computer games and the provision of television services viaalso been a significant driver of the creative economy’scable, satellite and the Internet. Overall, the number of distribu-growth. Several factors lie behind this demand push. First,tion channels and platforms has continued to grow, generating anrising real incomes in industrialized countries have boostedincreasing demand for creative content. It is the task of the creativedemand for income-elastic products, including creativeindustries, wherever they are located, to supply this content in agoods and services. Moreover, the real prices of some ofway that is culturally expressive and economically profitable. these products, as well as the prices of the means for theirmediated consumption, have fallen as technology advances,Underlying these developments has been a more generalleading to further upward pressure on demand. Maintainingtrend in economic policymaking towards a broadening of thethe demand for video games, for example, requires not onlyconcept of “innovation” from one concerned only with sciencea steady stream of new titles, but also newer and cheaper ver-and technology into a more wide-reaching appreciation of the rolesions of gaming consoles. Other examples of demand-sideof creativity in the economy. Opening up the idea of creativity asinteractions between soft and functional innovations includea driving force in the knowledge economy pushes the creativeDVD and MP3 players, which in part depend on the quali-industries into the spotlight as a primary source of the skilledty of films and that can produce creative ideas and make innovationhappen across a wide range of activities from business entrepre-Changing patterns of cultural consumption also driveneurship to imaginative new social programmes. the growth of the creative economy. Again it is the spread ofnew communication technologies that lies behind the trans-More recently, research published by the Nationalformation. New generations of consumers on all continentsEndowment for Science, Technology and the Arts in the Unitedare using the Internet, mobile telephones and digital mediaKingdom has found that current policy distorts the economy byin ways that not only expand their range of cultural experi-supporting innovation of a technological and functional nature,33ences but also transform them from passive recipients of cul-and neglecting “soft innovation”.According to Paul Stoneman,tural messages into co-creators of cultural content. The sensesoft innovation reflects changes of an aesthetic nature and prod-of empowerment brought about by these developments anduct differentiation, such as new books, films, plays and videothe process of redefining cultural identities are likely to con-games in markets that exhibit regular novelty. Such innovations cantinue as significant influences on the growth of the creativealso encompass a new line of clothing, the design of furniture orindustries in the future. a new advertising campaign. This broadens the OECD definitionof innovation, which emphasizes technological product and32Shim (2006:28).33Stoneman (2009).34OECD (2006), Oslo ECONOMY REPORT 2010Concept and context of the creative economy
The emergence of consumers as creators or co-creators ofA vibrant national tourism sector can serve to diversify1creative products has stimulated an enormous amount ofthe economy and generate social and environmental benefits,cultural interaction and interchange. Examples of firms thatbut this does not happen automatically. In many developinghave been able to involve consumers in the co-production ofcountries with a sizeable tourism industry, large-scale masstheir good or service are those in the fields of open-sourcetourism poses a growing threat to the preservation of culturalsoftware and peer-produced information (see chapter 7).and environmental resources. Effective policies and actionsshould be in place to maximize the beneficial developmentDemographics is another element positively influenc-impact of tourism and its deep linkages with the creativeing the demand for creative goods and services. According toeconomy. the United Nations, world population in 2005 was estimat-ed at around billion people and is expected to grow toTourists are main consumers of recreational and cultur-35more than 9 billion by ’s more, an increase inal services as well as a variety of creative products such as craftslife expectancy worldwide has resulted in an aging popula-and music. Concerted inter-ministerial policies are essentialtion, many of whom are retirees with more leisure time andfor building linkages to ensure that the creative industries arethe means to consume cultural activities, creative productsable to capture a greater share of tourists’ expenditures in theand tourism. In summary, the demand profile of consumerscountry. The country should also have a strong base of creativeof creative goods and services grows each year by assimilat-businesses that are able to supply goods and services of gooding new groups of users, from the youngest to the oldestquality and sufficient quantity in order to respond the demand from the tourism cultural sector contributes to tourism through thedemand for visits to cultural heritage sites, festivals, galleries as well as music, dance, theatre, opera perform-ances, etc. More generally, the cultural ambience and tradi-Worldwide growth in tourism continues, fueling thetions of different locations can be an attraction for tourists,growth of industries selling creative goods and cultural serv-especially for those classified as “cultural tourists” who areices in the tourist market. Globally, tourism is a $3-billion-more discriminating and culturally aware than the so-calleda-day business from which countries at all levels of develop-mass tourists. ment can potentially benefit. It is the main source of foreignexchange for one-third of developing countries and one-halfCultural tourism centred on heritage sites has becomeof least developed countries, where it accounts for up to 40a rapidly growing industry in many countries over the last36per cent of 2008, international tourist arrivalsseveral decades, supported among other things by thereached 922 million, with tourism receipts rising to $944UNESCO World Heritage List. The list currently includesbillion. According to the World Tourism Organization, in890 properties of cultural and natural heritage that the2009 the level of tourism fell to 880 million arrivals due toWorld Heritage Committee considers as having outstandingthe world financial crisis, but the tourism sector returned touniversal value. These include 689 cultural, 176 natural andgrowth in the last quarter of 2009 due to fiscal, monetary25 mixed properties in 141States. As of June 2010, 18738and marketing support measures implemented in some 70State Parties had ratified the World Heritage to stimulate the economy and restore growth. TheA visit to any of the major heritage sites in Asia clearlyrecovery is expected to continue in 2010 and endure over thedemonstrates the increasing number of visitors from China,longer term with 4 per cent annual growth in internationalJapan, Malaysia and the Republic of Korea. It is predictedarrivals projected through 2020, when it should reach there will be over 200 million middle-class 37billion Nations Department of Economic and Social Affairs (2007).36UNCTAD (2010), “The contribution of tourism to trade and development”.37United Nations World Tourism Organization (2009).38More information available from ECONOMY REPORT 201021Concept and context of the creative economy
Chinese within five years, and many will join the ranks ofapproach to cultural tourism. UNESCO is urging govern-1international tourism. The wealthy middle class in India isments to better balance tourism with protection, fearful thatequally mobile, regarding travel as a source of education andsome of the most beautiful and important cultural and nat-recreation, even as religious tourism and pilgrimage travel areural sites are being harmed by throngs of sources of activity. Discount airline travel in all partsInternational organizations such as the United Nationsof the world is now a reality and an additional factor in theWorld Tourism Organization and UNCTAD have beencontinuous expansion of tourism in the next few years. Thisactively promoting a shift in the attitude of governmentspoints to a growing world market for creative industriestowards the formulation of tourism policy, focusing on that tourism policy should be both culturally andenvironmentally friendly and benefit local recent years, however, there has been a shift in theBox Petra: A cultural trip A visit to Petra can be more than simply a tour of a dazzling archeological site. It may turn into a full dive into the 2,000-year-old culture of the ancientJordanian tribes and a trip to times when the region was an important junction for the trade routes that linked China, India and southern Arabia withEgypt, the Syrian Arab Republic, Greece and it was “rediscovered” by Western eyes in 1812, the grand debut of Petra on the global-tourism stage took place in 1985 when it was declareda UNESCO World Heritage site. The giant carved red mountains and vast mausoleums provide an awe-inspiring experience. The environment is enrichedby the presence of artisans from the town of Wadi Musa and a nearby Bedouin settlement who sell handicrafts and jewellery inspired by local activities include a candlelight visit to the entrance of Petra, when old stories are told while tea is served beneath the moon. Alternatively, a gas-tronomy class where tourists learn by cooking and then dining on local delicacies offers another inspiring cultural could be rosier, though. The UNESCO report, Cultural Landscapes: the Challenges of Conservation, stated, in 2002, that in order to arrest the crumbling of thestone, ancient techniques would have to be reintroduced. Petra required the reconstruction of the entire ecosystem that existed when the city was built, comprisinga system of canals, terraced overhangs and cultivated gardens in an area close to Petra, the wadi Al Mataha. The most immediate threat to be addressed, however,was presented by the increasing flow of tourists, with all the potential pernicious consequences to the already fragile infrastructure and the local traditions. The Petra Regional Planning Council, a cross-sectoral entity chaired by the Minister of Tourism and Antiquities and comprising governmental and non-governmental representatives, was set up in 1995 by the Jordanian authorities, funded by 25 per cent of the revenues from the Petra entrance fee. In1997, a project executed by the Ministry of Tourism and Antiquities and supported by a $44 million loan from the World Bank was taken forward. Under theproject, the need for physical upgrading and management capacities at the archeological sites was addressed and roads and urban infrastructures in theirvicinity were improved. In addition, services were provided to communities living next to the tourist attractions. The Jordan National Tourism Strategy 2004-2010 estimates that tourism receipts in the country will skyrocket from around $807 million in 2003 to $1,840 million in 2010 and the number of tourism-supported jobs will more than double in the same period. Part of this increase has roots in festival and cultural events,photography and film productions. The importance of the latter led to the creation, in 2003, of the Royal Film Commission of Jordan, since it was recognized thatfilms can “produce a huge positive impact on the tourism industry by helping to position and market the country”. In the past, the stunning Jordanian natural land-scapes, of which Petra is paramount, were the stage for a number of films, such as “Lawrence of Arabia” (1962) and “Indiana Jones and the Last Crusade” (1989).Indeed, the touristic potential of Jordan is still to be explored. According to the United Nations World Tourism Organization, the country received nearly 3 billion visitors in 2005, representing a growth of per cent over that of the previous year but no more than a per cent market share in the MiddleEast. The forecasts are matched by those of the International Monetary Fund (IMF) issues paper, Jordan: Selected Issues and Statistical Appendix (IMFCountry Report No. 04/121, May 2004), which projects an average of 8 per cent annual growth in tourism in the whole of Jordan between 2007 and 2009. By Ana Carla Fonseca Reis, Garimpo de Solucoes, economia, cultura & ECONOMY REPORT 2010Concept and context of the creative economy
multiple dimensions of the creative economy1The creative economy is not monolithic, but it has a mul-regions and countries were affected by the economic downturntitude of dimensions and it contributes to economic, social, cul-including the emerging developing countries that had enjoyedtural and for a sustainable development in a number of growth in the period 2000-2007. Fortunately, the global recession has not turned into a prolonged depression asinitially feared. However, the poverty gap within and aspectscountries increased and global unemployment reached 212 The creative economy is deeply rooted in nationalmillion in 2009. economies. By producing economic and employment benefits inIn the years leading up to the economic downturn, namelyrelated services and manufacturing sectors, it promotes economic2002-2008, trade in goods and services from the creative indus-diversification, revenues, trade and innovation. It also helps totries grew on average 14 per cent annually, even after taking intorevive declining urban areas, to open up and develop remoteaccount the sharp contraction of world demand and interna-rural areas, and to promote the conservation of countries’ envi-40tional trade in the final months of are indicationsronmental endowments and cultural world trade has bottomed out in 2009 and some reboundFrom the economic perspective, the creative economy hasis under way in 2010. As the decline in international tradebeen growing at a faster pace than the rest of the economy in ainvolved all economic sectors, it is still premature to draw a def-number ofinite picture regarding its adverse impact on the creative econo- countries. Although roughly estimated to accountfor nearly 8 per cent of the annual turnover ofmy. For instance, world exports of visual arts doubled in six the global econ-39omy in 2000,the contribution of the creative economy to theyears, reaching $ billion in 2008. The same trend wasgnoticed for exports of audiovisual services, which amounted tolobal economy is still difficult to accurately assess in are a number of different approaches and classifications$ billion in 2002 and reached $ billion in 2008 (seechapter 5), although much of the trade in audiovisual productsto delimit the creative sector, as well as its direct and indirectspin-offs at country and world levels. The typical way to meas-occurs in the form of rights transactions as the means for buy-ure an industry’s contribution to the national economy is toing and selling creative content, for which data is unavailable. measure its value added, including its share of labour and These impressive figures are still highly underestimatedcapital. The sum of the value added of all industries is equal toand cannot capture the more vibrant reality of the global mar-the gross domestic product, the standard measure of the size ofkets of creative industries, especially in the case of Southernnational economies. However, the value added by individual cre-countries, due to limitations in statistical data and methodolo-ative industries is not generally available from government4142giesthat obscure the revenues from the trade of copyrightssources. This lack of standard classifications and official dataand for some key services sectors. Indeed, these represent themakes it difficult to estimate the creative economy’s contributionlion’s share of key creative industries such as the music and filmto world output. industries, TV and radio broadcasting, performing arts, andFor this reason, despite certain gaps, international tradetrade in digitized creative content. Just to give an idea of theremains the only key indicator to measure the economic impact ofmagnitude of the creative economy and its overall economic43impact, a recent studyforecast that the global entertainmentthe creative economy at a universal level. According to UNCTAD,world trade in creative industries products continues to increase,and media industry alone will be injecting around $ trillioneven during the fin the world economy in 2012. inancial crisis of 2008 which led to a 2 per centdecline in world economic growth (GDP) in 2009. Virtually all39Howkins (2001).40UNCTAD (2010), Successful trade and development strategies for mitigating the impact of the global economic and financial analysis of the current statistical methodologies and its deficiencies is presented in chapter more details on the analysis of intellectual property issues, see chapters 4 and (2008).CREATIVE ECONOMY REPORT 201023Concept and context of the creative economy
aspects Table Workers in creative industries in the 1United States, 2003 A major social impact of the creative industries is theircontribution to employment. Creative industries are bothCreative industriesNo. of Proportion ofworkers (000)workforce (%)knowledge intensive, requiring specific skills and high-levelqualifications of their workforce, and labour intensive, those with a high concentration of creative inputs, as occurs, example, in theatre or film production. The contribution ofFilm and creative industries to employment is usually significant; typ-Music , they account for around 2 to 8 per cent of the the economy, again depending on the scope of the (a) job-creation potential of these industries can be importantTotal – creative industries3, policy terms. For example, strategies aimed at redevelopingTotal – all industries132, industrial regions in a number of countries havelooked to the establishment of creative industries as an effectiveNote: (a) Includes independent artists, writers and performers in creative : United States Census Bureau, quoted in the OECD study (2007:46).way to boost employment. Furthermore, it is sometimes notedthat the quality of jobs generated by the creative economy mayAs many women work in the production of art crafts,provide greater levels of employee satisfaction than more routinefashion-related areas and the organization of cultural activities,occupations because of the commitment and sense of culturalthe creative economy can also play a catalytic role in promotinginvolvement engendered among participants in a creative endeavour. gender balance in the creative workforce, particularly in devel-In the United States, for example, the creative industriesoping countries. It can also facilitate greater absorption into theaccounted for about per cent of total employment in 2003,formal national economies of some categories of generally mar-with numbers being spread across the whole range of talented workers involved in creative activities who are44By 2007, according to a recent study,the creative industriesusually relegated to the informal sector of the economy. defined as core copyright industries employed million work-In addition, the creative economy has important relation-ers representing 4 per cent of total employment. The largestships with the educational systems in both developed and concentration of creative workers occurred among independentdeveloping countries. In schools, the role of the arts in formingartists, writers and performers and in the publishing ’s social attitudes and behaviours is well recognized. InDetails are given in table . adult education, many possibilities exist for using education inAnother important social aspect of the creative industriesculture and the arts to enhance understanding of society and itsrelates to their role in fostering social inclusion. At the grass-functions. There is a two-way relationship between the educationroots level, the creative economy includes cultural activities thatsystem and the creative industries. On the one hand, educationcan be important in linking social groups in communities andand training institutions are responsible for turning out individ-contributing to social cohesion. Communities that are plagueduals with the skills and motivation to join the creative social tensions and conflicts of various sorts can often beOn the other hand, the creative industries provide the necessarybrought together through shared participation in cultural ritu-artistic and cultural inputs into the education system to facilitateals. Initiatives such as community arts programmes build socialstudents’ education in the society in which they live and, in thecapital by boosting the ability and motivation of people tolonger term, to build a more culturally aware engaged in community life and inculcating skills thatcan be usefully employed in local creative , creative activity can be shown to be important forindividual health and psychological well-being. 44Siwek (2009).24CREATIVE ECONOMY REPORT 2010Concept and context of the creative economy
1Box Cirque du Soleil: A very simple dreamCirque du Soleil is an international company from Quebec dedicated to the creation, production and distribution of artistic works. Founded by GuyLaliberté in 1984, it began with a group of 73 young artists and creative entrepreneurs with a shared spirit of offering its creators the freedom to dreamthe wildest dreams and make them come true. Today, the business has over 3,800 employees worldwide, including close to 1,000 artists, representsover 40 nationalities, and speaks 25 different languages. Cirque du Soleil's touring shows have made nearly 250 stops in over 100 cities around theworld and more than 70 million spectators have seen a Cirque du Soleil show since du Soleil is primarily a creative content provider for a wide variety of unique projects. The organization’s mission is to invoke the imagination, pro-voke the senses and evoke the emotions of people throughout the world. Cirque du Soleil is a generator of new experiences, a laboratory and platformfor creators. It is constantly researching new artistic avenues and innovating within the organization. In 2007, Cirque du Soleil presented 15 differentshows around the world. The heart of its activity remains creating live shows and presenting them under big tops, in theatres or in arenas. Since 1984,close to 200 creators from the four corners of the globe have contributed their talents to this du Soleil wants above all to take its place in society as a good citizen, with all the duties and responsibilities that go with citizenship. Since 1989,it has elected to give 1 per cent of its annual turnover to social and cultural programmes as a concrete expression of citizenship that goes beyond itsbusiness markets. Circus arts also offer young people the chance to open up, express themselves and use their marginalized status as a tool to makenew links with a society that often excludes them. This is how Cirque du Soleil has developed its international expertise and leadership in social du Monde is one of the greatest sources of pride for Cirque du Soleil. Set in motion in 1995, this programme is now operating in association withpartners in social and cultural action such as Oxfam International and Jeunesse du Monde to assist young people in more than 80 communities in morethan 20 countries throughout the du Soleil also remains an active member of the artistic community. It supports artists and artistic institutions in various ways and is involved inmany cultural organizations. The company offers financial support to innovative projects created by emerging artists and artistic Charles Beraud, Office of the Senior Vice President of Marketing, Cirque du Soleil. omy that became more prominent in recent years. aspectsprocesses of globalization continue, the value of culturalWhether the term “culture” is interpreted in andiversity has been more sharply defined and the role of theanthropological sense to mean the shared values and tradi-creative industries in promoting it has been more clearlytions that identify a community or a nation and bind itunderstood. The Universal Declaration on Cultural Diversitytogether, or in a more functional sense to mean the practiceadopted by UNESCO in 2001sees diversity as being embod-of the arts, the creative economy clearly has profound cul-ied in the “uniqueness and plurality” of the identities of var-tural implications. Perhaps these effects are best summa-ious societies and groups, a common heritage of by the proposition that cultural activities give rise toSince culture itself is intrinsic to the realization of humanboth economic and cultural value; it is the latter that pro-aspirations, it is argued that cultural diversity will be anvides the distinctive contribution that these products makeimportant factor in promoting economic, social and culturalto individuals, to the economy and to society. From a poli-development. These sentiments were in turn given substancecy perspective, the generation of cultural value alongsidein the Convention on the Protection and Promotion of theeconomic value from the operation of the creative industriesDiversity of Cultural Expressions which specifically identifiesis relevant because it serves the cultural objectives of socie-the cultural industries as essential to the achievement of thety, which stand alongside the economic objectives of a gov-benefits of cultural diversity in developed and developingernment and are reflected in the broad reach of its culturalcountries . The cultural value of identity is especially important,In 2009, the UNESCO World Report “Investing inwhether understood at the level of a nation, region, city,45Cultural Diversity and Intercultural Dialogue”analysed thetown or community. nature and manifestation of cultural diversity in relation toDiversity is a cultural dimension of the creative econ-globalization, intercultural dialogue, human rights and 45More information available from ECONOMY REPORT 201025Concept and context of the creative economy
democratic governance. The report emphasizes that culturalimportance of diversity: just as sustainable development1diversity is a key dimension for sustainable development andrequires the protection of biodiversity, so also shouldpeace, and examines four areas that significantly influencesaccount be taken of the value of cultural diversity to thethe evolution of cultural diversity: languages, education, com-processes of economic, social and cultural and cultural content, as well as creativity and the precautionary principle:when facing decisions with irreversiblemarketplace. The objective was to propose a coherent visionconsequences, such as the destruction of cultural heritageof cultural diversity by clarifying how it can become benefi-or extinction of valued cultural practices, a risk-aversecial to the action of the international must be adopted. Interconnectedness:economic, social, cultural and environmentalsystems should not be seen in isolation; rather, a developmentapproach is required, . one that recognizes interconnect-edness, particularly between economic and cultural The creative industries also contribute to . It is becoming increasingly recognized that theconcept of “sustainability” has a larger scope beyond simplyThe contributions that artistic and cultural produc-its application to the environment. The tangible and intangibletion, dissemination and participation make to economiccultural capital of a community, a nation or a region of theempowerment, cultural enrichment and social cohesion inworld is something that must be preserved for future genera-the community, in order to promote major social progress,tions just as natural resources and ecosystems need to be safe-are the main reasons to support the principles of culturalguarded to ensure continuation of human life on the planet. sustainable sustainability implies a development processThe primary input for creative activities is creativity, athat maintains all types of cultural assets, from minority lan-natural resource in abundance in the world. The creativeguages and traditional rituals to artworks, artefacts and her-industries production is usually less dependent on heavyitage buildings and sites. It is the creative industries jointlyindustrial infrastructure and can be easily compatible withcoordinated with cultural policies that provide the strategiesrules and objectives that aim at environmental protection andto get hold of the investments to develop and promote industry in a sustainable way. The creative industriesFor ethical trade to be sustainable, producers are advisedparticipate directly into sustainable development. Theto focus on innovation, and not only to seek out low-cost solu-notion of “cultural sustainable development” implies sometions. More support is needed for , scaling up social creative intergenerational equity: development must take a long-termindustries offer a vast platform to this ethical and not compromise the capacities of future genera-There is a recent trend towards ethical to access cultural resources and meet their culturalBoth producers and consumers of creative products increas-needs; this requires particular concern for protecting andingly question the true cultural, economic and environmen-enhancing a nation’s tangible and intangible cultural capital. tal value of what they create, buy and sell. In this spirit, intragenerational equity:development must provide equity in accessUNCTAD has been spreading the message that creativityto cultural production, participation and enjoyment to all mem-and biodiversity are well matched and should be seen as abers of the community on a fair and non-discriminatory basis;win-win solution to promote responsible use of the world’sin particular, attention must be paid to the poorest members ofbiodiversity, while promoting the development dimension of48society to ensure that development is consistent with the objec-the creative topic is further elaborated tives of poverty chapter (2008).47International Trade Centre (2009).48UNCTAD (April 2010), Creative Economy ECONOMY REPORT 2010Concept and context of the creative economy
cross-cutting nature of creative industries1 trade:creative goods and services comprise an for concerted element in the international trade of most countries andinter-ministerial policiesthus come under the policy surveillance of ministries ofThe creative economy extends into a wide range oftrade, foreign affairs and international relations. areas of political responsibility and government administra- regional growth:the creative sector may be a specific target for devel-tion. Although many governments have set up specific opment strategies in the context of regional economic planning. ministries, departments or specialized units to deal with the labour:the employment effects of the creative industries arecreative industries, almost all areas of government policysignificant, making them an area of interest in labour-mar-have some sort of interaction with these industries, includ-ket in the following fields: domestic and foreign investment:private investment in creative economic development:creative industries can be a significantindustries may be encouraged or channeled in certaincontributor to national economic growth, making them adirections by specific fiscal or regulatory of interest on the part of treasuries, ministries of technology and communications:given the importance of newfinance and planning departments. communication technologies to the growth of the creativeBox Economics of the museum district of Paris The economic spin-offs from museums are important. They are even more significant in the big cities, such as 1998, nearly 12 million tourists came to Paris for various reasons: cultural, business, and recreational, among others. "Museum tourists" were definedwithin this group as those visiting at least three museums or similar institutions. Given the difficulty of identifying these visits when admission is some-times free, two hypotheses were constructed: a low hypothesis, according to which million tourists had visited the museums of the Louvre, Versaillesand La Villette or Orsay, and a high hypothesis, according to which million tourists had visited the Eiffel Tower, the Louvre and Versailles (Greffe, 1999).1These tourists behaved differently depending on whether they were French or foreign. They did not spend the same number of nights in addi-tion, their daily spending patterns were not the same: a French tourist was assumed to spend on average 121 a day for accommodation, transporta-2tion and entrance fees while a foreign tourist would spend around 151, with substantial differences from one person to the this, we derivedoverall spending of billion under the low hypothesis and billion under the high hypothesis. We then had to apply a multiplier coefficient to take account of the effect of this spending on the incomes of hotel, museum and transportation workerssince these incomes would be spent and passed on through other economic sectors successively. For this purpose, we selected Myerscough’s multipli-er coefficient for London () as one of the most plausible. Total spending, then, was billion under the low hypothesis and billion underthe high hypothesis. It was then necessary to add in the spending on souvenirs or luxury goods that, because they are not generally produced in Paris, would not have a mul-tiplier effect on the immediate territory but might contribute to creating jobs elsewhere in the country. Based on the same surveys, we assumed averagesouvenir spending of for a French tourist and for a foreign tourist. This resulted in total spending of billion under the low hypothe-sis and billion under the high hypothesis. If the cost of creating one job in the services sector is around 40,000, this amount represents a total of43,000 jobs created or maintained. If we take a lower figure ( 30,000) as the cost for creating a service job, the figure for employment created or main-tained is 86,000. The first figure seems considerably more plausible since we must first deduct from this total spending the amount spent on materials. The bottom line from this type of analysis, which relies on many hypotheses, each of which reduces the reliability of the final outcome, is that the amount3of this spending and the number of jobs created are very average, two nights for the first group and three nights for the second. The amount of their daily spending varied with their country of origin. The French/foreign splitamong tourists was 30 per cent/70 per cent: under the low hypothesis, there were million foreign-tourist overnights and million French-tourist overnights, andunder the high hypothesis, the respective figures were million and spending by Americans and Japanese offset by far the lower spending of tourists from developing this particular case and for the particular year in question, this amount was higher than total government spending on heritage throughout France, and the number ofjobs was nearly double that in the publicly assisted hospitals of Xavier Greffe, Professor of Economics, University of Paris I – Panthé ECONOMY REPORT 201027Concept and context of the creative economy
sector, the regulation (or deregulation) of telephone servic-following areas:1es, the Internet, broadband, satellite communications, etc., the public sector (public cultural institutions such asall have important implications for the creative , galleries, public service broadcasting organiza- culture: the core functions of the creative arts are frequentlytions, etc.); supported by governments in pursuit of both economic the for-profit private sector (a wide range of commercialand cultural in all fields of culture and creative production tourism:in a number of countries, there is a close associa-and distribution);tion between the creative industries — particularly the the non-profit sector (theatre and dance companies, festivals,performing and visual arts and the provision of heritageorchestras and other music ensembles, craft cooperatives,services — and the contribution of tourism to the eco-etc., some of which may receive government financial incen-nomic viability of towns, cities and regions. tives); and social affairs:policies dealing with poverty alleviation, social civil society (advocacy non-governmental organizationstensions among minorities, youth and gender issues can be(NGOs), foundations, academia, artistic and creator’stackled through the creative economy. professional associations, sectoral organizations, etc.). education:vocational training for the workforce of the cre-ative industries is a matter of increasing interest as theindustries expand and evolve. The more general aspects for institutional mechanisms arts in education are also relevant, as discussed multidimensionality and cross-cutting nature ofthe creative industries mean that there is an inevitable ten-dency for policy strategies to become fragmented. If for dialogue leads to the application of piecemeal measures, there may bewith multiple stakeholders a danger that the policy strategies are contradictory in theirimpact. It is clear that an integrated approach towardsIn addition to the cross-cutting nature of political andenhancing the creative industries and hence the creativeadministrative responsibilities, there is also a similar multi-economy is needed in policymaking. This approach requiresplicity of levels of involvement if one looks at the variouseffective institutional mechanisms for coordination of poli-sectors of the economy with which the creative industries arecies across the various agencies with responsibilities in thisengaged. Individuals and organizations involved in culturalarea. This topic is further analysed in chapter and active in the creative economy operate in creative economy in the developed worldThere is no doubt that, whether viewed from a globalIn many advanced economies, the creative economy isor a national perspective, the creative economy — howevernow recognized as a leading sector in generating economicit is defined — is growing, and growing rapidly. Data for thegrowth, employment and trade. In Europe, the creative econ-broadest conceptualization of the creative economy showomy generated a turnover of 654 billion in 2003, increas-that in OECD countries it has been growing at an annualing 12 per cent faster than the overall economy, as shown in50rate more than twice that of the service industries overalltable in the European cultural sector49and more than four times that of thegenerally grows faster than elsewhere in the economy. Atcreative sector more narrowly defined, statistics on outputpresent, it is estimated that the cultural and creative indus-growth in a number of countries over the past 5, 10 or 15tries contribute to around per cent of the total GDP ofyears show a similar pattern. the European Union, providing quality jobs to around 549Howkins (2001:xvi).50KEA (2006).28CREATIVE ECONOMY REPORT 2010Concept and context of the creative economy
1Table Contribution of the European cultural and creative sector to the European national economies Turnover, 2003 Value added to national GDP(all sectors included) (all sectors included) (%)( million) Austria14,, Republic5,,,,,,,,,,,,,,,, Kingdom132,,, European Union (25 countries)636,146Total 30 countries*654,288* The countries covered by the statistical analysis include the 25 Member States of the European Union plus the two countries that joined in January 2007 (Bulgaria and Romania)plus the three European Economic Area countries of Iceland, Norway and : Eurostat and AMADEUS/Data elaborated by Media of the economy. In 2008, there were an estimatedmillion people across the 27 EU member cre-157,400 business enterprises in the UK creative industriesative economy became a priority and strategic sector for the(DCMS, 2010). In Germany in 2008, total turnover of theEuropean 2020 and creative industries was estimated at 132 In the United Kingdom in 2007 the creative indus-billion, contributing 63 billion towards value added, tries accounted for per cent of the economy, measuredrepresenting per cent of national turnover and of theas value added; during the period 1997-2007 creative out-gross domestic product (GDP). There are about 238,000put grew at 5 per cent annually as compared to 3 per cententerprises in the sector, accounting for per cent of allgrowth for the rest of the UK economy, and its exports ofGerman enterprises, and about one million people workedservices by the creative industries represented per cent ofin culture and creative industries, representing per cent52all goods and services also grew53of overall employment in the Spain, the substantially; total creative employment increased from of cultural activities has been characterized bymillion in 1997 to nearly 2 million in 2008, with an aver-sustained growth; the sector contributed to 31million toage growth of 2 per cent compared to 1per cent for thethe overall economy in 2007, which equates to an annual51European Commission (2010).52DCMS (2010).53Ministry of Economics and Technology, Germany (2009).CREATIVE ECONOMY REPORT 201029Concept and context of the creative economy
59growth of per cent. The creation and production phas-American Canada, the cultural sector provid-154es represents 55 per cent of total cultural per cent of GDP and almost 6 per cent of thegrowth in value added (GVA). In Australia, the growth inFor Italy, as stated by the President of the Italianthe creative economy has been strong for nearly two decades,Republic, “one of the strengths of our country [is] the cul-with an annual average growth of per cent. In 2007-ture of creativity. And in this new expression of Italian cre-2008 the Australian creative economy was worth $31ativity we find the resurgent vigour of a tradition, heritagebillion (Australian dollars), making a real contribution toand sensibility to which we must devote much more atten-55the nation’s economic performance and flexibility, employ-tion”.The cultural and creative industries accounted foring about 5 per cent of the workforce, and generating aboutover 9 per cent of the Italian GDP and employed over per cent of national people in is another examplewhere the creative economy accounted for per cent ofThis chapter has been concerned primarily with theGDP, providing 12 per cent of total jobs and 16 per cent ofevolution of concepts involved in any consideration of theexports, and in Sweden, in the early 2000s the cultural sec-creative economy. This final section turns from concepts totor accounted for 9 per cent of value added and 10 per centpractice and considers some more detailed empirical evi-57of total employment, as show in table thedence for some of the propositions discussed earlier. Netherlands, the creative sector is characterised by anSome representative data are shown in tables toincreasing number of small enterprises and freelancers; . Table shows the contribution of the cultural indus-the city of Amsterdam during the period 2006-2009, thetries to GDP or GVA for five countries in various of people working in the creative industriesTable indicates the contribution of the cultural sectors58increased per eight European countries to the economy. It should beThe creative industries contribute to output, valuenoted that in four of the eight countries shown, the creativeadded, income and the balance of payments. Typically, theseindustries contributed more than 5 per cent of GVA, and inindustries have contributed somewhere between 2 and 6 pertwo countries, they contributed 10 per cent or more ofcent of GDP, depending on the definitions used. In 2007,employment. Comparisons with other sectors of thethe creative industries accounted for per cent of the of developed countries are shown in table , generating foreign sales and exports in the orderand table $ billion, one of the larger exporting sectors in theTable Contribution of the cultural industries (a) to GDP or GVA for five countries, various years (b) Contribution of cultural industriesCountryReference yearCurrencyAggregate measuredValue (millions)% of GDP/GVAAustralia1998–99$AGDP17,$CanGDP37,€GVA39, Kingdom2003£GVA42, States2002$USGVA341,: (a) Industries included: Advertising; architecture; video, film, photography; music, visual arts, performing arts; publishing, print media; broadcast media; art and antiquestrade; design, including fashion design.(b) For qualifications to the interpretation of these data, refer to : Gordon and Beilby-Orrin, International Measurement of the Economic and Social Importance of Culture, OECD(2007:54).54Ministry of Culture of Spain (2009).55Giorgio Napolitano, 31December 2007, quoted in Santagata (2009).56Santagata (2009).57On the basis of Eurostat and AMADEUS databank, as reported by KEA, European Affairs in Creative Industries (2008).59Siwek (2009).60ARC Centre of Excellence for Creative Industries and Innovation (2010).30CREATIVE ECONOMY REPORT 2010Concept and context of the creative economy
Table Contribution of the cultural sector to the national economies of eight European countries, 1various years (a) Contribution of the cultural sector to:TurnoverValue addedEmploymentReferenceCountryyear billions% billions%millions%––– : (a) Industries included differ significantly among countries. For further details and qualifications to the interpretation of these data, refer to : KEA, European Affairs (2006:33-34).Table Comparison of contribution of creative/cultural sector with contributions of other sectors for eight European countries (% of GDP) (a) Proportion of GDP contributed by:CountryCultural andManufacture of food, Real estateComputer and relatedcreative sectorbeverages, : (a) Industries included in cultural/creative sector vary among countries. For qualifications to the interpretation of these data, refer to : Eurostat and AMADEUS, quoted by KEA, European Affairs (2006:68). CREATIVE ECONOMY REPORT 201031Concept and context of the creative economy
132CREATIVE ECONOMY REPORT 2010Concept and context of the creative economyTable Estimates of the contribution of creative industries to GDP for five OECD countries AustraliaCanadaFranceUnited KingdomUnited States1998-19992002200320032002CCrreeaattiivvee iinndduussttrriieessA$%C$% %£%US$%millionsGDPmillionsGDPmillionsGVAGVAmillionsGVAmillionsAdvertising 2,464*,856*,858*,,835**,084*,524*,,111*, film and photography2,397*,909*,155*,,076* & the visual & performing arts952*,576*,425*,,294* media 6,590*,427*,283*,,451* which: printing5,640*,851*,,662* and TV (broadcasting)3,474*,305*,878*,,713* and antiques trade74*,082*** (including designer fashion)313*,226**,,463* na*nananananananananaTotal 17,053*,465*,899*,180*,139* economy (GDP or GVA)542,,069,,434,,,469, (includes archives)…1,236*,112* …550**,294* sitesnana672** gamesnananana8,169*,,636** = OECD estimate# = income dataCaveat:These data are initial estimates and should be interpreted with extreme caution, bearing in mind that (a) they are based on national cultural industry typologies; (b) the contents of individual headings are different from one countryto another; and (c) treatment of taxes such as the value added tax is not consistent across countries. In order to maintain consistency between the numerator and the denominator when calculating the percentages, the total GVA or GDPhas been used as :Data are OECD estimates derived from output by product and by industry data presented in the Australian Bureau of Statistics (ABS), Arts and Culture in Australia: A Statistical of value added to output werederived from various ABS Service Industries Surveys available on the ABS :Statistics Canada estimates at These are updates to the tables presented in Statistics Canada, Economic Contribution of Culture in Canada, December 2004(Catalogue no. 81-595-MIE – no. 023) also available on the Statistics Canada website. The category “Support activities” used in the Canadian framework has been distributed proportionally across the other :Data are OECD estimates. They were derived from National Institute for Statistics and Economic Studies (INSEE) turnover data, supplied by the French Ministry of Culture and Communications, by applying value added to turnoverratios taken from INSEE and OECD data. Total GVA has been taken from INSEE national accounts Kingdom:UK DCMS estimates are based on United Kingdom Office for National Statistics data taken from the DCMS Creative Industries Economic Estimates Statistical Bulletin, October 2005 - Revised Version The table departs from the equivalent DCMS table in that the activities of the printing industry have been added to "Publishing" and the "Total ofabove". This has been done to enhance cross-country States of America:Data are OECD estimates. They were derived from Bureau of Economic Analysis and United States Bureau of the Census data. These estimates should be used with particular caution given the number ofassumptions applied in their : Gordon and Beilby-Orrin, International Measurement of the Economic and Social Importance of Culture,OECD (2007).
2The development dimension2Most of the attention in the debate about the cre-the development dimensions of the creative economy,ative economy around the world has been paid to devel-looking at the economic and cultural linkages, social inter-oped economies, where creative industries are well estab-actions and environmental considerations. Policy implica-lished and where participation in global markets for cre-tions in the light of impact of the world economic down-ative products is strong. In developing economies, howev-turn and its impact for poverty reduction and sustainableer, the situation is more nuanced. Asian countries, led bydevelopment are discussed. The chapter also presents anChina, are experiencing rapid growth in creative capacitiesoverview of recent developments regarding the creativeand in recent years have been benefiting from the compet-economy in regions of the developing world. itiveness of their creative products in world markets. InThe analysis is presented in the context of theother areas of the developing world, national strategies toMillennium Development Goals (MDGs) since they rep-enhance the creative economy are gradually being put inresent the international policy environment within whichplace but more time is needed for the poorest countries tonational strategies for advancing the creative economy inreinforce their policy and institutional frameworks in orderdeveloping countries are being implemented. Chapter 9to take best advantage of their creative talents to fosterwill further elaborate on the multilateral processes andsocio-economic development. It is more widely recog-ongoing policy action under implementation by Unitednized that developing countries have a vast deposit ofNations bodies and the international community pursuantintangible cultural heritage and traditional cultural expres-to the Millennium Declaration. sions that could be better nurtured. This chapter implications: The Millennium Development GoalsThe MDGs express the international community’salready affected by the food crisis and are less able tocommitment to the global development agenda. There areabsorb external shocks. By 2010, although many develop-eight goals with specific targets to be reached by 2015,ing countries had made some progress in reducing poverty,namely to: (1) eradicate extreme poverty and hunger; (2)the poorest countries are likely to fail to eradicate extremeachieve universal primary education; (3) promote genderpoverty and hunger within the next five years without a sig-equality and empower women; (4) reduce child mortality;nificant improvement in their economic situation and(5) improve maternal health; (6) combat HIV/AIDS,more targeted development policies that are supported bymalaria and other diseases; (7) ensure environmental sus-international cooperation. As the majority of developingtainability; and (8) develop a global partnership for devel-countries, in particular the LDCs, have a large proportionopment. of youth and women who need better access to educationand jobs, the creative economy should be seen as a work-For a number of developing countries progress in attain-able means to poverty alleviation and environmental ing the MDGs has been slow and was further aggravatedsustainability. by the devastating impact of the 2008 world financial cri-sis on the global economy. The crisis was especially devas-The MDGs address development challenges as antating in least developed countries (LDCs) that wereinherent part of the global economy and the life of soci-CREATIVE ECONOMY REPORT 201033CHAPTERThe development dimension
eties. The goals encompass the holistic approach to develop-development strategies should include pro-poor projectsment echoed in concepts such as the “human developmentfor enhancing creative capacities, particularly in areas suchindex”, “liveable societies” and “gross national happiness”.as handicrafts (basket weavers, potters, wood carvers, etc.)2The full realization of these goals necessitates innovative andand fashion (leather workers, clothing, jewellers, jute andcross-sectoral approaches to development that incorporatesilk weavers, embroiderers, etc). This can benefit a largecultural, social and environmental aspects. number of female artisans by helping them take charge oftheir lives and generate income for their families and com-The creative sectors of developing economies have sig-munities, particularly in rural areas. A successful case innificant potential to contribute towards the achievement ofthis regard is the Aarong Project in Bangladesh, which wasat least the following six specific components of the MDGs: developed by the Bangladesh Rural Advancement Poverty eradication and reduction of manifestationsCommittee in association with Oxfam, the non-of a people’s culture — customs, rituals, artefacts, musicgovernmental organization. The project provides tens of and so on — permeate the daily lives of men, women andthousands of people, particularly rural women, with a1children and constitute a significant element in providinglivelihood in the creative their happiness and well-being. Any strategy that uses Sustainable development order to ensure a sustain-culture as a means of economic development and empow-able and inclusive development path for developing coun-erment has the capacity to reach out to all members of atries, culture and environment must be mainstreamed incommunity and to affect their lives in some way regardlessdevelopment policies. Cultural erosion is a big their socio-economic status. It follows that sustainableMany modes of life, languages and forms of culturaldevelopment of the creative industries at the local level,expression are gradually being lost in different parts of theespecially if it targets the arts, creative activities and theworld. Biodiversity is also being lost at accelerating rates,growth of small business, will be capable of making andue to the widespread overexploitation of biologicalimportant contribution to poverty eradication and theresources, which carry a tremendous cost to our econom-reduction of , social and cultural livelihoods. Today, millions of peo-Contrary to more traditional, larger-scale industrial devel-ple depend on biodiversity for food, medicines, income,opment, the business unit in the creative-industries sector isjobs, fuels and cloths, as well as for cultural and spiritualtypically quite small, often comprising family . Biodiversity is not only essential for agriculture andThis means that the product originates in many diversepharmaceuticals but also for the creative industries, in par-units while the production is mostly on a small scale. In thisticular art crafts, fashion, accessories and interior design2respect, the creative industries are particularly suited to helpcreative recent years, a positive trend towardscommunity regeneration and the sustainability of traditionalethical consumerism has been emerging and should be fur-societies. The creative industries not only offer the possibilityther promoted. Awareness should be raised, and policiesof income generation but they also provide opportunities forshould be in place to promote the right balance betweenemployment that are easier to reconcile with family and com-the sustainable use and the conservation of biodiversity,munity obligations. The smaller business unit is also morewhile nurturing the creative economy in the developingclosely affiliated to the informal economy and to the private-world. One of the main attributes of the creative econo-sector investment potential that are found in the poorer my is that it can generate substantial economic rewards,segments of the economy. It will therefore provide a moreyielding large cultural, ecosystem and biodiversity vehicle for targeted economic development initiativesIt stimulates creativity and civic environmental engage-whose focus is poverty , thus promoting the benefits of both cultural diver-sity and biodiversity. Gender creative process provides many oppor-tunities for women to participate in creative activity that Global partnerships for cooperation isyields both economic and cultural rewards. Therefore,a key component in assisting developing countries to meet1Rogers (2009).2UNCTAD (April 2010).3Statement made by UNCTAD, Chief of Creative Economy Programme, at UNESCO First Session of the Conference of Parties to the Convention on the Protection andPromotion of the Diversity of Cultural Expressions, Paris, June ECONOMY REPORT 2010The development dimension
the MDG targets, and the creative economy can be a toolproduction of various sorts can raise self-esteem andto forge all kinds of partnerships. The international com-social awareness. In this respect, fostering locally basedmunity should respond to the efforts of Southern coun-creative industries may provide income-generation oppor-2tries to enhance their local creative capacities and preservetunities for young people from rural areas and help to dis-their cultural diversity. Effective mechanisms should becourage the drift to the cities that so often contributes toput in place to help those countries improve the competi-the problem of marginalized youth. Recently, creativetiveness of their cultural products and activities so theyeconomy strategies have been used successfully by localcan benefit from market opportunities and accelerateauthorities and NGOs to provide education and jobsocio-economic growth. Initiatives to facilitate culturalopportunities to thousands of teenagers who are econom-exchanges as well as better access to global markets areically and socially excluded and therefore exposed to delin-greatly needed. Global partnerships could improve devel-quency. A remarkable example is in Medellin, Colombia,oping countries’ cultural production and trade prospectswhere creative centres and libraries were constructed tothrough concrete initiatives to: (a) facilitate wider accessprovide youth in the most vulnerable parts of the cityto the global market of cultural activities and creativespace for cultural education and socio-cultural and services; (b) facilitate the mobility of artistsThese efforts to help youth discover and develop their from the developing world into the major markets, allow-creative talents have resulted in a significant drop in crim-ing artists, performers and cultural professionals preferen-inality, homicides and drug traffic. (Box treatment; (c) promote capacity-building programmesanother successful case.)to improve business skills, cultural entrepreneurship and Spreading access to new communications. The development of thebetter understanding of intellectual property rights; (d)creative economy is strongly associated with new informa-facilitate the transfer of new information and communi-tion and communication technologies (ICTs). As the cre-cation technologies and other tools for the creation andative industries expand, there are greater capabilities fordistribution of digitalized creative content; (e) facilitateusing ICT tools not just to communicate but also moreaccess to financing and attract investors, includingwidely to promote creativity, networking and access to theschemes for co-productions, joint ventures and investmentreal and virtual worlds. Fostering the creative industries -South and South-South partnershipsconsistent with the MDG target of making the benefits ofshould prioritize national reforms to support the creativenew technologies, especially ICTs, more generally availableindustries in the Southern countries through technicalin the developing projects. Special attention should be given toAn example of how development strategies can con-building capacity in such areas as upgrading tribute to the achievement of MDGs is provided by thecreative talent and skills, streamlining supply chains andCreative Industry Development Framework in the Gautengpromoting trade opportunities, particularly in the leastprovince of South Africa. This framework makes explicitdeveloped countries, which are the world’s 50 poorest4the contribution of the creative industries to social goals such as community participation in cultural Strategies for the social inclusion of arts and other cul-activities; regional integration across Africa; poverty allevia-tural activities have proven to be successful means oftion, particularly in previously disadvantaged communitiesengaging in productive work young people who mightand among the youth; and public-private partnerships inotherwise be unemployed and perhaps at risk of antisocialcommunity-based cultural programmes such as indigenousconduct. Creative work can provide a sense of purpose indance and music, carnivals and festivals. otherwise seemingly futile lives, and engagement in artistic4Fifty countries are designated by the United Nations as least developed countries (LDCs). These are the poorest countries in the world in terms of income, human assets and economic vulnerability. There are 32 LDCs in Africa, 8 in Asia and 11islands. For further information see UNCTAD’s “The Least Developed Countries Report – 2009” (UNCTAD/LDC/2009).CREATIVE ECONOMY REPORT 201035The development dimension
Box South-South sharing of creative experiences 2At the 2006 Pan-African Dance Festival held in Kigali, Rwanda, the UNDP Special Unit for South-South Cooperation sponsored the InternationalConference on Creative Economy for Development. The objective was “to promote the effective use of creativity as a source of wealth, a means of gen-erating employment and a significant factor in poverty reduction”. During the conference, two African NGOs, Maison des Jeunes de Kimisagara (MJK) from Rwanda and the Lake Victoria and Nyansa Creative ArtsAssociation (LAVINCA) from Kisumu, Kenya, were invited to participate in a partnership with a Brazilian NGO, Ação Comunitária do Brasil do Rio de Janeiro(ACB/RJ). Its purpose was to develop a pilot initiative based on the creative-economy principle of sharing experiences in order to influence artists from the National Ballet of Rwanda and two artists from LAVINCA in Kenya spent 15 days in Rio de Janeiro with Ação Comunitária do Brasilsharing experiences in the areas of dance, music, fashion and style. In November 2006 the three groups organized an art exhibit at the World CulturalForum and the International Conference on Creative Economy for Development in Rio de Janeiro. It showcased some of the more than 300 creative itemsthat the Kenyans and Brazilian artists had produced in collaboration using tie-dye, batik and silk screening techniques. They also shared their pilot expe-rience at the World Social Forum in Nairobi in January 2007. In 2009, building on the success of these initial experiences, the UNDP Special Unit for South-South Cooperation, together with ACB/RJ and LAVINCA,created a project called “Creative Start-up Businesses for Kenya’s Youth”. It consisted of: A design and marketing workshop to provide creative economy practitioners with feedback on the design, marketability, functionality and sales poten-tial of their creations. A curatorship exercise in which participants selected a range of works by young artists and artisans in Kisumu, Kenya, for inclusion in a marketingcatalogue. The sharing of experiences between experts from LAVINCA and ACB/RJ, including a training on ACB/RJ’s methods to improve the livelihoods of talented youth and adults from underprivileged backgrounds by developing creative visually striking catalogue showcases the talent of young Kenyan artists and artisans with the aim of connecting them to local, national and inter-national markets. The catalogue also illustrates how South-South cooperation can be a powerful tool for scaling up ideas and practices that lead to alter-native ways of generating income and promoting social justice. Having deepened its technical expertise in partnership with ACB/RJ, LAVINCA continuesits work to empower talented individuals to develop better livelihoods in Kisumu, Kenya. The catalogue, “Creative Start-up Businesses for Kenya’s Youth”,can be downloaded at: . By: Marilia Pastuk, Sociologist, Principal Executive of ACB/ creative economy: Linkages and development implicationsThe approach advocated in this report differs from, yetformidable challenges in a globalizing world despite the tech-complements that of “culture and development”. The cre-nological advances and the prosperity that characterizedative economy perspective stresses the direct economicworld economic growth from 2000 to 2007. A number ofimpact of cultural and creative production for markets anddeveloping economies have grown, but not fast enough tosocial life, not simply its indirect effects on, for example,narrow the absolute per capita income gap. Poverty remainstourism. In view of this broader emphasis, care is neededthe main issue to be tackled not only in the least developedwhen dealing with policy objectives and evaluation. It mustcountries but also in many middle-income countries andbe recognized that policies involving culture and the creativeeconomies in transition. How can these long-lasting chal-economy may have different types of outcomes; some maylenges be overcome effectively? even include competing priorities. Thus, it is important thatDevelopment models strictly based on conventionalpolicy objectives be clear and not overly ambitious in theireconomic theories have failed to redress these so that they can be fairly evaluated. The time has come to go beyond economics and look for aEconomic imbalances and social inequalities remainholistic approach that takes into account the realities and36CREATIVE ECONOMY REPORT 2010The development dimension
specificities of countries, recognizing their culturalFigure Development dimension of the creative economy differences, identities and real needs. Developmenttheory and practice needs to adapt to new circum-2Omnipresent stances by bringing issues relating to culture andPolicy dimension Education, work, Economic, technological, leisure and technology into the mainstream. Developmentcultural and social entertainment policies strategies must be updated to cope with far-reach- Multidisciplinarying cultural, economic, social and technologicalCulture, labour, trade, technology,shifts that are rapidly transforming our society. Policyeducation, tourismcoherence must be reinforced by introducing concert-Society-inclusive Cultural/ Public and private ed multidisciplinary and multicultural values sectors, all social Anthropological/ classes, profit and In the aftermath of the 2008 global financialaesthetic, ethnic and non-profit NGOs cultural diversity Intertemporal crisis and its adverse economic and social conse- Past traditions, present technologies, quences particularly the domino effect with which— future vision the quality of life deteriorated for millions of people — it is even more vital that neo-liberal approaches beSource: UNCTAD (Dos Santos, 2006).revisited. The world needs a fundamental reorienta-tion of economic models to foster structural changesup. Rather they should be inclusive and open processes thatin modes of production and consumption. It needs better glob-welcome the participation of civil society in order to be effec-al governance, not only in financial and monetary policies, buttive and stimulate knowledge and in trade, technology and environmental policies. It isimperative to bring back ethics into economics, build on lessonslearned and introduce fresh approaches. These steps will and technological linkages restore the confidence of investors and consumers, ensureThe creative economy is omnipresent in our dailygreater coherence in the globalized processes and reinstate a sus-5life, whether through education or work or in moments oftainable path for economic and entertainment. In a contemporary society dom-inated by images, sounds, texts and symbols, connectivityis influencing our attitudes and is an integral part of aspects lifestyles. From an anthropological viewpoint, cultural andof the creative economy historical values are intertwined, forging the essence ofThe development dimension of the creative economycultural diversity, a subject of much current complex interactions, as depicted in figure . A num-Moreover, owing to its inter-temporal nature, the creativeber of concepts are embedded in the dynamics of the creativeeconomy is able to assimilate traditional knowledge fromeconomy. Furthermore, the policy framework of the creativethe past as well as current technologies. It requires a economy is multidisciplinary in nature, ideally calling forforward-looking vision capable of reacting to the rapidintegrated cross-cutting public policies requiring inter-economic, cultural and technological shifts that are takingministerial actions. Institutional mechanisms and a well-runplace in our society but sometimes are not always immedi-regulatory framework are needed to facilitate synchronizedately perceived. and mutually supportive economic, social, cultural and tech-Emphasizing that human development requires morenological policies. than health and education, but also a decent standard ofCertainly governments alone cannot find solutions forliving and political freedom, the 2004 UNDP Humanall the issues. The creative economy is dynamic, proactive,Development Report makes a case for respecting diversityfragmented, and flexible. Creative practice functions throughand building more inclusive societies by adopting policiesparticipatory processes, interactions, collaboration, clusteringthat explicitly recognize cultural differences and multicul-and networks. Thus, in the creative economy, organizationaltural perspectives. The Creative Economy Reports areand new business models should not be top-down or bottom-aligned with this Santos-Duisenberg (2009).CREATIVE ECONOMY REPORT 201037The development dimension
social problems such as delinquency, prostitution interactions drugs by engaging civil society and local communities inIn formulating policies to foster local creativethe search for common solutions. As mentioned earlier, an2economies, there are many ways to promote social inclu-example best practice is the project under way in Medellin,sion and cohesion while maximizing employment andColombia, where the creation of cultural centres and other opportunities. In developing countries, particularlycreative clusters has succeeded in stimulating young talentin the least developed countries, the creative economy canthat otherwise might have been lost to the illegal drugbe a tool to attenuate social tensions. Creative activities,trade. In this case, the socio-economic impact was impres-especially those associated with arts and cultural festivi-sive, leading to a sharp reduction in the level of criminal-ties, are conducive to the inclusion of usually excludedity in the poorest and more vulnerable areas of the . Moreover, creative economy policies can facili-This strategy also has positive effects on gender balance,tate greater absorption of marginalized youth, in partproviding opportunities in the creative industries formade easier by the fact that many are already involved inteenage girls who might otherwise be trapped by prostitu-creative activities in the informal sector of the economy. tion or early pregnancy. Today youth are highly attracted by unconventionalThe creative economy is society-inclusive: people fromcultural and creative expressions such as street-art graffiti,all social classes participate in this economy, sometimes ascartoons and graphic art, hip-hop dance and video but always as consumers of different creativeSome even work for free producing creative content on theproducts or cultural activities on different occasions. ThisInternet or on mobile phones to entertain others. Thismade it possible to bring together several segments of socie-motivation is worth noting — as societal values change,ty, including stakeholders from the public and private sectorseconomic growth relies on new ideas, skills and an abilityand individuals or institutions with distinct interests —to excel and seize new opportunities. Especially for thethose in profit-making firms and non-profit organizationsnew generation, creative work is often interactive, takingsuch as NGOs, foundations and academia. The creativeplace in the context of social networks. For this reasoneconomy can serve as part of a more results-oriented devel-young people are used to working and living with moreopment strategy adaptable to all countries, if appropriateautonomy in an informal and flexible setting. concerted public policies are in place. The creative economy can help address knowledge, culture and the creative economyThe foundation of the creative industries in any coun-art, works of visual arts, literature, performances, films,try is the traditional knowledge that underlies that country’scrafts, and so on. distinctive forms of creative expression: the songs, dances,Thus the transformation of traditional knowledgepoetry, stories, images and symbols that are the unique her-into creative goods and services reflects the cultural values ofitage of the land and its people. This knowledge is kept alivea country and its people. At the same time, these productsby written, oral and pictorial transmission of cultural tradi-also have economic potential; they may be in demand by localtions from one generation to the next. Like any kind ofconsumers or they may enter international marketing chan-knowledge, it does not stand still but is constantly reinter-nels to satisfy demand from consumers in other and adapted to new formats. It is accessed by peopleThe essential feature of the creative industries, which link thein many different ways, serving as a rich cultural resourcetraditional knowledge at one end of the value chain with thefrom which a wide variety of creative expressions can beultimate consumer at the other end, is their capacity to servederived. Some of these are routine and everyday in nature,both cultural and economic objectives in the developmentsuch as traditional styles and patterns of clothing; other cul-process. Chapter 6 will present a broader analysis of matterstural expressions are created and interpreted by artists usingrelating to intellectual property, including the protection ofboth traditional and modern skills to produce music, folktraditional cultural expressions. 38CREATIVE ECONOMY REPORT 2010The development dimension
The linkages between traditional knowledge, culture,direct marketable output in live and recorded performancesart and the economy can be illustrated with cases of culturalthat they produce for sale to local people and tourists andfestivals and traditional celebrations that occur regularly inthrough the indirect effects of expenditures of tourists whose2many developing countries. In Latin America and thevisits have been stimulated by the presence of the , the carnival industries of Brazil, Colombia, Cuba,There are further economic spin-offs, for example in theand Trinidad and Tobago, for example, contribute significant-development of skills of local artists and in the inculcationly to the cultural and economic life of these countries. Theof business skills among the festival entrepreneurs, ascarnivals provide for a concentration of live and recorded per-described in box . A new study of the value chain associ-formance activity in music and dance that has considerableated with carnival festivities in Rio de Janeiro, Brazil revealscultural significance for both domestic and internationalthat this famous celebration makes a significant contributionaudiences. The festivals generate cultural value for local peo-to socio-economic growth in the whole state. With an annu-ple who can enjoy their country’s traditional costumes, music,al turnover estimated at $600 million, it provides job oppor-dance and rituals in an engaging communal context, and theytunities for nearly half a million people, thus having a hugeproject the cultural identities of the countries onto the inter-direct and indirect impact on the economy not just for thenational stage. The carnival industries also have a significantcity but for the whole state of Rio de Janeiro, and conse-6impact on the economies of these countries through thequently on the balance of payments of the Brazilian carnivals 1The simple mention of carnival takes us to Brazil. But, as the poet and Bahian essayist Antonio Risério affirms,Brazil is not the “country of carnival” thatis celebrated in the title of Jorge Amado`s famous novel, O País do Carnaval. Rather, it is a country of “many carnivals”, as described in Caetano Veloso’ssong. This is because, beyond pervasive commonalities, the Brazilian carnival has multiple dimensions and distinctive manifestations in different , we must abandon the inexact idea of one “Brazilian carnival” and speak about the carioca carnival in Rio de Janeiro, the carnivals of Recife andOlinda in Pernambuco, and the Salvador carnival in Bahia, among carioca carnival, for example, is characterized by its appeal as a spectacle and its strong links to the tourism economy. Carnival in Pernambuco is stronglylinked to traditional forms of popular expression. Distinctively, the Bahian festival is a large-scale, popular event characterized by cultural hybridizations, traditionand innovations. It has established itself since the late 1980s as the catalyst and backbone of a multifaceted economy. Therefore it provides an interesting casestudy that hints, on the one hand, of the economic dimension of culture as a stimulant of cultural production and dissemination and as an enabler of the devel-opment and establishment of artists. On the other hand, it delves into the cultural dimension of the economy as a catalyst for innovation, job creation and has always occupied a key place in the Brazilian cultural scene. The carnival frolics, with their blocos,afoxésand trios elétricos,constitute an exuberant market of symbolic cultural goods and services that in the last 25 years has come to characterize Salvador. In the contemporary configurationof the Bahian carnival, mercantile practices co-exist with cultural expression in a creative economy that combines celebration with economic production. Three important developments emerged in carnival frolics in the last fifty years, culturally distinct and distant from one another in time. The first one isthe birth of the trio elétricoin 1950. Inaugurating the popular participation that since then has characterized the carnival of Bahia, thetrio elétrico, alsoan excellent vehicle for advertising, became the first carnival enterprise. The second one is the 1970s resurgence of afoxés, particularly the emergence5of blocos afro,a new form of participation in the celebrations by the organized Afro-Brazilian youth that combines culture, politics and commerce, contributing to the exaltation of ethnic pride particularly within the Afro-Brazilian communities. The third phenomenon is the 1980s emergence of 6blocos de ropes around the blocoprivatized the trio elétricosince people pay to parade within the confines of the ropes dressed in the7abadá reintroduced a social hierarchy into the occupation of the public space, thus inverting the movement registered in 1950 when this samehierarchy was disarticulated by the emergence of the trio elétrico. On the basis of the repertoire created by the blocos afro, the blocos de triofavouredthe birth of axé music, a musical style born at the Bahian carnivals that established itself throughout Brazil. When the blocos de trioorganized them-selves as enterprises and attained economies of scale, they transformed the Bahian carnival into a product with a reach further than the party and thecity they animated. They exported the Bahian carnival model to dozens of Brazilian cities, notably stimulating a market around carnival. Other elements contributed to the transformation of carnival into a great business. The various actions of private enterprises in the creative industries(recorders, publishing companies, radio stations, etc.), technological advances (of the trio elétrico, recording studios, etc.), an aggressive marketing campaign to promote tourism, and improvements in infrastructure are all elements that contributed to the growth of the Bahian carnival, its products andmarkets. Carnival showed enormous capacity to generate multiple products, including music, artists, organizations and the trio elétrico, which, in con-junction with the cultural industry, the leisure and tourism industry and the service economy of the city, developed immense and diversified businesspossibilities for job and income creation. The Bahian carnival transformed itself into a mega event, surpassing by far and in all aspects any other popular event in Brazil. A quick look at the statistics of the 2006 and 2007 carnivals presented in the following table illustrates this point. 6Prestes Filho, . (2009). CREATIVE ECONOMY REPORT 201039The development dimension
Box continued Brazilian carnivals 2Indicators of the Bahian carnival, 2007Indicator StatisticDuration6 daysEstimated audience900,000 peopleOccupied urban space25 km of streets/squares, 30,000 sq m of other spaces Number of carnival groups227 groupsArtists involved11,750 peopleCasual employment131,000 jobs (97,000 from the private sector and 34,000 from the public sector)Number of tourists360,307 people (national); 96,401 (foreign)Hotel occupancy100% Accredited press2,531 professionalsIncome generated by tourists$94 millionIncome turnover$168 millionPublic income from taxation$ millionPrivate income$95 millionPublic expenses$27 millionSource: Emtursa, Relatório, 2006; Infocultura the magnitude of the figures above suggests, carnival demands led to a radical change in the way the Government and the private sector plan, manage,support infrastructure and equipment, and supply services to ensure carnival’s success. Re-conceived as a strategic business by various public and privateactors, the reconfigured Bahian carnival acquired great social and economic importance, expanding business opportunities for an array of productive agents. In effect, the transformation of carnival into an economic phenomenon engendered many lucrative activities. The blocos de carnival, the biggest symbolof the carnival business, have evolved from simple playful clubs to profitable companies by capitalizing on the organizational and technological innovations acquired during the last 25 years of carnival celebrations. Today there are over 200 blocos, the largest employing as many as 2,000 peopleas musicians, dancers, waiters, drivers, security, electricians, carpenters, etc. and contracting third-party services for the construction of trios elétricos,the making of abadás, production of instruments, etc. The business portfolio of blocosincludes countless activities linked to the production and commercialization of symbolic cultural products, such as the sale of abadás; sponsorships for the parade and other year-round, nation-wide shows; 8commercialization of food and drinks during the parade; business partnerships with singers and bands;and franchises of thebloco’ activities of the tourism economy (accommodation, transport, tour operation, gourmet, etc.) and of the cultural and leisure industry (show business,phonographic arts, publishing, radio broadcasting, etc.) benefit from the economic dimension of carnival. Street commerce is also invigorated. Thebaianas de acarajé, street vendors of all kinds of products, collectors of recyclable materials, car security guards, all thrive under the carnival economy,9with seasonal workers in such categories numbering around 25,000 people in could be elaborated on how the boom of the creative economy of carnival unleashed opportunities for people to escape poverty and on its diverse impacts,particularly on Salvador’s social fabric. In the Bahian context of high levels of inequity and social exclusion, a regulatory role remains to be played in the multiplication and social distribution of the opportunities arising from the commercialization of carnival, particularly since carnival is, in essence, a cultural phenomenon. This poses a twofold challenge: safeguarding the symbolic, cultural meaning of this party for the soul of the city and its people so as to ensurethe participatory, popular spirit of the Bahian carnival while at the same time unleashing, leveraging and capitalizing on the business that it Risério, Antônio, Carnaval: As cores da mudança. Afro-Ásia, Salvador, Centro de Estudos Afro-Orientais da Universidade Federal da Bahia, , -106, September The blocosare the groups of people who parade while singing and dancing. The origin of the blocosprecedes the emergence of the carnival itself. Their probable ancestors were the groups of masked performers known as cucumbis, formed by black slaves who participated in the festivities of the entrudoin colonial society. Such groups paraded singing and dancing to the sound of their musical instruments, mainly satirizing the dominant white The afoxésare old carnival groups of the Afro-Brazilian communities explicitly linked with candomblé, an Afro-Brazilian The trio elétrico, created by Bahians Dodô and Osmar in the 1950 carnival, is a platform, mounted on a truck equipped with giant speakers, on which musicians perform;people follow the trucks singing and The blocos afrothat parade to the sound of great bands mainly composed of percussion instruments have been a symbol of the Bahian carnival since the 1970s. Among the most famous is the internationally known The blocos de trio, a creation of the Bahian middle class, are characterized by their use of a trio elétricoinside the roped-off area. 7 Theabadáis a fancy costume used by the participants in the Intricately associated with the growth of the blocosis the artistic success achieved by the singers and musical groups who now occupy a leading place in the mercantilespace of the carnival. Many simple blocosingers have entered the market with their own blocos, or have become co-owners of already existing blocos, or have set up theirtrios elétricos. Many have become great stars, creating their own producers, recording studios and publishing companies for the distribution of hundreds of thousands ofrecords, and take part in the so-called “extemporaneous” carnivals, that is, festivities that are not organized exactly forty days before Easter as the Christian calendarrequires but at any and all times during the Emtursa, . Paulo Miguez, Universidade Federal do Recôncavo da ECONOMY REPORT 2010The development dimension
creative economy in the developing world and transition economies2This section provides an overview of recent develop-however, this does not translate into an industry where allments with impact on the creative economy in developingaspects of the value chain are present. countries and economies in transition, on the basis of availableAt the same time, it must be noted that establishedinformation at the UNCTAD secretariat. It highlights marketmusic industries in the developed world are facing a high leveltrends, relevant events at national and regional levels, and someof uncertainty. The existing value chain model based onpolicy interventions adopted to enhance the creative economy. income generation through Intellectual Property Rights (IPR)is under intense pressure. The impact of social media net-working and digital downloads on IPR is not yet fully stood and business models are still evolving. There are plentyof opportunities for developing countries to formulate newThe creative industries in Africa are generally fragment-approaches that recognize, and capitalize on, the value that ised. As a consequence, the cycle of production, marketing andbeing created through the existing local music industries thatdistribution is not coherent. Despite the profusion of talentare currently operating informally. One such approach is on the continent as well as the richness of cultural traditionoutlined in the Tecnobrega case in box heritage, there has been limited commercialization ofAfrican cultural and artistic creations in both the domesticIn many African countries, for instance Nigeria, musicand foreign an important part in daily life, rituals and commemora-tions, but the formal production and circulation of recordedThis situation is problematic as it could lead to themusic products is extremely limited. Not all economic hubsgradual impoverishment of the cultural heritage of Africanhave strong, economically viable, legal production and con-countries. In the absence of a secured decent income, it is notsumption of cultural products. While Dakar, Senegal, Cairo,surprising that talented people are less attracted by a career asEgypt and areas of South Africa such as Gauteng province oran artist, musician, filmmaker or craft worker and that thethe cities of Cape Town and Durban, are hubs for productionleakage of talent from developing economies is consumption of a range of cultural goods and services,Without development of the industries that support this tal-other strong economic hubs such as Botswana have a dearthent in these economies, there is every reason to assume thatof cultural production. Yet countries such as Mali,this trend will continue. The International LabourMozambique, Rwanda or Zambia have significant productionOrganization (ILO) study on crafts and visual arts describedand consumption of cultural products such as music, dance,how visual artists see themselves, with international recogni-crafts and visual arts. tion being the ultimate mark of success. Artists from south-ern Africa are keen to work abroad and “do not validate theirIn regard to the music industry specifically, the focusown context as much as their perceived idea of working is largely on live performance rather than on either record-7conditions abroad”.ings or the protection of content through well-functioningIPR systems. Unfortunately, in these circumstances, creativeIn the poorest countries, the majority of cultural talent often gets attracted overseas. It is not only that thereproduction takes place in the informal economy and can typ-is often little recognition locally compared to the interna-ically be the only form of income-generation for entire com-8tional star status that some African artists receive (for in more sophisticated markets, it is difficultple, the internationally renowned Mozambican artist,to break out of the informality into the established , the South African contemporary dancer,The value chain is not yet sophisticated (primary inputs Robyn Orlin, or Youssou N’Dour of Senegal). Also, artistscombined to produce outputs sold directly to consumers);7ILO (2003). 8Refers to a comment made by the Zambian Director of Cultural Services (housed in the Department of Social Development) about a community in the south of the country thatused the straw to produce brooms, baskets for shopping and display, Lusaka, ECONOMY REPORT 201041The development dimension
Box Africa Remix: Africa speaking loudly, brightly and colourfully 2“Africa Remix: Contemporary Art of a Continent” is the first exhibition to provide a comprehensive overview of present-day artistic activities on the Africancontinent and in the diaspora. It features artists from countries across the African continent, from Algeria to South Africa, as well as from African artistsnow living in Europe and North America. All the work has been created within the last 10 years and includes painting, sculpture, installation, photography,film, drawing, design and video. The exhibition provides an entry point into modern African creativity, dispelling oft-held perceptions of a continent focusedon the past, stuck in ritual and tradition, and engulfed by poverty, disease and war. Curated by Cameroon-born, Paris-based curator, writer and critic Simon Njami, the exhibition was launched in 2004 at the museum kunst palast inDusseldorf, Germany, where it was considered to be the largest exhibition of contemporary African visual art ever held in Europe. It subsequently travelled to the Hayward Gallery in London, the Pompidou Centre in Paris, the Mori Art Museum in Tokyo and the Moderna Museet in Stockholm and, morerecently, the Johannesburg Art Gallery in Gauteng, South Africa. Njami’s intention with the exhibition is to address the historical imbalances and inaccurate portrayal of the image of Africa that have been so prevalentin the past and to present an exhibition focusing exclusively on Africa by an African curator and now, most recently, to present it to African audiences. Theartists represent themselves rather than their countries. Africa Remix explores important contemporary themes relevant to Africa’s heritage and cultural diversity: of city and land (the contrasting experiences of urbanand rural life), identity and history (including issues of tradition and modernity and the relationship of the individual to the community) and body and soul (encom-passing religion, spirituality, emotion and sexuality). It powerfully acknowledges the vastness and diversity that are Africa and the wealth of her stories. Currentglobal relationships, however, dictate that many of the interactions of each African country with the continent are brokered by Northern centres of global influ-ence. The current showing of the exhibition in the economic engine room of South Africa is set against the backdrop of a changing reality as the population ofcontinental Africans in Gauteng grows rapidly. New connections are being made as communications and banking groups set up intercontinental partnershipsand students move between academic institutions for research and study purposes. Foodstuffs are imported daily from West Africa into our urban exhibition is not without its critics, however, particularly its emphasis on contemporary art rather than heritage and folk art. As Jonathan Jones of1The Guardiansays, Africa Remix “uses ‘contemporary art’ in the way it is generally used, to mean art aware of modernism and its aftermath. But whodefines ‘contemporary art’, and why should it matter more than, say, ‘tribal’ or popular art from Africa? And why should African art have to fit a sterile andmiddle-class western idea of the culturally pertinent?” Perhaps this is precisely the point. Africa Remix represents an Africa that is vibrant, urban and modern, not only rural, voiceless and technologically backward. It is indeeda ground-breaking exhibition offering audiences not only a visual explosion of African imagery but also an opportunity to engage with its meanings and theory throughsponsored seminars, guided walkabouts and a catalogue showcasing festivals, journals, institutions and movements that have shaped culture on the continent. 1Jonathan Jones, “Africa Calling”, The Guardian, Wednesday, 9 February 2005. Available at: . By Avril Joffe, Director, CAJ (Culture, Arts and Jobs).predominately rely on income from performances rather thanundertaken on a craft-like scale”. An established industry iscopyrights, and there is a dearth of venues with the capacity toone firmly based on a value chain comprising a recordingsupport an artist’s growth beyond their immediate communi-industry with players at each stage. A live-performance indus-ties. Without a stronger framework to support a local musictry with a vibrant live-music culture has performing artists,industry, artists will continue to seek opportunities in devel-managers and agents, promoters, roadies, sound and lightingoped markets. One of the policies available to developingengineers, equipment rental and management as well as suit-countries that would result in strengthened local markets is theable venues. These two parts of the industry are served by anpromotion of better use of public spaces for performances. effective and supportive regulatory an attempt to classify the music industry withinThe study as presented in table that onlyAfrican countries, research prepared for the UNESCOseven countries in Africa have established performance indus-Global Alliance for Cultural Diversity developed a taxonomytries and only two have an established recording on stages of development of the music industry fromMost of the rest are embryonic, and in 30 per cent of all“countries with emerging or previously established musiccountries in sub-Saharan Africa, there is little evidence of aindustries” to “countries with embryonic music industries”formal music industry. The table reveals that it is the live per-and “countries where music production and consumption areformance of music that is driving the music industry in 42CREATIVE ECONOMY REPORT 2010The development dimension
sub-Saharan African countries. More importantly, in morehowever, only two are classified in the “established recording9than 35 per cent of these countries, there is a music industry;industry” category: South Africa and Features of the African music industry EstablishedEmerging/ previouslyEmbryonic industryCraft-like scaleUnclear evidenceindustryestablished industryof industryCongo BotswanaBeninAngolaBurundiDemocratic Republic Burkina FasoCape VerdeGabonChadof the CongoCameroonCentral African RepublicMalawiDjiboutiKenyaEquatorial Guinea GhanaNigerEritreaMaliGambiaMauritiusSeychellesEthiopiaSenegal Guinea BissauMozambiqueSwazilandLesothoSouth AfricaIvory CoastNamibia TogoLiberiaUnited Republic MadagascarUgandaMauritaniaof TanzaniaZambiaRwandaZimbabweSierra LeoneSomaliaSudanTotal16%24%17%16%27%South AfricaCameroon BeninGabonAngolaZimbabweCape VerdeBotswanaGambia BurundiIvory CoastBurkina FasoNigerChadKenyaCentral African RepublicSeychellesDjiboutiMadagascarCongo TogoEritreaMaliDemocratic RepublicEthiopiaof the Congo Mauritius LesothoEquatorial GuineaSenegalLiberiaGhanaUnited Republic Mauritaniaof TanzaniaGuinea BissauRwandaZambiaMalawi Sierra LeoneMozambiqueSomaliaNamibiaSudanUgandaSwaziland26%3%27%11%32%TotalAverage26%9%22%14%30%The past ten years have seen the development of cultur-Nevertheless, certain countries in Africa have begun toal policy around the continent and the inclusion of culturalrecognize the potential of the cultural sector and the creativeissues in continental and regional forums such as theeconomy to alleviate poverty and create jobs and are becom-Southern African Development Community (SADC). Manying more committed to supporting these sectors. At acountries lack an explicit cultural policy as well as the institu-Ministerial Conference held in Mozambique in 2000 on thetions or infrastructure to deliver on policy objectives. In addi-role and place of culture on the regional integration agenda,tion, there is a disparity in the location of culture as a port-Member States of SADC agreed to “take decisive stepsfolio within government. Policy focus is primarily on heritagetoward the promotion of cultural industries as a way ofand preservation in response to historical factors and nation-exploiting their capabilities to alleviate poverty, generate10al identity while there is limited attention to contemporaryemployment and contribute to economic growth”.culture, which tends to be left up to arts councils, with littleThere is as yet no integrated coordinated frameworkattention paid to creative industries at a policy level. Indeed,for African cultural policy; as a consequence, the potential ofthese are common problems in most developing cultural market in Africa is not realized. To do so would9UNESCO (2004). 10Sithole (2000).CREATIVE ECONOMY REPORT 201043Recording industry Performance industryThe development dimension
require coherent multidisciplinary policies, determination inThe PRSP for Mali links culture with religion, socialtheir implementation, financial and human resources devotedharmony and security as a major focus for the country’sto the creative industries and an environment conducive topoverty reduction efforts. This is in recognition of the poten-2information and communication technologies (ICTs) andtial of Malian culture in promoting traditional and religiousintellectual property rights. The African Cultural Commonvalues with a view to creating a climate of social harmony andMarket is intended to be the framework for the reorganiza-security. In recognition of the tremendous potential oftion and restructuring of the African cultural spaces and mar-Nollywood, the home video film industry of Nigeria (see boxket. The African Union established the Economic, Social ), the Nigerian PRSP identifies culture as a priority pover-Cultural Council in March 2005, with full establishment ofty reduction strategy. Senegal also recognized the potentialthe African Economic Community expected to take place invalue of crafts to the national economy and included it as one2025, aiming at strengthening the linkages between cultural,of its principal poverty reduction strategies. economic and social policies. In 2006, the Second Meeting of the African,On the other hand, the cultural sector and the creativeCaribbean and Pacific (ACP) Ministers of Culture gatheredindustries are gradually becoming an instrument for theministers from 79 States from the ACP regions, and sent aachievement of broader development goals and are able toclear political message reflected in the adopted resolutionsreceive funding. Four African countries — Ghana, Mali,emphasizing that cultural policies are essential componentsNigeria and Senegal — integrated culture into their Povertyfor the development strategies of ACP States and that cultur-11Reduction Strategy Papers (PRSPs) as “major axes”,high-al diversity is a factor of social cohesion and stability at thelighting the contribution that the cultural sector can make tonational and international levels. The ministers reaffirmed thepoverty reduction. relevance of the Dakar Declaration for the promotion ofACP cultures and their cultural industries. In this regard, aIn the case of Ghana, at the first PRSP emphasis wasmulti-agency project proposal for “Strengthening theplaced on the development and promotion of the music andCreative Industries in Five Selected ACP Countries throughfilm industries. More recently in 2009-2010 the creativeEmployment and Trade” was approved in 2007. The projectcommunity has been proactively working on its successor, theis under implementation by ILO, UNCTAD and UNESCOGhana Poverty Reduction Strategy II, putting emphasis onwith funds from the European Commission and institutionalthe creative industries as potential sources for employmentsupport from the ACP secretariat. The beneficiary countriesgeneration, wealth creation and skill development. The gov-for this pilot project are: Fiji, Mozambique, Senegal, Trinidadernment is committed to promoting research into existing12and Tobago, and 2009, the Europeanpolicies, and reviewing the legal framework for the culturalCommission convened a policy-oriented international collo-sector with the aim of expanding opportunities for specialistsquium “Culture and creativity as vectors of development” inin the creative industries to acquire entrepreneurial knowledgethe context of the EU-ACP policy. About 800 participantsand resources. Creative industries became one of the indica-gathered in Brussels, including not only government officialstors for production and employment in the GPRS-II, focus-but also members of the creative and artistic community withing on creating opportunities for distribution, exhibitions ofthe aim of advancing cooperation on culture and creativecreative products (visual arts, crafts, fashion, etc.) and theindustries, including through negotiations for Economicpromotion of live performances nationally and international-13Partnerships . This policy development has encouraged the private sectorand other stakeholders to initiate target programs. ProgressIn April 2008, UNCTAD launched its Creative Africamade so far indicates that the cultural sector attracted sub-Initiative during its Ministerial Conference UNCTAD XIIstantial donor support in 2008 for various activities identi-held in Accra, Ghana, with the objective to promote Africanfied under the GPRS-II. Since 2007, UNCTAD has beencreative industries through partnerships, ownership and inter-interacting with the government, the creative community andnational cooperation. Some African governments, especiallythe local World Bank office to strengthen the creative econo-Ghana and Nigeria, committed to move ahead the Creativemy in Ghana as a feasible development option. Africa concept and to put in place a strategy for enhancing11Sagnia (2006). 12UNCTAD (December 2006). 13UNCTAD (June 2009). 44CREATIVE ECONOMY REPORT 2010The development dimension
their creative economies. Some recent developments takingtive that aims to offer concrete and direct job opportunitiesplace in Africa in the area of creative economy include:for young people through the creation of a school for careersin the cinema and audiovisual sector for young children in aEgypt: In June 2010, the Cairo Forum on Cultural2poor neighbourhood of Casablanca. On the same site as theHeritage and Economic Development was convened by theschool, there will be facilities for constructing scenery andgovernment in association with the Union for theshooting movies, documentaries, sitcoms and other and other partners, with a focus on handicraftsActors of the movies will be the children of the neighbour-as a tool for sustainability. The event debated the impact ofhood. Images pour tous(images for everybody) is another proj-cultural heritage, art crafts to promote jobs and economic sus-ect to create cinemas for people living in poor neighbour-tainability, and was concluded by the signing of the Cairohoods at the periphery of Casablanca. In those areas a largeDocument in which the signatories committed to elaboratenumber of people are illiterate; for them images constitutepolicies for the promotion of, investment in and developmentone of the only means of learning. There is a great demandof crafts in the Mediterranean area. Participating countriesfor movies in those areas and no (or very poor) cinemas. Theengaged to allocate resources to facilitate the documentation,price of the tickets will be adapted to the purchasing powerprotection, development, education, training and internation-of the population. (See also the section on the film industryal marketing for traditional art crafts. Issues relating to in chapter 5.)protection of intellectual property and related rights, andmore generally enhancement and implementation of interna-Mozambique:A High-level Policy Dialogue ontional standard-setting instruments and legal tools, were alsoCreative Industries held in Maputo, Mozambique, in Juneaddressed. 2009 discussed and validated the final draft of the policy-oriented study prepared by UNCTAD, “Strengthening theGhana: Artists and stakeholders have come together to15creative industries for development in Mozambique”,as oneform the Foundation for Creative Industries with the aim toof its main contributions to the multi-agency pilot the economic viability of cultural institutions andThe report identifies needs and priorities and recommends apractitioners. The foundation is helping to revive traditions,plan of action to foster employment, creative capacities, tradedevelop local creative capacities, and gain access to globaland the linkages between culture and development. The studymarkets while supporting government efforts to reducepresents a policy review of the situation of the creative indus-poverty through job creation within the creative in Mozambique, and makes recommendations for The Ministry of Trade is considering the establishment of concrete initiatives and policy interventions including a mech-an Accra Creative Industries Centre, as recommended byanism to facilitate inter-ministerial actions and a concertedUNCTAD, as an outlet for small and medium-sized creativestrategy to nurture the creative economy. industries. A national forum is envisaged to provide for a dia-logue between government and artists on a possible strategyThe EU-Africa Campus on Cultural Cooperation wasto speed up the development of Ghana’s creative in June 2009 in Maputo, Mozambique, as an important13The Foundation for the Creative Industries,is also collab-initiative supported by the Spanish Agency for Internationalorating with the mayor of Accra to showcase and sensitizeCooperation for Development, the Ministry of Culture oflocal and international stakeholders and potential foundersMozambique and the City of Maputo. The event was jointlyabout Ghana’s creative industry, through the Accra Culturalorganized by the InterArts Foundation and the ObservatoryCapital /African Creative Cities project. The purpose is toof Cultural Policies for Africa, and provided a forum whereexpand local and international audiences for cultural activitiescultural agents from Africa and Europe reflected, sharedand art events, form partnerships to improve and promoteknowledge and experiences and explored ways for culturalcreativity and innovation and assist in developing the careerscooperation. UNCTAD coordinated and chaired two work-and talents of art professionals in the city. shops on sharing experiences in the area of the creative economy, presenting successful stories and proposing Morocco:The Ali Zaoua Foundation is a recent initia-14For further details, contact Associate Director, Institute for Music and Development at and study will be available from UNCTAD’s portal: Reference UNCTAD/DITC/TAB/2009/1(series 2, 2010).16InterArts foundation was created in 1995 in Barcelona, as a private agency with international projection, with the goal of providing advice on the design of cultural policies, and contributing to the processes of development through the cultural sector. More information is available from ECONOMY REPORT 201045The development dimension
concrete initiatives for greater cooperation betweenfrom 70 countries, including 31African countries. TheEuropeans and Africans, particularly in the area of culturalSummit strongly reinforced the value of international education and the use of new digital and environmental-relatednetworking between leaders in arts and cultural policymaking,217technologies in the area of design. funding and Fifth World Summit on Artsand Culture will be hosted by the Australian Council in :The Vice President of Nigeria launched theIn July 2009, UNCTAD was invited by the African ArtsNigerian Chapter of Creative Africa in Abuja in NovemberInstitute, the National Arts Council of South Africa and the2008. Creative Africa brought a new momentum to sensitizeARTerial Network to address a seminar held in Johannesburggovernments and the international community about theby presenting the findings of the Creative Economy Reportpotential of the creative economy to accelerate development2008, and share views on the prospects for the creative econ-in the continent. Gradually, other African countries are artic-omy to advance development in South Africa. ulating policies to realize the potential of their creativeeconomies. Moreover, the Second Session of the AfricanZambia:A High-level Policy Dialogue on CreativeUnion Conference of Ministers of Culture held in Algiers inIndustries was held in Lusaka, Zambia, in July 2009. ThisOctober 2008 took steps towards the effective implementa-multi-stakeholder meeting was convened to present and vali-tion of the African Cultural Policy Framework. There is adate the final draft of the national study prepared by UNC-growing recognition in Africa of the importance of the cul-TAD entitled “Strengthening the creative industries for devel-tural sector and the creative industries as the new complemen-opment in Zambia”, which proposes a strategy to boost thetary avenues for promoting social and economic development. socio-economic potential of the creative economy in the scope of the project, UNCTAD is focus-Senegal:UNCTAD has been interacting mainly withing on the economic aspects offering policy advice, technicalthe Ministry of Youth with the purpose to support the cre-assistance and capacity-building activities intended toation of a Creative Economy Centre as a platform to provideenhance public policies, creative capacities, trade and invest-technical assistance and capacity-building activities for youngment in the creative industries. ILO is working to promotetalents and facilitate networking and partnerships to enhanc-employment, decent work and entrepreneurship in the ing the creative industries. UNCTAD is also collaboratingcreative sector. UNESCO is setting standards with a view towith a project to archive ethnographic music recordings andreinforcing the linkages between culture and the export potential of Senegalese music — bothtraditional and modern — in global markets through onlineZimbabwe:At the 2010 Harare International Festival of19sales of digitized music. Cooperation with the Dakarthe Arts, the Commonwealth Foundationand Arterial20Biennale of Arts and the École des Sables are also part of aNetworkannounced a strategic alliance to work together toplan of action to further promote African contemporaryhelp develop African cultural policy. The two organizations arevisual arts and dance, areas in which Senegal has competencejoining forces to assist African governments and civil societyand competitive advantages and deserves international networks in developing, monitoring and evaluating nationalsupport to reach out global markets. cultural policies and their implementation. The lack of strongand supportive policy environments for culture has been iden-South Africa:The fourth World Summit on Arts andtified as a challenge in many Commonwealth countries, 19 ofCulture was held in South Africa in September 2009 under21which are in the next six months, the Culturalthe theme Meeting of Cultures: Making meaning through thePolicy Task Group will develop a generic cultural policy, andArts. The event provided for a range of international net-then Arterial Network will dialogue with policymakers on theworking initiatives to support arts practice in Africa andimplementation of the policy proposals in different Africaninternationally. The Summit, co-hosted by the National Artscountries. The policy development process will be comple-Council of South Africa and the International Federation ofmented by regular seminars throughout the continent on keyArts Councils and Culture Agencies, attracted 450 delegates17More information is available from study will be available from UNCTAD’s portal: Reference UNCTAD/DITC/TAB/2009/1(series 1, 2010).19More than two billion people in 54 countries across six continents from Antigua to Zambia can count themselves as citizens of the Commonwealth. More information is availablefrom Arterial Network is a civil society organization that uses the arts to advance development, eradicate poverty and strengthen democracy in Africa. More information is availablefrom information is available from ECONOMY REPORT 2010The development dimension
cultural themes in order to inform the public and mobilize theSingapore, Thailand and Viet Nam have much activity relatedarts community around these themes. to the creative economy as well as a strategic interest in cre-ative-industry development, though it may not be expressed2in these terms. Asia-Pacific regionChina: The “cultural creative industries” startedbooming in China during this decade. As indicated in chap-In the Asia-Pacific region, the creative industries haveter 5, China became a leading player in the world market forbeen an important element in the development of maturecreative goods throughout the period from 2000 to 2008,economies such as Japan and the Republic of Korea, as welldue to the richness of its cultural diversity and its ability toas of fast-growing economies such as Singapore andproduce a good mix of traditional and high-tech creativeMalaysia. Many city authorities in China, Japan, the Republicproducts. A clear sign of the government’s intent to fullyof Korea and Singapore have formulated economic invest-explore the potential of China’s cultural creative industries asment policies based on creativity and creative enterprise as atha development strategy was its inclusion in the 11Five-Yearstrategy for economic growth and competitive advantage. InPlan. Moreover, China has had the fastest economic growthmost Asian countries the concept of creative economy asso-in the world for more than 30 years, and technology has beenciated with cultural industries gradually is being absorbed and22paramount in its “catching-up” , thesereflected in national economic development strategies. Manyconditions, particularly the combination of investment, tech-countries in the region started to analyse the potential ofnology and creativity, have been conducive to harnessing thetheir creative industries for job creation, revenue and trade. creative economy in the country. While both the crafts industries and cultural tourismAnother important feature of China’s modernizationcentred on heritage sites attracted some attention and are bet-drive and the success of its creative industries results fromter recognized for their potential for income-generation, theymultidisciplinary policies in which ministers of commerce,remain isolated activities. In general, these industries are theculture, science and technology, information and educationfocus of individual projects driven either by entrepreneurs orwork in a concerted manner. The creative industries have beenas part of development projects funded by the government,identified as one of the pillars of China’s future economicexternal international assistance or NGOs. Over the years, reforms recognizing the growingprojects have been designed, for example, on the basis of therole of culture and creativity for economic development havepotential of harnessing the craft industries as a motor forbeen articulated with a view to enhancing creative industries,economic development among the poorer segments of theparticularly those generating high-growth, value-added goodspopulation. Often, however, these economic activities fail toand services. In this respect, China is a concrete example ofmaintain the economic growth foreseen in the projects ashow cross-cutting policies should be integrated in order tosoon as external support stops either because of constraintsenhance the overall impact of the creative economy for devel-in terms of infrastructure or inadequate funding. It is gradu-opment gains. Recently, innovative financing arrangements,ally being understood, therefore, that a comprehensive devel-including new private partnership, have been an engine for theopment strategy is needed to realize the potential of these24dynamism of its technology-intensive creative for economic development and poverty alleviationAn important shift in policy orientation from “made inin Asia. This is the motivation behind such programmes asChina” towards “created in China” is already noticeable. the Jodhpur and the Paro Initiatives promoted by was able to mitigate the impact of the economicRegionally, one can divide the Asia-Pacific region intocrisis of 2008-2009 with a fiscal stimulus and other measuresdifferent groups according to how importantly the conceptto accelerate economic restructuring towards a more balanced,and activities of creative industries figure in the and environmentally friendly growth major Asia-Pacific economies, including China, India,Substantial investments were mobilized for deeper structuralIndonesia, Malaysia, Philippines, Republic of Korea,22Keynote address by E. Dos Santos (Chief, Creative Economy and Industries Programme, UNCTAD), on the interface between technology and culture at the Tenth ChinaInternational High-Tech Expo (CHITEC), Beijing, May speech by the Minister of Culture of China, First China Beijing International Cultural and Creative Industry Forum & Expo, Beijing, December by E. Dos Santos, UNCTAD, at the Creative Industry Development Forum, Beijing, May ECONOMY REPORT 201047The development dimension
reforms, in particular to support SMEs and employment assis-ty, technology and financing options for SMEs fromtance. Investment, technology, enterprise and trade continueSouthern countries. This includes tools for project biddingto be paramount to the good performance of China’s creativeand partner matching, which can also be used for the creative225economy and the competitiveness of its creative April 2010 the Ministry of Culture convenedThis “creative nexus” has been in place to stimulate the con-a meeting with financial institutions to encourage financialtinuous fast growth of the creative industries since 2003. Insupport for China’s emerging cultural creative industries. TheJuly 2009, the government published a plan to “Revitalize theidea is to develop financial products suitable to expandCultural Industries” and asked the central and local govern-financing for the creative industries; credit is expected to bements to take a multidimensional approach to develop theextended to viable and profitable companies in order tocreative industries. Apparently, the financial crisis had a minorfinance supply chains and promote mergers. The governmentimpact on the Chinese creative economy, but most creativeis building a public service platform to boost investment inenterprises, especially SMEs, find it difficult to obtain creative industries, and a new database will contain detailsIn this context, the UNDP Special Unit for South-Southof investment projects. A strategic partnership was set upCooperation in collaboration with the Chinese authoritiesinvolving the Bank of China and the Export-Import Bank tolaunched in September 2009 a platform at the Shanghaifinance projects. Special funds will support animation,26United Assets and Equity Exchanges for transactions of equi-movies, TV and Experience of the Shanghai Creative Industry Center An illustration of the application of a creative-industry development policy in an urban setting is provided by Shanghai, where the Shanghai MunicipalGovernment has clearly stated that the development of creative industries would be one of key industries in economic transition and city development dur-ing the 12th Five-Year Plan period (2010-2015). According to the Shanghai Creative Industry Center, 6,110 companies from 30 countries had entered oneof the 80 creative industry parks ( million square meters) around the city, creating job opportunities for more than 80,000 people. In 2009, the creativeindustries of Shanghai realized an increase of billion yuan in turnover, nearly per cent higher than that of the previous year. In 2009, the totalturnover of the creative industries accounted for per cent of the GDP of the city (see table below).Contribution of creative industries to the City of ShanghaiOutput Added value(in billions of RMB)(in billions of RMB)&D/ and and ’s cultural industry authority issued a series of policies and guidelines to encourage non-public investments. The further opening of the culturalmarket has driven up the enthusiasm of private investors. By the end of last year, 186 institutions owned business licenses for broadcasting and TV pro-gram production, with 159 privately-owned; 85 business arts performance troupes, with 43 privately owned; and 157 performance agencies, with 78 percent privately-run. The private-based economy has played a major role in entertainment sites such as net-cafés and other Internet establishment of a public cultural system has played an important role in boosting the city’s cultural industry, which has been enhanced by govern-ment sourcing to the development of the industry. The acceleration of the establishment of community cultural activity centres, cultural information sta-tions, museums and libraries has created more jobs and has driven up the demand for books, audio products, movies and Internet services. According toa Shanghai Municipal Government Press Conference Memo of 20 September 2006, the public-welfare cultural protection and equipment services, cultur-al activities of the public, cultural research and community services registered revenues of billion Yuan, with the added value of billion Yuan,covering four per cent of the whole cultural service Dr. Pan Jin, Deputy Secretary-General, Shanghai Creative Industry Center25UNCTAD (September 2009). 26More information is available from , China’s official website for cultural creative ECONOMY REPORT 2010The development dimension
India: The country has a remarkable cultural diversitytry, until now limited to the domestic market, but in the nearand strategies focus on the services-oriented and technology-future will become the basis for exports. The Trade Ministryintensive creative industries such as digital and software servic-is in the process of mapping these creative industries and has229es and audiovisual services, in particular the film has complete data on furniture and , the concept of the creative economy is not yet wellMalaysia:The contribution of the creative industry tointegrated into national strategies. India is the world’s largestthe national economy is still low compared to other industriesfilm producer, and the film industry provides employment tolike the tourism and other services. However the Governmentsome 5 million people. India’s support to the film industryof Malaysia is embarking in creative industries strategiesrests on the action of three institutes at the federal level, andthrough five main areas: the provision of infrastructure facili-some states have also developed support measures with anties, minimizing bureaucracy, developing the creative industry27emphasis on training in film , thethrough the Ministry of Culture, Art and Heritage, supportingNational Film Development Corporation supports small-local producers in order to expand TV and radio production,budget productions as well as loans for the construction ofand efforts to reduce tax rates, ensure copyrights of their cinemas. However, fiscal measures are the main mechanism of30producers and combat intervention, while tax exemptions to lower productionRepublic of Korea:The creative industries have beencosts, cuts in customs duties on film equipment, and an exportperforming well, particularly those in technology-orientedincentive system are the main instruments of public such as audiovisuals and new media (mainly films, ani-Bollywood, the colloquial term for Hindi movies mademation and video games). Public policies on audiovisuals havein Mumbai, dominates the Indian national market, butbeen instrumental not only in enhancing the creative sectorregional film-producing states have their own growing mar-domestically but also in guiding international trade policies inkets. The film industry is fragmented but has been restructur-the context of World Trade Organization negotiations. Theing. Filmmaking, distribution and exhibition are now increas-Korean Broadcasting Commission plays an important role iningly controlled by a smaller number of companies mergingstrengthening domestic production of works for television. In28to form bigger , Indian films haveaddition, domestic demand is stimulated by the country’sbeen produced mainly for domestic markets national filmshigher-than-average rate of ownership of audiovisual appli-comprise 90 per cent of the Indian market. Thanks to theances such as videocassette recorders and DVDs. Indian diaspora, Indian films are gaining greater penetrationSingapore:Singapore has been putting much effortin world markets, particularly as video-films for home andinto strengthening the intellectual property right laws and edu-TV audiences in developing countries, especially in consumers. Besides updating the laws and enforcementFor the Indian film industry, 2008 was a difficult year due tomechanisms, efforts have been made in the area of publicrising production costs resulting from higher pay packages forawareness. The HIP Alliance (HIP stands for Honour IP) isthe films’ stars, and lower revenues from box offices. a collaborative effort between government and industry thatIndonesia: The creative industries contributed perencourages consumers to respect creativity and creation bycent of the national GDP in 2006 and grew by per cent inpersonally saying no to piracy. In 2006, it organized the2008, able to absorb million workers, equal to per centSingapore Biennale, the largest international contemporaryof the total workforce, despite the fact that these industries arevisual arts exhibition, which has served to promote Singaporestill not yet properly mapped out. The focus on creative indus-as an international centre for contemporary visual was spurred by the President, who instructed the TradeFollowing the success of the second exhibition in 2008,Ministry to boost the creative industries. Indonesia’s fashionwhich attracted over 500,000 visitors, the National Artsindustry has grown by 30 per cent, handicrafts by 23 per centCouncil has appointed the Singapore Art Museum to organ-and advertising by 18 per cent. Music is also a growing indus-31ize the third one in March (2006). 28Rao (2006). 29Sunario. 30Presentation by Mohammed Bin Daud, Deputy Secretary General, Ministry of Culture, Arts and Heritage, information is available from ECONOMY REPORT 201049The development dimension
Thailand:The government has established a roadmapaspects. In 2009, under the ACP-EU cooperation program,for the development of Thailand’s creative economy. InUNCTAD, ILO and UNESCO launched a pilot project toMarch 2009, UNCTAD assisted the Thai government toprovide technical assistance aimed at enhancing the contribu-2convene a Policy Dialogue on the Creative Economy held intion of the creative industries to employment and trade inBangkok. In August 2009 the Creative Thailand policy wasFiji. A stakeholders meeting brought together about 30 launched and the National Creative Economy Committeeparticipants from the government, cultural institutions, artistsestablished. Later in the year the creative economy became aand creative entrepreneurs, resulting in a lively debate aboutpriority sector at the Tenth National Economic and Socialthe expected impact of the project on national policies; a planDevelopment Plan, emphasizing the importance of creativityof action is under consideration to be implemented in collab-and innovation as the main element to bring about economicoration with the government, the Fiji Arts Council and other32stability on a sustainable defined two mainrelevant institutions. objectives of its strategy: first, to develop Thailand into a cre-The Asia Cultural Co-operation Forum is an impor-ative industries hub of ASEAN, and second, to increase thetant annual event in Hong Kong. The forum is attended bycontribution of the creative industries from 12 to 20 per centMinisters of Culture from Asia and creative entrepreneursof GDP by 2012. Moreover, the government is prepared tofrom the Asian region with the purpose to enhance regionalset up the National Creative Economy Agency, a new organ-connections through cultural cooperation and to exchangeization under the Prime Minister’s Office, to handle theviews on recent developments. One such forum on the con-33mobilization of the creative economy on a full-cycle of branding concluded that a successful cultural brandThe Ministry of Trade is organizing an important interna-will not only contribute to the long-term sales of productstional forum to be held in November 2010 with a focus onand services, but can also improve a country’s overall prospects for the creative economy for ASEAN Asian Cultural Ministers referred to collective efforts toUNCTAD was invited to be a co-organizer of the stronger government-to-government links across theAnother group of Asian countries with less emphasisregion to enhance the creative economy. on creative-industry development, but where craft industries,furniture making and handloom industries have traditionallybeen widespread secondary employment activities, includes, Asia and the Middle EastBangladesh, Bhutan, Cambodia, Lao People’s DemocraticCertain countries of Central Asia, such as Mongolia,Republic, Myanmar, Nepal and Pakistan. Despite the differ-are still adapting to the transition to a market economy, andences between the countries in this group, their creativewithin this scenario the concept of “creative industries” is noteconomies have certain common features, including the factone that figures very prominently. This has partly to do withthat the majority of economic activities relating to the the different traditions concerning intellectual property rightscreative industries are in the large urban weak institutional support. While the cultural and artis-Finally, there are countries where the creative industriestic traditions are very rich and diverse in the region and holdare practically unnoticed as part of the economy, especially inconsiderable potential for commercial development, the corethe Pacific Islands. In these countries, creative industries existcultural and handicraft industries in these countries are inmostly in terms of more traditional cultural activities of com-general part of the informal economy and are not yet munity life. Throughout the Asia and Pacific region, however,positioned as part of any creative economy. The nomadic the cultural sphere is an area for the search of identity. Thistradition in all of these countries is a particular aspect of thesearch is a real need for many people of the region who potential development of creative industries. Nevertheless,experience the onslaught of social change and increasing eco-while there are big differences among the distinct parts of thenomic insecurity. This is coupled with the different valuesregion, there are also some similarities inside certain groupspresented by cultural goods and services that incorporate oldof countries, as presented new, traditional and contemporary, global and local32For further information see UNCTAD Creative Economy e-News, No. 9, June News Service, “Thailand Attaches Greater Importance to Creative Economy”, May ECONOMY REPORT 2010The development dimension
Abu Dhabi: For the United Arab Emirates, the creativesign that creative industries are receiving growing considera-economy became a key sector to diversify the overall econo-tion in the region was the fact that Christie’s, the internation-34my. According to the Abu Dhabi Economic Vision 2030,al auction house, held the first contemporary art auction in2the government intends to make quality media production inthe Middle East in Dubai few years ago. ContemporaryArabic-language content a vector for economic growth. LargeArab, Iranian, Indian and Western art drew collectors frominvestments are being made particularly for the developmentall over the world, and the auction exceeded expectationsof new media. As part of the strategy to develop a favourablewith $ million in sales. From Arabic calligraphy toenvironment for the creative industries, a governmental organ-American icon Andy Warhol, 190 works of contemporaryization was set up in 2008 to cater to the film, broadcast, dig-art went under the hammer in Dubai, the commercial hubital, gaming, publishing and music industries. Moreover, Abuthat had previously been better known for its glass skyscrap-Dhabi is seeking to become a cultural centre within theers than its arts scene. Middle East region, its $27 billion Saadiyat Island projectIran:In the Islamic Republic of Iran, creative industriesdesigned to house the Louvre Abu Dhabi and thesuch as publishing and film production have a long museum project, meant to preserve Gulf cultureIranian films exhibit a strong cultural identity and audienceswhile also embracing the arts and culture of the West. have been increasing worldwide. Carpets remain one of theDubai: The new media city complex in Dubai hasmost appreciated items of the Iranian culture in global turned the United Arab Emirates into a centre for broadcast-markets. UNCTAD figures show the Islamic Republic ofing and publishing. Deeper into the desert, the massive pro-Iran as the third-largest carpet-exporting country, accountingduction city is growing into a sprawling movie and televisionfor nearly 15 per cent of world market share. production zone, seeking to do for Dubai what HollywoodLebanon: There is significant creative industry activity,did for Los Angeles. An innovation campus opened in 2009especially in Beirut. The city used to be a broadcasting centrewith the support of the Dubai Culture and Arts centre aimsfor the Arab world, with a pan-Arab market of some 280 mil-to support small businesses in the creative industries and pro-lion people. It is the production (and post-production) centremote dialogue among creative entrepreneurs. Creativity isfor television, as well as for films, and has regional advantageseverywhere, from ergonomic flexible workspaces to such facil-in terms of film locations, creative writers, actors, directors,ities as a cinema/auditorium for lectures and screenings, aand a continuing influx of technical graduates from Lebaneselibrary housing over a thousand books on cultural and cre-universities as well as a comparative advantage in translators,ative topics, a small shop offering design objects, a brasseriewith many creative people in Beirut fluent in at least three lan-offering affordable and healthful food and a garden for muchguages. Important film festivals are organized in Beirut. Seven35needed breaks from secure operational environ-Lebanese universities offer courses in film production orment and incomparable logistical advantages have madeaudiovisual arts. Lebanon itself has seven active “licensed” TVDubai and the United Arab Emirates a preferred destinationchannels, as well as a small number of unlicensed ones. Mostfor pre- and post-production activities of global televisionof these are entertainment channels. Lebanon has around 12and film companies. In addition, Dubai Studio City, a filmproduction houses, producing commercials, music videos, andand broadcast industry cluster is attracting interest amongcorporate films as well as TV programmes, and several post-global filmmakers. The cluster is an all-encompassing destina-production companies, including state-of the art animationtion offering facilities for design, visual effects and musicfacilities. The average Lebanese household has two televisioncomposition in addition to pre-built studios, sound stages,sets, with 65 per cent of Lebanese adults watching TV for 2training academies and a business centre. The state-of-the-artto 4 hours per day, and 82 per cent watching television newsinfrastructure will eventually feature 14 fully equipped soundon a daily basis. Almost 80 per cent of Lebanese householdsstages, a million square feet backlot for outdoor shooting,37have access to cable offices and post-production Abu Dhabi Economic Vision 2030 aims to achieve effective economic transformation of Abu Dhabi Emirate’s economic base for the next two decades; it is a roadmap for economic development of the , Lisa, “The Shelter: A Campus for Creative Industries in Dubai,” Core 77, 17 November 2009. Intelligence Middle East. “Dubai looks to add ‘creative’ factor as destination for film production and broadcast industries,” May 24, 2009. 37Hill, Stephen, “Creative Lebanon: A Framework for Future Prosperity,” British Council, March 2008. ECONOMY REPORT 201051The development dimension
2Turkey: Istanbul, the capital, is especially well known asthe creative industries across countries and sectors in thea rapidly developing metropolis that plays an important role asregion. The number of governments in the region that are rec-a bridge between Europe and Asia. Government authorities inognizing the socio-economic potential of the creative indus-Turkey are moving towards enhancing the socio-economictries to foster development has increased considerably overimpact of cultural life while enhancing creative industries notthe last couple of years. The widespread dissemination of theonly in the capital but also throughout the country. This deci-UN Creative Economy Report 2008, the implementation of thesion is also motivated by the fact that Istanbul has been select-UNESCO Convention on Cultural Diversity and the increas-38ed to be the Cultural Capital of Europe in series ofing number of conferences and publications prepared byarts events and cultural festivals have been taking place duringnational and regional institutions such as the Organization ofthis special year, and an important symposium, Creative CitiesAmerican States and MERCOSUR have helped deepen thestand Industries in the 21Century, is scheduled for Novemberpolicy debate and attract the interest of public opinion and2010. UNCTAD is one of the co-organizers of the event,civil society around the creative economy in Latin America. which will be hosted by the Faculty of Arts and Design atThe analysis of the creative economy in Latin AmericaIstanbul University. The symposium will be a stepping stone inis acquiring significance within regional cultural policies andsetting up an institution to become an International Centre onvisibility in economic and social development strategies. ACreative Cities and Industries in of studies that constitute a basis for the region’s devel-A WIPO study from 2004, Creative Industries in Arabopment of a creative economy received the encouragement of39Countries,describes and explains the economic performanceinternational and regional organizations such as the Convenioof four key copyright-based industries — book publishing,Andrés Bello, the Organization of American States, themusic sound recording, film production and software — inOrganization of Ibero-American States for Education,five Arab States: Egypt, Jordan, Lebanon, Morocco andScience and Culture, as well as UNESCO, UNCTAD andTunisia. The overall results of the study suggest that copy-UNDP. The debate around the creative industries is evolvingright-based industries in Arab States are substantially under-throughout the region; the concept and terminology of “cul-developed and that there remains a great potential that shouldtural industries” and “cultural economy” prevails in Latin40 be systematically mobilized. A more recent global studyfore-America, although there is better understanding that culturalcasts that the market for new digital media in the Middle Eastpolicies are a key element for enhancing the creative grow at double-digit rates per year over the next five countries are adapting the UNCTAD classification ofThe region’s growth is expected to far outstrip the rest of thecreative industries and its methodology to shape policy inter-world, which is expecting an average expansion rate of perventions. Countries with higher economic development demography of the Arab population, with 60 peras Argentina, Brazil, Chile, Colombia, Mexico and Uruguaycent of the population below 25 years old, means a strongand some Central American countries are concentrating moreinterest for new digital media, making it a profitable industryefforts in this area. Awareness of the socio-economic impor-in the of the creative economy is gradually spreading in theregion. It is interesting to observe that policies are beingshaped more actively by cities and municipal Americarather than at the federal level. MERCOSUR Cultural, a regional network of someThe engagement of Latin American countries in a cre-400 individuals and institutions, continues to work onative economy agenda varies considerably on account of thestrengthening cultural information systems in Argentina,substantial differences in the supply and export capabilities of38In June 2007, the Istanbul Metropolitan Municipality hosted an international conference to discuss strategies for the “cultural cities” and their creative industries (see UNCTAD,Creative Economy and Industries Newsletter, No. 6, September 2007).39This study by Najib Harabi incorporates five national case studies, giving a comparative account of the performance of the four copyright-based industries in these Arab the Porter diamond model, the survey was conducted in the years , “Global Entertainment and Media Outlook Report, 2008-2012”.41MENAFN-Oxford Business Group, “Abu Dhabi: Creating Culture”, 28 March 2009. 52CREATIVE ECONOMY REPORT 2010The development dimension
2Brazil, Chile, Colombia, Peru, Uruguay and from the cultural rather than the economic per-Argentina assumed the responsibility of centralizing and pro-spective. The economics of culture, the terminology mostcessing the cultural information of each country, whichused by Ministries of Culture in the region, lies somewhereserved as a basis for the 2009 publication, Nosotros y los Otros:between the public institutions in charge of culture and thoseel comercio exterior de bienes culturales en América del Sur. The studydealing with development issues, but joint efforts are uncom-focuses on the international trade of cultural products inmon. The conceptual debate about the creative economy inSouth America, bringing together contributions from theLatin America is progressing fast, influenced in part by theMinistries of Culture of the associated countries. The Creative Economy Report 2008, which prompted policy andpurpose was to collect and analyse statistical data about theresearch debates and drew the attention of other Ministries,cultural sector in the region, in order to facilitate the formu-in particular Economic Development, Trade, Labour andlation of cultural policies to support government effortsPlanning in several countries. towards regional integration. The study recognizes that it isRecently, the success of creative economy programmesnecessary to synchronize the political discourse with concreteof developed countries, in particular the creative citiesactions. It concluded that the trade balance of cultural prod-approach, has been attracting the attention of policymakersucts in South America has a big deficit in the order of $ cultural researchers, although there is some resistance to thebillion; total imports are practically double of the “creative economy” due to its emphasis on intel-According to the study, among the seven countries, onlylectual property rights (IPRs). Arguments are twofold. First,42Brazil has a positive trade balance on cultural suitability of IPRs for traditional and communitarianconclusion confirms the trade analysis of the Creativeknowledge is contested, and concerns arise regarding knownEconomy of bio-piracy and fears that a similar wave of foreignOther studies measuring the impact of the creativeappropriation of cultural knowledge may happen. Second, aindustries in Latin America reflect two factors: the gradualwide range of cultural goods, services and expressions, such asavailability of statistics and primary information and thetraditional festivals, where IPRs are not applicable, produce agrowing political will of governments to promote these ini-huge socio-economic impact and sustain cultural diversity intiatives. Statistical availability accounts for a two-way influ-the region. Latin American countries exhibit different levels ofence on the development of different methodologies formaturity and awareness of the potential of the creative econo-measuring the activities of the cultural industries. Thus, whenmy to foster development, and differences occur within individ-more statistical information becomes available, more complexual countries. Several initiatives are being articulated at themethodologies can be designed, enabling a better diagnosis ofmunicipal level in a growing number of countries. Time seemsthe cultural sector of the economy. Also, the countries thatripe to move from studies and debates towards more concretestarted preparing for reporting under the satellite account onpolicy have recognized culture as a full-fledged economicArgentina: Cultural industries have for many yearssector, as happened with respect to tourism some time the focus of many studies and growing interest in theThe range of the economic contribution of Latin American43country. A newly issued studyconcluded that the contribu-cultural and creative industries varies considerably, reflectingtion of culture to the national economy increased from cultural wealth of each country as well as the varyingper cent in 2004 to per cent in 2009. The Thirdavailability of statistics and methodologies employed. Again,National Congress of Culture was held in September 2010efforts should be made to harmonize approaches to data col-in San Juan, with nearly 5 thousand participants in atten-lection with a view to making the most efficient use of scarcedance, including government authorities, cultural promotersresources. and artists. A key outcome of the event was a call for the cre-As regards concrete policy actions, in Latin America,ation and implementation of a Federal Law for Culture andcultural production and activities have been predominantlythe upgrading of the Secretary of Culture to the rank of a42The publication is available from 43Hacer la cuenta, (2010) by Secreataria de Cultura dela Presidencia de la ECONOMY REPORT 201053The development dimension
Ministry. In 2008, three important policy actions and legisla-elected by UNESCO as the World Book Capital for decisions were taken: the law on intellectual property forBuenos Aires, long considered a special case in the Latinactors was revised, debates were initiated to modify the radioAmerican design industry, was appointed the first UNESCO2broadcasting law, and the Federal Council of PublicCity of Design. The contribution of design to national GDPTelevision was to the foreign trade of Argentina is indisputable; between2005 and 2007 the sector grew by 12 per cent annually andIn 2009 the Observatory of Cultural Industries ofgenerated export earnings of $700 million. The clothing,Buenos Aires was renamed as the Creative Industries44leather and footwear industries generated in 2007 a turnoverObservatorywith a broader orientation towards the creativeof around $ billion, accounting for 3 per cent of the over-industries. The Creative Economy Report 2008has been a refer-all economy and per cent of total employment in theence for the work of the Observatory. According to its 2008Argentinean capital. The Metropolitan Design Centre ofyearbook, the creative industries contributed to 9 per cent toBuenos Aires, a public institution that supports and promotesthe city’s GDP, responsible for per cent of jobs, includingdesign-related creative industries, seeks to encourage compet-more than 60,000 new jobs in the period 2003-2007. The45itiveness in national and international industries generated about $ billion in value addedhas been collaborating with the government, in particularfor Buenos Aires, comprising one of the city’s major econom-with the Ministry of Economic Development and the Stateic activities. In 2008, 46 films were made in Argentina and 6Secretary of Culture, to further promote the creative econo-out 10 films and 8 out 10 advertising productions weremy in the country. Other cities in the country are also active-filmed in Buenos Aires, which has about 250 audiovisual pro-ly promoting their creative economies. Rosario has includedducers (film, television and advertising). In the publishingon the city’s calendar the “Rosario Active,” an annual eventindustry, the annual growth of the sector in 2008 was nearlythat is part of a strategy to stimulate creativity and creative5 per cent. About 70 per cent of the titles were printed inentrepreneurship in order to accelerate urban development. Buenos Aires, which has the highest concentration of book-stores in the country and probably of Latin America, and wasBox A passion for Tango Tango has regained its vitality in the city of Buenos Aires with a considerable economic impact; it has tripled its income as a sector in the first years ofthis century. It generates a direct income of about $135 million annually and an estimated three times that amount indirectly. It represents 4 per cent of46the total revenue generated by cultural industries in Buenos activities include the organization of performances, CDs, classes and otherevents or activities directly related to tango. The indirect activities are those related to support services. There is also increased demand by internationaltourists for dinner shows and tango courses. In September 2009, UNESCO declared tango as an intangible cultural patrimony of humanity which “person-47ifies and encourages cultural diversity and dialogue”.An example of a successful creative business is “Señor Tango” a famous Argentinian tango spectacle that distils the magic and splendour of prestigiousmusicians and dancers under the direction of Fernando Soler. The show gathers 40 artists for a performance in a large antique house in Buenos orchestra is directed by the maestro Ernesto Franco, who was Juan D’Arienzo’s first bandeonist during the golden age of Argentine tango. The spec-tacle employs professionals to set up lights, sound and special effects as well as choreographers and costume professionals. A well-known chef and teamhosts, on average, 1,500 people per show. Since its inauguration in 1996, both the house and Mr. Soler have received several awards. The place wasdeclared of parliamentary interest by the honourable Chamber of Deputies of Argentina, of tourist interest by the Secretary of Tourism and of cultural inter-est by the Legislative of the City of Buenos Aires. Señor Tango received the Bizz Award 2005 by the World Confederation of Businesses in the city ofHouston as the best Tango Musical, and Fernando Soler as creative entrepreneur. In 2008, Señor Tango was the host for the Latin Academy of RecordingArts & Sciences, which gives out the Latin Grammy : Interview with Dr. Antonio B. Lucchese, Administrador Academia Nacional del Tango, and Ms. Carolina Mufolini, Institutional Relations, Senor Tañgo, November 2009, BuenosAires, Argentina. See Creativas de la Ciudad de Buenos Aires, Anuario 2008, Observatorio de Industrias Creativas, Gobierno de la Ciudad de Buenos Aires, Argentina. 45See UNCTAD Creative Economy E-news N° 11, December Tango en la Economía de la Ciudad de Buenos Aires, Multimedia, Observatorio de Industrias Culturales de la Ciudad de Buenos Mundo, El Tango Patrimonio de la ECONOMY REPORT 2010The development dimension
Brazil: During this decade it has been widely recog-GCEC also formulates policies in the areas of design, archi-nized that culture not only is an integral part of the country’stecture, fashion, photography and art crafts. In associationdevelopment strategy, but also generates income, employmentwith the Brazilian agency Service for Supporting Enterprises2and export earnings. In 2004 the Ministry of Culture(SEBRAE) a project is in the pipeline to provide capacityrequested a nationwide mapping exercise to identify the sizebuilding for creative entrepreneurs and support business toof the cultural sector in the country; the initial survey collect-improve the competitiveness of Brazilian creative products ined data from more than 320,000 cultural enterprises, con-national and global markets. Another initiative was the cluding that the cultural industries were responsible for of the “Network of Public Agents of the Creativemillion jobs, accounting for per cent of the total enter-Economy” bringing together representatives from the prises and 4 per cent of the country’s workforce during 2003-secretaries of culture from 18 Brazilian States to design , the lack of national indicators about theimplement integrated policies to foster the creative , demand and access to cultural goods and services wasThe GCEC is associated with public universities and researcha constraint for the formulation of target cultural policies atcentres to support empirical and applied research in the areanational and municipal levels. Therefore, more comprehensiveof cultural economics; this work resulted in a Programme forstudies about the cultural profile of 5,500 municipalitiesUrban Culture and Creative Cities, for which a pilot study iswere carried out in 2006-2007. Another study about theunder implementation in Acre, with a view to identify thevalue chain of the creative industries in Brazil published inmost dynamic creative industries in the cities, possibilities to2008 revealed that the core 12 creative industries plus thedevelop creative clusters with local cultural identity and torelated industries and the supporting activities, account forimplement a long-term strategy for enhancing local creative21per cent (representing million people) of the total for-economies. An Observatory for the Creative Economy as amal workers in the country, contributing to 16 per cent ofdigital platform to facilitate debates, sharing of experiencesnational GDP. For the State of Rio de Janeiro the concentra-and access to information and documents about the creativetion of creative workers is even greater accounting for 23 pereconomy is being created. A number of other initiatives arecent of the workforce, with higher salaries as compared withbeing shaped throughout the country promoted by authori-49the national recently complementary studiesties at state and municipal levels. The State of Rio de Janeiroto identify parameters for a “Price index for culture” are beingis articulating the Programme Creative Rio to put in place aundertaken with a view to rethink and more appropriate pub-plan of action to enhancing the creative economy. The city oflic policies to support culture and the creative economy. Sao Paulo is also shaping a strategy to improve the socio-economic potential of the creative industries, that will have aIn 2008, the Ministry of Culture set up the Generalpositive impact on other states and cities throughout theCoordination for the Economy of Culture (GCEC), with thecountry. Since 2003 UNCTAD has been collaborating withpurpose to articulate concerted multi-disciplinary policiesthe Brazilian government to assist on efforts to foster a robustwith other Ministries and relevant institutions at federal, statecreative economy to accelerate development. and municipal levels. Several initiatives for enhancing the cre-ative economy emerged, such as the Brazilian Music Fair,Chile: Chile has in place a system for annual assess-which was held in 2007 and 2009 and promoted more thanments of the impact of culture in the national economy, as35 shows and thousands of businesses involving aboutthe basis for the implementation of the cultural satellite50250,000 people. In the area of visual arts, the government inaccount. The sixth annual Report of Culture and Leisureassociation with the Foundation Biennale of São Paulo andpresents comprehensive data and analysis of the cultural sec-the Brazilian Agency for the Promotion of Exports andtor. The report covers five dimensions: creation, heritage,Investments put in place the programme “Brazil Contemporaryrecreation, communication media and transversal ” to stimulate the participation of Brazilian plastic artistsIn 2008, the cultural sector in Chile contributed per centin national and international contemporary arts events. Theof GDP and employed about 65,000 people in the areas of48Brazilian Institute of Geography and Statistics, “The Numbers of Culture in Brazil”, System of Cultural Information and Indicators, “The value chain of the creative industries in Brazil”, the Federation of Industries of the State of Rio de Janeiro, 2 November y Tiempo Libre 2008, the National Council for Culture and Arts and the National Statistics Institute, Santiago, ECONOMY REPORT 201055The development dimension
visual arts, art crafts, cinema and theatre, editorial, music,creative entrepreneurship and trade. The government also iscommunication media, heritage and sports. The yearbook is aharmonizing creative industries policies for economic devel-tool to assist in policy formulation which can be used for aopment with biodiversity protection objectives. 2strategy for the creative economy. In June 2010, the NationalMexico: Several economic studies on specific culturalCouncil for Culture and Arts convened an international sem-sectors, cultural infrastructure and cultural industries wereinar around the topic “Creative Cities: The impact of cultureprepared in Mexico, but they are not issued on a continuousin the urban economy”. The aim was to engage in a dialoguebasis. The National Council for Culture and the Arts presentswith all stakeholders from the public and private sector anda series of statistics — heritage, funding lines, festivals, cul-reflect on the role of cultural activities and artistic expressionstural consumption and production etc. — as part of thefor the economic development of the cities, including theCultural Information System. The Cultural Infrastructurereconstruction process of cities and regions dramaticallyAtlas provides information for the formulation of culturalaffected by the 2010 earthquake. Efforts are being made to52policies and ’s ProMexico agency,shape a development plan around the creative economy towhich stimulates investment and trade in the country, ratedfunction in harmony with the transformations that are expe-the creative industries as its fifth strategic industry after aero-riencing urban cities. UNCTAD was invited to present thespace, agriculture, food and automotive. Fashion and decora-United Nations perspective on this subject, and national andtion are listed on the sixth position. Mexico has a large num-international experts shared views on interesting experiencesber of companies dedicated to providing cultural, audiovisu-which are taking place in cities such as Buenos Aires andal and entertainment services. In 2006, the market for televi-Mexico City. sion content distribution had a turnover of $167 billion, andColombia:Since launching of its Economy andit is estimated that in 2011it will reach $ project, few years ago, Colombia took the first step inAdvertising is also an important market worth $479 billiondeveloping a cultural satellite account by providing an analyt-in 2008, with a large proportion for television. The jewelleryical approach to the economic impact of cultural industriesindustry has great potential; Mexico is the world’s third silver51and activities in the cultural heritage andproducer and its exports in silver jewellery in 2007 amount-the film industry have been the subject of economic studiesed to $100 million, and there are approximately 12,000 giftand target policies in Colombia, the role of creative industriesand jewellery companies in the country. In the case of thein the country gained important recognition in 2005 whenleather and footwear industries, exports surpass $500 was named the first UNESCO City of 2008 about $ billion were exported in articles for dec-53More recently Colombia has been looking into effective cre-oration and cinema is embarking on aative economy policies with positive impact on poverty reduc-good phase; during 2007-2008 tax incentives supported 77tion and social inclusion. As mentioned earlier, the experiencemovie projects, meaning that 70 movies were filmed in 2008,of the city of Medellin has been remarkable. Another initia-the highest number in 17 years. Over the past two years, overtive of the Minister of Culture was to host an international30,000 direct jobs have been created in film production54seminar in 2009 to debate the challenges, opportunities recently, the government announced the cre-possible responses that culture and the creative economyation of a fund of $20 million to support the cinema andcould bring to the economic crisis. The aim was to positionaudiovisual industry in Mexico. The digital industry will drivethe creative economy in long-term strategies for sustainablethe creativity and competitiveness of the country’s productivedevelopment. UNCTAD recalled that the economic crisissector as it moves from an economy with scarce use of infor-undermined jobs, economic growth and social well-being,mation technologies, to one where the use of ICTs will be55and the creative industries could be a tool to facilitate eco-generalized in all economic, cultural and social recovery if appropriate mechanisms are in place toAlso impressive is also been the plan to rehabilitate and reviveattract investors, find alternative private funding and stimulatethe historical and cultural centre of Mexico list of surveys and assessments of studies on cultural and creative industries in Latin America and the Caribbean is provided in the Nacional para la Cultura y las Artes, Atlas de Infraestructura Cultural, 2003. 53ProMexico Investment and Trade, Government of Mexico, “Mexico to Promote Cooperation for Development of Latin American Cinema”. Available from e-Mexico, e-economy, ECONOMY REPORT 2010The development dimension
Venezuela:The creation of the Ministry of Culture inrelations and the challenges posed by the information and2005 was a sign of political will to consolidate a new cultur-knowledge society. A conceptual framework of the economical institutional framework in the country. As a result, a plat-and cultural equation to promote the culture and the cultural2form for strengthening the impact of culture on Venezuela’sindustries is being examined for implementation. socio-economic development is taking shape. The study ema-The creative economy also plays an important role fornating from the Project Economy & Culture CONAC–CABthe development of other countries in the region including inunder the theme “The dynamic of culture in Venezuela andCentral America. Studies have been carried out in El Salvador56its contribution to the PIB”provides a systematic under-and Guatemala to identify the potential of the creative indus-standing of the cultural industries in Venezuela analysing itstries and cultural activities to accelerate impact and trends in each cultural sector, its inter-1 Box : The economic contribution of cultureIn recent years, research in the field of cultural economics has progressed so much that, today, there is little doubt about the importance of the economiccontribution generated by the economic agents or firms that are a part of it. Obviously, not all countries have realized it. Most notably, those countries lacking economic resources to conduct these types of research have fallen behind in their analyses of cultural and creative industries. Such is the case forcountries in Central America which, until now, have not counted on such kinds of studies. It is striking and worrisome at the same time that none of theCentral American countries have national analyses of their cultural industries. Recently, however, these countries have started to think of their cultural sector as a productive one with the ability to produce economic growth and econom-ic development at the same time. The first study developed in Central America was in Guatemala, where the economic contribution of the cultural industriesreached per cent of GDP. The annual average growth was per cent for the years 2001-2005, a higher rate than that registered in the majority of othersectors of the Guatemalan economy. The shadow economy (which includes illegal and informal activities) in Guatemala represented almost half of the nation-al economic activities. When the contribution of the shadow economy is included, cultural industries were responsible for per cent of GDP in study also found that the cultural sector employed per cent of the labour force. When compared with the economic contribution ( per cent),we can conclude that the jobs created by the cultural industries were, on average, slightly more productive than the average jobs in the whole may also be interpreted as indicating that the cultural industries were important contributors to the improvement of competitiveness of the Guatemalaneconomy and its labour international trade of goods and services, imports of cultural goods were higher than exports in 2004 ( per cent and per cent, respectively), resulting in a trade deficit of per cent for that is now clear that culture and creativity contribute to the economic growth and development of a country in addition to having intrinsic social and aesthetic values. This is demonstrated by the relatively high contribution of cultural industries to GDP and the productivity of their workers. In other words,cultural activities constitute their very own sector of economic cultural industries add economic and social value to countries and individuals. They constitute a type of knowledge that translates into jobs and abundance, consolidating creativity – their “raw material" – to promote innovation in production and sales processes. At the same time, they are central tothe promotion and maintenance of cultural diversity as well as in assuring democratic and cultural , as noted earlier, cultural industries have the dual capacity to simultaneously generate economic growth and economic development. Countriesmust take full advantage of the economic potential for growth and development provided by the comparative advantages of their cultural-economic activities while respecting cultural identities and by Ernesto Piedras Feria for the Ministry of Culture and Sports, Government of Guatemala, with funding from the Inter-American Development Bank, Guatemala, Ernesto Piedras Feria, economist, Instituto Tecnológico Autónomo de México (Mexico Autonomous Institute of Technology), and CEO, The Competitive Intelligence dinámica de la cultura en Venezuela y su contribución al PIB, Ministerio de Educación, Cultura y Deportes de Venezuela, CONAC, y Convenio Andrés Bello. Carlos GuzmánCárdenas, Yesenia Medina y Yolanda Quintero Aguilar, Edición del Convenio Andrés Bello, 2005. CREATIVE ECONOMY REPORT 201057The development dimension
strategy and action plan, with a focus on music and Caribbeanfestivals, engaging either the private sector and the govern-Growing the creative industries was the theme of thement. According to a recent study from the CARICOM2second annual development conference of the OrganizationSecretariat, The Creative Sector in CARICOM: The Economic andof the Eastern Caribbean States (OECS), held in 2008. NineTrade Policy Dimensions, the creative industries have emerged as aOECS countries have experience with the creation and distri-key growth sector in the Caribbean economy through its con-bution of music and film on the world stage. Hallmark exam-tribution to GDP, exports and employment as well as throughples include the singer Bob Marley, whose “One Love” has59its impact on destination and intellectual property being an anthem of compelling international appeal, andThe report presents case studies, success stories, situationalmore recently, Rihanna, the first Barbadian to win a and recommendations to support the creative sector,Attention should be devoted to finding mechanisms to mar-and concludes that trade in the creative sectors needs to moveshal the considerable creative talents and energies of thebeyond the goods sector to incorporate trade in the servicesregion’s young people, in a structured and comprehensiveas well as in copyright and royalties. The Caribbean Copyright57approach to growing these heritage60Linkis one of the success stories in the creative industries;tourism generates important revenue for local communitiesit helped expand royalty collections from $ million inand also provides opportunities for creative expression and611999 to $ million in recommendationssocial integration of culturally and ethnically diverse commu-include: (i) improve government-industry relations; (ii) estab-nities of the Caribbean countries. Heritage tourists are one oflish benchmarks, targets and policy measures to promotethe highest-yield tourism groups; they stay longer and spendemployment generation, enterprise development, industrial5838 per cent more per day than traditional and export expansion; (iii) increase local andTherefore, efficient heritage tourism policies and infrastruc-regional content through legislation/regulation; (iv) developture at regional level can be an important approach to attractcultural industry associations; (v) improve access to finance,international travellers with special interest in heritage and thecredit and business support services; (vi) establish trade-arts of the Caribbean region. In the Eastern Caribbean States,export facilitation centres; (vii) establish national and region-the linkages between tourism and creative industries should beal rights management centres; (viii) expand linkages betweenfurther reinforced. After a ministerial OECS conference in industries, tourism and wider economy; and (ix)Lucia in early 2007, which addressed a long-term vision,develop Internet readiness and e-commerce and the OECS secretariat started exploring waysBarbados: The National Task Force on Culturalto collaborate on efforts to enhance creative capacities in theIndustries was one of the first to be established in theregion, particularly in art crafts, visual arts and music in 2002, comprising nine ministers and a numberAt the political level, the 2005 Ministerial Conference of theof representatives from different sectors and institutions andSmall Island Developing States in Mauritius also recognizedfocusing on culture and development. As a result, Barbados’the importance of culture to accelerate development throughCreative Economy: A Cultural Industries Developmentthe implementation of the Mauritius Plan of Action. MoreStrategy was prepared in 2004. Since then, increasing atten-recently, the economic partnership agreement negotiated withtion has been devoted to the potential of the creative econo-the European Union has the potential to open up moremy as a development strategy for this small island developingopportunities for the Caribbean export of services, includingstate. The forum, Promoting Creative Industries: A Trade andthose from the creative industries (see chapter 9).Investment Strategy for the Caribbean, organized in 2006 byThe Caribbean presents sharper contrasts on a country-the Caribbean Regional Negotiating Machinery with the sup-by-country basis than other regions. Over the past ten years,port of the European Union Proinvest Project, was a furtherBarbados, Jamaica, the Dominican Republic and Trinidad andstep in this direction. In 2008, the Fourth Inter-AmericanTobago have been working to put in place a creative-economy57Second OECS Annual Development Conference, St. Vincent and the Grenadines, 3-4 April . Keith Nurse, Director of the Centre Shridath Ramphal, University of the West Indies, , Keith, “The Creative Sector in CARICOM: The Economic and Trade Policy Dimensions,” University of the West Indies, Barbados. CARICOM Secretariat, RegionalSymposium on Services, Antigua & Barbuda, July Caribbean Copyright Link is a joint venture between four copyright management organizations: The Jamaica Association of Composers, Authors and Publishers Ltd. (JACAP);Copyright Music Organization of Trinidad and Tobago (COTT); Copyright Society of Composers, Authors and Publishers Inc. (COSCAP, Barbados); and Eastern CaribbeanCopyright Organization for Music Rights Inc. (ECCO–St. Lucia).61See chapter in Nurse (2006).58CREATIVE ECONOMY REPORT 2010The development dimension
Meeting of Ministers of Culture of the Americas was host-Culture recently announced a strategic partnership to sustain62ed and chaired by the Minister of Culture of Barbados,andand develop the arts and culture in other centres of the coun-63the Ministerial session adopted a declaration committing Ministry of Culture through the National Centre for2the 34 members of the Organization of American States toArt Crafts created the National Registration System for Artincrease their efforts to promote and support cultural andCraft makers with the aim of identifying and supporting theircreative industries activities as part of their national policiesworks through initiatives across the country. for the promotion of sustainable economic growth. UNC-Jamaica: Since the 2002 release of a study commis-TAD was invited to present the findings of the Creative64sioned by UNCTAD and WIPOon the importance ofEconomy Report 2008for the Ministerial segment. music as an economic activity and source of income-genera-Dominican Republic: Dominican Republic is recog-tion and trade opportunities, the government has devotednized not only as a tourist destination but also as a cultural des-more and more attention to the strategic role of the creativetination for its tangible and intangible patrimony, gastronomy,economy can play in fostering development in the country. Acultural industries and arts. The city of Santo Domingo waskey message conveyed in that report, applicable in principle toselected the 2010 American Capital of Culture, a designationthe whole Caribbean region, was that the music industrycreated to promote inter-American integration in the culturaldeveloped with little government assistance. A turning pointfield and to promote respect for national and regional diversi-occurred when the National Industrial Policy recognizedty. A noteworthy initiative of the Ministry of Culture of themusic and entertainment as two key elements of the nationalDominican Republic is the creation of a new penitentiarydevelopment strategy. This debate progressed further with themodel with an educational centre that provides inmates with a2004 National Strategy and Action Plan to develop theFree School programme as well as classes in painting, theatre,Jamaican music industry, an effort that brought together thedance and art crafts. The General Attorney and the Minister ofprivate sector, governments and international Jamaica as the home of reggae Creativity represents one of Jamaica’s most distinguishable assets and competitive advantages as a country. Through its music, fashion, dance and cui-sine Jamaican culture continues to influence and impact global pop culture as it has done since the introduction of Garveyism, Rastafari and reggae ’s exploitation of this sector is vital if it is to realize development gains from international trade, as highlighted in the UNCTAD São Paulo Consensus. The United Nations estimates that the creative industries are growing at a faster rate than the world economy in general. Yet there is still a critical lackof empirical statistics on the contribution of Jamaican music or creative industries to national GDP. This has resulted in repeated undervaluation of thissector in an array of studies, with estimates ranging from $ billion to $ billion in generated Jamaica is a business brand building campaign to expand the country’s profile from a primarily leisure destination, celebrated for its cultural iconsand athletes, to one where business plays an even greater role. Brand Jamaica has for the most part been an organic evolution driven by the country’screative entrepreneurs and their cultural products. A decade ago, the Government awakened to the potential of culture and creative industries as an important economic strategy for national growth, signalled with the inclusion of music and entertainment as a strategic cluster group in the NationalIndustrial Policy in 1996. Responsibility for promotion of the sector was given to the country’s trade and investment facilitation agency, JamaicaTMPromotions Corporation (JAMPRO). The agency, in partnership with the music industry, facilitated the development of the national Sounds of Jamaicabrand campaign launched at the Marché international de l’édition musicale (MIDEM), the world’s largest music industry trade fair, in 1997 in France. The initiative galvanized the Jamaican music industry in an unprecedented demonstration of strategic cooperation. However, after a vibrant period of activebrand management and trade show participation between 1997 and 2000, the initiative lost momentum. Fragmentation of various aspects of Jamaica’screative industries across five ministries and at least six agencies without the benefit of a sector-driven master plan resulted in staggered duplication,inertia and ongoing loss of wealth-generating opportunities. Additionally, Jamaica has a “hustler” reputation internationally, which negatively affects market confidence in supply consistency, legal protection and business global appeal and adoption of Jamaican music have spawned home-grown versions and artists within the genre from Germany’s Gentleman to UnitedStates Grammy winner No Doubt, for example. The increasing availability of home-grown reggae and the rising cost of Jamaican versus home-grown 62For further information see UNCTAD Creative Economy Programme E-News No. 8, December , Órgano difusor del Ministerio de Cultura, Santo Domingo, Republica Dominicana, N° 21, Enero-Abril, (2002).CREATIVE ECONOMY REPORT 201059The development dimension
Box continuedBrand Jamaica as the home of reggae 2talent have begun to impact the demand for authentic Jamaican reggae, with festivals in major markets such as Germany and Japan successfully producing reggae festivals without any Jamaican artists on the line-up. Product quality in terms of recorded and live music must be maintained at thelevel of excellence established for Jamaican music internationally by Bob Marley and others in order for Jamaica to grow its market share of the internationalJamaican music ’s music represents the country’s most easily exportable creative-industry product and the one that has strengthened the brand internationally intraditional markets as the foundation of Brand Jamaica. Emerging markets for Jamaica’s music, particularly in Asia and Latin America, hold great prom-ise for a musical culture that has been embraced by a diverse range of cultural markets. Jamaica’s musical success in these markets opens the door forthe introduction of other creative products into the market. Jamaica and its culture are inextricably linked in the mind of the international market. Jamaicaas the culturally authentic home of reggae music and culture has the opportunity to guarantee its competitive advantage in the cultural market space onceit enables creative entrepreneurs to position themselves effectively in the international market with quality products. Jamaica’s creative products are diverse and include finished audio video tangibles that are exported physically and digitally as well as facilities and servicesconsumed by foreigners visiting Jamaica to record in one of its state-of-the-art studios, collaborate with top artists, musicians and producers or shoot anew music video against the flavoured texture of the diverse Jamaican landscape. Given the broad scope of creative industries, the JAMPRO 1996-1997Marketing Plan for Music and Entertainment estimated that 15,000 persons were directly and indirectly employed in this sector. The impact of this relatively small group on the Jamaican economy is, therefore, out of proportion to the group’s size. The products and services generated by the sectorcontribute significantly to Jamaica’s capital wealth, public image and goodwill. In keeping with global trends, this generation of youth is empowered creative mavericks developing their own labels, fashion brands and production houses and building a new creative economy for the future. It is noteworthy that the creative sector has affected traditionally vulnerable groups as Jamaica’s cultural richness has for the most part been producedby the poorer, marginalized class. The creative expression and folk heritage of the poor have evolved into a global phenomenon, with many examples ofyoung people raising themselves out of poverty through their talents and despite their lack of business experience. From the earliest period of Jamaica’smusic history, it was young people who fuelled the growth of this industry as performers, producers, promoters and agents. Early pioneers and legendsinclude labels Studio One and Treasure Isle and artists such as the Skatallites, Jimmy Cliff, Toots & the Maytals, Prince Buster, Alton Ellis, and Bob Marley& The Wailers. Today, young people continue to fuel the legacy of creative wealth and empower themselves through their creative capital to bring aboutindividual and community growth. Traditionally, Jamaican music has been a very male-oriented industry with a few women performers such as MillieSmall or Marcia Griffiths and an even smaller number as managers, promoters and producers such as Sonia Pottinger. Over the last five to ten years, however, women have become increasingly visible on the entertainment scene in Jamaica, with an unprecedented number of new female solo artistsarriving on the scene, female managers and promoters as well as women in the areas of legal and financial services, engineering and video , the fragmented distribution of Jamaican music and limited appreciation of the publishing value resulted in a unique Jamaican music busi-ness model that relies heavily on revenue from live performances and special exclusive recordings called “dubplates” rather than depending on recordsales and publishing like creators in developed music markets. Most international showcasing of talent or distribution of catalogues was made possiblethrough artist deals or product licensing agreements with overseas distributors or labels and limited media exposure through a network of niche reggaeprogrammes worldwide, particularly on independent and college radio stations in Europe and North America. Jamaican music was internationally established and has been maintained through this touring circuit strategy, making live performances the foundation of the Jamaican music businessmodel. Live performances also are slowly evolving into this role in the international music business as the rise in illegal file sharing and declining CD salesare decreasing the industry’s reliance on revenues from record sales and publishing. Consequently, the substantial divide that existed between theJamaican and international business models is , Jamaica’s creativity has earned it a place in the global arena despite the small size and inexperienced management of its creative industries. Inorder for Jamaica and the Caribbean to survive in a globalized world, policymakers and stakeholders seeking economic growth and job creation mustposition the creative industries as the cornerstone of any serious development strategy. The inherent entrepreneurial talent of Jamaicans has developedand sustained the country’s creative product brands over the past fifty years without a proactive public policy, institutional infrastructure or formalizedventure funding. It is now time to unleash the full potential of Brand Jamaica by providing the creative industries with the required overarching properly managed, Brand Jamaica could foster joint venture projects and macro branding opportunities that would maximize the global appeal of thecountry’s lifestyle brand and national identity. Jamaica’s national brand identity has international consumer appeal and proven economic potential. The success of Jamaica in nationally and interna-tionally marketing its cultural products demonstrates that Southern economies can expand into international markets by increasing brand awareness andpackaging a diverse product line built on their cultural production. By Andrea M. Davis, Jamaica Arts Holdings/International Reggae ECONOMY REPORT 2010The development dimension
Debates further evolved, and in 2006, the Prime Ministera plan of action was submitted for official validation propos-announced that a new Cultural Industries Council woulding the establishment of a Creative Economy Nationalreplace the existing Entertainment Advisory Board, recognizingCommittee, a process that is under consideration. 2that “cultural industries represent Jamaica’s natural competitiveFor the Caribbean region, music remains the focus of65advantage”.Today, creative industries accounts for percreative-industry efforts, even if more recently, somecent of Jamaica’s GDP, which is more than the country’s Caribbean States became attractive locations for film produc-traditional mining sector, and the film industry is also tion. Therefore, it is important to improve skills to providecontributing to socio-economic development. According tofilm support services and to establish film commissions toJamaica’s Film Commission, Jamaica facilitates 150 film pro-promote the interest of nationals involved in the film annually, with associated foreign exchange inflows ofIn this regard, the Caribbean Travelling Film School was$14 million and direct employment for over 2,000 creativelaunched with the financial support from the European point is further elaborated in chapter 5. (European Development Fund) and the assistance of the ACPTrinidad and Tobago: According to a recent UNDPGroup of States, for a two-year comprehensive filmmaking67publication,the cultural products of Trinidad and Tobagotraining program in two territories of the Caribbean. Abouthave been present in the global marketplace for almost a cen-40 participants in each of the two territories will undergo atury, and there are clear indications that the cultural goods10-month series of intensive workshops in all aspects of film-and services have great economic potential. Earnings from themaking. The workshops comprise over 400 hours of trainingcarnival industry alone accounted for about 5 per cent ofboth in classroom and on set, taught by eminent visiting lec-68GDP in December 2008, the ACP/EU financedturers and the founding partners of the school. This project isa multiagency pilot project to strengthen the creative indus-not-for-profit venture, and was founded through a partnershiptries through employment and trade. It was launched inbetween companies from Barbados and Trinidad and and Tobago by UNCTAD, ILO and UNESCOParticipation in the course is free for attendees, and the 69with the aim of assisting the government in defining a strate-program began in Barbados in August and implementing a plan of action for enhancing its creative economy. In Trinidad and Tobago, as well as acrossthe Caribbean, the cultural sector has not lived up to European economies in transitionpotential due to the lack of an overarching policy a result, the cultural industry’s links with other develop-It is difficult to generalize about the state of the cre-mental areas such as education, trade, urban growth, mediaative economy in economies in transition because each coun-and community empowerment have not been fully has its own particular economic and cultural circum-The UNDP program for the local music industry is aimed atstances. Moreover, some of those countries are now membersdeveloping projects that address six core goals: (i) developingof the European Union and are implementing new policybetter products, (ii) improving media reinforcement bothdirectives. Nevertheless, these countries do share the commonlocally and internationally, (iii) increasing the modes of musicproblem of how to deal with cultural assets that were former-distribution, (iv) developing human capital, (v) promotingly state-owned and that are now in the domain of the privateresearch as the basis for decision-making and (vi) buildingsector. This applies to tangible as well as intangible culturalcritical mass regarding the industry’s potential for growth. Aheritage. Many historic buildings ranging from manor housesstakeholders meeting attended by over 40 participants includ-to urban apartments have been handed back to private own-ing high-level officials from relevant ministries, as well asers who often have neither the resources nor the will to main-business and practitioners from the creative industries, initiat-tain them, let alone to renovate or restore them. Similarly,ed the process of consultations. Subsequently in April 2009,many cultural organizations — theatres, galleries, literary65UNCTAD Creative Economy E-news, No. 2, March and Martin (2009).67UNDP (2010).68Jagroopsingh (2007) asserts that the Trinidad carnival complex generates approximately TT$1billion, of which the music sector plays a significant part. The government estimatesthat it spent TT$120 million to stage the ECONOMY REPORT 201061The development dimension
publishers, music ensembles, etc. — that were previouslyCulture’s Policy Planning Department. state-financed have been forced to make their way in the pri-Moldova: Moldova’s entertainment business lags farvate marketplace, and many have not been able to survive thebehind neighbouring countries, especially Russia and2transition. Artists and professionals from the creative indus-Romania, and it is influenced by their entertainment , who were used to being full-time employees, now haveThe publicity market is developing fast, increasing each yearto compete and look for new but limited opportunities in theby 25 to 40 per cent. In 2006 the advertising/publicity busi-private sector. ness accounted for more than $14 million in sales, with aboutSome municipalities in Eastern Europe are now look-80 per cent of the funds brought into the country by foreigning to the cultural industries as an avenue to becoming “cre-agencies. A non-governmental organization, OWH TVative cities”. An example is St. Petersburg in the RussianStudio, organizes workshops for young professionals in theFederation. However, despite this city’s attraction as the loca-cinema sector as well as international documentary film festi-tion of the Hermitage, one of the world’s finest art museums,vals and summer schools on film production with the partic-75some problems remain. Over-reliance on a single organizationipation of international entice tourism has tended to mask the lack of an appropri-Poland: According to the National Strategy for theate scheme for cultural activities in the city. The way forwardDevelopment of Culture in 2004-2013, the value added bycould be to introduce creative industries in city planning bycreative industries reached billion, or per cent ofsupporting small-scale cultural producers by setting-up cre-national GDP. The field of cinema took an important stepative clusters with suitable institutional support for the devel-forward with the 2005 Cinematography Act, which created70opment of culture-related , some Easternthe Polish Film Institute, which acts de facto as a non-depart-European countries have taken a more proactive approach tomental public body. The act provides support up to 50 perenhancing culture and creative industries in their developmentcent of the film budget — or up to 90 per cent in the case -budget or artistic brought a rapid increaseLatvia: A definition of the creative industries wasin the number of films produced in Poland and enticed for-included for the first time in the Guidelines for the Stateeign filmmakers to engage in co-productions or utilize film71Cultural Policy of Latvia for 2006-2015,and the studyservices in Poland. As part of the process of reform of cul-72“Creative Industries of Latvia”.Economically, the mosttural policy, the Ministry of Culture and National Heritagesuccessful sectors are the publishing (literature and media)organized the Congress of Polish Culture in Krakow inand polygraph industry (37 per cent of the total turnover ofSeptember 2009, involving artists, academics and politiciansall creative industries in 2006) and advertising (27 per cent).in a debate on the development of Polish culture. In prepara-However, the priority fields identified by the Ministry oftion for the Congress, 15 research groups were commissionedCulture are design and audiovisual media because of theirto prepare reports on various fields of culture, from financ-export potential. The study Creative Industry Research, Update ofing to promotion of Polish culture abroad. The Ministry ofStatistics(2008) shows that the annual turnover of the indus-Culture and National Heritage is actively involved in thetries and the number of employees in the creative industriespreparations for the European Capital of Culture 2016, sev-are constantly growing, totalling about 63,500 people ineral cities have declared their interest and the first stage of the732006, two-thirds of whom work in the capital, is the evaluation of candidate cities on the nationalHowever, both the publishing and tourism industries antici-level, a process scheduled to be concluded in autumn 2010. 74pate large-scale bankruptciesdue to the dramatic decline inRomania: In recent years, Romania has become anbook sales during 2008-2009. The Ministry of Educationattractive location for films, videos and advertising produc-and Science and its subordinate institutions are responsibletions. However, the local film industry has been hurt by thefor developing the creative industry, as is the Ministry ofdwindling number of cinemas in the country, from about70See O’Connor (2005:244-258) and UNCTAD Creative Economy and Industries Newsletter, No. 5, April 2007. 71Cabinet Order No. 264, dated 18 April of Culture, Republic of Latvia, Creative Industries in Latvia(BICEPS, 2007). See : Creative Industry of Statistics, : Cultural Policies and Trends in Europe. “Culture industries: policies and programmes”. more information see Polish Film Institute: ECONOMY REPORT 2010The development dimension
the creative industries as part of its effort to develop and mod-4,600 in the 1990s to about 85 at present; as a result, nation-ernize the country. The city of Moscow is undergoing anal audience was 45 times lower in 2005 than in 1990. Despiteimpressive transformation, merging the old and the new andthis negative trend, Romania has seen increased production of2supporting creative clusters that bring together public and pri-long, medium and short films and TV serial films. Accordingvate investors. Emphasis is being given to the fields of design,to the European Cinema Yearbook, in 2006 Romania had onearchitecture and new media. A number of buildings construct-screen for every 200,000 inhabitant. The nation’s advertisinged in the nineteenth and twentieth centuries are being trans-market, however, is expanding. A national program imple-formed into cultural centres, art galleries, artist studios ormented from 2006 to 2009 sought to stimulate crafts pro-advertising agencies. Defunct factories are being renovated toduction, improve artisans’ access to information, and promotehouse clusters of artists, architects and designers. A goodproducts obtained by simple technologies, mainly manuallyexample is the former Bakhmetevsky Bus Garage. Built inmanufactured using traditional technologies. It also sought1926, it has been fully renovated and reborn as the Garageto stimulate domestic demand for such products as well as toCentre for Contemporary Culture, now one of Moscow’sgain entry into new external markets, especially for traditionalleading venues for contemporary art shows. To support suchproducts, and to increase the number of jobs by attracting77initiatives, the Strelka Institute for Media, Architecture andyouth and is launching a postgraduate program for specialists inRussia: The Russian government has been looking into78the fields of design, architecture and new Bolshoi: A sublime gift to the world The Bolshoi Theatre is one of the most famous cultural institutions not only in Russia but also around the world. However, this has not always been the ’s history goes back to March 1776 when the Russian Tsarina, Catherine the Great, granted Prince Urussov exclusive rights to organize performancesand masquerades in Moscow. In four years – by 1780 – Petrovsky Theatre was built for the company on the exact spot where the historic building of theBolshoi Theatre now stands, at the place that today we call Teatralnaya Square. Only after the big fire of 1805, when the building was ruined, and in orderto preserve the company was the decision taken for it to come under the Emperor’s theatres, which eventually included the Mariinsky (renamed the KirovTheatre for part of the twentieth century), Aleksandrinsky and Maly Theatres in St. Petersburg and Maly Theatre in Moscow. With the Russian capital locatedin St. Petersburg, all major musical theatre events during the nineteenth century took place at the Mariinsky rather than at the Bolshoi. After the October revolution of 1917, the capital was moved to Moscow and the situation drastically changed. All the best artists were invited to to that time, Anatoly Lunacharsky, who was the Cultural Minister of the new Soviet Republic, had to win a major battle in order to convince author-ities that ballet and opera were not a mere bourgeois form of distraction but rather a truly great art that expresses the national glory of Russian peopleno less evidently than any economic, social or scientific importance of art as an ideological tool was understood quite rapidly by the communists and throughout the twentieth century, State support to theBolshoi was outstanding even in the most difficult times. Stalin himself was often a guest in the official box of the Bolshoi Theatre. Galina Ulanova, MarinaSemionova, Olga Lepeshinskaya, Maya Plisetskaya, Vladimir Vasiliev – these are only some of the names of legendary dancers who made the BolshoiBallet synonymous with the highest standards in classical ballet. From the first Bolshoi international tour in 1956, the Western world was confronted witha new face of Soviet Russia – talented, human, touching and the Bolshoi Ballet Company comprises 220 dancers and is the largest classical ballet company in the world. It has faced some difficult times, how-ever, particularly in the early 1990s after a decade of perestroika where the State for a while lost interest in the company; all former privileges wereerased, all former relations were broken. The company had to find its place in the new country and it took several years to do so. The situation wasaggravated owing to internal artistic crises. When Yury Grigorovich had to leave his post as chief choreographer after holding the post for 30 years, theBolshoi Ballet Company was torn apart by different creative forces and no interesting projects materialized for years. In 2000, Anatoly Iksanov was appointed General Director of the Bolshoi Theater and had to meet several challenges. One of the main ones was the renovation and reconstruction of the historic building of the company, which had been without any major renovation since 1856. The particular natureof the Bolshoi is that opera, ballet, orchestra and building all form an outstanding cultural institution known in the world as the Bolshoi. Hence duringrenovation, it was important not merely to reinforce basement and walls and to install new stage equipment but first of all to preserve a unique such as Professional Association of Folk Art Producers (ROMARTIZANA) or the National Association of Crafts Co-operation (UCECOM).78As reported by the Institute for Russia and Eastern Europe, in the context of its Creative Compass Project, whose aim is to enhance mutual understanding between European countries by promoting multilateral cultural cooperation between EU countries and Russia, Ukraine and Belarus. Available from ECONOMY REPORT 201063The development dimension
Box continuedThe Bolshoi: A sublime gift to the world 2In order to do this, Bolshoi needed to have another place to perform and in 2002, the Bolshoi new stage opened. Finally, after years of discussions, theplan for Bolshoi renovation and reconstruction was approved and in the summer of 2005, the Bolshoi historic building was closed for top artistic goal was to enlarge the Bolshoi repertoire and to make the artistic life of the house interesting and dynamic as well as to open it moretowards international artists. As a result, there was a great increase in the number of Bolshoi premieres. While the Bolshoi was operating on two stages,it produced an average of seven premieres per year. With the new stage only, the Bolshoi management decided to limit this activity to four major premieres per year: two operas and two ballets. Many famous international artists came to work with the Bolshoi, among them choreographers such as Roland Petit, John Neumeier, Pierre Lacotte andCristopher Wheeldon, and stage directors Francesca Sambello, Graham Vick, and Peter Konvichny. It goes without saying that the priority of the house isto stage works of Russian composers. Sixty per cent of the Bolshoi repertoire is made up of Russian music. The Bolshoi Ballet Company is the only balletcompany that has all three Shostakovitch ballets; among recent premieres are Prokofiev’s “Cinderella”, “Go for Broke” staged to Stravinsky’s score, and“Queen of Spades”, created by Roland Petit to Tchaikovsky’s Sixth symphony. Recent opera premieres include “Rake’s Progress” (Stravinsky), “War andPeace” and “Fiery Angel” (Prokofiev), “Khovanschina” and “Boris Godunov” (Musorgsky), and “Evgeny Onegin” (Tchaikovsky). The need for dynamism alsobrought to the Bolshoi works of the younger generation of directors and choreographers among whom one should mention the artistic director of theBolshoi Ballet Company, Alexei Ratmansky, and one of the most famous Russian contemporary opera directors, Dmitry such great artistic activity, the Bolshoi needed to reinforce its economic position. Confronted with this problem, Anatoly Iksanov invited McKinseyCompany to examine ways to improve the Bolshoi’s situation. Subsequently, Bolshoi management started to work in three directions. First, State dona-tions to the Bolshoi have been dramatically increased. While in 2000 $12 million were allocated to the Bolshoi, the amount now surpasses $45 million. Special grants are given to major cultural institutions in Russia such as the Bolshoi and Mariinsky Theatres, the Philharmonic Orchestra in and the Moscow and St. Petersburg Conservatories, which makes State recognition of these organizations quite second way to improve the Bolshoi was to increase its own income through ticket sales. The Bolshoi Box Office was the first in Russia to sell ticketswell in advance through the Internet and to introduce eight ticket price ranges according to seat location. Owing to these changes, the Bolshoi annual cashflow grew from $2 million to $11 million. The $9 million difference is basically what the Bolshoi took away from scalpers. For students, however, the Bolshoihas a special programme that permits them to buy tickets at special prices, the equivalent of which is $1 to $2 per seat. A Board of Trustees was alsoorganized, including leaders of Russian businesses such as Lukoil, Rusal and Severstal. It was important to Iksanov not only to obtain additional financialsupport but also to bring in Russian businessmen to share responsibility for the existence of a national treasure such as the , the Bolshoi had to prove again its place as the world’s leading musical theatre. In the past few years, the Bolshoi established very close connec-tions with Covent Garden, La Scala and the Paris Opera. Seasons 231 and 232 exemplify Bolshoi’s priorities and the geographical range of its tours: Berlin,London, Milan, Paris and Washington, DC. The best proof of the Bolshoi’s success can be found in the response of the London press during the Bolshoisummer tour of 2007 (for example, Zoe Anderson, “The Bolshoi Ballet is back with a dynamic artistic director and exciting new productions”, TheIndependent, 12 July 2007). By Katerina Novikova, Bolshoi economy and the green economy79natural disasters and stress caused by environmental degrada-Biodiversityis being lost at accelerating rates, due totion and climate change. Sustaining biodiversity is thus funda-widespread overexploitation of biological resources, the intro-mental to long-term sustainable development. Developingduction of alien species and the transformation of , which are often endowed with rich biodiversity, faceBiodiversity loss often destabilizes and reduces the productiv-the challenge of reconciling economic growth objectives withity of ecosystems, weakening their ability to serve as a sourcethe protection of biodiversity. Trade of products and servicesof products and services as well as their capacity to deal with79Biological diversity, or biodiversity, refers to the variety of life on Earth, including the variety of plant and animal species, the genetic variability within each species, and the varietyof different ECONOMY REPORT 2010The development dimension
derived from biodiversity, including those originating from theity, they have a stake in protecting ecosystems, biodiversity andcreative industries, could be part of the solution to this traditional knowledge. Finally, many creative industry compa-problem. Research shows that market interest and demand fornies, including the digital industry, are leaders in terms of2biodiversity products and services is growing, giving countrieslower energy and water in biodiversity a comparative in part to the power of the media, another cre-The year 2010 is providing prime opportunities for theative industry, consumers are becoming more conscious of thepromotion of biodiversity. The United Nations Generalenvironmental and social impact of their purchases. BusinessesAssembly has declared 2010 as the International Year ofare realizing that their success depends on responsible behav-Biodiversity with the objective to increase awareness of theiour towards the environment and communities. Governmentsimportance of biodiversity by promoting actions at the local,are realizing that they need to support sustainable business inregional and international levels. Moreover, increased interestorder to protect the natural and cultural capital on which theirin ethical consumerism has seen companies and consumerseconomies depend. Multilateral agencies currently have a sig-question the true value of what they buy and sell. Recentnificant focus on promoting green economies and equitablereports suggest that this trend is continuing, even during timesbiodiversity-based business. International non-governmentalof economic hardship. Those creative businesses able to placeorganizations have readily stepped in to assist governmentssustainable business practices at the centre of their businessand businesses to achieve sustainability, biodiversity, povertythinking will be better positioned to succeed in the long termreduction and global security goals. enabling them to make a valuable contribution to the globalMuch of the world’s population depends on biodiversechallenges presented by poverty and environmental degrada-natural resources for their livelihoods. By investing in creativetion. In this context, the creative economy and the so-calledindustries governments can move more quickly towardsgreen economy can reinforce each other, since they share theachieving biodiversity targets, as well as sustainability andobjective of promoting development that is more sustainablepoverty reduction goals. International and national policyand inclusive. Many creative industries are already offeringefforts must ensure support for the creative economy, wheresolutions to the environmental, social and economic problemscultural, intellectual and artistic talents, as opposed to theand are experiencing success. Examples include eco-friendlyunsustainable use of non-renewable natural resources, are thefashion, including jewellery and accessories, handicrafts andmost valuable inputs to creative production. Attempts shouldinterior design products as well as biodiversity-driven sectorsbe made to encourage policymakers, the business communitysuch as natural health, cosmetics and the ecotourism industriesand the civil society to embrace measures that safeguard bio-that work in harmony with nature. Because these industriesdiversity and forge a more sustainable and creative path forprofit from healthy natural resources and culture-based creativ-economic life and tradition: Thai people, kingdom and government of Thailand have capitalized on their culture, creativity and natural resources to nurture a silk yarn and woven fabric industry that supports a fashion industry worth 17 per cent of the country’s GDP. With annual exports of more than $6 billion per year, textiles and garments rank as one of the nation’s leading export industries. Thailand is among the largest garment exporters, with a 2 per cent share of the global exportmarket. The Thai people have developed a type of silk that is considered one of the finest fabrics in the world, with a unique production method originatingfrom traditional folk craft. Following ancestral methods, women in the northeast of Thailand reared silkworms fed on leaves of the mulberry tree, and spunand dyed the thread. Every piece of hand woven Thai silk is a timeless, unique work of textile art. Although Empress Si Ling Chi of China is credited with discovering silk, archaeologists have found silk 3,000 years old in the ruins of Baan Chiang, Thailand. Today, sustainability in the silk industry includes “peacesilk”, which allows the moth to emerge from the cocoon, and biodynamic farming that emphasizes the balance of soil, plants and animals as a self-nourishing : . 80Since 1996, UNCTAD, through its BioTrade Initiative, has been working to promote trade and investment in biological resources to further sustainable development in line with theobjectives of the Convention on Biological ECONOMY REPORT 201065The development dimension
economy is well placed to help nations reach these goals and biodiversity: alignment with the MDGs. Our global economy and planetA win-win solutionhas suffered tremendous losses over the past two centuries2Creative industries built on cultural capital and heritagefrom development that has over-used, polluted and destroyedoften have deep roots in the natural environment. The tradi-many of our planet’s valuable natural resources. In part thankstional knowledge that makes the creative industries so uniqueto the creative industries (including media and advertising),evolved over centuries through observation and use of theconsumers, businesses and governments are now beginning tonatural environment. From studying patterns in the naturalrealize that working in harmony with nature results in moreworld, ancient scholars gave us the science of mathematics,productive economies and better quality of life. the foundation of information and communication technolo-By using traditional production methods that capitalizegies. From the study and use of plants came our first systemson human creativity and skills, creative industries tend to haveof medicine and the basis of the natural health and cosmet-low environmental impacts, thus contributing to sustainabilityics industry. Indigenous knowledge of the natural environ-and biodiversity goals. Moreover, protecting the environmentment has created lucrative markets for visual arts, and culture is in these industries’ interest since biodiversity andeco-fashion and knowledge are drivers of success in businesses suchIn 2010, the International Year of Biodiversity, signifi-as natural health, cosmetics and eco-fashion, and attention is being devoted to the achievement of the bio-Forward-thinking governments and industries are stepping updiversity conservation targets set in 2002, and the creativeto this task, as illustrated by the example presented in box -trade in Colombia81With more than 45 per cent of its territory in forest reserves, Colombia hosts 10 per cent of the world’s biodiversityand has great potential for growth inbiodiversity-based businesses. Colombian exports of natural ingredients doubled from 2002 to 2008. Colombia could become a world leader in a number ofcreative sectors by drawing on the richness of the country’s biodiversity and culture. These include fashion, jewellery, cosmetics, personal care products, andhealth tourism. Colombia is making every effort to ensure that this growth is sustainable. Under the principles of the Convention on Biological Diversity,Colombia is revising its National Policy on Biodiversity and reformulating its National Biotrade Programme. Under its Productive Transformation Programme,Colombia is developing sectoral business plans, incorporating public-private partnerships, and combining community methods and enterprise with worldclass business. Development of a modern bio-prospecting company will assist in gathering information and managing contracts, giving foreign investors theinformation they need to make safe and sustainable business decisions, and enabling the fair sharing of benefits. At the same time, the government is articulating a strategic vision for enhancing the creative economy and to promote cultural diversity as an alternative development : Extract from the statement of the Vice-minister of Economic Development of Colombia, at the UNCTAD International seminar on Redefining Sustainability in the InternationalAgenda, Geneva, January 2010Though there is much evidence to support the environ-data could assist with the critical effort to ensure fair sharingmental and socio-economic benefits of the creative economy, itof benefits. This data could also help to understand the is impossible to accurately measure input prices. Very often theeconomic contributions of design and cultural influence in prices paid for these inputs do not reflect their full value. Ascreative industries, and help to provide the economic incentivesupply chains are investigated for environmental, ethical andfor improved intellectual property regimes. The creative econ-sustainability certification, collaborative efforts can be made toomy is intrinsically associated with environmental protectionstart collecting data that can help to determine the portion ofand a growing number of creative industries have already putproduct sales that could be reverted to creative individuals toin place mechanisms and are adopting processes that are in har-support their communities and environments. Analysis of thismony with environmental protection goals. 81Excluding marine ECONOMY REPORT 2010The development dimension
-FASHION INDUSTRYcomposed of cheap, throwaway clothing. Under the eco-ethi-Eco-fashion, using textiles made of organic, natural andcal fashion concept not only environmentally damaging pro-recycled fibres, has become a new trend. The textiles are handduction processes should be avoided but also the over-harvest-2loomed or made from rain-fed natural fibres such as organicing of wild species for their skins or natural fibres. It shouldcotton, silk, hemp, jute and bamboo. Production processes inbe noted that various processes in textile, leather and otherthe eco-fashion industry are non-polluting or less polluting,fashion-related manufacturing like jewellery, cosmetics andand often use very little energy other than human creativity,perfumes use toxic chemicals and produce effluents which cantalent, and skills. In addition to using natural materials, eco-pollute air, water and soil. For instance, worldwide cotton nowfashion highlights local identities and cultures, ethnically asaccounts for 11per cent of pesticides and 25 per cent of allwell as ethically. The clothes come from fair trade, meaninginsecticides used each year, while organically grown cottonthat the people who make them are paid a fair price and havedoes not involve the use of chemicals that can cause species82decent working conditions. Furthermore, eco-fashion success story of how the eco-fashion industry hasucts are bio-degradable or easy to recycle, critically desirablehelped improve lives and environment is presented in box . features given that a substantial portion of our landfills areBox -ethical fashion and natural fibresIn 2007, the World Conservation Society and Edun, an apparel company founded by Ali Hewson and her partner Bono, lead singer of the rock band U2, estab-lished the Conservation Cotton Initiative in order to improve the livelihoods of communities in Africa by investing in sustainably harvested cotton. The programpromotes development of eco-friendly cotton farming around high biodiversity areas to enhance incomes and economic development, improve resource management and protect wildlife. Edun’s ethical T-shirt brand, Edun Live, produces organic cotton T-shirts that are not only popular in retail outlets, but at U2concerts worldwide where they are sold in partnership with Hard Rock International, creating mass public awareness and financial support for organic cottonfarmers in Africa. In partnership with MADE-BY, a non-profit organisation whose mission is to improve environmental and social standards in the fashion indus-try, Edun, under its trademark Edun Live, produces “grow-to-sew” T-shirts in sub-Saharan Africa. MADE-BY has assisted Edun in achieving compliance withinternational standards for lawful, humane and ethical manufacturing, as well as in installing a wastewater treatment facility in its Ugandan : Wildlife Conservation Society WCS and the Conservation Cotton Initiative, and Pesticide Action Network UK. Uganda Cottons On – A WearOrganic Newsletter special focus onUganda’s cotton trade A fund to support farmers and the textile industry in devel-At the January 2010 UNCTAD international seminar83oping countries the means to create a system which honourson Redefining Sustainability in the International Agenda,and rewards the sustainable use of organic farming methodsjointly organized by UNCTAD’s BioTrade and Creativeand maintenance of biodiversity from field to stitch;Economy Programmes in association with the NGOGreen2Greener, a group of committed eco-fashion profes- Goals for all natural fibres to be grown in an organic andsionals, including the London Fashion Association, proposedsustainable manner by 2020;an action plan to set the basis for a meaningful legislation to All polyester and synthetic production to be from sustain-make sustainable fashion the norm by 2030. The proposedably managed and recycled sources by 2030;Green Action Plan calls for: Reduced energy consumption within the textile and gar- Legislation to give the Fair Trade and Organic Marks cre-ment manufacturing industry by a minimum of 30 perdence and to give designers tools to create a sustainablecent, monitored by an energy plug. In addition to haveindustry and education programmes;energy outsourced from renewable energy sources such as82UNCTAD (January 2010).83In launching the celebrations for the United Nations 2010-International Year of Biodiversity, UNCTAD organized three related eco-oriented events, in January 2010 at the Palaisdes Nations in Geneva. An international seminar was attended by over 500 participants, the Eco-Chic Fashion Show featured more than 50 looks donated by 40 world-famous fashion designers and sustainable fashion labels, and exhibited by 30 top models. For two weeks the Eco-Chic Exhibition showcased products that provide eco-benefits and incomefor small communities in developing countries. The exhibition’s world tour will culminate with the Eco-Chic Fashion Show and Exhibit at the UN Creative Economy Week to beheld from 19-22 October 2010 in the context of the activities of the United Nations Pavilion at the Shanghai World Expo 2010. CREATIVE ECONOMY REPORT 201067The development dimension
solar roofing on factories to power back into the national2006, the International Ecotourism Society reported that eco-grid; and tourism/nature tourism was growing globally at a rate of 10-12 per cent per year, three times faster than the tourism Investment in infrastructure for renewable energy sources2industry as a whole. Ecotourism promotes conservation andfor the fashion-related industries to be enforceable withinprovides for beneficially active socio-economic involvement ofthe next 10-15 populations. As a development tool, ecotourism canThe eco-fashion industry provides an opportunity foradvance the three basic goals of the Convention on Biologicaldeveloping countries to move up the economic ladder by usingDiversity: 1) the conservation of biological and cultural diver-their creative talents in concord with the best use of the ; 2) the promotion of the sustainable use of biodiversity;Responsible business initiatives are needed by small and medium-and, 3) the equitable sharing of benefits with local communi-sized enterprises and multinational companies as well as strategic85ties and indigenous involving governments and local communities, but theyThe eco-spa industry offers a very good illustration ofare not without obstacles. The aim of this UNCTAD initiativethe many benefits of ecotourism. Over the years, developingwas to inspire greater business and consumer engagement in bio-countries such as India, Sri Lanka, Thailand, Vietnam as welldiversity issues and create a platform to articulate strategies toas Morocco and Tunisia have developed great expertise in the84transform this engagement into concrete sustainable industry, drawing on traditional knowledge in the areas ofmedicine, health care and a healthy diet. Policies paid specialB. ECOTOURISMattention to linking their spa industries with local is a need to further strengthen the intersectoralThe international Spa Industry Association reported in 2009linkages between the creative economy and the tourism sectorsthat the industry grew 18 per cent in 2008, to a value of $ only to foster socio-economic growth but also to reducebillion. The association’s sustainability statement embraces theexcessive revenue leakage from the South to the Northernthree pillars of sustainability: planet, people and prosperity,countries, as mentioned in chapter 1. Concerted policiesand vows to conduct business in a way that sustains the life ofshould be in place to bring together the ecotourism and the86our planet and thus economy objectives to promote the conservation ofIntrinsic to eco-spas are natural health and beautyenvironmental endowments and cultural heritages, while pro-products. These traditional knowledge-based industries aremoting creative and cultural activities to revive local commu-well positioned to assist governments in their efforts tonities, particularly in remote rural areas. Ecotourism involvesachieve sustainable development and biodiversity conserva-environmentally responsible travel to relatively undisturbedtion goals. The Export-Import Bank of India reported thatnatural areas to enjoy and appreciate nature and culture,the global market for herbal products, which includes medi-including ethnic cuisines based on local natural ingredients. InBox Moroccan spa cultureBased near North Africa’s tallest peak, Mount Toubkal, the Kasbah du Toubkal hotel spa in Imlil, Morocco, has gained numerous awards from the envi-ronmental community including one for responsible tourism from the Moroccan government. Tourism is Morocco’s second largest industry and managedto resist the global economic crisis that began in 2008. While tourism around the world declined on average by per cent in 2009, Morocco’s Ministry87of Tourism and Handicraft reported that tourism increased by 6 per cent that same ’s culture and environment remained a real attrac-tion and value. For example, the Toubkal spa, surrounded by apple, cherry, and walnut groves, is run with the help of the local and eco-friendly Berbercommunity. Mules carry luggage, local plants refresh visitors, and wood-burning fires and candles light the night. Notably, the hotel adds a five per centper guest surcharge that has helped to fund a community hammam, irrigation systems, and a village telephone : Madhu Puri, World’s best ecospas: 10 remote spas that combine nature and (January 20110). 85United Nations Environment Programme (2010).86International Spa Association (2009). 87Tourism Review (2010). 68CREATIVE ECONOMY REPORT 2010The development dimension
cines, health supplements, and herbal beauty and toiletryelectricity and through the use of green buildings and facili-88products, was worth an estimated $62 coun-ties. The natural health and cosmetics industry in particulartries rich in biodiversity are gold mines to this industry;realizes the impact of climate change on their business. For2national and international policies must ensure biodiversityexample, Natura Cosmeticos launched its Carbon Neutralconservation and equitable trade in natural products. Manyproject in 2007, adopting an energy reduction target of 33businesses in this industry are supportive of such policies, asper cent per kilogram of product. In December 2009 at thetheir profitability depends on community partnerships not15th Conference of the Parties of the United Nationsonly to produce but also to safeguard local natural ingredi-Framework Convention on Climate Change, Naturaents. A growing number of companies under their socio-Cosmeticos announced its participation in WWF’s Climateenvironmentally corporate responsibility schemes are com-Savers program, committing to reduce its operational emis-mitted to upholding the highest environmental standardssions by 10 per cent by 2012, with 2008 as the their supply chains by sourcing most of their rawThrough a partnership between Natura Cosmeticos andand base materials worldwide from small and large farms,WWF-Brazil, the WWF Climate Savers program is inaugu-91cooperatives and cultivation projects. Some are working withrating its national branch in , universities, governments and non-governmen-D. THE POWER OF THE MEDIAtal partners, to ensure the sustainable harvest and organicgrowth of its ingredients. Fair prices, long-term contracts,Over the past 10 years, there has been a real changetowards more conscious behaviour, mainly due to the influ-and educational, ecological and social support ensure suc-cessful business partnerships. ence from the media, including social media and the newspapers, magazines, and books to blockbusterC. INFORMATION AND COMMUNICATIONmovies, blogs, and You Tube, the message that our globalTECHNOLOGIESenvironment is in peril because of abuse and destruction ofOf critical importance to the global climate and econ-our natural resources has come across loud and are information and communication technologiesConsumers are becoming better educated and seek out certi-(ICTs) that are proving to be net energy savers. In a reportfied organic and environmentally sustainable in February 2008, the American Council for anBusinesses of every size, including multinational corpora-Energy-Efficient Economy found that for every extra kilo-tions, are realizing more and more that their success dependswatt-hour of electricity demanded by ICT, the . economyon healthy environments and communities. Some companiesincreased its overall energy savings by a factor of about made protection of the environment, biodiversity andThe study emphasizes the growing role of ICT applicationscommunities an integral part of their business models. Otherin enabling new high-tech products and services, as well asmultinational companies are working with internationalspurring new investment and new ways of delivering energyNGOs to help reduce their environmental impacts along theservices. Smart energy policies at the national, state and localsupply chain and support the local communities on whichlevels should maximize energy efficiency and promote thetheir business depends. Many other companies lend financialadoption of ICT applications that can reduce energy con-or in-kind support to environmental organizations and proj-sumption and increase energy productivity in households,ects. All of them advertise their environmental credentials to88businesses and consumers to purchase their products. Advertisingdoes not have to be at the end of a company’s effort to earnEnergy efficiencysupport among environmentally conscious consumers; it canIn addition to the ICT industry, eco-fashion and eco-be the beginning. A concrete example of a creative media90tourism,other creative-related industries are also engaged incompany that is turning advertising dollars into environmen-achieving energy and water efficiencies with business tal benefits is described that capitalize on human creative work instead of88Export-Import Bank of India (2003).89American Council for an Energy-Efficient Economy (2008). 90Air travel to eco-destinations remains a significant carbon emitter; however efforts to offset carbon emissions are Brasil (2010).CREATIVE ECONOMY REPORT 201069The development dimension
Box , moving to action2EcoMedia is an innovative media company based in New York that creates advertising and sponsorship opportunities that help fund critical environmentalprograms through collaboration with corporate sponsors, local governments, environmental agencies and advocacy groups. EcoMedia gained international recognition for its success in establishing effective public-private partnerships to create and initiate innovate ways to address urgent environmental , which has recently become a CBS company, has given some of the world’s most famous brands a way to meet their marketing and socialresponsibility objectives while making a real positive change to the environment. With proceeds from advertising through television, radio, new media,print, and outdoor signage, EcoMedia has raised funds for environmental projects in cities throughout the United States. For example, over $1 millionhave been raised for the City of Long Beach, California, which has helped to green Long Beach Airport with an innovative solar installation and has funded numerous environmental education, outreach and research projects. In another example, over $1 million have been raised for the City of Miami,funding tree planting, greening buildings including Miami City Hall, installation of storm water filters throughout the city, and removal of abandoned boatsfrom the : EcoMedia, summary, many creative industries and corporateaddress these issues, the business community must bebusiness are embracing innovative approaches and responsiblebrought into the heart of policy debates. Strategic alliancesinitiatives to preserve the environment. Incoherent policies,with governments, academia, international institutions restrictive regulations and a lack of information can serious-and civil society play an important role to move ahead thisly hamper attempts to change the way business is done, byagenda through concrete initiatives. both SMEs and large multinational companies. In order to70CREATIVE ECONOMY REPORT 2010The development dimension
PARTAssessing the Creative Economy: Analysis and Measurement2
72CREATIVE ECONOMY REPORT 2010
3Analysing the creative need for systematic analysisThe formulation of policy strategies to foster thestrategies of the creative industries, there is good evidencedevelopment of the creative economy at the local, nationalfor questioning such an assumption. or international level cannot proceed in a vacuum. ThreeThere is no option but to present the same quantita-requirements are critical to providing the sort of informa-tive measures as are used for other industries; nevertheless,tion and analysis upon which sound policy can be is urged in their interpretation. This chapter willThese are:highlight ways in which the creative industries seem toadopt or to occupy different organizational forms and a systematic understanding of the structure of the business models. Accordingly, it is argued that this maycreative economy, who the stakeholders are, how theyhave an impact on policy formulation. As such, it will berelate to one another, and how the creative sector relatesargued that quantitative data are necessary but insufficientto other sectors of the economy;for an analysis of a new and emergent sector such as the sound methods to analyse the functioning of the creative economy. Much more detailed work is required oncreative economy and to assess the contribution it makesthe institutional forms and organizational particularities ofto economic, social and cultural life; andthe creative economy to engender confidence in policy pre- comprehensive statistics to quantify the analytical meth-scriptions. In sum, this raises the question that researchersods and to provide a systematic basis for evaluation ofhave been grappling with for a number of years, which isthe contribution of the creative sector to output,whether the creative economy is the same as the rest of theemployment, trade and economic growth. economy, if not why not, and in what ways is it , additional lines of inquiry are whether genericAn evidence base is needed to understand the natureindustrial policy is sufficient or a new formulation specificof and potential impact for growth and change in the cre-to the creative economy will be required. It is our view thatative economy. Evidence comes in many forms, quantita-a more nuanced understanding of the creative economy willtive and qualitative. This report relies on the collection andbe achieved with the collation of qualitative assessment andanalysis of quantitative data; in this sense, it echoes thethe analysis presented in this chapter. As a way of illustrat-work done by a number of national agencies to map their1ing this point, this chapter will outline the particularities ofcreative , while the great value of thesethe creative economy and their implications for the selec-accounts lies in the fact that they present data within a nor-tion of tools for analysis and appropriate indicators formative framework that is directly comparable with othermonitoring and evaluation. sectors of the economy, this is also a particular is a weakness since it assumes, or at least presents theThis chapter is divided into three substantive with the impression, that the creative economy isThe first deals with the question of conceptualizing andprecisely the same as the rest of the economy. Likewise, thedescribing the organization of the creative economy. Thegross value added, or export and import structure, is thesecond part reviews tools of economic analysis that may besame, as is the nature of work. Given the ongoing debatesuseful for the investigation of the creative research being carried out on the “new business mod-Finally, in part three, the value-chain model is used as aels” and their impact on the organizational forms andtool to facilitate analysis of the creative , for example, DCMS (1998).CREATIVE ECONOMY REPORT 201073CHAPTERAnalysing the creative economy
of the creative economyA key question usually raised concerning the structures3economy is whether it is substantively the same as the rest ofThe main characteristic of the creative economy is, in orga-the economy. There are two reasons for raising this terms, its “missing middle”. This refers to the factFirst, traditionally, matters relating to culture and arts havethat there is a preponderance of a small number of very largebeen dealt with as special cases, given their peculiar forms offirms working internationally, counterbalanced by a veryproduction and the specific characteristics of their number of essentially local, micro enterprises, many ofHistorically, cultural policy is considered as exceptional or awhich are simply single persons. Despite the common image,field with special needs based upon a welfare-economics con-the creative economy is not “one big machine” resonant ofception of market failure balanced against cultural “Hollywood” in the early 20century. There is very littleSecond, many have argued that the creative economy is suf-classical vertical integration of the kind most commonlyficiently different from the mainstream economy; therefore,associated with transnational corporations in other rather than generic policymaking might be appropri-There is strong integration, horizontal and vertical, of partsate. This chapter develops this second line of argument. Theof the creative economy; however, this does not extend to thestarting point is to identify how and why the creative econo-microenterprises and individual creative entrepreneurs. my is different and in what ways it is necessary to do fine-While a research scientist may work for a big pharmaceuticaltuning with generic analyses and policies. laboratory, a musician is unlikely to be an employee of aThus, this section is subdivided into three parts cor-large music corporation such as Sony or EMI. The contrac-responding to identifiable dimensions of the creative econo-tual relationship will exist, but it will be associated with themy that distinguish it as different or at least sufficientlydistribution of the final product and a proportion of theunusual to merit the development or refinement of conser-intellectual property rights. Accordingly, there are a consid-vative analytical tools. Attention is drawn to three criticalerable number of artists working with large companies. Aaspects of the creative economy for policymaking. Initially,key role is played by a small number of separate intermedi-the basic organizational structure of the creative economy isaries — usually referred to as agents — who broker dealsexamined, then the characteristics of its day-to-day opera-between “creatives” and corporations. As will be furthertions, and finally some of the locational consequences. examined later in this chapter, the creative economy hasIn general, the creative economy is dealt with as a sin-evolved in this way in order to manage the large amount ofgle set of activities. Nevertheless, there are significant differ-risk involved in cultural business. This risk is not simplyences between individual creative industries associated withlinked to the nature of the creative product and audiencemarkets, products, technologies and distribution systems. Inpreparation, but it is also associated with the timing offact, the debate about “convergence” highlights this point,reaching markets. seeking innovative possibilities to deal with these interac-tions. For the purpose of this report, however, it is sufficientto begin with a set of policies and analysis of the matterseconomy in general. Clearly, there is scope for specific adap-In part, the organizational structure of the creativetation to particular industries and regulatory norms. Theeconomy is a response to the possibilities of massivepoint to be stressed is that the creative economy is botheconomies of scale through the mass production of creativeinternally coherent and sufficiently different from the “restproducts. The case of a music CD illustrates this the economy” to merit separate attention. In many ways,Limited costs may be involved in the composition andthis conclusion is accepted since it retains the possibility ofrecording of content; however, the potential to sell a millionformulating creative economy policies that both attend toor more CDs within a short period can yield considerableeconomic specificities while they may be open to incorporat-returns for all concerned. Profits increase with each addi-ing special concerns that are critical to local and regional cul-tional sale because, aside from marginal distribution andtural identity. marketing costs, the initial investment is a one-off. Online74CREATIVE ECONOMY REPORT 2010Analysing the creative economy
music sales carry even lower distribution costs, because there isA further aspect of the rapid innovation cycle is theno physical product to ship or store, and thus have the poten-micro-organizational form adopted by many in the creativetial for increases unit sales, higher profit margins, or . The most popular form is not the classical firmbut the project. A project team may be formed from person-The possibilities of this style of production and itsnel within a firm or with an informal network. Members will3repetition are the reason why the creative economy is organ-be selected to fit with the desired product. For a short time,ized predominantly around charts that rank top-sellingthey work as one in intensive development; after the productartists. Charts seek both to signal to consumers to buy andis completed, the project team disintegrates and participantsto funnel consumption into a small range of alternativesreforms as new teams. Thus firm life can appear to be very(thereby reducing waste and stockholding). However, chart-short; however the resources and expertise are in the labourdriven markets are “winner takes all” in structure; profits arepool. Film-making is characterized by this format. While inconcentrated among a small set of winners, while others aresome industries such as advertising project team memberslucky to cover their initial investment. Indeed, it is widelymay be continuously employed by a “holding company”, inrecognized that as many as 80 per cent of films will fall intomany other industries, all of the participants may be free-this category; of course, it is the 20 per cent that make superlance of self-employed. Thus close attention is needed inprofits and thus subsidize the losses. The nature of the cre-terms of local strategies, data collection and labour-marketative economy is such that, as Richard Caves notes later inanalysis in the creative economy in these unique characteris-this chapter, nobody knows up front which products will betics are to be accurately captured and and which will , the creative economy has organized itself toadapt to such circumstances. The risks can be offset if one issuesa large enough portfolio and a sufficient turnover in any oneThe organization and operational peculiarities of theyear so that losses can be borne until profits come economy lead to a particular locational characteristic:However, this makes it extremely difficult for individual artistsclustering. Although clustering, or at least co-location, occursor smaller groups of artists to compete with such a many industries, the particular nature of clustering is bothThe situation is exacerbated by the strong control of access toimportant and a defining characteristic of the creative econo-the market that a small number of distribution companiesmy. Today, there are two prevalent perspectives on the types ofhave. While the risk limitation of conventional distributors iscreative clusters: (1) a traditional one that focuses on how cre-understandable, it does have a limiting effect on the range ofative companies and branches clusters together with the ben-creative products that tend towards the norm and towardsefits from locating in the same place; and (2) an occupation-what worked before. With luck, a small producer may strike ital perspective that focuses on how creative individuals benefitrich, but this is unlikely to be a sustainable choosing the same places to live and factIt is noteworthy that this fast turnover of productsthat creative clusters function as a unified whole calls for col-requires continuous innovation to develop new products. Itlaboration not only within the clusters but also across bordersalso means that each product (a CD, for example) has a lim-3between creative industries. A surveyof employment pat-ited life and that it must be on the market in precisely theterns in 2006 found six cities with creative clusters of moreright window that accords with local taste. This can meanthan 300,000 employees: Barcelona, London, Los Angeles,that several million dollars of development that has taken aMilan, New York and Paris. It is not surprising that theseyear or more to achieve by a hundred or more people maylarge cities developed a high degree of specialization in turn on whether it reaches the market at precisely the rightspecific creative industries. time and whether the consumers like it. In computer games,In principle, much of what happens in the creativethe window can be as narrow as 14 days; if the game doeseconomy can be transmitted in digital form. Hence, onenot enter the chart within this time, it is withdrawn and amight expect there would be little spatial pull of particularloss is taken. This is a punishing innovation cycle comparedlocations. However, as noted earlier, clustering is a solutionto that of most industries. 2Danish Enterprise and Construction Authority (2010).3Monitor Group Cluster Database. More information available from ECONOMY REPORT 201075Analysing the creative economy
that enables the benefits of labour pooling and re-employmentmobile devices visit social networking sites, compared to 79of workers on new projects. Co-location and labour mobilityper cent of those who access the Internet from a desktopprovide a further benefit in that knowledge and expertise arecomputer (79 per cent). Apparently, mobile phones provide3constantly circulated and updated across firms and projects. Ina better — or at least more convenient — platform for social5many cases, the location in a consumption centre also facili-networking than desktop a short circuit of production and consumption, allowingGlobally, the three most popular social media tools arenew trends to be developed and tested. In these districts, thereFacebook, YouTube and Wikipedia. Humans now spendis considerable informal exchange of information and ideasmore than 110 billion minutes each month on social net-among competitors, which serves them all by keeping them atworks and blog sites. This equates to 22 per cent of all timethe leading edge of their industry. Thus, a key characteristic ofspent online, or one in every four and half minutes. Theclusters is that they stimulate the innovation of people visiting blogs and other social media sitesConversely, producers who are isolated from such settings areincreased by 24 per cent over last year, and for the first timeat a considerable disadvantage as they may be slightly out ofever, three-quarters of global consumers who go online nowtouch or behind the times. As noted earlier, in winner-takes-allvisit such sites. The average visitor spends 66 per cent moremarkets, such failure is punished on these sites than a year ago, almost 6 hours in April62010 versus 3 hours, 31minutes last has thehighest percentage (86 per cent) of Internet users power of social networks social networks. The popularity of social networking inBrazil is due to the Orkut phenomenon, which appearedThe functioning of the creative economy is increasinglythere in 2004; one year later, half of the Brazilian Internetinfluenced by the rapid expansion and growing importancepopulation visited the site to promote events or learn aboutof social networking tools. More than 200 social sites are active worldwide, oriented to various languagesand countries. A social network might take the form of aSocial networking tools have been embraced by thechat room or a discussion forum or an e-shopping site withfilm industry, where new releases increasingly entail creatingembedded functions for rating, recommending and com-a community in Orkut, posting the trailer on YouTube, cre-menting on specific products. The power of a social networkating a Twitter page and blogging about the with the number and nature of relationships andGovernment agencies and political campaigns are also turn-interactions, as individual members share information, ideasing to social networking tools to update their constituenciesand influence. A social network may link groups of peopleand stay attuned to public opinion. Educators, too, are usingor friends from the physical world, or new acquaintancessocial networks for learning and professional the virtual realm. It not only fosters peer-to-peer rela-In the physical world, a social group constructs knowl-tionships among people, but also between an individual andedge for its members and over time establishes a culture ofa product or brand (as when a Facebook user “likes” a par-shared meaning. Similarly, online social networking empowersticular novel, movie or handbag designer), or even betweenusers to produce information and construct knowledge forseveral complementary products (as when Amazon recom-peers by posting messages, blogging, sharing files and build-mends several books based on a user’s previous purchases).ing websites. In these social and digital environments, withSocial networking services use computer software to buildhigh connectivity and demand-driven learning, there is a needand verify online communities of people who share intereststo rethink the vision of pedagogy so that learners are activeand activities, or who are interested in exploring the interestsparticipants or co-producers rather than passive consumers of4and activities of , 91per cent of thecontent, and so that learning is a participatory, social processpeople who access the web from smartphones and othersupporting personal life goals, needs and Network Services (2009).5Ruder Finn, “Social Networking Now More Popular on Mobile than Desktop” (18 February 2010), available from Wire (15 June 2010), available from Wire (15 June2010), available from ECONOMY REPORT 2010Analysing the creative economy
Many creative enterprises use social network servicesucts and services. Companies can also use social networksto offer their goods and services to wider audiences, in somefor advertising in the form of banners and text ads. Sincecases reaching global markets. By connecting people at lowmany businesses operate globally, social networks can makecost, social networks can help creative entrepreneurs andit easier to keep in touch with contacts around the businesses expand their business contacts and clientsReciprocity, collaboration and transparency in communica-3as well as promote their brands. Indeed, brand networkingtions are fundamental in the creative economy, and newis an increasingly popular way to capitalize on social trendsplatforms such as blogs, forums and wikis are useful tools7as a marketing networks often act as a customerfor facilitating connectivity among creative people, productsrelationship management tool for companies selling prod-and analysis of the creative industriesThe creative industries make a significant contributionindustries. The most common of these are basic industrialto national economies and at the global level. However, theorganization analysis, value-chain analysis, inter-industrybreadth of the concept and the varied perceptions about howanalysis, locational analysis, copyright and intellectual to define and delimit the creative economy make it difficultproperty, and contract identify or agree upon reliable and comparable economicindicators that capture its economic, cultural, social andtechnological dimensions. A fresh look is needed to organization analysisgrasp the overall dynamics of this sector, which values cre-The most basic form of economic analysis is to meas-ativity, experience, autonomy, diversity, flexibility, self-moti-ure the standard economic variables for which data are rou-vation, collaboration and networking. Therefore, rather thantinely collected for all industries by statistical agencies: grossapply the same quantitative macro-economic indicators usedvalue of production, value added, fixed capital formation, lev-for traditional sectors, we need to invent more appropriateels of employment of different categories of labour, businesstools, as noted earlier in this report. In theory, four groups ofconcentration and so on. This enables the structure, conducteconomic indicators might eventually be applied, if data wereand performance analyses to be carried out according to theavailable, to assess the impact of the creative industries ontraditional methods of industrial organization theory. Studiesnational economies: of the economic contribution of creative industries may be of value as a means of demonstrating, for example, that they areprimary economic impact:measures direct contribution to theeconomy, using GDP and employment figurnot some minor economic backwater but account for a largeres;proportion of GDP than the casual observer might have second economic impact:measures indirect quantifiable contri-imagined. bution, as activities in the creative industries induce spin-offs in other sectors (multiplier effect); tertiary economic impact: measures direct yet less -chain analysiscontributions resulting from innovations in the creativeOne of the most straightforward and widely recog-industries that spill over into other sectors;nized methods for analysing the structure and function of quaternary economic impact:measures indirect, non-quantifiablethe creative industries is value-chain analysis. In its simplestcontributions to quality of life, education and culturalform, the analytical model of the creative production one where the initial creative ideas are combined with otherA number of methodological approaches may beinputs to produce a creative good or service that may thenadopted in undertaking economic analysis of the creativepass through further value-adding stages until it enters mar-7Frase & Dutra (2008).CREATIVE ECONOMY REPORT 201077Analysing the creative economy
keting and distribution channels and eventually reaches thetakes place; (b) production/reproduction — the stage atfinal consumer. The strength of this approach is that it iswhich an idea or concept is developed further and then pack-sensitive to both individual action and context, especiallyaged; (c) marketing and distribution; and (d) , networks and their governance. A single enterprise or individual may carry out one or more3stages of the value chain, whose completion may require sev-For some creative goods, this apparently simpleeral different skill groups, depending on the can become more complex as the creative idea isConsequently, creative industries’ value chains can differtransformed or reformatted at successive stages. For example,widely in terms of degrees of complexity. The chain of thea musical idea might begin with a composer writing a songfilm industry is often quoted as being among the most com-and passing it on to a publisher who puts it into tangibleplex because it embraces a multitude of interdependentprinted form. From there, the idea might be realized as a livestages and skills drawn from various sub-sectors of the cre-performance before an audience, with the performance sub-ative industries, with each skill group required to execute keysequently being recorded and marketed by a record compa-functions in an organized, networked fashion. In contrast,ny. The record will pass through a sequence of wholesale andthe commercialization of visual arts can entail a significant-retail value-adding until bought by a consumer or it may bely shorter value chain that may well include only two partic-uploaded onto the Internet and subsequently accessed byipants, ., the artist and the gallery (if the artist does notconsumers who pay a price for online delivery. Thus the over-sell directly to the public). In terms of competition analysis,all chain can become quite attenuated, one effect of which iseach stage of the value chain can represent a distinct marketto diminish the relative share of total revenue accruing to theand there may be differences in the degree or intensity ofcreator of the original between the different stages. Figure a generic creative-industry valueAn empirical estimate of the value added at each stage8chainencompassing four different stages: (a) creation/con-in a value chain is provided by a study undertaken for theception — where the development of an idea or concept9creative industries in Canada in value added was estimated as shown inFigure Creative-industry value chain table . It is apparent that the productionstage of the value chain is the most significantin terms of value added, accounting for aboutRETAIL & half of the total cultural value added accordingCREATION PRODUCTION DISTRIBUTION CONSUMPTION to this analysis. A further illustration of theapplication of value-chain analysis is given inthe next section. In times of uncertainty and transforma-tion, as we are experiencing today, artists andTable Value chain in the cultural industries in Canada, 2002 organizations actively adapt to new the value chains are changing, as externalTotal cultural value added(in millions of $Can)influences surrounding the creative economymake it necessary for the creatives to exploreCreation5,713Production19,829new opportunities in order to cope with lowSupport services4,231budgets and job contractions. The example inManufacturing7,285Distribution2,865box some innovations amid theTotal39,923downturn in the conventional music market, asProportion of GDP (%) artists looked ahead, embraced eclecti-Source: Statistics and remained (2004), “Creative clusters: Towards the governance of the creative industries production system?” and “The New Economy, Creativity and Consumption”. 9Gordon and Beilby-Orrin (2007:39).78CREATIVE ECONOMY REPORT 2010Analysing the creative economy
Box The Tecnobrega case Tecnobrega, a music style that originated in the Pará State in northern Brazil, is revolutionizing the nation’s music market. The Paraense brega music mar-ket is a dynamic sector of Belém’s economy: it moves parties, sound systems, artists, studios, DJs, party planners, party and concert houses, promotion3ventures and the sale of many related products. It provides livelihoods for a vast number of professionals and artists, as well as a source of revenue andtaxation for the local public in the tecnobrega business often play multiple roles. A studio DJ, for example, can also be a street vendor or a sound system DJ. A band singermight also be a producer or party planner. DJs and singers are also composers and CD producers, reporters or radio and television hosts. The relationshipbetween actors is not just monetary, but also highly social. The tecnobrega market has developed an alternative model for producing and distributing compact discs operates in parallel to the formal industry model.“The mapping of this business model allows us not only to understand this new structure, but mainly to think of the possibility of its replication,” writesLemos Ronaldo. “To this, four aspects merit consideration: the innovation with value, the ‘technology cultivation’, the promotion system based on the NARPs(Non-Authorized Re-Producers), and the absence of payment to the individual who is only the composer”.Copyrights are traded by how many times a song is played in radios within the city and also by the multiplication of CDs in the informal market. Makingownership rights more flexible may result in greater feedback, in terms of promotions and contacts, than if they followed the formal rules of intellectualproperty rights. “Innovation is an important aspect of the bregueiro universe,” Ronaldo writes. “It talks about not only the incorporation of new technological apparatus,but also the demonstration of the personal creativity of the artist.” Competition among the actors involved is fundamental, as it motivates them to seek outnew forms of action and problem : Lemos Ronaldo (2008). “The Tecnobrega Business Model Arising from Belém do Pará”, International Development Research Centre, Rio de Janeiro. By Simon Evans, a cultural entrepreneur and founder of Creative Clusters to which input-output analysis can be used for -industry analysis ing economic impact in the creative sector. One of the most long-standing techniques for study-Some close relatives of input-output analysis may being inter-industry relations is input-output analysis. Itssomewhat easier to apply. For example, social accountingcapacity to depict the ways in which output is produced andmatrices are not quite so demanding of data and yet enabledistributed in the economy, and to capture the direct, indi-a similar sort of analysis of the inter-industry effects of eco-rect and induced effects on industries, consumers and gov-nomic change. These matrices came into vogue during theernment of a range of external stimuli is well known. In1970s and 1980s, especially at the World Bank, where theyregard to the usefulness of input-output as a tool for eco-were exhaustively investigated as a workable tool for develop-nomic impact analysis in the arts and cultural industries, twoment planning. At that time, interest focused on the tradi-considerations stand out. The first is that few input-outputtional sources of growth in developing countries — such astables that have been constructed for whole economies oragriculture, secondary industries and infrastructure. Now,parts thereof have contained a sufficiently detailed break-amid growing recognition of creative industries as a source ofdown of the arts and cultural industries. Often the arts willeconomic growth in developing countries, social accountingbe included, if at all, under “recreation”, “leisure”, “othermatrices may enjoy a revival of interest as a means towardsservices”, or some other categorization too broad to enablemore rigorous analysis of the economic functions of thesemeaningful analysis of the cultural sector. The second prob-industries — assuming that the necessary data can be found,lem is common to all input-output studies, namely, the strin-which is not yet the case. gent data requirements. Even input-output tables construct-ed at a relatively high level of aggregation can be estimatedOne aspect of inter-industry relationships that mayonly after extensive data gathering, including the necessity ofnot be fully picked up in the above-mentioned forms ofsome data collection from primary sources. The combinationanalysis is the existence of beneficial spillovers from the cre-of these two problems places a serious constraint on theative sector to other parts of the economy. Generally it is veryCREATIVE ECONOMY REPORT 201079Analysing the creative economy
difficult to capture these external effects without specific sur-service providers, etc., that compete but also cooperate. veys and measurement tools. Nevertheless, such positivePorter’s model is often depicted in the form of a dia-externalities might include: mond, showing the sources of locational competitive advan-tage. A simplified version of the diamond appears in figure knowledge spillovers,where firms benefit from new ideas, . This model is readily applicable to the creative indus-coveries or processes developed by other firms, .,tries, where the opportunities for creative clusters are evidentthrough their R&D activities; in such subsectors as film production, fashion and design. product spillovers,where the demand for a firm’s productAlthough creative clusters may grow of their own accordincreases as a result of the product development of anotherwhen commercial businesses spontaneously sense the advantagesfirm, such as when the demand for CD players rises as afrom co-location with other firms, public policy may also play aresult of the development of the CD; role in starting the process. For example, start-up investments may network spillovers,where firms gain benefits from other firmsbe facilitated via government programmes to encourage firms tothat are located nearby, such as in the clustering of filmlocate in a particular area, with a view to enabling the industry toproduction services in particular areas;become self-sustaining once a critical mass has been reached. training spillovers,when labour that is trained on one industrySome researchers, however, have pointed to the relative weakness-moves to another, as when actors trained in the subsidizedes of the standard Porter model of business clusters in relation totheatre move to commercial theatre or television;10international transfers and international organizations. artistic spillovers,where the innovative work of an artist or acompany advances an art form to theFigure Simplified diagram of Porter's model for clusters benefit of other artists or companies. Context for firm strategy and analysis The model of creative clusters artic-ulated by Michael Porter provides anA local context that important approach to economic analysis encourages investment Factor input conditionsDemand conditionsof the creative sector. In his original workand growth, with vigorous competition on the competitive advantage of nationsamong local rivals(Porter, 1990), he put forward a micro-economic based theory of national, stateand local competitiveness in the globalRelated and economy in which clusters have a promi-supporting industriesnent role. Clusters are geographic concen-trations of interconnected companies,Box clusters A distinctive feature of creative enterprises is that they thrive only in one another’s company. Whether they are artists in the East End of London, film makersin Bollywood, fashion designers in Milan or animators in Seoul, creative enterprises gather together in visible hot spots which, when fully established,become self-sustaining clusters of creative activity. This happens at every level, from the media centre in a small town to global centres such as purpose of the United Kingdom Creative Clusters Conference () is to understand why the sector develops in this way and toexamine the consequences for development policy. As we do this, it becomes apparent that the lessons learned have a wide application across other areasof social and economic clusters?Clustering is not confined to the creative sector. Specialist markets, neighbourhoods devoted to particular trades and region-based industries have always10Pratt (2008). 80CREATIVE ECONOMY REPORT 2010Analysing the creative economy
Box continuedCreative clusters existed. Clusters develop naturally, often linked historically to a natural advantage, and they persist as long as it is in the interests of new enterprises tojoin them. There is a substantial literature analysing clusters, from Alfred Marshall in 1920 to contemporary economists such as Michael Porter and3Michael Enright. Broadly, they agree that clusters confer competitive advantage on their constituents because: proximity sharpens competition and drives up standards; proximity encourages collaboration and diffusion of good practice between firms; a sophisticated local market can develop around a cluster, stimulating innovation and improving marketing; clusters can develop place-based branding, benefiting all firms in the cluster; proximity enables small companies to band together into alliances and networks, giving them some of the advantages of larger ones – for example,by giving them better access to suppliers and resources; an infrastructure of specialized professional support services is encouraged to develop; and clusters become a focus and a magnet for outside coal and steel clusters, clusters of creative businesses may owe their original provenance to an accident of geography or climate: Hollywood, it issaid, is there because of the sunshine. There are, however, some special reasons why clustering occurs in the creative sector and why it is found rightdown to the level of individual streets and creative people are highly mobile, the big producers and distribution companies on which they ultimately rely are not, so creative talent is drawnto the places where distributors are located. Creative businesses need this pool of specialist labour to scale up to cope with big projects such as filmsand games. In its turn, this talent pool of creative people and services encourages a discerning local market, which is essential for creative producers tounderstand new trends and fashions, the engine of innovation in this sector. A sophisticated local market is a key component of a creative cluster: creative clusters are clusters of both production and is a critical and often overlooked factor. No matter how much intellectual property their past work has generated, the future prospects of a creative enterprise are determined by its reputation. The best place to build and manage reputation is at the centre of the action, among discerning peersand customers eager to spot new trends and talent. The reputation of the cluster itself is also important. Everyone associated with a successful cluster sharesin its reputation so new arrivals receive a free gift, a small boost to their kudos, just for turning up and joining in. In addition, once a place has a reputationas being the centre for a particular specialism, it is hard for new places to displace it. A cluster’s reputation is the key indicator of its are the factors that explain the peculiar dominance of places such as Hollywood, London and Paris in their respective creative engagementMany cluster programmes find it hard to win the support of existing businesses. Local firms may discourage “incomers” and tend to prefer closed networks to open clusters. Larger firms may not take part at all or will use cluster programmes to consolidate their position. There may be a reluctanceto commercialize cultural products, particularly from creative enterprises used to the non-profit root of the problem is that creative enterprises are in business not for economic development but for their own mixed cultural and business purposes,so arguments couched in broad development terms will not win them round. Nevertheless, the engagement of creative people is essential to the success ofany cluster programme, and a key task for the cluster manager is to find the programmes and the language that will make allies of clusters are hard to develop (and perhaps harder to define), but the characteristic features of successful clusters are widely agreed: connectivity to the world: creative entrepreneurship thrives where local and global cultural forces interconnect; cultural diversity, free trade and free expression: openness and a through-flow of new people, new ideas and new products; production and consumption: the beginning and end of the supply network (maybe not the middle); and more than business: art, education, culture and , some exciting “big-picture” insights from Creative Clusters Conferences begin to show how policies for the creative industries are relevant to allsectors of the global economy: places without strong creative clusters will lose their creative people and businesses to places that have them; locally rooted creative clusters are highly resilient to global competition; a key survival strategy for non-knowledge-based firms is to anchor themselves to local creative industries; building creative clusters requires that cultural and economic development come together and act in concert; and cultural diversity is an economic asset and a source of competitive Simon Evans, a cultural entrepreneur and founder of Creative Clusters ECONOMY REPORT 201081Analysing the creative economy
ensure fair sharing of benefits. This data could also help analysisbuild understanding of the economic contributions ofIn addition to its socio-economic benefits, the creativedesign and cultural influence in creative industries, and helpeconomy also has an impact on environmental and biodiver-to provide the economic incentive for improved intellectualsity issues. It is difficult to measure the input prices of cre-3property and environment, which rarely reflect their full Creative Economy Report 2008discussed significantAs supply chains as investigated for environmental, ethicalefforts to obtain this kind of information. But trees growand sustainability certification, collaborative efforts can befrom seeds, and initiatives like SEE Turtle’s conservationmade to collect data to help determine the portion of prod-pricing deserve attention as efforts are made to collect poli-uct sales proceeds that go towards creative individuals andcy-relevant data in the ecotourism industry. Similar effortstheir supporting communities and environments. As notedcan be envisaged for the creative the previous chapter, analysis of this data could help toBox : Conservation tourism and pricingSEE Turtles is a non-profit ecotourism project currently operating in Mexico, Costa Rica, and Trinidad and Tobago. Going beyond the ecotourism mantra of“leave only footprints”, SEE Turtles suggests that tourists should make a positive impact through conservation tourism — defined as travel that supportsefforts to protect endangered species through fees and donations and benefits local communities. It increases awareness and appreciation for environmental and ecological concerns while delivering a much-needed sustainable source of revenue for conservation efforts and a viable economicdevelopment alternative for local communities that have few other options for generating Turtles is the first to offer “conservation pricing”, where each tour price lists how much of the cost goes to conservation and local income pays for measures to protect nesting beaches, hire local residents, conduct scientific research, educate tourists and local residents,and recruit volunteers. Communities benefit from direct and indirect spending at locally owned businesses near sea turtle hots pots. This income helps residents value these creatures as an important resource to protect and inspires local support. Source: UNCTAD adaptation from information available at : how to measure the value of intellectual property, and intellectual propertyhow to redistribute profits, and how to regulate these activi-The relatively new concerns with the creative economyties. As will be further elaborated in chapter 4, the measure-have highlighted the fact that material goods may be separat-ment of intellectual property is very difficult using tools thated from their symbolic, cultural or artistic values through cul-were developed mainly to capture the physical movement oftural production processes, notably via digitization. This isgoods. Regulation and redistribution remain interrelated andnot a new problem; it is one that intellectual property rightsproblematic. Poor or irregular distribution of earnings relat-(IPRs) and copyrights seek to address. What is new is the bal-ed to IPR due mainly to institutional inadequacies under-ance of value divided between the material and the virtual,mines the legitimacy of a legal regime based on IPR. and the possibility of separating them. Previously, many IPRsMoreover, there are some structural challenges to pol-were regulated de facto via the regulation of physical goods inicy and practice associated with uneven development. Thewhich these rights were effectively locked up. Much of thecreative industries as a whole are characterized by first-movercommercialization of the creative industries has involved theadvantage and a winner-takes-all form. Thus, the developedinnovation of new ways to lock up valuable IPRs in physicalworld is in a strategically very powerful virtual containers (encryption is an example). The recogni-Furthermore, the legal resources and techniques elaborated intion that the intellectual property is where a large share of val-the developed world do not mesh with more traditionalues lies has been reflected in the shift by large corporations tomethods of attributing cultural and economic values. Thisinclude IPR and brand value on their balance sheets and toleads to the perfectly legal, but morally anomalous, positionpresent them as a core component of company valuations. of a company from a developed country that can use anThe challenge for researchers and policymakers as wellunregistered intellectual property in a developing countryas those concerned directly with the creative economy is82CREATIVE ECONOMY REPORT 2010Analysing the creative economy
and register it as its own in another country. The developingand their durability, which enables them to yield rents over acountry then has no legal claim to what it may regard is itslong period. These properties make it all but impossible toown intellectual property. It is for this reason that consider-write a complete contract at any stage of the game. So, inable assistance is needed to extend the logic of intellectualresponse to the dual motivation of artistic and economicproperty in the developing world and to sustain a viable sys-incentives, the creative industries have evolved a variety of3tem for the collection and distribution of IPRs. means for organizing themselves and for doing deals thatserve the interests of all participants as effectively as ’ analysis relates to the creative sector of the theoryStates, but at present is also of relevance to most of thedeveloping world. As the creative industries continue toComplex creative industries such as film and televisionexpand and become more diversified in developing countries,production depend on the existence of contractual arrange-the importance of an effective contractual basis for theirments at all stages in the value chain. Richard Caves’ book onoperations is growing, as illustrated in boxes and . the creative industries (2000) identifies the peculiarities ofThe general case for value-chain analysis can be consid-cultural production that cause contracts in the creative indus-ered compelling. However, work on the organization of cre-tries to be unlike those in other areas of the economy. Cavesative production chains has pointed to the importance ofproposes that creative activities are characterized by severalaudience feedback and critique as well as market research onfundamental properties, beginning most importantly with thethe creative economy. Moreover, while value-chain approach-uncertainty of demand, epitomized in the well-knownes have sought to maximize economic value, production-chainHollywood aphorism, “nobody knows”. This property meansapproaches have sought to stress the nature of the culturalthat at virtually no stage in the production sequence can theproduct as well as price. This is why we advocate production-project’s final outcome be predicted with any degree of assur-chain approaches. More sustainable cultural production sys-ance: sleepers inexplicably turn into smash hits, and sure-firetems have well-developed critical feedback mechanisms, andsuccesses flop. Next comes what Caves labels the “art for art’sless sustainable ones, little feedback. The development of thissake” property, the fact that creative workers care passionate-“critical culture” often rests on a longer-term investment inly about the quality of their product and will therefore oftenthe funding of public arts and education as well as the pro-behave in ways that are contrary to the predictions of ration-motion and sustenance of a viable civil society; these latteral market labour theory. Other characteristics of creativeresources are commonly weaker in the developing that he suggests include their infinite variety, the factthat they require diverse and vertically differentiated skills, of the creative industries11As a consequence of practice in the creative economy, of small and medium-sized enterprisesthe profile of the creative industries is distinctive although, in abroad sense, the structure of the creative economy is much theSmall and medium-sized enterprises (SMEs) — many ofsame for industrialized and developing countries alike, compris-which are micro or sole trader businesses — predominantlying a productive sector, a distribution and marketing network,populate the various stages of the supply chains of creativeand a body of consumers who demand creative output in itsproducts in many countries. Information from available stud-various forms. However, there are likely to be differencesies confirms that this market structure is evident across bothbetween countries in the relative importance of the different12 developed and developing and smallcomponents of the creative economy, depending particularly onenterprises are especially evident at the top of the supplycountries’ different stages of development. 11There are also significant differences within the creative economy in different industries in terms of employment norms, training and ownership. 12See, for example, Kamara (2004); UK Trade & Investment (2005); KEA (2006); New Zealand Trade and Enterprise (2006); Higgs et al. (2007); and HKTDC (2002). Note thatthe size measurements are relative, as what is small in one context might be considered medium-sized or perhaps large in ECONOMY REPORT 201083Analysing the creative economy
chain (creation stage). The prevalence of individuals andHoldings and electronic games developer Koei from Japan. InSMEs is not unexpected given the reliance of creative indus-addition, 53 foreign media companies have set up regionaltries on creativity. There is a chronic oversupply of or hubs in the last four years. Similarly, theIndeed, UNCTAD (2004) states that creativity is deeplyindustries of Hong Kong Special Administrative Region are3embedded in every country’s cultural context so that all coun-highly export-oriented given the small size of the local mar-tries are assumed to have at their disposal an abundance ofket and have benefited from their spatial and cultural proxim-raw creative talent and as such, the potential to grow creativeity to the huge market of mainland China. Likewise, the cre-industries. At the level of the individual, talent is unique andative industries of the United States, which are very compet-13results in monopolistic competitionbased on a differentiat-itive and have an established reputation, vigorously pursueed product (talent), which softens competition and lowers theopportunities in export markets. 14barriers to prevalence of SMEs in the creative sector under-In some countries, creative SMEs exist alongside andlines the need for policymakers to address size-related con-compete against a few large vertically integrated firms, result-straints. SMEs in creative industries are susceptible to theing in asymmetric competition. For example, in the Unitedsame constraints that afflict small enterprises in other areas ofKingdom, particularly in software and computer gamesthe economy. Chief among these constraints is access toindustries and to a lesser extent in advertising and film, smallfinance to develop creative projects. The transformation offirms compete against significantly larger multinational ideas into goods or services is usually capital-intensiveCutler & Company (2002) paints a similar picture for theand the cost of technological inputs or other professionalinteractive games and advertising industries of can be significant for these industries. In short, accessAccording to HKDC (2002), the Hong Kong Specialto finance remains one of the key hurdles for creative entre-Administrative Region of China is the advertising capital ofpreneurs looking to realize their creative ideas. As alreadyAsia and the Asian hub from which many international adver-mentioned, larger enterprises are one source of finance totising, architecture, design, and art and antiques agencies runSMEs. Creative SMEs do better in economies where thetheir regional operations. financial sector is better adapted to financing them and wherecreative industries are officially recognized. In this context,Creative industries are characterized by interlockingSMEs in most developing countries are at a disadvantage, par-and flexible networks of production and service systemsticularly since the concept of creative industries is still veryspanning the entire supply chain. Thus, notwithstanding thenew and financial institutions are traditionally risk-averse. asymmetric competition between the small and larger creativefirms, the available evidence suggests that smaller creativeOther challenges facing these enterprises include a lackfirms do gain from the presence of larger firms in the indus-of business skills relating to marketing and financial manage-try to the extent that these larger firms and multinationals arement, information asymmetries and resource constraintsan important source of commissions and capital whetheraffecting access to up-to-date technologies. In many develop-through subcontracting and outsourcing arrangements oring countries, the support network of local industry partici-joint ventures. pants providing complementary services is largely absentwhen compared to more developed countries. Consequently,Strategies for developing domestic creative industriesthe competitiveness and ability of developing countries tothat are outward-looking and actively target FDI and exportgrow recognizable industries in the creative sector are com-markets in addition to local markets for creative productspromised. For instance, in many developing countries, it isappear to be a key feature of successful creative industries. Inmore common that the proprietor fulfils a number of organi-this context, East Asian countries stand out. For example, thezational roles — producer, agent, marketer and retailer (see,Singapore strategy is aimed at establishing a reputation forfor example, Ambert, 2003, and The Trinity Session, 2003).Singapore as the new creative hub for Asia. Among the list ofThis is significant because the level of specialization or avail-international creative industries, Singapore has succeeded inability of local, specialized participants along the supplyattracting international film financing company RGMchain appears to be highly correlated with the competitiveness13Competition among many sellers whereby no one seller can influence its rivals directly and competitors’ products are differentiated even if by very small dissimilarities. 14The requirement for prior investments in formal education represents a constraint to entry for certain creative professions, although this is probably less applicable to the culturalsubgroups of the creative ECONOMY REPORT 2010Analysing the creative economy
of creative industries. On the whole, the supply chain of cre-Caribbean and it is further motivation for artists in develop-ative industries in many developing countries appears toing countries to opt for one-off payment. exhibit a number of gaps and fragmentation. In particular,Many artists in developing countries, and most recentlythere is an absence of intermediaries who play an importantalso in developed countries, are turning to live performances asrole as gatekeepers. 3the main source of their livelihood because this avenue allowsGatekeepers often perform a critical role in creativethem to capture revenues directly. Madonna is the most recentindustries because there is a considerable amount of uncertain-high-profile artist who has taken this route by swapping herty about whether or not a creative idea will be commerciallyrecord label for an event promotion company. Indeed, Legrossuccessful both at the early and later stages of the value chain.(2006) states that creators may benefit from the distribution ofThe gatekeeper effectively picks the winners from losers. Forillegal copies in that even if they cannot appropriate the mone-instance, galleries or art agents who interpret and promotetary gains, they may be able to appropriate the reputation gainsvisual arts are gatekeepers and the tour operator performs a(., positive effects for live-performance audience numbers)15comparable function where tourismis concerned. Similarlyand as such tend to favour weaker copyright than would distrib-18in the audiovisual, book and computer games industries, utors. The move by the artist Prince to give away “free”copiesvarious intermediaries such as talent scouts, agents, editors,of his new album in collaboration with the London Daily Mailrecording studios and publishers function as gatekeepers andnewspaper in the lead-up to what turned out to be a very can be critical to enhancing the marketability of talent and cre-successful series of live concerts is a case in point. ativity in addition to securing distribution deals. Notwithstanding the positive role played by gatekeep-For example, there are numerous cases in the musicers in creative industries, the fact that the supply of talent industry of South Africa where there remains a dearth oftypically far outstrips the number of gatekeepers in any oneentertainment lawyers despite the fact that the music industryindustry is of concern because it accords the gatekeepers mar-in this country is fairly well established. Consequently, artistsket power that manifests as asymmetric bargaining poweroften opt to sell all their rights in exchange for a one-timebetween individual creators and gatekeepers. It also creates16upfront commentators criticize this prac-points of congestion along the supply chain. This situationtice, which they interpret as a choice to forego a regular andhas a profound influence on contract terms and can result insteady flow of income in favour of a livelihood that islow returns, particularly for creators who have not alreadydependent on a punishing schedule and the prolific release ofestablished a reputation for themselves. albums. An alternative interpretation is that this is, in fact, apragmatic approach in light of the fact that individual artistsare ill-equipped to manage their rights and doing so would -scale corporate enterprisesany case be extremely complex and costly. Indeed, the adviceIn the global economy, the largest producers of creativefrom WIPO would seem to support the latter interpreta-goods and services measured in terms of value of output support for the latter interpretation can belarge commercial corporations, located particularly in thefound in an oft-repeated complaint by the Caribbean musicaudiovisual and publishing industries. Within nationalindustry that collection societies in developed countries fail toeconomies, large corporate enterprises are found to a varyingcapture airplay and live performance statistics for Caribbeanextent in the cultural subgroups, their size depending on themusic played overseas while the Caribbean collects and dis-country’s stage of development. Sometimes they arise throughtributes significant royalty payments abroad. This perceivedthe growth of domestic firms producing creative goods, andunfairness in treatment means that Caribbean artists receivesometimes they occur as subsidiaries or branches of largervery little by way of royalty payments from outside thetransnational corporations. The business models in these sub-15Tourism is an important vehicle through which many creative products reach levels of piracy, in addition to general unfamiliarity with copyright systems and the considerable administrative workload and costs relating to administering copyright, providesan additional incentive to many creators in developing countries to sell their rights in exchange for an upfront, one-time payment. 17The WIPO guide on copyright and related rights for SMEs notes that one-off payments often add up to much greater profits for business than direct exploitation of copyright bythe author, creator or copyright owner. 18The newspaper reportedly compensated him handsomely, so this case also exemplifies an alternative distribution system that bypasses mainstream distribution channels. There aremany other examples of musicians, with both large and small followings, who are testing the boundaries of the current system. One emblematic example is the band Radiohead,which in 2007 offered its new album online for a voluntary contribution. This is clearly an important area for potential policy and institutional ECONOMY REPORT 201085Analysing the creative economy
groups of the creative economy are different from thoseuals and customs with which they are associated. These insti-applicable to the sorts of enterprises discussed earlier. Fortutions contribute cultural output primarily in the form ofexample, large-scale commercial operations have more com-services, consumed by both local people and visitors. Withplex value chains, more differentiated management structures,regard to the latter, the tourism potential of some of these3and a larger labour force than firms at the smaller and simplerinstitutions may be substantial. Hence, to the extent that theyend of the spectrum. attract international tourists, they may be able to make a sig-nificant direct or indirect impact on the foreign exchangeLarge enterprises producing creative goods and servicesearnings of the country. are often involved in areas using new communication tech-nologies with digital applications and supplying mass con-sumer markets. Although the goods and services produced artists and producersclassifiable as cultural products, the motivations of the firmsare likely to be more profit-related than cultural in workers of one sort or another — primarilyFurthermore, if the enterprises are subsidiaries of larger cor-creative artists such as actors, dancers, musicians, sculptors,porations whose headquarters are located elsewhere, hostpainters and writers — are found at the originating end ofcountries may lose some or all of any surplus earned if prof-the value chain. They supply the raw creative material thatits are repatriated to the parent company. may be sold as finished product directly to consumers or,more often, as inputs to the next stage in a given productionIn higher-income countries, the creative economy tendssequence. Whether in a developed or developing country, theto be more technologically advanced and service-oriented andartistic content is often drawn from cultural forms and prac-the creative industries tend to be dominated in financial termstices belonging to the country or to the local large conglomerates. In many cases, these enterprises haveDespite the high levels of skill that these practitioners typi-strong market power in important creative industries such ascally have, their financial reward tends to be relatively services and software, media and entertainment, andNevertheless, the practice of the arts is likely to yield substan-publishing and printing, which are dominated by global cor-tial cultural value, and the non-market benefits that artistsporations. The four major companies in software are allgenerate need to be recognized and promulgated in policyUnited States-based, the largest being Microsoft with profitsstrategies towards the cultural 2005 exceeding $8 billion. The biggest media, music,entertainment and publishing companies on a world scale areWhat is the relative importance of these four groups ofbased in France, Germany, Japan and the United States, theproducers in the productive sectors of the creative economies19two largest being Time Warner and Walt countries at different stages of development? In particular,how does large-scale commercial cultural production relate tothe economies of countries in Africa and Latin America? or quasi-public culturalexperience from the industrialized world were applied, itinstitutions could be concluded that the large-scale, digitally oriented,mass-consumption industries could be seen as the agent forA significant amount of the movable and immovable cul-economic dynamism and structural transformation in thetural capital of any country is held in public or quasi-publicdeveloping world as well. Certainly, this has been true forinstitutions such as museums, galleries, archives, monasteries,those developing countries already embarked on a rapidshrines, historic buildings, heritage sites, etc. In addition, thesegrowth path such as the emerging economies of Asia; theirinstitutions are also often repositories of intangible culturaldevelopment policy continues to provide a strong focus oncapital, as in the case of heritage locations, for example, whichpromoting commercial creative industries. For the majority ofare inextricably bound up with their history and with the rit-the developing world, however, more widespread and more19Data from the Fortune and Forbes rankings, quoted in Anheier and Isar (2007:448). 86CREATIVE ECONOMY REPORT 2010Analysing the creative economy
far-reaching gains are likely to be found by concentratingalleviation and other economic and social goals at the localattention on fostering smaller-scale enterprise and encourag-level than does a reliance on the “trickle-down” from larger-ing a more locally oriented process of linking economic andscale commercial development occurring primarily in urbancultural development. centres, countries in a globalizing world cannot afford to3remain outside the knowledge economy. They thus need toNevertheless, whatever the stage of development, incultivate the creative industries that will facilitate access to theideal terms, all four groups discussed above need to bebenefits of the information age within the limits imposed byaccounted for in any creative-industry strategy. While it istheir particular stage of development. important to recognize that community-based developmentmay have better immediate prospects of achieving povertyBox creativity blooms in South Africa Post-apartheid South Africa has seen television achieve its current state of unprecedented creativity in just over a decade through a series of contradictoryinfluences that makes it unique. The country has shaken off the bonds of national culturally specific media, and the modern media, including television, areinfluenced by the pressures of diverse cultures and interests. They have given rise to highly creative and popular local content as well as a continuous output of material of questionable cultural value. Two Oscars awarded to South Africans have at the same time propelled ambitions to the global markets,seemingly unaware that international standards take time to seem divided between the commercially owned and profit-driven media, the public and government-owned media, and the community-owned is no community television yet in South Africa, mainly as it is vehemently opposed by the interests within community radio and community print first glance, South African television consists of the polar opposites of public and commercial television. However, the situation is not as simple as regulator, the Independent Communications Authority of South Africa (ICASA), dictates the percentages of local content, often specifying the genreand time slot. Local content in general costs ten times imported foreign content. The local soap opera, “Generations”, costs about $24,650 for half anhour compared to $2,300 for the same duration on imported “Bold and the Beautiful”, yet they both charge the same for a thirty-second spot ($8,300).On this basis, “The Bold” makes twice as much in clear profit as the local “Generations”. Local content in this way needs to be cross-subsidized by low-cost fare that is important to both commercial and public television. There are now three broadcasters: SABC with three channels and the lion’s share of the market; one commercial free-to-air station, ; and the satellite broadcaster DStv, which broadcasts over 60 channels (a few of them locally produced) by subscription only. There are 9 million households withtelevision in South Africa. DStv has 1 million of them (at $63 a month). Its local channel, M-Net, combines with the local sport channel, SuperSport. Printmedia, television and radio remain the main sources of information, as the Internet is still accessible to only 10 per cent of the television accepts these local content quotas (and the higher cost of content) as the price it must pay for the operating licence. It appeals tothe creativity of writers, directors and producers to make local hit programmes that, despite their high cost, still make a profit, draw in large audiencesand develop channel television is also behind the mass purchase of international formats such as “Weakest Link” and “Big Brother”. Thus, while it encourages localcreativity, it also stifles it with imported formulaic stagnant programmes that tend at the same time to enforce the mediocrity that comes with globalized the other hand, the public broadcaster (SABC) has innate contradictions of its own. It has a stringent public service mandate, a local content quota of80 per cent, and a mandate to pay for itself through commercial programmes. Naturally, it, too, wants to make a profit that provides for further capitalexpenditure, so it rushes to buy the least expensive, imported hit programmes and also the sanitized formats that deliver higher income at lower , it will also try to leverage popular appeal and the resultant income from popular local programmes. Profitable local content, however, is not always possible for a public broadcaster mandated to produce educational and public information programming (aprogramme on legal rights is hardly likely to attract the same revenue as a soap opera). The content of public television programmes has been largely orien-tated towards the provisions of government priorities and constitutional mandates. Hence programme themes are closely related to “nation-building” fromHIV avoidance to gender equity and non-discrimination. Even local public soap operas have social intentions, and the global models for socially responsibledrama are closely ECONOMY REPORT 201087Analysing the creative economy
Box continuedBroadcasting creativity blooms in South Africa The television sector has grown appreciably. The increase in ad revenue over the years 2000-2006 indicates growth far in excess of that of other nationalindices such that for television, ad revenue grew more than 259 per cent and for the cinema, it increased by 564 per cent in the same period (AC Nielsen). 3This growth in income has largely had to pay for local product. Between 2000 and today, local content has grown by a factor of three, replacing the far moreprofitable imported product. Unfortunately, this has not had a significant impact on job creation. Less expensive equipment also leads to greater efficiency, withfewer people required to do more work. Perceptions are that busy people are working harder and do not have the time to train the new entrants, who then findit slow to gain experience. Despite the country’s focus on outcome-based training, there has been slow growth in the number of outcome-based African content has made little global impact. There is a regular flow of soap operas into other African countries, but the latter pay very little for thiscontent although where sales occur, such as in Jamaica, they receive much media hype. There has always been a steady flow of wildlife programming, butagain these are largely commissions from the global channels. Sales are made into the Caribbean, and while South Africa buys Hollywood and Bollywoodmovies, there is no reciprocal flow. As such, the rest of the world is the serious competitor, and the first signs of South African cultural promotion may beapparent at the Soccer World Cup in media consumption 2004-2006100* Significant change20042005RA2006RA* Significant change8060* Significant change40200Any TV – YAny Radio– YAny NewspaperAny MgazineAny OutdoorCinema p6wInternet p4wp7d© SAARF 2006There is hardly any government support for television. SABC has receipt of the local television licences ($32 a year), but nearly half of households do notpay and SABC must pay for the cost of collection. It is hoped that, when SABC goes digital terrestrial, licence collection will increase to almost 99 per centat a negligible cost of collection, but this will start only at the end of 2008, with analogue switch off at the end of South Africa has a major lesson to offer the world: if you are going to promote your television industry, promote it actively and forcefully. Lessons from manyother countries show that deliberate and bold action over a sustained period makes an impact. The belief of the Government that the creative industries shouldpay their own way is largely the reason why the growth has been small and the global trade insignificant. There also have been no formal or statistically acceptable skills, jobs, turnover or tax contribution audit. There is no national standard for film and television education and training. In conclusion, the aggressive promotion of local content quotas has grown the South African industry and substantiates the worldwide phenomenon thatpeople like local programming but it also shows that this is not enough. There must also be an aggressive, all-encompassing approach that covers thefull extent of the value chain from idea development, through training and production, right up to distribution and Howard Thomas, Director, Busvannah Communications, and researcher and trainer in the broadcasting field in South Africa88CREATIVE ECONOMY REPORT 2010Analysing the creative economy®SOURCE: SAARF AMPS%***
and competition issuesSome segments of the value chain, notably marketingquality, uniqueness and ranking (the infinite variety and A320and distribution, are particularly prone to high levels of con-list/B list properties) and the need to spread the risk acrosscentration. Small creative firms have traditionally had to col-many creative products so that profitable products subsidizelaborate with larger distributors in order to reach or expandothers that are not so profitable are additional features that arethe market for their products. This concentration to a largeassociated with economies of scale in reflects the magnitude of the costs and the economiesExperienced distributors are in a relatively superior position inof scale associated with this segment. In this context, theterms of assessing the commercial prospects of a creative pro-global dominance of the music and film industry by the so-ject as reflected in their critical role in financing throughcalled majors is well known. Their smaller competitors areadvances the creative products for which they obtain distribu-21particularly affected by the majors’ use of aggressive commer-tion practices and business models that can impose significantMost of the distribution channels for creative prod-restraints on trade (see box ). The ambiguity aboutucts are governed by large multinationals. Nevertheless, evenwhether or not the business practices of media conglomeratesin this particular segment, there is room for a competitiveare welfare enhancing makes the application of competition22fringeof small distribution firms that often service nichepolicy very difficult and especially challenging given the glob-markets although if their products are particularly success-al nature of these industries (Acheson and Maule, 2006). Inful, they run the risk of attracting the attention of the larg-most cases, domestic markets are too small (and in many caseser distributors. The relationships between the small distribu-culturally and linguistically fragmented) and undercapitalizedtors and their larger competitors is characterized by a mix-for local industries to attain the requisite market size to beture of tension (because of the asymmetric competition andcompetitive. The natural market for this industry is thusbargaining power that results in the poaching of talent bytransnational. The ability of the American audiovisual larger distributors from small distributors) and mutuallyindustry to amortize production costs on a large, dynamic,reinforcing interaction (because the smaller distributors are adomestic market characterized by linguistic and culturalrich source of new talent and creative products for the homogeneity is a major contributing factor to its competitive-larger players and many of them enter into distributionness and global dominance. American producers are able toagreements with larger distributors). sell their audiovisual products around the globe at prices thatSecuring a good distribution deal can make or break alocal producers find difficult to match. Their efficient world-creative entrepreneur. The market power that distributorswide network of dominant brands reinforces their hegemony. possess can potentially be exploited to the detriment of cre-Creative products are subject to demand uncertaintyators through low returns. Creators must often cede theirbecause consumer valuation of a product is unknown before-property rights to the distributors in exchange for distribu-hand. Consumer valuation is extremely difficult to predicttion services. The fact that the lion’s share of the economicbecause it is not based on subjective criteria; taste is acquiredreturns from creative products are most often retained bythrough consumption and is subject to a number of factors,those who control the distribution channels is somethingincluding culture, fashion, self-image and lifestyle (thethat many artists find hard to contend with, particularly“nobody knows” property; see box ). Distributors usual-when their creation proves successful and spawns other cre-ly assume the role of promoting the final product to the ative works (for example, the hardcover book that is subse-consumer. The investments made in promotion and market-quently released in paperback, then turned into a screenplaying campaigns can be considerable and well beyond thefor a motion picture). Spin-offs from the motion picturebudgets of small firms at the top of the supply chain. Themight include the soundtrack score issued as a recording, aproliferations of creative products that are differentiated bytelevision series and characters from the motion picture20Caves (2000).21Acheson and Maule (2006).22Defined as a large number of firms within an industry, each having negligible market shares. The combined market share of the competitive fringe is often substantially less than thatof the dominant firm(s).CREATIVE ECONOMY REPORT 201089Analysing the creative economy
issued as toys. Where the author has assigned the copyrightconsistently successful ones is very high (the A list/B listcompletely to the publisher for a one-time payment, his/herproperty and winner-takes-all markets). Market intermedi-participation in the profits is excluded from its embodimentaries tend to favour known artists with a track record, andin the subsequent different forms. Moreover, rights to mod-distribution firms, regardless of their nationality, distribute3ify and adapt the creative work pass to the new right ownercreative products that have commercial appeal; otherwiseas does the right to not distribute the work. The bargainingthey could not stay in business. power of artists early in their career is weak, whereas that ofBox of creative industries Nobody knows: Demand uncertainty exists because consumer reactions to a product are neither known beforehand nor easily understood for art’s sake: Workers care about originality, technical professional skill, harmony, etc., of creative goods and are willing to settle for lower wagesthan those offered by “humdrum” crew principle: For relatively complex creative products (., films), the production requires diversely skilled inputs. Each skilled input must bepresent and perform at some minimum level to produce a valuable variety: Products are horizontally differentiated by quality and by uniqueness: each product is a distinct combination of inputs leading to infinitevariety list/B list: Skills are vertically differentiated. Artists are ranked on their skills, originality and proficiency in creative processes and/or products. Smalldifferences in skills and talent can yield huge differences in (financial) success generating hit-based, winner-takes-all flies: When coordinating complex projects with diversely skilled inputs, time is of the longa: creative products have durability aspects that invoke copyright protection, allowing a creator or performer to collect : Caves (2000).The advent of digitization and the Internet has broughttion and retail as a response to increased competition. Box to the distribution landscape, perhaps the most signif-illustrates the most common commercial practices for the mar-icant being the introduction of new formats for product deliv-keting and distribution of audiovisual products. ery to consumers. Whether or not these changes will alter theThe distributor’s willingness to supply new Internetlevels of concentration and dilute the power of distributors inretailers is constrained by their reliance on traditional of creators is not certain. The rise of the digital andThe distributors are hence not immune to pressure fromInternet economy does not alter the challenges of transformingtheir traditional retail partners (Gallaugher, 2002). Forcreative ideas into goods or services and introducing new genresinstance, it was widely reported in the United States in 2006into the world market for creative goods and services. Thesethat Wal-Mart (the largest world retailer) and Target threat-challenges mean that the complementary services provided byened retaliation against studios that offered movies on iTunesmarketers and distributor are still necessary. What is more, new(Apple’s online store) because they were worried about theirtechnologies have tended to inspire creative adaptation ratherown sales. It was said that Wal-Mart sent “cases and cases”than destruction (Acheson and Maule, 2006). In their researchof DVDs back to Disney after the production companyinto the impact of e-commerce on the structure of retail andannounced that it would offer episodes of its hit shows,similar industries, Emre et al. (2006) find that greater e-com-“Lost” and “Desperate Housewives”, on iTunes. Wal-Martmerce activity in the book and travel industries is associateddenied these claims and subsequently opened its own videowith losses for the smallest industry firms but no noticeabledownloads store in 2007, essentially matching iTunes impact and perhaps even a positive impact for theDistributors are concerned not only about disappointinglargest firms. Overall, the current trend is towards greater con-their traditional partners but also about the loss of revenuescentration, including by way of vertical integration in distribu-where online retailers practice deep , for example, Fox News (2006), Taipei Times(2007) and The New York Times(2007). 90CREATIVE ECONOMY REPORT 2010Analysing the creative economy
Box practices and business models particular to the audiovisual and music industries The “window”distribution system, which enables the sequential release of films, videos and television programmes in a staged process (windows) sothat the product can be resold to different markets over time at little additional cost. It facilitates price discrimination and the exploitation of competition in secondary markets for audiovisual services has sometimes been likened to dumping because the initialcosts of production have largely been recovered in the home market and the price (or licence fee) charged in secondary markets bears little relation toactual production costs. The majors have been accused of greed and some see increased levels of piracy as a direct result of their pricing import restrictionson films, videos and television programmes intended to enforce distribution windows, which also underpins the financingstructures of most television and film projects and the valuation of distribution exhibition period:requirements by distributors of minimum exhibition periods for films that may force smaller exhibitors to forego particulartitles and thereby diminish their commercial viability. Blind bidding, whereby a distributor requires an operator to order a film without prior booking or bundlingof films and television programmes by international distributors, whereby less popular products are tied to those that aresought after; serves as a barrier to the screening of competitors’ content.“No share” periods imposed by major distributors that prevent a cinema from showing different titles at different times of the day and/or week that areparticularly onerous for small independent exhibitors and, if excessive, make it more difficult for independent distributors to purchasing arrangements by cinema operators seeking to strengthen their bargaining power with distributors by pooling their demand for feature to supply and exclusivity clauses in film contracts, whereby a distributor may refuse to supply first-run prints for potential blockbuster films totwo competing cinemas unless the additional audience generated is sufficient to outweigh both the loss of rentals through shared receipts and the additional cost of the print. In such cases, independent distributors often lose out because, by the time they hire the film for exhibition, demand may have , whereby record companies funnel promotional money (or ticket giveaways, concert promotions, vacation trips and other perks) to radio stationsthrough independent promoters in exchange for airplay consideration, which excludes the majority of artists except the most heavily financed, servingto raise the costs of doing business for smaller distributors. This has a secondary effect on artists’ income from royalties collected by collection societies on the basis of the number of times the work is integration of distributors into exhibition, pay-per-view services and and terms of contracts between artists and record companies. Source: Caves (2000).25Online distribution offers viable alternatives to tradi-and recent move by many smaller musictional distribution channels. It may favour the developmentartists as well as major players such as Prince, Paulof niche products and present a profitable outlet, especiallyMcCartney, Radiohead, Nine Inch Nails and Madonna tofor B-list creations that are excluded from mainstream distri-eschew the major record labels is leading some industry ana-bution channels because the biggest firms usually aim for thelysts to conclude that big-name artists have the possibility ofhits (., the A List). The example of , whichbeing independent. However, most music-industry analystsmakes its profit mainly through the sale of less popularstress that the bids for independence make sense particularlybooks that are not carried by its off-line rivals, is often quot-for the most popular acts or those with devout fans who filled as the typical example of the long-tail theory in seats, buy merchandise (or self-produced CDs) andThe long tail is believed to provide even the very smallestseek out their favoured artist’s music. companies — and, by extension, individual creators — theThe technological revolution may yet lead to a revolu-necessary leverage to compete against dominant retail firmstion in the types of contracts prevalent in creative industries24Not all online retailers represent new entries (or lower prices) because many of the existing players on the market are responding to the new competition by setting up their ownonline operations. Nevertheless, there is an increase in the intensity of competition, which can also result in enhanced consumer welfare and opportunities for business. CREATIVE ECONOMY REPORT 201091Analysing the creative economy
because individual creators are increasingly looking to capital-ized as high-volume and low-yield, where demand for cre-ize on spin-offs from their original creations. On the otherative products or cultural experiences tends to be unin-hand, it also has its downside. It raises a number of employ-formed and undiscriminating, and cultural tourism, which isment-related concerns. For example, in the publishing indus-low-volume, sometimes high-yield and generally better edu-try, technological developments have made it possible to docated and more sensitive to local cultural with some of the “motley crew”: whereas typographyInternational tourist demand for visitation to heritage sitesand page layout were tasks that only experts could carry out,can be especially important in earning foreign exchange. Intoday anyone with a computer can achieve a professional lay-such cases, revenue from entrance fees may be a primaryout and desktop publish. Digitization has also heightened thesource of funds for maintenance and restoration work, whilerisks of piracy and loss of revenues due to the ease of acquir-the associated impact of tourist expenditures on the localing digital content without having paid for it. economy can be substantial, measured in terms of incomesand consumption patterns industries and regulationNaturally, the creative economy includes consumers,whose demands ultimately determine what is produced andThe incidence of creative industries in countries is25how it is distributed. Changing demographicsand new con-influenced by national culture, taxation, education, industri-sumption technologies are combining to cause significantal policies and level of ambition (as evidenced by the successshifts in patterns of cultural consumption around the world inof the East Asian nations). These factors have contributed todeveloped and developing countries alike. As populations age,differing intra- and inter-country levels of maturity and mar-the elderly acquire more time and more accumulated incomeket organization across various types of creative industriesto spend on cultural consumption of various sorts. At theand across various segments of the national supply chains ofother end of the demographic scale, young people are signifi-creative industries. These factors have also meant that cre-cant players in the markets for creative goods and industries encompass a wide spectrum of commercial,They tend to be the quickest group to take up new technolo-subsidized and non-profit ventures. The issue of subsidies isgies for accessing audiovisual products, and their demands,potentially problematic as more domestic creative industrieschannelled through innovative means of cultural consumptionbecome commercialized and are traded internationally. Theand participation, are influencing production patterns withindispute over the venture of the British Broadcastingthe creative industries in a number of countries. Corporation (BBC) is a case in point. Commercial publish-ers complained that by going online, the BBC had movedConsumers also influence the creative economy ininto areas already well served by the private sector. They feltother ways, for example indirectly through the fact that reg-constrained in their ability to compete by virtue of the BBCulatory action may be taken on their behalf by , which is associated with high standards of journal-An illustration is provided by the film industries of countriesism, quality and range and depth of content coupled with itswhere local content quotas are enforced in order to protectaccess to license fees that commercial providers could matchindigenous cultural expression. The rationale of such regula-through advertising income or venture capital. They arguedtions is essentially qualitative in nature, relating to matters ofthat the support for the BBC free content provision on thecultural identity. Their economic effect is to channelInternet creates unfair competition, particularly for smallresources into the local creative industries and to reducesuppliers in terms of news and the delivery of online educa-expenditures on imported creative products. , most member states of the SouthernTourists are a particular group of consumers of inter-African Development Community have built up deliveryest to the creative economy. Tourism provides a significantinfrastructure (galleries and museums) for the crafts andsource of demand for cultural output in many arts industry (although rural artists are less wellSuch demand comes in two forms: mass tourism character-served) and have managed to organize the industry through25Pratt (2007:166-190).26This raises another issue with respect to the characteristics of the new information economy, where much information is available online. The new issue raised is the added value ofcommentary and the trust that audiences have in the carrier. The BBC may argue that it adds a particular value in both ECONOMY REPORT 2010Analysing the creative economy
a combination of public policy initiatives and funding, andand poorly maintained or often obsolete production equip-private outlets (Trinity Session, 2003). It is uncertainment where available. On the other hand, since many of thewhether this kind of assistance will be possible for countriesproducts of creative industries are entertainment goods andthat are trying to grow their creative industries in the contextare often classified as luxury items, tariff structures can beof pressures on all countries to open up all sectors of theirunfavourable. For example, musical equipment in Zimbabwe3economies to international trade and investment. is treated as a luxury good and carries a 25 per cent importtax. Similarly, the printing and publishing industry in theConcern about cultural diversity has caused many gov-Caribbean is faced with inconsistencies in the regulatory andernments in developed and developing countries to prioritizetaxation policies affecting the sub-sector whereby booksthe development of domestic audiovisual content throughimported in hard copy do not attract duty whereas inputs fornational quotas and other types of preferential treatment,the industry and manuscripts imported in electronic formincluding subsidies, tax incentives, and tariffs and dubbing(CD-ROM) do. Eighty per cent of the paper used in therequirements applicable to the film and broadcasting indus-Moroccan printing and publishing industry is imported, andtries. The heavy reliance of the audiovisual industry on pub-these imports are subject to customs duties of between 10lic and donor funding in Africa, for instance, has resulted inand 50 per cent (D’Almeida and Alleman, 2004). financially fragile industries with limited creative application of production-chain analysis: The music industry in sub-Saharan AfricaAn overview of theFigure of a music production chain in sub-Saharan Africamusic industry in sub-Saharan Africa, organizedaccording to production-Beginning:Audience Idea and Distribution/Exhibition/Productionreception/chain analysis, is summa-content circulationdeliveryfeedbackgenerationrized in figure . Details of the stagesof this production chain inCoast, Mali, Nigeria, Senegal); Southern Africa (Souththe African context are as follows:Africa, Zimbabwe).Beginning: Idea and content generation Growth of recording industries reflects different colonial Rich musical traditions, including Congolese rumba,ties (English: weak; French: strong). Zaïroise Moderne, Afropop, gospel. Independent studios and labels set up by entrepreneurs and New sounds now emerging from rapidly urbanized youthartists (Ivory Coast, Senegal, South Africa, Zimbabwe). ., Kwaito (South Africa), Bongo Flava (United Republic Self-producing artists and State broadcasters (Mozambique,of Tanzania).South Africa, United Republic of Tanzania, Zambia). Political leadership important when music is used to sup- Increasingly, artists are recording in other African countriesport national identity, ., Democratic Republic of the(Kenya, South Africa) rather than travelling to Europe. Congo, United Republic of Tanzania. Distribution/circulationProduction Most African music distributed locally, but a few artists Three main centres for music production: East Africahave broken into International markets via distributors(Kenya, United Republic of Tanzania); West Africa (Ivoryoutside Africa (France, Germany, United Kingdom). CREATIVE ECONOMY REPORT 201093Analysing the creative economy
Major record companies now active only in South music exemplify some of the problems andCirculation limited by lack of reciprocal licensing and prospects of creative industries in a regional context. Thedistribution deals between record companies in differentbeginning of the production chain in African creativeterritories. industries represents a rich and vital heritage, but this isnot where the money is made. The realization of value3 New trend of independents entering into contracts withfrom the creative content of Africa is often in the handsmajor labels to produce music products under foreign distributors such that income leaves the coun-tries where the content is created and produced. TheExhibition/delivery artist makes money from sound-carrier sales by receiving Deregulation of broadcasting in Democratic Republic ofa royalty on each sale; composers and authors (who canthe Congo, Malawi, United Republic of Tanzania hasalso be artists) receive royalties from the various usesboosted demand for local music. made of their compositions such as mechanical royalties Specialist music retail outlets exist in francophone Africa;from recordings or performance royalties from live per-other countries have music in supermarkets (., Burkinaformance or broadcasting. In Africa, however, becauseFaso, Namibia), clothing stores (., Zimbabwe), petrolthe artists expect to receive little or no royalty fromstations (., Senegal, Zambia). record sales partly owing to piracy and partly to the inadequate collection of copyrights, they negotiate a big-Informal retail networks exist where distributors sell toinformal vger share of an up-front payment that essentially signsendors (hawkers, small retail outlets); piratedmaterial deliaway their rights to the music. Combined with thisvered via informal -limiting decision is the poor understanding of the Internet distribution is embryonic. music business, which results in there being few profes-sional producers or managers. Audience reception/feedback To overcome these constraints, it is important for Some music awards (., Kora Awards, South Africanall stakeholders in the value chain to work together if theMusic Awards, Zambian Ngoma Awards) to recognizemusic industry in Africa is going to be successful. Aslocal artists and music production. Seligman argues, “The challenge is working with local Awards are controversial, with criticism by musicians thatproducers, local labels and local artists in Africa to try torecord companies influence outcomes. establish a structure in which everyone, from record Music journalism mostly about artists and performances,companies to artists, composers and authors receive duelittle on industry or development issues. payment without stifling this enormously dynamic andvery creative scene.”The financial aspects of this production chain in94CREATIVE ECONOMY REPORT 2010Analysing the creative economy
Towards an evidence-based 4assessmentof the creative economy4An assessment of the current status of the creativereflect ongoing empirical research, but further investiga-economy globally is a key requirement for countries oftions are required. The purpose of the Creative Economyboth the developing and developed world. As shown in pre-Report 2008was to start a process to move ahead the debatevious chapters, progress towards such a goal has been slowabout the importance of mapping, and about how toand disjointed. At the same time, the creative economy ismeasure the impact of the creative industries at the nation-growing and developing rapidly as well as becoming moreal and global levels. UNCTAD has since proposed a integrated internally and with other parts of the model applicable worldwide, which was testedThis chapter proposes a practical way for measuring activ-and used for the UNCTAD global database of trade sta-ity in the creative economy that can be extended to alltistics for creative goods and services, without incrementalUnited Nations Member States for the purpose of univer-cost for any country. The Creative Economy Report 2010takessal comparative analysis. At present, the only way to use athis work a step further, with considerable improvementsbenchmark for a comparative analysis for measuring thein the quality and coverage of the creative industries tradecontribution of the creative economy to the world econo-data presented in chapter 5 and in the annex. my is to use official trade data. Therefore, the focus of thisIn order to achieve this goal, UNCTAD makes achapter and the analysis in chapter 5 is on the internation-comparative analysis of current methodologies used foral trade of creative industries for the creative industries, taking into account theIt is widely recognized that other measures (such asnew 2009 UNESCO framework for cultural statistics, as1employment and occupation) add considerable as ongoing work by other international institutionsNevertheless, the measurement of trade flows is a first stepand individual countries in this regard. As a result, thistoward developing a satisfactory set of analytical tools thatreport proposes and presents complementary measures foruse quantitative and qualitative indicators as the basis for aimproving the collection of world trade statistics for thesolid assessment of how the creative industries contributecreative industries. The creative economy is booming andto the world economy, as well as to national economies ofgovernments from developing countries need some analyt-both developing and developed tools and comparative analysis, to support their effortsto put in place the necessary national and internationalThe ideas and proposals put forward at this stagepolicies to embark on this new and promising we need a new information base and why it doesn’t already existFor policymaking to be successful it must be seen asof empirical understanding of the processes is legitimate action based on generally accepted relevantMoreover, in order to propose changes, clear informationprocesses; this process has to be subject to scrutiny so thatis required to identify appropriate indicators. This is theits success or failure can be evaluated in a transparent meaning of the term “evidence-based policymaking”.manner. In order to achieve both objectives, a sound base1UNESCO (2009:39). “Cultural employment: Using the International Standard Classification of Occupations”. CREATIVE ECONOMY REPORT 201095CHAPTERTowards an evidence-based assessment of the creative economy
Historically, the cultural sphere has lacked a traditionconstant process of change. It is therefore difficult to deviseof monitoring and evaluation, as well as the mechanisms toappropriate measures of activity, especially if the activitycarry out these activities. The allocation of resources in thisunder investigation is itself novel and changing. arena is seldom based on an analysis of cost-effectivenessThe use of new technologies and new business modelsowing to concerns about making political or cultural judg-for the distribution of products (., music) has created hugements as to the value of culture. Traditionally, cultural policyproblems for analysts in understanding what is being sold andhas been a realm shaped by the provenance of funds, driven4where the value lies. In such a context, old evaluation andby welfare-economics principles and advocacy, and seldommeasurement techniques, developed with other industrialrequired to be evaluated in economic terms. Or, as mentionedprocesses in mind, can misapprehend activities and , culture was seen as a means of social problem applies to all industries, but it is particularlyIn recent years, there has been a tendency in most coun-acute in the creative industries. Furthermore, knowledge oftries to consider the economic viability of cultural projectsthe form and operation of the creative economy is relativelyalongside other objectives. As public funds have been largelyscarce compared to that for more established industries. It isoutsourced, contracted out or privatized, considerable atten-often difficult to identify which variables are important, andtion has been paid to the potential economic impact of theit is very common that data on such variables will not havecreative economy. If culture is to be taken seriously within suchbeen collected framework, its demand for funds needs to be presented inCreative-economy researchers and policymakers arethe same way as those of health or education and subject tothus caught in a difficult position, asserting the importancemonitoring to attest the efficiency in their use. In the absenceof this activity but unable to prove or demonstrate it usingof such an institutional legacy allowing for the economic val-conventional means. In order to demonstrate the importanceuation/cost-accounting in the field of culture, it is difficult forof the creative economy and to legitimate expenditure, newpractitioners and policymakers to argue the case for must be collected. However, this task is costly, and sta-Developing indicators in the field of culture and cre-tistical bodies are not yet devoting resources to these newativity is extremely problematic for a number of , particularly because they cannot be certain that itBeyond the central issue of the “valuation” of culture,will be useful. A number of isolated studies have, in variousanother concern is the legitimation of public or privateways, demonstrated that the creative economy exists, that it isspending on culture. A requirement is to demonstrate thatgrowing quickly and that it generates income and jobs. Thethe resources are well managed and effectively used; certain-challenge to be faced is to develop a measure of, and an evi-ly it is very difficult to devise a reliable metric to capture suchdence base for, the creative economy that can be deployed inissues. Second, the creative industries represent new forms ofall countries and , social and cultural activity; as such they are in a reliable benchmark for the creative economyThe challenge of the Creative Economy Reports is toeconomy in community empowerment, and the role of culturedevelop an economic indicator for measuring the contributionand creativity in social mobilization. Clearly, the measures thatof the creative economy to society and to the overall developed in this analysis will be partial as well as a signif-Clearly, this is an ambitious aspiration. First, it is fully accept-icant underestimation of the true impact in other that economic indicators are not appropriate for capturingHence, the intention is to stress the importance of an initialall creative-economy outputs and that the creative economyeconomic evaluation of the creative industries in world trade,has a profound impact both in other parts of the economy andeven if it is not exhaustive. The real trade values in all terms ismore broadly in society. Examples include the impact on indi-certainly much greater, but cannot be captured at the momentvidual, local and national identity, the role of the creativedue to the current methodological limitations. 96CREATIVE ECONOMY REPORT 2010Towards an evidence-based assessment of the creative economy
Initially, the purpose was to identify a reliable and compara-model presented in the Creative Economy Reports, a coreble indicator to assess the economic impact of the creativegroup of creative goods and services and trade indicatorseconomy; one that could be further elaborated as more datawere identified as the core, and this minimal set of data canare generated and that will also act as a framework for, and abe gradually expanded and refined with more specific datastimulus to, new data collection. The field is confusing due tosets tailored to the needs of different countries and the pur-the multiple measures and definitions already available, andpose of the analysis. This model is already running at thethe fact that most are nationally or culturally specific. MostUNCTAD global database for trade in creative goods and42of the indicators that have been used so far relate to employ-services,which is the source of all trade data presented ment or time spent on cultural activities. The focus in thisin chapter 5 and the annex of this report. The report is to highlight the role of trade, with a view to shap-UNESCO framework and the UNCTAD model are ing a schema for facilitating comparison across countries andcomplementary and can run in parallel depending on theallowing comparison of the contribution of the creative econ-availability of official data. omy to that of other sectors. This effort builds upon work carried out byFigure cyclethe UNESCO Institute for Statistics in developingan international framework for cultural institute’s approach has two , it explores the sectoral breadth and the depthof the cultural domains. Breadth refers to the activ-CONSUMPTION /PRODUCTIONities included, while depth deals with stages of aPARTICIPATIONcultural cycle (see figure ). The second character-istic of this model is the notion of a nested matrixcovering different aspects related to culture, as illus-trated in Figure . A set of activities is defined asDISSEMINATIONEXHIBITION / RECEPTIONTRANSMISSIONnecessary for international agreement althoughthere are also a number of alternative data sets(from a predefined list) that can be developed bySource: UNESCO (2009)individual countries based on need and as resourcesbecome available. In the case of the challenge of building an operational model of the creative economyEstablishing a benchmark to measure the creativeacross the arts, culture, industry, business and technology. Itindustries is particularly problematic owing to a range of def-is a complex hybrid structure that conventional methodolo-initional problems — from the conceptual to the cannot easily capture and the conceptual level, the main challenge is to determineThe case of art crafts illustrates the paradox of boundaries between arts, culture and industry. Traditionallycreative industries in the developing world. Art crafts goodsthis division was based on commercial factors, commonlymay be mass-produced as part of a tourist strategy; associated with the provision of profitable or non-profitablehowever, their value lies in their local production or localfunds (see figure ). However, these boundaries are rapidlyidentification for visitors. Mass production of art craftseroding. Indeed, the contemporary creative economy cutsgoods for tourism may seem like a contradiction in terms,2The “UNCTAD Global Database on the Creative Economy” can be easily publicly accessed at ECONOMY REPORT 2010Towards an evidence-based assessment of the creative economy
but it is a reality for many communitiesFigure creative value chainand offers a way to sustain local creativeskills and to artisans to earn a sustain-SUPPLY DEMAND able income. Art crafts goods lie atintersection of tourism, trade and devel-opment. Moreover, they are often pro-MAKINGEXHIBITION(One-offCREATIONduced and commercialized via the infor-RECEPTION4DISSEMINATIONproduction, mass(Content (site ofPARTICIPATION(Distribution,production,origination,mal economy. If one uses traditionalexchange of rightswholesale, retail)tools/xxxx, ideas)to consume)infrastructure)measures of economic activity (based oncommercial outputs), art crafts activitiesmay be underreported or not reportedARCHIVING/PRESERVING at all. Such reporting problems under-mine efforts to implement policies toEDUCATION/TRAININGEDUCATION/CRITIQUE support, protect and benefit from thetrade of crafts : Burns Owens Partnership, Pratt, ., Taylor, C., 2006. A framework for the cultural sector: A report for UIS/UNESCO, Paris. Building an effective operationalmodel for the creative economy mustconsider the fact that all existing modelsMoreover, these activities may transpire primarily in thehave in-built assumptions. These assumptions are a combina-informal economy and/or rely on a vibrant not-for-profittion of abstract concepts, objectives and outcomes. At leastsector. This is not only a North-South issue; many differ-three assumptions merit special consideration: (i) the issue ofences also exist between East and West, both internationallypublic or private funding and legitimation of activities; (ii)and even within balance of formal and informal activities; and (iii) theAgain, it should be noted that even the best-resourcedrelationship between the for-profit and the not-for-profitNorthern economies have struggled to develop and maintainactivities. Only recently, for example, have European coun-information frameworks that capture creative-industry activ-tries begun to consider the for-profit creative economy andity. This reflects the fact that most industrial classificationsits relationship to, and potential governance relationshipand taxonomies were developed at times when the creativewith, the not-for-profit and State-supported sectors. economy was insignificant. Thus, in many cases, the creativeDeveloped countries have pioneered analysis of theeconomy does not exist in statistical terms. Additionally,creative industries in the 1990s based on their own experi-those countries of the North that have set about collectingences and empirical evidence. However, other modes of pro-such information have been surprised at the rate of changeduction and organization are emerging. This may imply anthat they have seen, notably in the growth of the sector. Thiseventual convergence of experiences in developing countriesrate of change is unlikely to abate, as evidenced by the with that of the developed world. Empirically, many of thedigitization of creative production (see chapter 7). most economically important firms are located in developedIn summary, there is a limited set of measures of cre-countries, and regulations have been developed according toative-economy outputs. These measures were not originallythis pattern. Yet developing countries may take different tra-developed for the purpose of interrogating the creativejectories in shaping their creative economies. A clear exampleindustries; thus they are suboptimal. As will be further elab-is the role and importance of art crafts goods, that are sel-orated in the followings sections, it is possible to fine-tunedom classified or measured as part of the creative economythese measures as a pragmatic solution to the challenge atin the North; however, they are commonly the core of anhand. However, there is no substitute for root and branchemergent creative economy in regions of the if this task is to be done properly. 98CREATIVE ECONOMY REPORT 2010Towards an evidence-based assessment of the creative economy
: Their limitations and potentialThere are four potential measures of activity in thehave been derived from occupational analyses. Using classifi-creative industries: employment, time use, trade and valuecations of occupation, people are categorized as creativeadded, and copyright and intellectual property . One problem with this sort of measurement is that4However, these means are unevenly and inadequately appliedpeople may have more than one job, the creative occupationto benchmark the creative industries in either the developedmay pay less, and the creative occupation is often undercount-or developing world. Identifying a comprehensive data seted. Second, occupational measures tend to underrepresentwould be extremely costly and require organizationaljobs relating to the creative sector. Creative work involves gen-resources that are unrealistic. Hence, our approach isuinely creative occupations as well as non-creative ones, sotwofold: first, to try to identify at least one pragmatic machine operators might be seen as creative workers if theymeasure that can be used for the sector; and second, to helpare working a printing press but not a sheet metal further data collection and monitoring by publicIndustry/sectoragencies worldwide. In part, this latter task will require theuse of new survey instruments. Employment by industry has been used as an alterna-tive to occupation in order to capture this interlinking ofIn this regard, the role of the relevant United Nationsactivities that comprise creative output. Again, put aside theorganizations is essential — in particular UNCTAD,conceptual definitions of creative activity, which attempt toUNESCO, WIPO and ILO, which are already working todistinguish between direct cultural output (a performer/per-ensure that official data are collected and analysed for allformance), cultural facilitators (theatre ticket sales), and cre-countries in the areas of their competence. It is important toators (script writer). Another problem with employmentensure equivalence and coherence among various internation-data concerns the length of time worked — whether the jobal and national efforts in this endeavour. Some of this newis full time (according to national norms) or fractional. Thisdata can be collected by marginal extension of existing offi-is particularly problematic because contract or projectcial census and survey instruments, and it is important thatemployment is common in the creative economy. Finally,a clear, overarching aspiration be shared among variousthere is the problem of contract and self-employment. Thisorganizations shade into informal work, or second jobs, or simply bemissed in census reporting as many cultural workers are inmicro enterprises or self-employed with a small Commonly, the turnover for such entities is below that onA recent method associated with the growth of thewhich data are collected. While it may legitimately be saidcreative economy has focused on ways to measure employ-that individually these are insignificant components of thement generated. This approach is hampered by a lack ofeconomy, they are a significant part of the creative economyagreement of definitions of the sector. It is also hindered byand, as this sector grows, a more significant part of thethe rate of development; either the industries are new, or justwhole economy. Given the rate of growth, it is important toemerging, or they are unevenly concentrated in parts of themonitor these changes. world and hence are not an issue for some countries at themoment. In some countries there is a separate labour marketCo-location/cluster survey, while in others this information is collected as part ofCo-location has become a popular topic in discussionsa general census. However, this broad category of “employ-of local and regional economic development and regionalment” is accepted and used in other areas of economic life;competition. Measures of employment can give some sensethus benchmarking is the degree of concentration of cultural employment; thisis clearly an important distributional question. However, anOccupationimportant question with respect to all forms of clustering,Perhaps the most popular measures of creative activityespecially that of the creative economy, is the degree of inter-99CREATIVE ECONOMY REPORT 2010Towards an evidence-based assessment of the creative economy
action among the various firms and activities in the and value added Traditional analyses of industrial agglomeration seek tomeasure inter-firm trade, but because such data are seldomPhysical trade available physical co-location is often used as a proxy. In theThe measurement of trade in relation to the creativecase of the creative economy, a cluster may be a function ofeconomy is problematic in practice, as addressed in chapter -market pooling and project work as well as a meansThe existing sources of data have been developed to capturefor circulating vital knowledge between producers and con-4the transfer of physical goods, whereas recent growth of thesumers (see chapter 3). There is no reliable measure of thesecreative economy has been expanding increasing “dematerial-4sorts of interrelationships, even in developed countries, yetization” of historic reasons, parallel tools havethese processes are clearly critical in economic growth and inbeen developed to capture both physical and financial tradethe more general success of the creative economy. Researchflows; while far from perfect, they provide a significant insightevidence suggests that this type of knowledge transfer andinto transfers. The case of the creative economy is not socritique, as well as interaction with audiences and consumers,clear. Much of the value in the creative economy inheres inis disproportionately more important in the creative econo-the trade of physical products that hold relatively low value asmy than in other areas of economic but contain their real value in intellectual trade measures focus on the flow of materialgoods, registering either their weight or free-on-board (FOB) useprice. It is impossible to disentangle the IPR value from suchdata or even to recognize it. Moreover, digitization is increas-Perhaps the most established measure of creative activ-ingly facilitating the transfer and trade in IPRs online, aities is that provided by time-use surveys. Pioneered inmeans not monitored. For these reasons trade in the creativeAustralia, these surveys try to capture both economic andeconomy is relatively invisible; we are left looking for traces ornon-economic activity by measuring the time that people3shadows of IPRs. Moreover, with rapid technological change,spend on particular has been a useful way ofthe relationships between goods and value shift week by week. uncovering informal and not-for profit or simply communityactivity. However, such surveys are very labour intensive andAnother traditional measure used to evaluate econom-exist in few locations. A related set of measures focuses onic activity is output, or turnover, usually represented as grossparticipation or attendance data. Traditionally, such data havevalue added. This is an important measure when examiningbeen used to monitor attendance at events organized or man-the performance of regional and local economies or evaluat-aged by the public sector where entry is either free or heavilying the performance of particular linkages in a production orsubsidized. In some cases, they are used as a measure of pub-value chain. Constructing such an account requires a greatlic service performance. In most cases, these data are not col-deal of data, however, and there is some doubt as to whetherlected since public expenditure is not evaluated in this man-such an account is reliable for the creative , particularly because participation is not measured forA significant proportion of the creative economy doesmany informal events. Finally, commercial ventures may benot register in trade or economic statistics for two other rea-more interested in the box office takings than in attendancesons. First, much of the activity takes place in the informalnumbers, and they may also be commercially sensitive. Ineconomy. Arguably, this issue is more acute in the developingrecent years, as services are increasingly delivered by digitalworld, where art crafts and visual arts are produced undermeans, such monitoring has become easier, but it is still at asuch conditions. This data problem is well known more gen-very early stage. A more sophisticated sort of survey will noterally, and there is no simple way to resolve it. Furthermore,only collect such data but also relate them to more generalin the case of the creative economy, many cultural activitiesdemographic data. are carried out on a voluntary or recreational basis but3For example, the 2006 Australian Time Use Survey, Australian Bureau of (1984).100CREATIVE ECONOMY REPORT 2010Towards an evidence-based assessment of the creative economy
become a source of revenues as they support the formal andresources for managing and implementing an IPR regime. traded economy. Artists either migrate between the formalIt is important to emphasize that the data on trade ofand informal economy, voluntary and employed, or they holdcreative services and the WIPO data are essentially measuringtwo or more jobs. While the non-cultural job may providedifferent things; both should be read as an indication of a scalemore income, the cultural one may be more important toof magnitude and trends rather than as definitive . Analyses of artists in Australia have identified thisHowever, the creative economy is important for developed andcomplex pattern, which has not been replicated in the devel-4developing countries, and extra efforts need to be made tooping world, but available evidence suggests that it mightdevelop a universal measurement system. A pre-condition forbecome more pronounced. this system should be to offer real figures to be used for world-wide comparative analysis. It is essential that such a system befeasible and affordable to all South countries, including and intellectual propertyleast developed countries, as a reliable evidence-base prerequi-rights issuessite for sound policymaking and multilateral decisions. The WIPO secretariat has been developing a newmethodology and data sets for measuring the impact of investment right-based creative industries on national economies in termsof employment and contribution to GDP. Surveys and stud-Much cultural activity is funded by public resources or man-ies have been carried out in a growing number of countriesaged by not-for-profit agencies. Conventional market indica-(see chapter 6). The WIPO methodology is based on indus-tors are not so good at describing this activity. Moreover,trial taxonomies (International Standard Industrialthere are many different reporting conventions for publicClassification, or ISIC) and thus is limited in scope. Its mainand not-for-profit bodies such that data are not systematical-drawback is being expensive, as it relies on a well-developedly classified and collated. The few attempts at simply collat-and sophisticated collection and analysis infrastructure, whiching public spending on arts and culture are helpful butrarely is available in developing countries. Moreover, it rests5potentially misleading. As Schuster notes in his critique,on the acceptance and implementation of the WTO rules onsimply knowing how much money is available in any givenintellectual property, and in this sense, the WIPO modelyear does not tell how effective the spending is or what theserves more as a regulatory and monitoring tool. To a certainoutcome is. A more subtle analysis that is indicative of Stateextent, this objective limits its applicability in developinginstitutions and their modes of operation is required to dis-countries that lack the institutional, financial and humancern such an outcome. of a Culture Satellite AccountThe Culture Satellite Account (CSA) is a coherent andWorld Bank. It is currently adopted by most countries. Thissystematic accounting framework that presents economic infor-link between the CSA and the SNA is justified by the charac-mation on culture and offers a base for public and private deci-teristics of the system: (a) it consists of an exhaustive account-sion-making, policy design and evaluation, and general purpos-ing framework, useful for the economic measurement of thees of the economics of culture. The CSA is a satellite accountvast majority of cultural products and activities; (b) it is effi-to the System of National Accounts (SNA), which was creat-cient and credible, as its concepts have been approved and suc-ed in 1993 by the United Nations in collaboration with suchcessfully applied to many countries at lower costs once theyinstitutions as the International Monetary Fund, therefer to one methodological set; and (c) it avoids the use ofOrganisation for Economic Co-operation and Development,concepts and definitions presenting incompatibilities acrossthe Statistical Office of the European Communities and thecountries or sectors. 5Schuster (1985 1987) and Arts Council of England (1998). 101CREATIVE ECONOMY REPORT 2010Towards an evidence-based assessment of the creative economy
The main objectives of the CSA are to:additional set of information but a coherent framework forthe search for weaknesses and gaps in the existing informa- Select the practices and products of the cultural sectorstion systems. Given that information normally comes fromand create definitions and classifications following thedifferent sources and is presented in various ways, the CSASNA concepts and framework; can reconcile data, relate them to other economic sectors and Define the mechanisms of generation and interchange ofdisaggregate them by geographic area. In short, the analysisthe cultural products and integrate this analysis into theof the CSA can also be of use to those conducting mapping4existing macroeconomic frameworks with no prejudice toexercises on the economic measurement of cultural activitiestheir specificities (., not all cultural activities are regis-since it presents a coherent set of concepts, definitions andtered in production processes holding economic value); categories and reconciles different sources of statistics. Demarcate the international trade flows affecting culturalThis report acknowledges the quality work carried outproducts, given their potential impact not only on the6by Convenio Andrés Bello,which developed tools to assisteconomy but also on the preservation of cultural identities; its Latin American member countries to implement a CSA Delimit the total cultural expenses by object, nature, ben-in the region, a process started in 2003. Colombia took theeficiary: goods and services directly benefiting households;first steps to develop its satellite account, and the initialconsumption of assets such as the original artworks usedresults were published in 2007. Brazil and Chile have alsoin production processes of cultural products; direct pub-undertaken preliminary measurements. MERCOSURlic expenses in cultural management, etc.; Cultural initiated an exercise for a regional economic meas-urement for the generation of reliable, consistent and com- Explore the different funding processes of the culturalparable information on issues relating to cultural economicsconsumption. The public funding, for instance, can takeand the creative economy. Convenio Andrés Bello publishedplace through subsidies or transfers to activities developeda methodological manual in 2008, which was made availableby the private sector; via the direct production of goodsto all countries in the region. The aim was to offer a method-and services by government entities; by simply acquiringology with a rigorous technical background that is applica-and donating cultural and creative assets for the good ofble and serves as an instrument for cultural community, etc.; Nevertheless, despite of all this valuable work, world- Offer pertinent information on the basic social character-wide adoption of the CSA may take a number of years sinceistics relating to cultural production and its organization,it is a long, expensive process. Many developing countries,following a producer-driven categorization by size, type,particularly the least developed ones, will face enormousemployment in the cultural field and its characteristics,human and financial resource constraints as they seek to mapetc.; and their creative industries and then move on towards imple- Provide information on the uses, consumption and indi-menting a satellite account. It is precisely because of thesecators, enabling a categorization of offer and demand ofconstraints that the Creative Economy Reports have beencultural products (non-monetary quantities and classifica-putting forward the UNCTAD model with a focus on by content), and relate them to the economic vari-The main advantage is that trade statistics are already nation-ables of this framework. ally reported regularly worldwide, requiring only a marginalThe CSA, besides providing monetary information onadditional cost to improve their level of disaggregation asthe generation and use of cultural products and services, canwell as the quality and coverage of reporting procedures atoffer non-monetary data, such as the number of works pro-the national level. At this stage, this seems a more feasibleduced or the number of people involved in a performance. Itapproach, even if the two processes — the CSA and ourencompasses social dimensions, disaggregating data by socialtrade-based model — are mutually supportive and can moveand educational levels. Indeed, the CSA does not offer anin parallel in countries able to afford Andrés Bello is an international intergovernmental organization comprising Bolivia, Colombia, Chile, Cuba, Ecuador, Mexico, Panama, Paraguay, Peru, Spain andVenezuela. Its main objective is to integrate the educational, scientific and cultural fields in Latin ECONOMY REPORT 2010Towards an evidence-based assessment of the creative economy
sources and assessment tools: Why the currentdata are inadequateThere are two interrelated problems with developing ament and reporting because the understanding of the processtrade-based model for evaluating the creative industries: defi-and the definitions are inadequate. New services have generally4nitions and data availability. The question of definition isbeen added as new “industries”. Although mainstream econo-challenging: what is, or are, the creative industries? The topicmists have regarded services as dependent on manufacturing,has generated much debate in recent years and notions of theless effort has been expended on their measurement and con-“cultural industries”, “creative industries”, “experience econ-ceptualization. Accordingly, the industrial classifications pro-omy” and “creative class” have been circulating. Undoubtedly,vide less detail than is needed, which generates some United Kingdom definition of the “creative industries”In many advanced economies, the services sector is larger and iswas very influential. More recently, debates have evolvedgrowing at a faster rate than the manufacturing sector. However,around the notion of a “value chain”. Readers can refer to aclassifications include a multitude of categories that are increas-rich semantic and ideological debate about the usability of theingly empty of data and a small number of categories that arelabels “cultural” and “creative” and whether it is “industry”,only crudely described. This is a general problem. Arguably, the“industries” or “sector”. In this report, the terms “creativevery notion of services separate from manufacture is an artefacteconomy” and “creative industries” are industrial organization in recent years rather than a substan-tial economic fact. The two are clearly interrelated and to aThe essence of such a definition relates to that of themuch greater extent than indicated in the classifications. production chain. It challenges normative views on twocounts. First, the notion of “individualism and elite exclusiv-All of the issues facing the service sector can be repeat-ity” that is commonly related to the romantic tradition of theed in the case of the creative industries. Thus, by definition, theartist or creator is operationalized by measurement of, ornumbers on the creative economy as measured by convention-support for, lone artists and not collectives or support serv-al means are small. When more detailed or more complex clas-ices (without which they could not function). Second is thesifications have been used, researchers and politicians have beenidea that art or culture has an intrinsic and eternal meaningastonished to discover that the creative economy is not only asuch that it is “pre-interpreted”. Counter to this is the needbig player in the world economy but is one with very dynamicfor critique and debate and the interrelated development ofgrowth. In fact, it is bigger that many traditional , audiences and markets. Even so, efforts to obtain convincing evidence have been slowand at times definitions of the “creative economy”have come to express a whole sphere, or field, of productionSuch a conceptual and scientific shift has yet to occur(and consumption) that includes not only artists but also man-evenly across the globe. Arguably, this debate has been obscuredufacturers and exhibitors. Therefore, the definition is based onby the rise of instrumental usages of culture. As noted in chap-a concept of cultural production. In fact, such a concept under-ter 3, culture can be a way of leveraging other developmentpins traditional manufacture. Thus, when it is operationalizedthrough encouragement to participate and inclusion. In fact, asas a measure of employment or trade, one includes raw materi-countries have become more used to the instrumental uses ofals manufacture, distribution and construction of finished arti-culture, funding for idealist or aspirational forms has fallen . Traditional creative industries such as print and publishingThis provoked a tension between publicly funded and privatelyshare such a heritage. In standard industrial classifications orfunded culture as a result of concerns that monetary values aretrade data, it is possible to find a great deal of information onoverriding cultural values. This report recognizes that both val-the process of writing, production and circulation of books. Asues are important. However, the key point is to examine whatwith all “new” processes, however, the creative sector suffers,resources are required to develop and expand creative productionwhereas for new manufacturing activities that entail a new mate-(in its widest sense) in a particular situation. Thus, the notion ofrial, such as printed circuit boards, it is easy and straightforwardthe “creative production chain” very broadly cuts across suchto extend classifications on the basis of process or goods. distorting dualisms as market/State, production/consumption,formal/informal and services/ service sector in general suffers from poor measure-103CREATIVE ECONOMY REPORT 2010Towards an evidence-based assessment of the creative economy
case for a trade model for the creative industries7using a product classification methodologyThus far, the discussion of the creative industries andparticularly relevant in the computing sector. For example,its definitions has focused on such measures as employmentone cannot include personal computer output in computer4and value added or size and structure. What has not been sys-games since doing so would result in an overestimate of thetematically addressed is the question of trade flows. Tradededicated-games usage; however, it will result in a significantpresents a new level of difficulty, but it does make a usefulundercounting of the impact of the trade in computer games. starting point. In a sector that is international, such a dimen-One must add a caveat: in contradistinction to thesion is important. Moreover, in terms of assessing the impactnormative approach of industrial or product classification,on development (positive or negative), it is important tothe creative economy may have some overlapping (and hence,know the balance of trade in creative-industry whole economy terms, double counting) elements withFinally, the development of new intellectual property regimesdefinitions that have different bases. This should not invali-needs to be assessed against their potential impact on trade. date the adoption of a definition on the basis of the “finalAn approach taken by some governments has been touse” of goods or services; one must simply be careful withuse data specially collected on the trade in “invisibles” — thatthe use of elements of product classification to make sure8is, pure services where remuneration is for a service it is appropriate. A similar protocol is adopted in theThe problem is that these data are very poorly documentedcase of satellite accounts. and disaggregated in national accounts. (The technicalFinally, it should be added that what many regard asaspects of the construction of taxonomies and the collectionthe core of creative activity — the creation of intellectualof trade data with particular reference to culture and the cre-property (rights) — is not directly measured for the simpleative industries are discussed later in this chapter.)reason that IPRs are increasingly disembedded from materi-Furthermore, as business involving these activities may or mayal products. In the past, IPRs were rolled up in the materialnot rely upon a dual flow of earnings derived from physicalproducts, but increasingly these elements can be separatedproduct and intellectual property, remuneration for servicesand, in fact, duplicated. A design can be used on a mug or arendered or product leased is very difficult to capture. Finally,tee shirt or a book, for example. Moreover, the system ofalthough useful in principle, the level of disaggregation ofcollection of IPRs, royalties, is dependent upon a range ofstatistics such as those of the Extended Balance of Paymentslocal particularities concerning collecting societies as well asServices (EBOPS) classification is insufficient to produce thenational ratification of relevant conventions. This systemdefinition and precision required. also depends on where an artist has registered his/her rightsThus, while there is little alternative to using a productand whether the artist’s income flows from that place and isclassification, doing so has its limitations. For example, it isidentified as such. This may seem a very individual andgoing to underreport the effort of the self-employed electron-unique circumstance, but one of the characteristics of theic artist, although it may capture the labour of self-employedcreative economy is the extreme wealth that may be held in a9artisans better. Essentially, the central product classificationfew hands.(CPC) does not focus on the shapers or designers of compos-It is important to recognize that there is a considerableite products (plays, music, writing, etc.). gap in the availability of statistics relating to the creativeThe approach taken starts by defining the creativeeconomy. The objective of the Creative Economy Reports isindustries on the basis of final products (artists’ paintings,to address this problem and take steps to solve it. Beforehand-blown glass). Moreover, marginal or composite cate-describing the steps taken to collate the data presented ingories are excluded to avoid over counting. This might bechapter 5, it is useful to discuss why there is such a gap. 7This section builds upon the empirical research towards a methodological basis to measure the economic impact of the creative economy carried out by Prof. Andrew C. Pratt andhis valuable inputs to this Financial Services (2007).9For further discussion of these issues, see Burns Owens Partnership et al. (2006) and Roodhouse (2000).104CREATIVE ECONOMY REPORT 2010Towards an evidence-based assessment of the creative economy
The early development of industrial statistics and cen-In recent years, many agencies and governments havesuses of economic activity were undertaken in the early twen-sought to collect data on the creative century. Not surprisingly, the classifications adopted byUnfortunately, these approaches have been predominantlystatisticians at that time reflected the dominant industrialopportunistic in the sense that such measures reflect thestructure in Northern Europe and North America andstructure of national databases rather than a systematic basisindustrial production practices. This period preceded thefor comparison. In any case, they have played a significanttime when extensive, mechanized mass production (Fordism)role in promoting the case for, and the significance of, the4became widespread, and the taxonomies that were developedcreative economy. What is needed now is a more systematicreflected the emphasis on primary resources and manufac-approach. Some independent data are available on the cre-ture; little attention was paid to services. Effective statisticalative economy, but much of the data does not fit the currentcollection requires stability in taxonomies and categoriespurpose. The reasons are related to the previous formulationused for collection and analysis. In addition, internationalof cultural and creative economy policy, which was framedcorrespondence tables have been developed for such classifi-by public welfare economics and operated on a subsidy, orcations. Accordingly, change in classifications takes placegrant-in-aid, model. Under such systems there is little callvery slowly and is resisted. for economic evaluation, as the emphasis is usually on thefulfilment of service criteria rather than economic nature and structure of most economies hasThus, there is neither a culture nor a tradition of collectingchanged over the last century. Some classifications detailor using such data about the creative economy. areas of economic activity that now play only a minor partin contemporary society, while areas that are critical to cur-The Creative Economy Reports argue that it is possi-rent economic growth may be ignored. A general example isble to use existing taxonomies of trade to partially describethe service sector and, more specifically, the creative econo-the dynamics of the creative economy. This by definitionmy. Second, economic change has occurred quickly, particu-resulted in an underestimate of world trade of creativelarly with respect to areas based on technological . Yet UNCTAD made a start in 2008 by creatingAgain, the creative economy is in the vanguard. It is for thesethe basis for a systematic collection and trade analysis ofreasons that the creative economy is invisible when one looksdata on the creative economy, highlighting critical national statistical tables. For instance, industry outputNow, in 2010, a further step is being taken by revisiting andand sales data suggest that the computer games industry issharpening the list of creative goods, providing expandednow as important as the film industry, but if one looks fordata for creative services and deepening the trade analysisinformation in national statistics it will not appear. Changeswith a greater focus on its South-South dimension. are being made to taxonomies, and industrial classificationsRecent debates and studies have yielded divergentare being revised as quickly as possible. Nevertheless, owingviews over terminology as well as greater convergence aboutto their historically low profile, these areas are considered athe concept and definition of the “creative economy”. Inlow , this is evidence of a political struggle that the culturalThis is not to suggest that no information is has been experiencing, reflecting the desire of States toClearly, older creative industries such as cinematography aregovern their economies in different ways. Shifts in modes ofbetter represented; however, the coverage is still partial. It isgovernance have placed economic evaluation of all activitiespossible to collect and then classify survey information onand value for money at centre in the creative economy. However, much creativeWhat then are the objectives of such an exercise? First,economy activity is shifting to the virtual field of onlinethere is a need to organize data collection and collation alongtransactions. This shift presents a substantial problem forcommon lines with agreed core concepts. Even if this doestrade data, as only physical goods enter the audit, so com-not necessarily result in one single definition, the UNESCOpletely new methods of reporting and surveying will beInstitute for Statistics suggests that a flexible definition orrequired to capture this activity. Again, it is a problem sharedframework be adopted. This means that there is a core set ofwith many service industries, but perhaps it is more criticalactivities alongside an optional set defined but not requiredfor the creative economy. by all nations. In this way, data collection can be efficient,105CREATIVE ECONOMY REPORT 2010Towards an evidence-based assessment of the creative economy
related to need and comparable. Second, with the definitionwith such a framework, it is possible to immediately moveof a core framework, it is possible to identify not only exist-towards a situation where comparable data can be bench-ing information on a comparable basis but also commonmarked. Against this background, a foundation for datagaps. These gaps are useful for developing the case for, andanalysis, policy formulation and future evaluation is in place. agreement about, the collection of new information. Third, analysis of statistical methodologies 10for international trade of creative and cultural goodsThe next section of this chapter introduces case stud-approaches and certainly there is no consensus model. In thisies of four distinct methodologies for trade statistics for context, international comparison remains highly problemat-creative industries. It also offers a comparative analysis aimedic because of the limitation of methodologies and the gapsat identifying divergences and convergences of definitionsin the statistics tools for quantitative and qualitative analysis. and sharpening the current UNCTAD intention, therefore, is to conduct an evidence-Furthermore, it describes the basis of UNCTAD methodol-based comparative analysis of classifications for trade of ogy and uses it to process existing trade data. creative and cultural goods in a global context. In doing so, weSince publication of the Creative Economy Report 2008,seek not only to refine the UNCTAD taxonomy of creativeand advances in measuring trade data in the creative indus-goods but also to present a pragmatic methodological tool fortries, a growing number of countries have begun using thedeveloping countries with varying capacities to organize theirUNCTAD classification and many governments have soughtframework for cultural statistics. There are different types ofgreater cooperation with UNCTAD to assist in classifyingcultural statistics, such as activities, occupation, trade goodstheir creative industries. Because the current methodologiesand service, expenditure, and time use and participation. Theall have visible limitations, there is a need for regular revisionsUNCTAD model focuses on statistics methodologies forand updates in order to response to new requirements. trade goods and services; hopefully in the near future it willalso cover trade in digitized creative current exercise of revising the UNCTAD modelfor creative industry trade statistics takes into account, andcomplements, the work carried out and adopted by statistics for creativeinternational organizations. For example, Eurostat publishedand cultural goods: Selected 11a pocketbook for cultural statistics in 2007; ConveniomethodologiesAndrés Bello proposed a classification of cultural goods for12MERCOSUR countries in 2008; and UNESCO launchedFour different approaches to the statistical classification13the new framework for culture statistics in 2009. Besidesof international trade in creative and cultural goods are exam-these important references, UNCTAD has also contactedined below. The first three operate at the country or regionalsome countries’ governmental statistics departments and col-level, while the fourth is at the international level. Theselected feedback and comments. It is thus possible to obtain amethodologies have influenced several countries in developingclearer idea about the role of creative products in interna-their creative/cultural industries; they are representative nottional of different ways to classify culture statistics, but also ofvarious policy approaches to creative/cultural industries. UNCTAD is fully aware of that there is no single def-inition and classification of creative industries, or a singleThe first statistical methodology comes from Eurostatreceipt that applies to all countries; there is a multiplicity ofand reflects the European practice of cultural policy with a10This comparative analysis is part of the work in progress at the UNCTAD secretariat and greatly benefited from valuable contribution from Cheng Shang (2007).12Convenio Andrés Bello (2008).13UNESCO-UIS (2009).106CREATIVE ECONOMY REPORT 2010Towards an evidence-based assessment of the creative economy
focus on products for core cultural activities such as publish-Works of arting. The second, from MERCOSUR, presents a South Collectors’ piecesAmerican perspective of cultural industries; it borrows from Antiquesthe European approach but goes a step further to distinguish Musical instrumentscultural goods and related goods according to a product’sfunction in the cycle of cultural production. It is the onlyThe guide incorporates the ComExt Nomenclatureone to incorporate a developing countries perspecti15ve. The4(2006) for trade statistics of cultural goodsat the countrythird methodology reflects the United Kingdom’s approachlevel. Most EU member countries have followed LEG-to creative industries and uses a broader definition of culturalCulture’s example and adopted a similar classification for16industries. The fourth approach described below istrade ComExt Nomenclature accords withUNESCO’s latest framework for cultural statistics; it aims tothe Combined Nomenclature, one of the most generallycover all human cultural activities and builds on the mostaccepted classifications among European countries for common international system for statistical classification. Acollecting trade data for cultural at the end of this section provides a brief comparisonof these different ’s cultural industriesmethodologyEuropean cultural industries methodologyThe classification of cultural statistics is a new prac-European countries have long shown an interest in col-tice in South America. The methodology proposed bylecting data to measure the economic performance of cultur-Convenio Andrés Bello provides countries there with a prag-al industries and in developing a framework for cultural sta-matic tool to measure the flow of cultural goods. This clas-tistics. France, in the 1980s, was one of the first countries tosification distinguishes three types of goods, according toestablish a solid cultural statistics framework. However, thetheir place in the production cycle:lack of cultural statistics at the EU level spurred the estab- Characteristic goodsare those typical goods and services fromlishment of the Leadership Group on Cultural Statisticsthe cultural field that manifest the creation, expression,(LEG-Culture) in , conservation and transmission of symbolicLEG-Culture identified eight related cultural and artis-content (for example, a CD, film or book).tic domains (artistic and monumental heritage, archives, Related goodsare interdependent products that serve aslibraries, books and press, visual arts, architecture, performinginputs and capital for the production of characteristicarts and audiovisual/multimedia) that perform six functions:products (for example, printing paper, video cassettes orconservation, creation, production, dissemination, trade andmicrophones).training. In 2002, LEG-Culture built on the UNESCO Auxiliary goodsinclude marketing, distribution and relatedFramework for Cultural Statistics by creating a Europeanproducts that enable end users to consume culture (forcounterpart. The EU’s approach to international trade of cul-example, television sets, music players or video projectors).tural goods builds on the 2005 UNESCO Convention onCombining this classification with the three core cul-the Protection and Promotion of the Diversity of Culturaltural industries — phonograph, publishing and audiovisualExpressions. In 2007, Eurostat published a ‘pocketbook of17— produces a new matrixwith nine categories of cultur-cultural statistics’ that identified seven principal categories of14al goods:cultural goods traded in Europe: goods of audiovisual industry (., film) goods of audiovisual industry (., television, Newspapers and periodicalscameras) CDs and goods of publishing industry of periodicals14The full list of cultural goods defined by Eurostat is available in Eurostat (2007:175-176).15ComExt nomenclature is the classification used in the ComExt database, which is a harmonized statistical database for trade in goods both between EU member states and outside the European countries have broader scope of cultural goods for trade statistics compared with EU version. Besides the seven major cultural goods defined by Eurostat, the definition of ‘cultural goods’ also derives from the definition of cultural activities and varies among European countries. For example, Finland’s classification includes traditionalcrafts such as handwoven tapestries and goldwork as well as audiovisual post-production and broadcasting equipment. 17MERCOSUR (2008).107CREATIVE ECONOMY REPORT 2010Towards an evidence-based assessment of the creative economy
(., newspaper and periodicals)Craft goods of publishing industry of booksRadio and TV(., books and other printing matters) goods of recording industry (., sound record- Designing devices) Designer goods of phonographic industry (., music player)4 Art/antiques goods of audiovisual and phonographicTrade statistics for these 11creative industries are col-industry (., CD, cassette tape) lected using the United Kingdom Standard goods of audiovisual and phonographic indus-Classification (UK SIC). In 2004, DCMS produced a moretry (., microphone, sound recording media) comprehensive framework known as DCMS goods of audiovisual and phonographic industryToolkit (DET), and adopted UK SIC 2003 as the basis for(., broadcasting and receiving equipments of radio andthis new framework. This classification was used to estimate18television)the economic contribution of creative industriesand thestatistical figures are reported annually in the CreativeThis methodology clearly inherits from the DNA ofIndustries Economic Estimates (CIEE) publication. BecauseEuropean classification but with a narrower focus on the threethe UK SIC is a classification of activities, and provides nocore cultural industries, which are phonograph, publishingofficial list of codes for creative goods, the CIEE only reportand audiovisual industries. The major difference is thatthe export value of ‘services’.Convenio Andrés Bello’s version distinguishes cultural goodsinto three types according to their function in the cycle ofOne advantage of this methodology is that it is broad-19cultural production. The description of codes applied to thiser in scopethan the European cultural industries’ lies in the Common Nomenclature of MER-It includes some categories, such as advertising, designerCOSUR, which corresponds completely with the Combinedfashion and computer games, that were not previously iden-Nomenclature used by European as cultural activities. This classification has alsosparked controversy because it measures industrial activities,United Kingdom’s statistical methodologyrather than trade flow, and much of the data reflects thingsfor creative industries other than creative activity. For example, UK SIC includesIt is hard to say which countries first used the termmany clothing-manufacturing codes in the “designer fash-‘creative industries’, but the United Kingdom’s classification,ion” category, but its current structure cannot separate thesedefined in the 1998 and 2001mapping documents by thenon-creative activities. To remedy this situation, and obtainDepartment for Culture, Media and Sport (DCMS),more accurate data, the DCMS is working on a new set ofabsolutely influenced the majority of countries in developingstandards for measuring the creative cultural statistics classification in the past decade. Thefirst published classification describing the creative industriesUNESCO framework for cultural statisticscame from DCMS and identified the following 11 sub-UNESCO developed its first Framework for Culturalindustries:Statistics (FCS) in 1986, and has subsequently influencedmany countries as they have developed strategies for collect- Video, Film and Photographying cultural statistics. Its original framework defined nine cat- Music and the Visual and Performing artsegories of cultural activities: cultural heritage, printed matter Architectureand literature, music, performing arts, audio media, audiovi- Publishingsual media, socio-cultural activities, sports and games, andenvironment and nature. The 1986 framework also described Computer games, software, electronic publishing18The craft and design sectors are excluded because there is no official data. For details, see Annex B in CIEE 2010 technical notes, available from of the broadest definitions of creative industries is from Italy and includes toys, furniture, marble works etc. A full list of Italian creative industries is available from ECONOMY REPORT 2010Towards an evidence-based assessment of the creative economy
five processes in cultural production: creation, production,an international standard capable of recording all humandistribution, consumption and preservation. The categoriescultural activities. The updated framework articulates fivemeasure breadth, while the processes of production indicateprocesses in the cultural cycle: creation, production, dissem-depth, resulting in a matrix for users to collect , exhibition/reception/transmission, and consump-tion/participation. Its definition of culture includes sixIn 2009 UNESCO proposed an ambitious newdomains and 12 subgroups, as shown in figure . framework for cultural statistics, which it hopes will become4Figure 2009 Framework for Cultural Statistics DomainsCULTURAL DOMAINSRELATED DOMAINSA. Cultural and B. PerformanceC. Visual Arts D. Books and PressE. Audio-Visual F. Design and G. TourismH. Sports and Natural Heritageand Celebrationsand Crafts- Booksand Interactive MediaCreative Services- Charter travel Recreation- Museums (also virtual)- Performing Arts- Fine Arts- Newspapers - Film and V- Fashion Design and tourist servicesideo- Sports- Archeological and- Music- Photography and Magazine- TV and Radio (also - Graphic Design- Hospitality and- Physical fitness- Festivals, Fairs - Crafts- Other printed matter Historical Places Internet live streaming)- Interior Design accommodation and well being- Cultural Landscapes- Library (also virtual) and Feasts- Internet podcasting- Landscape Design- Amusement and- Natural Heritage- Book Fairs- Video Games- Architectural Services Theme Parks (also Online)- Advertising Services- GamblingINTANGIBLE INTANGIBLE CULTURAL HERITAGE(oral traditions and expressions, rituals, languages, social practices)CULTURAL HERITAGEEducation and TrainingEducation and TrainingArchiving and PreservingArchiving and PreservingEquipment and Supporting MaterialsEquipment and Supporting MaterialsSource: UNESCO (2009)UNESCO’s 2009 framework measures the interna-arts (12 codes), craft (7 codes), jewellery (8 codes) andtional trade of cultural goods and services. The classificationphotography (2 codes)of cultural goods adopts the Harmonised and Press: books (3 codes), newspaper (2 codes),Description and Coding System 2007 (HS 2007), while theother printed matter (6 codes)classification of cultural services uses the Balance -visual and Interactive Media: film and video (3 codes)Payments version six (BPM6) and Extended Balance and Creative services: architecture and design Payments (EBOPS). The new UNESCO framework corre-(1code)lates 85 of the codes in HS 2007 with cultural goods, cate-gorized under six cultural domains. It defines another 84Among the methodologies collected for this compara-codes in HS 2007 as equipment and supporting materialstive analysis, UNESCO’s 2009 framework is the only one20for cultural provides a full list for services. Defined by BPM6 andThe six domains include these product groups correspondent EBOPS codes, it proposed nine categories of21(followed by the number of codes in each product group):cultural attention goes to the new codes inEBOPS, such as , which represent the and Natural Heritage: antiques (2 codes)es to reproduce and/or distribute audio-visual products and Celebration: musical instruments (13other artistic products. These new codes have the potential tocodes); recorded media (6 codes)complement the missing value of IPRs for creative/ Arts and Crafts: paintings (3 codes), other visualgoods in trade full list of UNESCO defined cultural goods and equipment and supporting materials of cultural goods can be accessed at UNESCO (2009:65-72).21The full list of EBOPS codes defined as cultural services by UNESCO 2009 FCS and its explanation can be accessed at UNESCO (2009:39).109CREATIVE ECONOMY REPORT 2010Towards an evidence-based assessment of the creative economy
comparison of statisticsmethodologies for creative and cultural goodsTable Comparative analysis of statistical methodologies for international trade of creative/cultural goodsDomainsSubgroup (1)Selected methodologies and their definition of creative/cultural goods (2)43. Creative 5. UNCTAD1. European culturalindustries (industries2. MERCOSUR3)4. UNESCOCreative EconomyProduct groupEurostatFinlandUKItalyI. Art Crafts- (4)---CCCHeritageCarpets----C-CCelebration-----CCPaperware------CYarn-C-CCCCII. Performing ArtsC (5)CCCCCC, R(6)Music (CD, Tape)CCCCCCCPrinted music-C-CCCCMusical instrumentCC-CCCRArtsIII. Visual ArtsCC-CC (7)C, RC, RAntiquesCC-C-CCPaintingCC-C-CC, RPhotography-C-C-C, RC, RSculptureCC-C-CCIV. PublishingCCCCCC, RC, RBooksCCCCCCCNewspaperCCCCCCCOther printed matterCCCCCCCPrinting machinery-----RRMediaV. Audio-visual-CC, RCCC, RC, RFilm-CCCCCCAudio-visualsPost-production equipment-CRCCRRBroadcasting equipment-CRCCRRVI. Design---CCCC, RArchitecture---CCCC, RFashion---CC-C, RInterior----C-C, RGlassware---CCCCFunctional Jewellery-C-CCCC, RcreationToys----C-CVII. New mediaCCRCCC, RC, RRecorded mediaCCRCCCCVideo games---C-CCComputer equipment---CCRRNotes: and subgroup definition is based on UNCTAD classification for creative and related goods; definition may vary in other of selected methodologies: Eurostat: ComExt Nomenclature; Finland: Combined Nomenclature (CN); MERCOSUR: Common Nomenclature of MER-COSUR (NCM); United Kingdom: UK Standard Industrial Classification (UK SIC); Italy: Classification of Economic Activity (ATECO); UNESCO: Harmonized System2007 version (HS 2007); UNCTAD: Harmonized System 2002 version (HS 2002). SIC and Italy’s ATECO are classifications for economic activities, The corresponding products for these activities are listed . -: This sector/product group is identified neither creative goods nor related goods in the : This sector/product group is identified as creative/cultural goods in the : This sector/product group is identified as related goods/supporting equipments and materials in the methodology; only MERCOSUR, UNESCO and UNCTADclassifications identify categories for related ’s ATECO classification lists art galleries and art auction activities in the category of ‘Contemporary Art’ but does not provide any specific codes in this : UNCTAD110CREATIVE ECONOMY REPORT 2010Towards an evidence-based assessment of the creative economy
common underlying principles for capturing the exclusiveTable a summary comparison of thecreative/cultural goods. definition of creative/cultural goods in the foregoingfour statistical methodologies in relation to the UNC-However, a more detailed comparison of the productTAD methodology. It compares product groups insteadcompositions in each classification makes the differencesof the most detailed codes, because many methodologiesbetween the UNESCO and UNCTAD frameworks moreuse different nomenclatures and translating codes fromapparent. For example, if we separate the ‘core’ set of goodsone to another is problematic. The differences in these4(arts and media products) from the ‘optional’ set (art craft,methodologies highlight how various approaches to design and new media products), the ratio of core to option-cultural policy have influenced the classification of al goods in the UNESCO framework is 60/40, while in thecreative/cultural classification it is 20/80. According to the datafrom UN CONTRADE database, the ‘core’ set ofThis analysis reveals the intersection and divergence ofcreative/cultural goods is dominated by developedthe selected methodologies. As seen in table , several prod-economies, but the ‘optional’ set gives developing countriesuct groups are recognized as creative/cultural goods in all of22more export these two observa-the methodologies. These include music products (recordedtions, it could be argued that the UNESCO classification ismedia such as CDs and tapes as well as printed music andbetter at capturing the experience of countries in the globalmusical instruments), visual arts (antiques, paintings andNorth, while UNCTAD’s better reflects opportunities forsculpture), publishing (books, newspapers and periodicals)countries in the audiovisual materials (films and videos). It is fair to sug-gest these products form a core set of creative/cultural goods,Generally speaking, the UNESCO 2009 FCS providessince they have been approved universally, and should there-a general framework and a conceptual list of trade statisticfore be included in the framework of trade statistics as thefor cultural goods and services at a universal level. Thecomparative proposed new classification also sets an agendafor future taxonomic modification and has the potential toAnother set of products was only recognized by somefacilitate better measurement of the economic dimension inmethodologies. These include art crafts, design and newcultural goods and services in the future. media. They can be said to form an ‘optional’ set of cre-ative/cultural goods, which provide flexibility as policy mak-Comparatively, the UNCTAD classification emphasizesers seek to define the most appropriate statistical frameworkthe undiscovered creativity of the global South by providingfor their countries. elements to identify potentialities. Therefore, the majority ofproducts in the UNCTAD classification fall into the DesignAs the most important two classifications for culturaland Art crafts categories. Indeed, it was the Creative Economystatistics, the UNESCO and UNCTAD frameworks cover aReport 2008that first presented world trade statistics for thesebroader range of product groups than the other methodolo-two categories on a universal basis, since these are the cate-gies because they aim to provide a universal reference; hencegories where developing countries have higher market sharesthey include both the ‘core’ and ‘optional’ sets ofand greater opportunities in international trade. The UNC-creative/cultural goods. As shown in tables and , theTAD classification is pragmatic in the way it both analyses theUNESCO 2009 FCS and UNCTAD share a similar philos-evolution of statistical methodology while also reflecting theophy in categorizing creative/cultural goods and relatedbalance of trade data currently available. goods and equipments. Although these two frameworksapply different versions of HS codes, they embrace some22According to the UN COMTRADE database, the exports of arts and media (core sets) goods are dominated by developed economies, which command 80 to 90 per cent of theglobal market. Art crafts, design and new media (optional sets) goods from developing economies capture more than half of the global market. For more detailed analysis, see and in chapter ECONOMY REPORT 2010Towards an evidence-based assessment of the creative economy
The lists of creative/cultural services proposed bycreative/cultural goods’ IPRs, which traditional trade statis-UNESCO and UNCTAD are also very similar, buttics fail to catch. However, most countries do not report theUNESCO’s includes some codes (such as information servic-value of these codes separately, so these figures cannot be cal-es and other royalties and license fees) that are not includedculated together with other creative/cultural services when23in UNCTAD 2008 list or are not calculated together withusing BPM5,which is the only existing data resource. Theother creative services (see table ). These codes representEBOPS codes proposed in UNESCO 2009 FCS are based24the activities that the current classification of trade statisticson the draft version,and so far no data can be collected by4for services cannot capture (such as the trade of digital these codes. content) and have the capacity to compensate the value ofSummary of comparative analysis of international trade of creative/cultural goods Table by UNCTAD/UNESCO with the Harmonized System (HS) codesUNCTAD Creative Economy Report 2010UNESCO Framework for Cultural Statistics 2009DomainCreative Industries HS version2002DomainCultural DomainsHS version2007Creative goodsCultural goodsGroupings and CompositionsGroupings and CompositionsI. Art CraftsA. Cultural and Natural HeritageA. HeritageCarpets, Celebration, Paperware, Wickerware, Yarn and OtherAntiquesB. ArtsII. Performing ArtsB. Performance and CelebrationMusic (CD, Tapes), and Printed MusicMusical Instruments and Recorded Media (1)III. Visual ArtsC. Visual Arts and CraftsPainting, Photography, Sculpture and AntiquesPainting, Other Visual Arts, Craft, Jewellery and PhotographyC. MediaIV. PublishingD. Books and PressBooks, Newspaper and Other Printed MatterBooks, Newspaper and Other Printed MatterV. Audio-visualE. Audio-visual and Interactive MediaFilmFilm and Video (2)D. Functional VI. DesignF. Design and Creative ServicesCreationsArchitecture, Fashion, Interior, Glassware, Jewellery and ToysArchitecture and DesignVII. New Media--- (3)Recorded Media and Video Games--- (3)Source: UNCTAD, UNESCO (2009: 65-69) Notes:1. Include 490400 printed music2. Include 950410 video games3. UNESCO 2009 framework for cultural statistics categorized recorded media and video games in other details of data unavailability for these sectors will be further explained in the data of new EBOPS may become available after the finalizing of new MSITS in 2010. 112CREATIVE ECONOMY REPORT 2010Towards an evidence-based assessment of the creative economy
International trade of related goods/equipment and supporting materials of cultural goods Table by UNCTAD/UNESCO with the Harmonized System (HS) codesUNCTAD Creative Economy Report 2010UNESCO Framework for Cultural Statistics 2009DomainRelated IndustriesHS version2002DomainCultural DomainsHS version2007Related GoodsEquipment and Supporting Materials of Cultural Goods4Groupings and CompositionsGroupings and CompositionsI. Art CraftsA. Cultural and Natural HeritageA. Heritage--- (1)--- (2)B. ArtsII. Performing ArtsB. Performance and CelebrationCelebration and musical instrumentCelebration and Music (3)III. Visual ArtsC. Visual Arts and CraftsPainting and PhotographyPhotographyC. MediaIV. PublishingD. Books and PressBooks and Other printed matterOther (4)V. Audio-visualE. Audio-visual and Interactive MediaFilm, Equipment for broadcasting and sound productionFilm and Video (2)D. Functional VI. DesignF. Design and Creative ServicesCreationsArchitecture, Fashion, Interior and Jewellery--- (5)VII. New Media--- (3)Computer equipmentSource: UNCTAD, UNESCO (2009: 70-72) Notes:1. UNCTAD doesn’t indicate any code for related goods in this . UNESCO framework for cultural statistics doesn’t include any correspondent codes in this . Sound recording equipments include in this group. 4. There are four six-digit HS codes included in this grouping, which refer to printing . UNESCO framework for cultural statistics doesn’t include any correspondent codes in this services as defined by UNCTAD UNESCO Framework for Cultural Statistics 2009 UNCTAD Creative Economy Report . Core cultural services1. Creative for the use of intellectual property, and license to reproduce and/or distribute audiovisual royalties and license feesand related to reproduce and/or distribute audio-visual to reproduce and/or distribute related , computer, and information and information services (not include in CER08) News agency News agency Other information Other information business business and management consulting business, professional, and technical , trade-related and other business Advertising, market research and public Advertising, market research and public and development servicesopinion polling , engineering and other services113CREATIVE ECONOMY REPORT 2010Towards an evidence-based assessment of the creative economy
Table continuedCreative services as defined by UNCTAD UNESCO Framework for Cultural Statistics 2009 UNCTAD Creative Economy Report , cultural, and recreational , cultural, and recreational and related and related personal, cultural, and recreational personal, cultural, and recreational -visual Artistic related and recreational services2. Equipments and supporting materials2. Related industry and services8. to reproduce and/or servicesdistribute computer software(not included in CER08) Other computer servicesSource: UNCTAD, UNESCO (2009:39)Notes: category also includes other artistic and literary licenses, such as performing artists, authors, composers, sculptors, set designers, costume designers,lighting designers and agency services include the provision of news, photographs and feature articles to the library and archives other cultural services are included in Code (heritage and recreational services). category should include all cultural expenses made abroad for any type of travel (study, business or health). category was introduced in CER08 but did not aggregate in ‘All creative services’. Another finding from the comparison is that a learned from the tion of trade statistics to the new classification is study The reasons for migrating from the 1996 version of HS toIn short, the result of this study as presented in tablethe 2002 version are twofold: First, the earlier version provides an evidence-based comparative analysis for cre-not reflect the recent development in creative industries, andative industries trade statistics. This analysis will be helpfulthe newer version provides a better disaggregation of experts and policymakers updating current classificationHowever, the trade data for HS 2007 is only available afterschemes or establishing new frameworks for trade statisticsthe year 2007, making it impossible to conduct a compara-for creative goods and services. This exercise also shows thattive analysis for the evolution of world trade in creativethe classification of trade statistics for creative goods by UNCTAD is aligned with other classificationsThe second reason for suggesting this migration con-gathered from key international organizations or individualcerns data. UNCTAD needs to adopt a classification capa-countries. As a result of this work, UNCTAD refined itsble of capturing the largest amount of data. As shown incurrent classification by revisiting and reconstructing its listtable , the data availability of HS 2007 is the weakest inof creative goods. This refinement starts by identifying thethe entire time series; data for 2008 is only available for 102intersection of ‘core’ and ‘optional’ sets of creative goods incountries. On the contrary, although HS 1996 collectedother classifications and maintains all of the codes that aremore data, the number of reporting countries decreaseduniversally recognized. It adds some codes that do not existnearly 12 per cent, from 166 in 2005 to 147 in 2008. Inin our list but have been included in other context, the 2002 version of HS codes seems to best fitLastly, it deletes some codes which lack specific descriptionour needs and has therefore been selected as the methodol-and not been defined by other classifications. ogy for this ECONOMY REPORT 2010Towards an evidence-based assessment of the creative economy
Table of reporting countries using various versions of HS codes Reporting Year200820072006200520042003200220012000Number HS 2007102111-------of reporting HS 200213814414414212911092--countriesHS 19961471571631661631621581541444Source: UN COMTRADE databaseUNCTAD model for creative economyUNCTAD model for creative economy trade statisticsTable trade statistics By summarizing the findings of this compar-ison study, UNCTAD proposes its revised and1. Creative industries – all creative goods and creative servicesmore appropriated structure for creative economyDomainSubgrouptrade statistics in table . HeritageArt crafts goodsOther personal, cultural and recreational services The framework consists of two parts: (1) creativeArtsPerforming arts goodsindustries, which includes all creative goods andVisual arts goodscreative services, and (2) related industries, whichMediaPublishing goodsincludes all related goods, computer and infor-Audio visual goodsAudio visuals and related servicesmation services and royalties and license creationDesign goods Data for international trade of creative goodsNew media goodsand related goods were extracted from the UN-Advertising, market research and public opinion servicesResearch and development servicesCOMTRADE database using the HarmonizedArchitectural, engineering and other technical servicesSystem (HS) classification, version , cultural and recreational services Total codes of creative goods after refinement: all2. Related industries – all related goods and computer servicescreative goods, 211codes; art crafts, 60 codes;DomainSubgroupaudiovisuals, 2 codes; design, 102 codes; newArtsRelated performing arts goodsmedia, 8 codes; performing arts, 7 codes; Related visual arts goodspublishing, 15 codes; visual arts, 17 publishing goodsRelated audio visual goods Total codes of related goods after refinement: allFunctional creationRelated design goodsrelated goods, 170 codes; audiovisuals, 42 codes;Related new media goodsdesign, 35 codes; new media, 5 codes; perform-Computer and information servicesing arts, 28 codes; publishing, 11codes; visualRoyalties and license feesarts, 49 : UNCTAD Data on creative services were extracted from theIMF Balance of Payments Statistics using BPM5and EBOPS codes. Trade data for related creative goods are presented only as complementary information but are not included in theThe categories of services that will be included in all creativetotals of creative goods. The related industries constituteservices are: advertising, market research and public opiniona relevant tool for the analysis of current and futureservices, architectural, engineering and other technical servic-demand, since they are fully dependent on creative contentes, research and development services and personal, culturalfor their own existence. However, these industries do and recreational services. Audio visual services and other cul-not meet the definition criteria adopted by UNCTAD fortural and recreational services are sub-groups of personal,creative and recreational ECONOMY REPORT 2010Towards an evidence-based assessment of the creative economy
The same rationale applies to figures for royalties. Althoughunavailability, the other royalties and license fees andthey are shown, these figures are not included in the total information services are presented in the annex as Part 3for creative services, due to the inability to disaggregate thefor the purpose of market transparency. Table summa-portion of the value related to creative the current situation of data availability for creativegoods and services. Due to shortcomings in the methodology and data4Table Goods and services of creative industriesCreative goodsCreative servicesCreative servicesDomainSubgroup(available data)aggregated(data currently unavailable)HeritageTraditional culturalArt crafts goodsexpressionsCultural sitesOther personal, cultural and Cultural & recreationalrecreational servicesservicesArtsVisual artsAntiques, painting, Photography services,sculpture; photography,Painting & sculpture: services of others: collages andauthors, composers, sculptorssimilar decorative materialand other artists exceptperforming artsPerforming arts servicesMusicRecorded laser discs and recorded Music: Sound recording services;magnetic tapes, and manuscript musicreproduction services of recorded media, on a fee or contract andBooks, newspapers and other Publishing service andprinted mediaprinted matterNews agency servicesAudiovisualsCinematographic film:Audiovisual and relatedFilm: includes production services; - 35mm or more in widthservicesdistribution services;- other widthspost-production services;and other related services Radio & television: broadcastingservices; audio post-production services; radio programme productionservices; audiovisual production support services;Functional New mediaRecorded media for sound/image Business and creative software, creationsand video creative Interior, fashion, toys, graphic Interior: interior design services; and jewellery: other specific design servicesAdvertising, market research Advertising services: planning, and public opinion services;creating services and trade fairand exhibition organization servicesarchitectural, engineeringArchitectural services: architectural and other technical services;advisory pre-design and design,other architecture-related services research and development services;personal, cultural andrecreational services116CREATIVE ECONOMY REPORT 2010Towards an evidence-based assessment of the creative economy
basis for a unified measure of international trade of creative goods Against this background, chapter 5 presents in detailadditive; it is certain that most intellectual property transac-4the information that can be collated on the trade of creativetions have been missed owing to non-availability of and services. It is important to caution end-users ofCopyright data depend on a locally functioning system forthis data that they do not provide a final figure on the valuethe regulation, collection and distribution of IPRs. However,of global trade in creative industries goods due to the reasonsthis system is not complete in the developed world and iselaborated above. Nevertheless, they give a good indicationpartial at best in many areas of the developing world. Hence,of the overall trends, the order of magnitude of the trade inthe developing world is likely to be under-represented in25creative goods and services and major trade flows. these approach was to use caution and err on the side ofTrade information is fundamentally measured throughunder-definition and exclusion rather than over-inclusion ofthe physical auditing of imports and exports of goods acrossvariables. The analysis does not estimate the value of categoriesnational borders. These goods are measured either by weight,that are a mixture of creative and non-creative goods. In fact,volume or value. The reporting of the services sector is where there is uncertainty about the robustness of a categorycarried out on a different basis. The most detailed data arein reporting only creative industries, it is omitted. It is neces-collected with respect to financial, trade-related foreignsary to proceed on the basis of verifiable facts (not estimates)exchange flows self-reported by central banks (but not disag-obtained from official available national sources that are basedgregated by product). Knowledge of the trade in services inon a sound methodology and figures that are reported to thegeneral and creative goods in particular provides evidenceUnited Nations by national sources. Therefore, the findings ofthat these figures tell only a little of what is needed to informthis report are at the lower end of valuations; without doubt,policy-oriented analysis. For example, the weight or numberthe actual figures will be considerably higher. of CDs traded is an inferior indicator for policymakingbecause it does not inform the value of intellectual propertyIn principle, the methodology deployed is simple andassociated with what is basically a small disc of . Trade statistics were broken down in their classifica-Moreover, it is possible that one recording of a song couldtion to the smallest unit of analysis (usually referred to usingbe exported (in a passenger’s suitcase) and then reproducedfour- or five-digit codes); then such units are included orin a second country under local licence or distributed as anexcluded from a definitive list of creative industries. Clearly,MP3 file. No financial flows returning to the country of some activities associated with creative production are notorigin are either recorded or visible. Thus, the value of musicclassified or described in data sources or they are describedto international trade is difficult to ascertain. For somebut carried out informally and have not actually been cap-products, the transfer of mass, volume and value can act as atured in any data collected. These data will continue to beproxy for value, but for most, it does not. Hence it is preciselyinvisible and go uncounted in the present schema. because creative goods are worth more than their functionalRecognizing that intellectual property is often anvalue that the anomaly is so serious. For example, how can twoimportant element of creative products, an attempt is madepieces of furniture — chairs, for instance — be fully account-to find corresponding data. However, the only available dataed for when both contain similar volumes of material and areare on overall royalties, and they are collected using a differ-therefore the same weight of goods, but one is an exclusiveent taxonomy. Ideally, some way of relating these data could“designer” chair which has considerable aesthetic and retailbe developed as the coverage of the work of WIPO increas-value, and the other is a mass-produced office chair? es. In addition, specific data on copyrights for the creativeThe fundamental taxonomy of trade statistics is basedindustries are not available. As a consequence, data on intel-on the type of materials used. This presents those interestedlectual property data and on physical trade are not simply25For example, the International Federation of the Phonographic Industry, an international trade body for music companies (), does not collect data in many countries,as reliable data are not ECONOMY REPORT 2010Towards an evidence-based assessment of the creative economy
in statistics for the creative economy with a problem. Only aproducts, to those that are mainly functional (beyond thissmall number of materials are “cultural or creative” by defini-will lie all other products that are primarily functional).tion, that is, used exclusively for a cultural purpose. Diamonds,Again, this should be seen as a continuum with, in practice,for example, can be used in jewellery and as a cutting edge forusages being proportionately more one use or another. Fortools. Qualities of materials are unevenly captured in the cur-example, a “designer” chair is functional but it is aesthetical-rent Harmonized System (HS) classification. This is largely aly valued as well. In such a case, the assumption is that thehistorical issue that refers more to the patterns of trade whenmore aesthetic use is likely to represent more creative value. 4such taxonomies were first devised, in short, when trade wasIn the absence of an ideal or precise taxonomy anddominated by manufactured goods and commodities (see HSdatabase, it can be proposed the combination of these two5206 for an example of the fine distinctions made betweencriteria so as to offer some useful and pragmatic yarns used in clothing). A classification based on theThe two extremes might be mass-produced functional usageamount of plastic used in the production of a classical music(cell 4) and artisanal and aesthetic usage (cell 1). In between,and a pop music CD, for example, would inform us only ofit could be distinguished the art crafts designer goods fromthe raw materials incorporated into the products. Even a meas-those that are mass-produced but with a premium onure of the wholesale price of the CDs reveals nothing of the“design” (or creative input). copyrights associated with the products. Attempts should be made to separate out the aesthet-Clearly, there is no way to express the “real” value of aically specific goods from those that are more functional, andsong or a story. It might be suggested that one could track thefrom those that are only functional (non-creative goods).royalty payments. However, this again is difficult. First, suchHowever, there are a number of “grey areas” that are associ-tracking relies upon a sophisticated and well-functioning col-ated with shifting cultural practice. For instance, interior-lecting society (the organization that acts as an intermediarydesign products comprise a very difficult category. However,between artist and users). Manufacturers and distributorssome of these products might be distinguished from thereturn a particular percentage on sales of products (booksmore or less functional ones by the degree to which theirand records, for example) to the collecting society, as dovalue rests on aesthetics (cell 2). broadcasters, and any public users of music. Then royaltyThe same sort of distinction is even more difficult owners receive a proportion of returns. In theory, it would beto make with respect to clothing. Traditionally, highpossible to track such “micro-payments” in an online couture is distinguished from prêt-à-However, this is not a current reality. porter/ready to wear or even basic production. As indicated inThe aim, therefore, is to develop a pragmatic way for-the proposed classification below, there is a possibility of sep-ward within the confines of the current data sets that wouldarating out designer one-offs and designer styled us something about the creative economy, summarized inHowever, in practice, in the case of clothing, only “luxurytable . Creative products are clearly a subset of all prod-goods” such as fur, cashmere or silk as markers can be identi-ucts. So, beyond this matrix lie all other products, wherefied. To avoid distorting the data, at the initial stage, it is bet-usage is wholly functional. Our proposal is that productster to exclude textiles from the fashion category since they arecould be subject to two criteria. The first criterion would betoo difficult to distinguish. whether they are primarily the subject of artistic or artisanalThis is clearly not a perfect system of classification: itproduction, or of mass production. In reality, products willis offered as an indicator to simply under-representing thelie on a continuum; however, for classificatory purposes, it is26creative sector by including only items that fall into cell to create a division. This criterion is indicative ofThe benefit of the taxonomy presented in table is that itthe degree of creative labour content of each item a more indicative picture of the extent of the creativeThe assumption is that creative labour content is high ineconomy. Moreover, cells 2 through 4 are indicative of thegoods of higher creative content and significance. site of discussion of future taxonomies and data collection,The second criterion would be to represent the typicalif they are to begin to represent the creative products accu-use of the product, ranging from an artistic decorative arte-rately rather than what happens at present where the existingfact or ornament, termed “aesthetic”, through designertaxonomies effectively render the creative economy invisible. 26Any product or artefact, whether mass/artisanal or aesthetic/functional, can be commodified (sold or traded) or be considered as beyond such valuation. Where a particular productlies in this commodification domain is always an empirical fact that needs to be investigated, and it will change through time and ECONOMY REPORT 2010Towards an evidence-based assessment of the creative economy
Table categorization of creative goodsDominant use of the productOrganisation of production of the productArtisanalMassAesthetic12Functional344Cell examples 1 - A fine-art painting2 - A newspaper or book3 - A handmade ceramic vase4 - Designed furniture (high design content, mass produced) Cells 1 and 2 are most clearly dedicated to creative activities that are exclusive but can be artisanal or mass production. In some cases, it can be difficult todistinguish whether materials are dedicated to artisanal or mass production. For example, in the case of a fine-art item, it is possible to distinguish the trade inhigh-value goods from a more low-level (artistically speaking) reproduction market. Cells 3 and 4 are for creative goods that have not only a creative content but also a functional nature, but the latter dominates. For example, a handmadeceramic vase is a decorative interior article but also has a utility : UNCTAD in collaboration with A. considerations Obviously, there are challenges to understanding theto identify a starting point for evaluating impact and vari-scale and nature of international trade in creative goods,ables need to be matched with objectives. The creative indus-services and rights. This chapter argues that it is possible totries commonly seek to achieve a number of contradictorydevelop a first-cut analysis from a combination of modifiedoutcomes: access and excellence, social inclusion and prof-existing trade data. The resultant taxonomies and the dataitability, etc. For this reason considerable care is needed inthat populate them are neither ideal nor perfect. Caution isthe creation of indicators for comparative work, evaluationneeded to draw taxonomies tightly but to develop them withand policymaking. intelligence such that they map — and make visible — theThe issue is to develop an information base that isshifting dimensions of creative production. robust, meaningful and flexible. While quantitative statisticsThe proposals put forward in the Creative Economyhave their use, there is also a place for qualitative informa-Reports seek to use raw data from verified public sourcestion. Most statistical indicators focus on outputs; however,that are already reported internationally rather than relyin the arts and culture process, indicators are also samples or estimates from sources whose rigour inInvariably, these describe such things as institutional form,their data collection methods is not guaranteed, or to relydensity and competence as well as particular ways in whichupon very costly and time-consuming primary data collec-people are employed or carry out tasks. tion. Of course, the final objective of an accurate audit ofIn summary, this is a step forward of a work inthe creative economy will be achievable only with the adop-progress to shape a possible approach by which otherwisetion of new taxonomies and with new data collection. Untilinvisible activities of the creative economy may be made vis-that time, pragmatic solutions such as the one outlined inible. This scheme is intended to reconstruct a production-this report seems a way forward. chain measure for physical goods. However, completing theThere is clearly a need for a better understanding aspicture for invisible or copyright transactions is still somewell as a measure of the organizational and institutionalway off. Considerable efforts are needed to expand andforms that have developed in the creative industries. If poli-improve this visibility. cy interventions are to be considered, a baseline is required119CREATIVE ECONOMY REPORT 2010Towards an evidence-based assessment of the creative economy
Box Reality and numbers There is a memorable remark, “The map is not reality”, made by a Polish mathematician and philosopher named Alfred Korzybski. Although Korzybski wasborn in Warsaw in 1879 when it was occupied by Russia, I do not believe he was referring his homeland’s confused status. Rather, he was making a pithyencapsulation of his belief that we should not confuse reality with our descriptions of reality. He distrusted humanity’s tendency, faced with reality, to giveit abstract qualities that were often unnecessary, illogical and in many cases simply wrong. He wrote in the great tradition of the Englishman William ofOckham, born over 800 years ago, who said we should not add anything that is not necessary. Both men were saying, keep it simple! So, leaping back to4today, if I say that Matthew Carter, who designed the ubiquitous Verdana typeface now found on every computer, is a wonderful designer, I could be right,I could be wrong. The only certainty is that he designed a wonderful first heard about Korzybski when I was working at the International Institute of Communications in the 1980s and we were trying to understand the newcommunications ecology. We were working on a map of the global flows of television programming and a report to the Government of Norway on elec-tronic information. The Swedish director, Eddi Ploman, used the quotation to warn us against generalizing wrongly from raw data. His remark popped into my head again this year as I was considering the state of research into the creative economy. On the one hand, we know how wehave ideas and how we develop and share them. We have a feel for how creativity works, or doesn't work, in our neighborhood, in our culture. On theother hand, data and maps seek to quantify the numbers, the scale, of what is happening. We need both, of course. We need the ground reality, and weneed the numbers. But we must not confuse them. In recent years, there has been an explosion of interest in collecting data on the creative industries, often called “mapping” after the United Kingdom’sfirst mapping document in 1998. These show the creative industries to be larger and generating more wealth than was previously supposed. The databecame powerful tools in persuading governments to promote the creative industries. Fast forward 10 years and mapping the creative industries is nowwidely accepted as the first step on the agenda of any government that wants to develop its country’s creative economy. These maps provide a quick and easy answer to the question, “What exactly are the creative industries?” They provide the information that politicians,industry and the media rely on. It is therefore important we get it right. Yet I believe that many maps offer shaky guidance for understanding the creativeeconomy and therefore for choosing the right policies. My own business interests cover TV and film. I know the reality of film production and map comes close to is one example. A frequently quoted survey says the United Kingdom exports more films than the United States. This, frankly, is nonsense. The sur-vey makes the mistake of categorizing licence income as belonging to the licensee. So if a United States company licenses a film to another country, therevenue counts as local business. Perhaps the same mistake is the cause of the frequent statement that the video games industry is bigger than the filmindustry. The video industry is, in some countries, bigger than the cinema industry but the cinema industry makes up only one-third of the film kind of data is not only wrong in financial terms but also misrepresents the industries’ structure and operations. As a result, any policymaker whoused this data would be likely to have an incorrect idea of their strengths and weaknesses and propose policies that had little relation to art market is also liable to misunderstanding. Art is often called a copyright industry. Strictly speaking, this is true. But the bulk of its revenues comesfrom the sales of manufactured objects, with copyright licences contributing only a few percentage points, most of which are earned by the estates ofdead artists who put little back into the market. By and large, the art market distrusts copying, which is why even original prints rank behind one-off worksand why reproductions are not considered to be art at are we in this position? There are several factors. The first is that a lot of data is collected by organizations that have little knowledge, or even con-tact, with creative workers and businesses. My own criteria for good data are twofold. Data that is collected under government supervision, where failure to supply accurate data is an offence, areusually reliable. Company reports and some employment data are good examples (but the latter can be misleading if many people are self-employed orpart-time). But this is a small proportion of the total and, anyway, often fails the second test. The second test is, Who is paying, and Why? The acid test of good data is data that are collected by an organization that has the right to check it and tochallenge the provider and that are then sold (not given) back to the provider. This kind of data is common in America, Japan, most of Western Europe andmost other OECD countries and virtually unavailable anywhere else. By this criterion, I trust data on box office admissions in these countries. I trust com-mercial companies that collect, organize, analyse and sell back industry data to the industry. Not much else can be know that all data give their own view of reality. Film companies collect information to make and sell films profitably. Governments collect information to levytaxes and to correct market failures through subsidies and tax breaks. Academics collect data to support their research. Every map has its own point of the film business, data on production finance and net income are virtually unobtainable by anyone outside the companies involved. We tell each otherwhat we know. Nobody even attempts an official survey. There is one exception, which is that national subsidy schemes may oblige recipients to providedata, but this distorts the picture in favour of the subsidized sector. The commercial deals that represent the bulk of licensing revenues go ideas, projects, scripts, screen tests, contracts and personal relationships that constitute the main assets and added values of film development arenot caught by data mapping. The same is true for most creative ECONOMY REPORT 2010Towards an evidence-based assessment of the creative economy
Box continued Reality and numbers The reliance on industry data itself is coming into question. There is increasing recognition that many creative workers do not work in creative Australia, the United Kingdom, the United states, the proportion of creative workers outside the creative industries is over 50 per cent. There is anywayincreasing doubt whether “industry” is the right way to describe what is happening. The term captures what happens when big companies make lots ofidentical copies (music, film, High Street fashion, etc). But it does not capture people making one-off expressions of an individual aesthetic (art, architec-ture, craft, etc.). 4There are other factors. Trade data are especially weak. Ideas flow easily across borders, especially with the Internet and inexpensive travel. Creativeworkers are nomads. Customs data do not begin to account for everything that is happening and may be so partial that they distort reality. Finally, mostdata, whether compiled by government or business, lag behind reality. Too often, the categories are out-of-date. This is especially true for business mod-els that depend upon digital technology. Too many policymakers try to plan for the future by doing what Marshall McLuhan described as “driving aheadby looking in the rear-view mirror”. What then, is the answer? We will always need maps, because we need to navigate. How do we get a better map?A way forwardMy research at ITR suggests a way forward. We need to rethink the reality of creativity and the creative economy. We need new coordinates and a new new coordinates must take account of the environment in which people have ideas in their ordinary (or extraordinary) lives. I call this the “creativeecology”. An effective ecology provides the habitat where an organism can live and flourish. A creative ecology is one where all people have the freedomto pursue their own ideas and where markets allow them to exchange ideas. Its main characteristics are soft infrastructure, social networks and socialmarkets. We are developing parameters to measure this , we need to relate this creative ecology to global economic developments since the 1950s, and especially since the Internet really took off in themid-1990s. The rise of the creative economy is part of the restructuring and reshaping of the global economy. There is a tendency for work on the cre-ative economy to be isolated from general economic analysis. We need to bring the two maps follows, I believe, that we need to give proper weight to both commercial and other activities. There is a tendency for policymakers and researchers toput most emphasis on activities that are not sustainable or not profitable, on the reasonable grounds that profitable businesses can look after themselveswithin the framework of competition policy. It may also be true that many policymakers in this area have more experience of the public arts sector thanof the commercial world. There is a danger that the creative economy becomes biased towards non-profit work. This would be profoundly limiting. We need maps not only to tell us the size of a creative industry but how creativity and innovation play a role in the wider economy. In my view, the UnitedStates and many European countries are now mass creative economies. By this I mean that any primary, manufacturing or service sector in these countries that is not creative is uncompetitive and unsustainable. The good news for all countries is that this requires a new approach to both culture andbusiness. We need new theories and new practices, new ways of working. For the past three years, I have been mapping the “creative divide” alongside the pioneering work by the International Telecommunication Union on the“digital divide”. The creative divide shows why, say, a person in the South who is as creative as a person from the North is prevented from taking part inthe global creative economy. In this, the United Nations surely has a major role to play. It can draw on the best of advice across a wide range of disciplinesand agencies. It can set standards and share information. In the same way as UNCTAD strives to enable developing countries to join the international tradingsystem, so we now need to ensure that developing countries can join in the global creative economy. This would be a natural and much welcome John Howkins, author of Creative Economy(London, 2001); Chairman, UNCTAD XI High-level Panel on Creative Industries and Development (São Paulo, 2004);Chairman, Tornado Productions Ltd, a London-based web casting company; and director of Equator Group plc, Television Investments Ltd, EveryIdea Ltd and WorldLearning Network ECONOMY REPORT 2010Towards an evidence-based assessment of the creative economy
4122CREATIVE ECONOMY REPORT 2010Towards an evidence-based assessment of the creative economy
PARTInternational Trade in Creative Goods and Services3
124CREATIVE ECONOMY REPORT 2010
International trade in creative goods 5and services: Global trends and the sceneGlobal and regional trade flows of creative goods andapplied in major markets for international trade of creativeservices encompass trade transactions with complex inter-goods, which are examined in chapter 9 in the section cov-actions among culture, economics and issues related to the multilateral trading system. TheLikewise, trade is framed within the rules and practices ofanalysis can assist developing countries in formulating tradethe world trading system. This framework includes the uni-policies and negotiating tariff cuts for market access withversally accepted multilateral rules governing trade amongtheir trade partners. In summary, the purpose of this chap-members of the WTO and other legal provisions for freeter is to identify the main features inherent to each creativetrade agreements, custom unions and economic partnershipindustry and to assist developing countries in assessing theagreements. Trade rules for the creative industry may also beactual and potential economic impact of their creativeinfluenced by other legal instruments, such as theindustries for trade and development Convention on Cultural Diversity, at the regionalThe trade analysis presented here builds upon thelevel as well as by specific agreements dealing with culturalfirst global comparative analysis in the Creative Economytrade exchanges and intellectual property rights 2008. Over the last two years, efforts have beenWith the emergence of the creative economy and itsmade to improve the quality and coverage of the initial sta-growing contribution to world trade, issues relating to thetistical data, and factual information on market develop-interface between international trade policies and nationalments for each creative industry has been objectives are gaining prominence in the econom-Nevertheless, visible gaps remain due to the lack of a moreic development agenda. The current round of multilateralappropriate methodology to collect and report the widetrade negotiations aimed at further trade liberalizationrange of quantitative and qualitative data, as described inremained inconclusive so far in 2010. The global financialchapter 4. Attention is drawn not only to what the figuresand economic crisis has heightened tensions between tradeshow, but also to what they are not yet able to development policies, making it clear that the multi-Although imperfect, the trade data give an indication oflateral trading system needs careful reassessment bearing inmarket trends and major trade flows, showing the key play-mind the imperatives of the MDGs. Poorly coordinateders for each category of creative industries. This worktrade, financial and monetary policies have made develop-makes a contribution towards improving market trans-ing countries more vulnerable, often leading to protection-parency. However, much more needs to be done at theist measures on behalf of domestic markets and industriesnational and international levels to provide better tools tohit by the crisis. The Doha Round was expected to redressassist governments in policy formulation and provide athese imbalances, but the multilateral negotiations areclear understanding of the dynamics of the creative prod-shifting away from a development in world markets for the creative this background, chapter 5 presents a pic-A key issue in approaching trade features is to exam-ture of international trade flows of creative goods and serv-ine how creative industries generate value from cross-bor-ices in global markets for the period 2002-2008. UNC-der trade and what the backward and forward linkages areTAD complemented and enriched this trade analysis within the value chain of each creative-industry subgroup so asevidence showing the possible variation of tariffs escalationto properly assess its impact for both the exporting andCREATIVE ECONOMY REPORT 2010125CHAPTERInternational trade in creative goods and services: Global trends and features
importing countries. It is not yet possible to undertake moreoriginate from international transactions among two or morerefined input and output analysis to evaluate forward andcountries and from intra-firm transactions between transna-backward corporations, which are becoming a major driver ofworld trade linkages. Trade flows of creative productsThe creative industries have been generating increasedinclude the revenues of export and import operations forrevenue from the production, trade and distribution of theirgoods and services produced by the creative industries. Thegoods and services as well as from the collection of salient features and the global trade flows of creative goodscopyrights associated with their use. Trade and IPR flowsand services are examined in the following industries:A new dynamic sector in world tradeTable World exports of all creative industry (goods and services), by subgroup, 2002 and 2008 As % of As % of VAs % of total Growth aall creative As % of total Value (in lue (in all creative (2)(2)Subgroupmillions of $)industriesworld export millions of $)world export rate (%)industries(1)(1)2002 2008 2003-2008(3)All creative industries 267,-592,(4)All creative goods 204,,(5)All creative services 62,,,-43,--Art crafts goods17,, personal, cultural and recreational services7,,,-55,--Visual arts goods15,, arts goods9,,,-75,--Publishing goods29,, and related services13,, creations194,-454,--Design goods114,, media goods17,, and related services8,, and related services18,, and development services12,,, cultural and recreational services21,,(1) Notes:Reported official figures for creative goods based on 92 reporting countries in 2002 and 138 countries in 2008; creative services based on 102 reporting(2)countries in 2002 and 125 countries in 2008. This column shows the percentage of creative goods in total world merchandise trade, and percentage of(3)(4)creative services in total world trade in services, respectively. All Creative Industries is composed of All Creative Goods and All Creative Services. AllCreative Goods is composed of art crafts goods, visual arts goods, performing arts goods, publishing goods, audiovisual goods, new media goods, and(5)design goods. All Creative Services is composed of advertising, market research and public opinion polling services; architectural, engineering and othertechnical services; research and development services; and personal, cultural and recreational services. Audiovisual and related services and other culturaland recreational services are sub-items of personal, cultural and recreational services. For definitions, please refer to Chapter : UNCTAD Secretariat calculation based on official data in UN COMTRADE database126CREATIVE ECONOMY REPORT 2010International trade in creative goods and services: Global trends and features
The global market for traded goods and services of thegains in a growing number of countries, in both developedcreative industries has enjoyed an unprecedented dynamismand developing countries, particularly in recent years. The value of world exports of creative-indus-While developed countries continue to lead bothtry goods and services reached $592 billion in 2008, upexport and import flows, developing countries have increasedfrom $267 billion in 2002, according to UNCTAD. Duringtheir share in world markets for creative products year afterthis same period, the creative industries gained shares in glob-year and their exports have risen faster than those from devel-al markets, growing at an annual rate of 14 per cent. Thisoped countries. Exports of creative goods from developingupward trend is likely to continue, given the positiveeconomies accounted for 37 per cent of world exports of5prospects for global demand even in turbulent goods in 2002 and reached 43 per cent in of creative goods accounted for the vastThis significant growth reflects the remarkable increase inmajority of world trade of creative industries. By 2008 theyproduction and trade of creative goods in China, whichreached $407 billion, nearly twice as high as the $205 billionremained as the world’s leading exporting country of creativein 2002 (see table ) and representing an average annualgoods in 2008 with an impressive 20 per cent market rate per cent. Exports of creative servicesExports of creative services from developing countriesincreased by 17 per cent annually, rising from $62 billion inaccount for 11per cent, while developed countries exports2002 to $185 billion in 2008, although this also reflects thereached 83 per cent of world exports of creative services ingrowing number of reporting countries, as explained (see chart and chart ).In any case, trade in creative services grew faster than trade inIn 2008, the global economic downturn underminedcreative goods (see explanatory notes in the annex).opportunities in many countries for jobs, growth and eco-The world trade figures for creative industries providenomic and social well-being. With falling global importclear evidence that creative industries constitute a newdemand, world trade declined by 12 per cent. Export sectorsdynamic sector in world trade. The magnitude and thecontinue to play important role in the development processpotential of the global market for creative-industry productsthrough productivity growth, income and employment cre-are vast and have only recently been recognized. The creativeation and technology diffusion. The contribution of exportseconomy in general and the creative industries in particularto GDP in developing countries increased from 26 per centare indeed opening up new opportunities for developingin 1990 to 44 per cent in 2008, revealing the increasing1countries to leapfrog into high-growth sectors of the worldopenness of their global economiceconomy and increase their participation in global trade. Theupturns trade openness allows countries to secure gains fromcreative industries are already driving trade and developmenttrade, but in global economic downturns negative externalCreative industries: Exports of creative goods, Creative industries: Exports of creative services, Chart economic group, 2008Chart economic group, 20081%6%11%56%43%83%Developed economiesDeveloped economiesDeveloping economiesDeveloping economiesTEconomies in transitionransition economiesSource: UNCTAD, based on IMF balance of payment : UNCTAD, based on official data reported to UN COMTRADE database1UNCTAD (2009). Evolution of the international trading system and of international trade from a development perspective: Impact of the ECONOMY REPORT 2010International trade in creative goods and services: Global trends and features
shocks are readily transmitted. Falling global import demandcrisis. Over the past decade, creative industries emerged ashas severely affected those countries most successful inone of the world’s most dynamic sectors, offering vastexport-led growth, calling for a reassessment of export-ledopportunities for cultural, social and economic strategy. Unlike previous crises largely confined toInternational trade of creative products grew at an annualparticular countries/regions, the global contraction inrate of per cent between 2002 and 2008. World tradedemand has limited countries’ ability to use trade to boostof creative goods and services reached $592 billion in . International trade may therefore take longer thanThe sectors with best penetration in global markets are arts-previously expected to reach its pre-crisis level. Althoughrelated goods. Creative services grew even faster between5signs of recovery are now visible in many countries, concerns2002 and 2008, with an annual growth rate of cent,remain about how robust and sustained the recovery will to per cent for world services exports. This isevidence of the dynamism of the creative economy in theBy contrast, international trade in the creative indus-contemporary has continued to grow despite the broader trends in world trade of creative goods and servicespredominated in world markets. At the same time, trends in world exportsfrom developing economies more than doubled, from $76 bil-In 2008, total exports of all creative-industry productslion to $176 billion, between 2002 and 2008 (see table ).reached $592 billion (see chart ), with an annual growthThe value of creative services exports rose from $62rate of 14 per cent since 2002. Export earnings from creativebillion to $185 billion, growing annually by 17 per cent dur-industries cover the value of exports of all creative-industrying the period 2002-2008 — a faster rate than worldproducts, comprising tangible goods and intangible services2exports of all creative products. On the basis of availablein each creative , creative services accounted for only 31per cent ofThe value of exports of creative goods grew at an annu-the total exports of creative industries in 2008. Obviously,al rate of per cent from 2002 to 2008, when the totalthis share is underestimated since most countries, value reached $407 billion. As a result, all regions and both developing and developed, do not report data for alleconomic groups of countries benefited from higher exportcategories of creative . Exports of creative goods from developed countriesTable goods: Exports, by economic group, 2002 and 2008 (in millions of $)DevelopedDevelopingTransitionWoeconomieseconomieseconomiesrld20022008200220082002200820022008All Creative Industries204,948406,992127,903227,10375,835176,2111,2103,678Art Crafts17,50332,3238,25611,4439,20220,71545164Audiovisuals4628114257263575310Design114,692241,97260,967117,81653,362122,4393621,716New Media17,36527,75411,42213,2485,90814,4233682Performing Arts9,68926,1368,94722,5396983,32343274Publishing29,81748,26625,97038,7533,1578,1386901,376Visual Arts15,42129,73011,91622,5783,4747,0973156Source: UNCTAD, based on official data in UN COMTRADE database2It should be noted that, owing to the gaps in the availability of data for creative services, figures for exports of creative goods were higher than those for creative services — a distortionof the ECONOMY REPORT 2010International trade in creative goods and services: Global trends and features
The structure of exports of goods from creativegoods from developing economies is due mainly to substan-industries, by economic group, is also presented in table increases in the design subgroup, where exports rose from(chart and chart ). The predominance of devel-$ billion in 2002 to $ billion in 2008, reflectingoped economies in world trade of creative goods is notice-mainly the growth in China (see table in the annex). Theable (chart and chart ). In 2008, their share ineconomies in transition play a marginal role in world marketstotal exports of creative goods was about 90 per cent forof creative goods and services, accounting for less than 1permusic and audiovisuals, around 80 per cent for publish-cent of market share over the period under review, accordinging/printed media, 75 per cent for visual arts, and about 50to available figures (see table ).5per cent for new media and design. Thistrend is highly relevant for market analy-Chart of world exports of creative goods and services, 2002 and 2008sis. The trade data clearly show theimportance of creative industries forAll creativeindustriesboth developed and developingeconomies. Furthermore, they mirror theAll creative goodsfact that the high-growth sectors of cre-Design ative industries with higher value added,goodssuch as audiovisuals and new media, areAll creative servicesexported mainly by advanced goodsFor developing economies, artcrafts constitutes the most importantHeritage goods & servicesgroup of creative products, accounting forNew media65 per cent of their share in the worldgoods2008market for creative-industry goods (seeVisual arts2002goodschart and chart ). Design andPerforming artsnew media also have great potential;goods exports from developing economies haveAudio/visual (in billions of $)goods been increasing and each of these sectorsresponded to more than 50 per cent of0100200300400500600700the demand from global markets in : UNCTAD, based on official data reported to UN COMTRADE databaseThis upward trend in exports of creativeChart of creative goods, by group, 2002Chart of creative goods, by group, 2008Art crafts (%)Art crafts (%)Audiovisuals (%)Audiovisuals (%)Design (%)Design (%)Performing arts (%)Performing Arts (%)New media (%)New media (%)Publishing (%)Publishing (%)VVisual arts (%)isual arts (%)SoSuorcuer:c e U: NCTAD, based on official data reported toUN COMTRADE databseSource: UNCTAD, based on official data reported to UN COMTRADE database UNCTAD, based on official data reported to UN COMTRADE database129CREATIVE ECONOMY REPORT 2010International trade in creative goods and services: Global trends and features
Chart of economic groups in world exports of creative goods, 2002 (%)Share of economic groups in world exports of creative goods, 2008 (%)DDeveloped economieseveloped economiesDeveloping economiesEconomies in trDeveloping economiesEconomies in Art craftsAudio/ Design New media Performing Publishing Visual arts Art craftsAudio/ Design New media Performing Publishing Visual artsvisualsartsvisualsartsSource: UNCTAD, based on official data reported to UN COMTRADE databaseSource: UNCTAD, based on official data reported to UN COMTRADE databaseof creative goods represented about per centCreative goods: Exports, by economic of the world total, amounting to $10 billion inTable group and region, 2002 and 20082008 (see table in the annex).Value (in Change millions of $)(%)As chart illustrates, developedEconomic group and region200220082002-2008economies were the largest importers of creativegoods during the period 2002-2008. Chart ,World204,948406,99299which illustrates imports of creative goods, showsDeveloped economies127,903227,10378that design accounts for the highest volume inEurope94,514174,01884United States of America18,55735,00089world trade (59 per cent of total imports), fol-Japan3,9766,98876Canada9,3279,215-1lowed by publications and printed media. Thisstructure is the same in all three economic groupsDeveloping economies75,835176,211132Eastern and South-Eastern Asia66,700143,085115of countries, as shown in table . DevelopedChina32,34884,807162countries accounted for more than 75 per cent ofWestern Asia2,60210,687311Latin America and Caribbean5,5369,03063total imports of creative goods, with the world’sAfrica7402,220200LDCs3441,579359top importers being Europe, followed by theSIDS61135120United States, Japan and Canada. Among devel-Transition economies1,2103,678204oping economies, Asia was the region with thehighest level of imports of creative goods, whichSource: UNCTAD, based on official data in UN COMTRADE databasegrew from $28 billion in 2002 to $68 billion in2008 — a 58 per cent increase. In Latin Americaand the Caribbean, imports of creative trends in world importsnearly tripled during this period, growing from $ billionWorld imports of creative goods rose even higher thanto $16 billion. Imports of creative goods also increasedexports during the period 2002-2008, increasing from $226sharply in Africa, where they grew from $ million to $ to $421billion (see table ). The share of devel-billion, and among world’s least developed countries, whereoped economies in world imports of creative goods declinedthey rose from $344 million to $ billion. This is clear from 83 per cent to 75 per cent. In 2008, developing coun-evidence that despite the abundance of creative talents,tries imported 22 per cent of all creative goods, with a valuedeveloping countries are net importers of creative productsof about $94 billion. For economies in transition, imports(see more detailed analysis in section 5).130CREATIVE ECONOMY REPORT 2010International trade in creative goods and services: Global trends and features 020%40%60%80%100%020%40%60%80%100%
Table Creative goods: Imports, by economic group, 2002 and 2008 (in millions of $)DevelopedDevelopingTransitionWoeconomieseconomieseconomiesrld20022008200220082002200820022008All Creative Industries225,590420,783187,170317,05836,69293,7211,72810,003Art Crafts20,34129,27215,33620,8364,8587,641147795Audio Visuals41169932648383181234Design129,232248,358106,388185,81021,90556,3769396,1725New Media17,68136,36114,51926,8783,0319,064132420Performing Arts11,13428,0229,65122,2411,4215,32261458Publishing29,63349,10725,16636,3514,06810,9153991,841Visual Arts17,15828,96415,78424,4601,3274,22248282Source: UNCTAD, based on official data in UN COMTRADE databaseCreative goods: Imports, by economic Table group and region, 2002 and 2008Value (in Change millions of $)(%)Economic group and region200220082002-2008World225,590420,78387Developed economies187,170317,05869Europe93,458184,35397United States of America68,62489,97131Japan12,12918,51253Canada8,21414,73679Developing economies36,69293,721155Eastern and South-Eastern Asia26,04853,400105China2,9416,078107Western Asia2,42014,953518Latin American and Caribbean6,13916,007161Africa1,5855,693259LDCs3441,579359SIDS169845400Transition economies1,72810,003479Source: UNCTAD, based on official data in UN COMTRADE databaseChart 5Chart of creative goods, by group, 2008 .5aImports of creative goods, by economic group, 2002, 2005 and 2008 350 %%%300 Design (%) %%Publishing (%) 250 Art crafts (%) %200 Visual arts (%) %Performing arts (%)Developed economies150 New media (%) Developing economiesAudiovisuals (%) 100 Transition economies 50 0 Source: UNCTAD, based on official data reported to UN COMTRADE database200220052008 Source: UNCTAD, based on official data reported to UN COMTRADE database 131CREATIVE ECONOMY REPORT 2010(in billions of $)International trade in creative goods and services: Global trends and features
players in Table Creative goods: Top 20 exporters worldwide, 2002 and 2008 the global market for creative goodsValue (in Market Growth Rankmillions of $)Rankshare %rate %A list of the world’s 20 leading2008Exporter20082002200220082003 - 2008exporters of creative goods in 2002 and2008 is presented in table . China1China84,80732, States35,00018, the list, while the United States,3Germany34,40815,, Italy, the United Kingdom,4China, Hong Kong SAR33,25423,,79216, and Netherlands remained near6United Kingdom19,89813,,2718, top. India, Turkey, Mexico, Thailand8Netherlands10,5273, Singapore are the other developing9Switzerland9,9165,,450.. that ranked among the top 2011Belgium9,2205, 2008. India showed the greatest12Canada9,2159,,9883, in exports of creative goods dur-14Austria6,3133, the period 2002-2008. More detailed15Spain6,2874,,3692, on trade flows by region and share of17Poland5,2501,,1673, total are provided in tables ,0772, of the ,0472,: UNCTAD, based on official data in UN COMTRADE databaseDeveloped economies: Top 10 exportersExports of creative goods from theCreative goods: Top 10 exporters among developed economies grew during theTable developed economies, 2008 period 2002-2008, with export earningsValue (in Market Growth rising from $128 billion to $227 of $)share (%)rate (%)Design products made the highest contri-Rank Exporter200820082003-2008bution to the trade balances of these1United States 35,, followed by ,, of art crafts increased in value,4United Kingdom19, the developed economies lost market5France17,, to developing economies. Table , the top 10 developed economies in8Belgium9,, of exports of creative goods in10Japan6,. The United States ranked first dueSource: UNCTAD, based on official data in UN COMTRADE databaseto its competitive position in design,which includes, among other items, inte-rior objects. The constant positioning ofDuring this period, exports of creative goods from develop-the same economies among the top 10 exporters in 2002 asing countries grew from $76 billion to $176 billion. Asianwell as in 2008 is also accounted for more than three quarters of totalDeveloping economies: Top 10 exportersexports of creative goods from economies of the South. Thisdevelopment is explained by major increases not only inThe dynamism of exports of creative products byChina but also in Southeast Asia and Western Asia duringdeveloping economies is a new element in the creative econ-the period 2002-2008 (see chart ).omy. The recent increase in exports from China was remark-able — from $32 billion in 2002 to $85 billion in ECONOMY REPORT 2010International trade in creative goods and services: Global trends and features
Africa contributed marginally ( per cent inCreative goods: Exports from all developing Chart , 2002 and 20082008) to world exports of creative goods eventhough African exports of creative goods increasedAllfrom $740 million to $ billion during the perioddeveloping2002-2008. Egypt was the largest African exporter,economiesfollowed by South Africa, Tunisia, Morocco andMauritius. Egypt for the first time reported a consid-Asiaerable amount of exports of creative goods in , the weak presence of Africa in global mar-2008Americakets reflects not only the limited supply capacity on2002the continent but also the fact that the great majori-ty of creative and cultural production in Africa takesAfrica(in billion of $)place in the informal sector, where statistics are hardto come limited data are available for the world’s leastSource: UNCTAD, based on official data reported to UN COMTRADE database developed countries (LDCs). However, existing datafrom the few reporting LDCs demonstrate theoverwhelming importance of creative indus-Creative goods: Top 10 exporters among tries in countries such as Cambodia, Mali,Table developing economies, 2008Senegal and the United Republic of (in Market Growth millions of $)share (%)rate (%)The same observation is valid for the smallisland developing States (SIDS).Rank Exporter200820082003-2008The list of major exporters from develop-1China84,, Hong Kong SAR33, economies is led by China, also the world’s3India9,, exporting country. It should be noted,5Mexico5,, that 9 of the top 10 exporters of 6Thailand5,, goods among developing economies8United Arab Emirates4, in Asia, as shown in table . Mexico is the9Korea, Republic of4,, other nation to make the list, occupyingfifth place. For the moment, African creativeSource: UNCTAD, based on official data in UN COMTRADE databaseproducts are very under-represented in worldmarkets despite the great potential of the 3creative economy for the Latin America and the Caribbean, exports of cre-ative goods almost doubled, from approximately $ billionto $9 billion, although the level of exports from the balance in creative goodsremains comparatively low given the potential of its creativeindustries. Only Mexico figures among the top 20 the export and import statistics for indi-The region’s other major exporters are Brazil, Colombia andvidual countries can indicate whether a country has tradeArgentina. In the Caribbean, total exports of all creativesurplus or deficit. For creative goods, China has posted high-goods amounted to $57 million in 2008. The Dominicanest trade surplus, which increased from $29 billion in 2002Republic was the largest exporter in the region, followed byto $79 billion in 2008 due to a dramatic surge in and Trinidad and United States, conversely, registered a massive trade3The existing statistical records of some developing countries need substantial improvement; data collection needs to be systematic, and comparable nomenclatures and standard sta-tistical codes need to be used. Otherwise, the difficulties in assessing the participation of developing countries in world trade of creative industry products will ECONOMY REPORT 2010International trade in creative goods and services: Global trends and features
deficit of $55 billion in 2008. ThisChart goods: Top 10 trade surplus and deficit countries in 2002result corresponds to the global discus-sion that China’s share of trade the United States is the largestChina, Hong Kong all other group of 2008 the number of in the top 10 surplus climbed from five to seven, and Viet Nam becoming impor-Korea, Republic players in this industry. Among theSaudi countries, Italy had the -largest surplus in creative goods, its surplus was five times lower China’s in 2008. Germany, which third, has also increased its share exports in the world market, United Kingdom $ billion in 2008. United States (in billions of $)No countries in Latin America orAfrica made the list of top 10 surplus-60-40-2002040countries. In summary, with the excep-Source: UNCTAD, based on official data reported to UN COMTRADE database tion of Asia, where many countries arenet exporters, other developing regions,in particular Africa, the Pacific, theChart goods: Top 10 trade surplus and deficit countries in 2008Caribbean and Latin America, havebeen consuming more and creative products (see and chart )., Hong Kong, profiles the creative economyViet integral part of this report statistical annex, which provides a picture of world trade for creative goods and services. United Arab annex derives from the UNCTAD Database on the Creative ,which provides United Kingdomtools to enable individual countries Japan United States (in billions of $)0-80-60-40-2020406080100Source: UNCTAD, based on official data reported to UN COMTRADE database 134CREATIVE ECONOMY REPORT 2010International trade in creative goods and services: Global trends and features
profile their trade performance in the area of the creativeboth creative goods and services. These country profilesindustries. The database provides an opportunity for policy-cover the period 2002-2008 and compare all creative sec-makers and researchers to extract trade information to gener-tors to better understand how their trade performance hasate detailed product and country-level information for eco-evolved. The first part of each country profile summarizesnomic balance and with a detailed disaggregation of productgroups. The second part presents a comparative analysis ofAs an illustration, the annex presents country profilestrade data for creative goods, positioning each country in itsfor two countries (Argentina and Turkey) from differentregional regions, showing their trade performance economic groups in world marketsEurope led exports of creative-industry products dur-In Latin America and the Caribbean, the perform-ing the period 2002-2008. As shown in table , the 27-ance of creative industries also improved but less European Union is the leading regional economicExports of creative goods from the 34 countries thatgrouping in exports of creative goods, dominating the mar-actively participate in the Free Trade Area of the Americasket with about 40 per cent of world exports. However, this(FTAA) increased from $33 billion in 2002 to $53 billionincrease also reflects the growing number of countries in thein 2008. Of this latter amount, $49 billion represented theEuropean Union. Conversely, fewer countries are nowexports from the three countries that belong to the Northgrouped as economies in transition, one of the reasons forAmerican Free Trade Agreement (NAFTA): Canada,their very low level of exports. European Union exports ofMexico and the United States. On the other hand, the fourboth creative goods and creative services increased marked-MERCOSUR countries (Argentina, Brazil, Paraguay andly during the period 2002-2008. Its exports of creativeUruguay) have a small share in the world trade of creativegoods rose from $89 billion in 2002 to $163 billion ingoods despite the gradual increases; together they exported2008. For data on trade flows by trade groups, see tables$ billion of creative goods in 2008. The other in the the region have a very small share in world trade of creative-industry became the second largest exporting region in2002, when the total value of its exports of creative goodsIn summary, the potential of creative industries insurpassed the total exports of creative goods from NorthLatin America and the Caribbean has not yet been fullyAmerica, according to reported figures. As mentioned earli-explored. The economies of the ACP Group — whicher, the main reason for this is the impressive growth ofencompasses the 79 countries of Africa, the Caribbean andexports of creative goods from China, which reached $85the Pacific — are not yet benefiting from the huge potentialbillion in 2008. Moreover, exports of creative goods fromof their creative industries. Despite their rich cultural assets,the 10 countries of the Association of Southeast Asiantheir share in world markets remains extremely (ASEAN) rose from $ billion in 2002 to $, exports of creative goods increased from $446billion in 2008. For the so-called ASEAN+3 (ASEAN plusmillion in 2002 to $ billion in 2008. The same situationChina, Japan and the Republic of Korea), total exports ofapplies for the group of 49 LDCs (whose exports reachedcreative goods reached $ billion in 2008 (see table $ billion in 2008) and the SIDS (whose exports reachedin the annex). In other regions in Asia, including Western$135 million in 2008). (Most of the LDCs and SIDS areand Eastern Asia, production and exports of creative also members of the ACP Group). Undoubtedly, furtherproducts also increased sharply from 2002 to should be made to enhance creative capacities fortrade and development gains in all these ECONOMY REPORT 2010International trade in creative goods and services: Global trends and features
Creative goods: Exports, by regional Table economic group, 2002 and 2008 Value (in Market millions of $)share (%)Regional economic group200220082008AmericaFTAA33,41953,,68149,, (10)7,36917,+346,936113, (27)89,051163,,,: UNCTAD, based on official data in UN COMTRADE for North-South and South-South trade in creative goods and servicesSouth-South trade constitutes a vibrant avenue foring countries to engage in trading relationships with onefuture trade growth. The South’s exports to the rest of have increased significantly, from $76 billion in 2002South-South trade of creative goods reached nearlyto $176 billion in 2008, accounting for about 43 per cent of$60 billion in 2008, tripling in six years. This represents antotal creative industries trade. More importantly, exports ofastonishing rate of 20 per cent annually, while South exportscreative goods increased by per cent annually, even fasterto the North has been growing at an impressive, but relativelythan the world average during this period. This clearly indi-slower, annual rate of per a growing dynamism and rising market share of devel-Given its nature and duration, the current economicoping stands to influence global markets for creativeIn recent years, UNCTAD trade analysis has providedindustries in the long term, especially the dynamics of South-evidence of new market opportunities in the South. TheSouth trade. Early signs suggest that trade of creative goodsregion’s emerging trading and economic dynamism has creat-and services is increasingly associated with our currented a new set of relationships among North and Southlifestyle and is therefore more resilient in the crisis. As notedeconomies. Between 2002 and 2008, the South’s exports ofearlier, creative industries have been among the most dynam-all goods to the world rose from $ trillion dollars to $ sectors in world trade throughout this decade. Countries intrillion dollars. South exports to the South, increased fromthe global South play an increasingly important role in the$828 billion to $3 trillion during this period. Exports fromnew trade of creative to South have increased faster than exports fromExports of creative goods from one developed econo-South to North, revealing further opportunities for develop-my to another showed a slight decline in market share from136CREATIVE ECONOMY REPORT 2010International trade in creative goods and services: Global trends and features
per cent in 2002 to 77 per cent in 2008, while theirSouth-South trade, about 66 per cent of the total South-share in developing economies increased to 18 per cent inSouth trade in creative industries in 2008, followed by art2008. In value terms, earnings from exports from developedcrafts, new media and publishing. Developed economies areto developing economies increased from $19 billion to $41still the primary destination for developing economies’billion during this , with a share of more than 60 per cent in , new media and art crafts account for about 90 perThe predominance of developed economies in thecent in 2008. The trade links between developing and tran-world trade of creative goods is noteworthy. In 2008, theirsition economies have not yet taken off in total exports of creative goods was about 90 per5cent for music and audiovisual products, about 80 per centWithin the regions of developing economies, Asia —for publishing and printed media, 76 per cent for visual artsand China in particular — is leading the growth of creativeand about 50 per cent for new media and design. Designindustry products. Asia contributed about 82 per cent ofproducts accounted for the largest share of exports fromSouth-South exports of creative goods in 2008, followed bydeveloped to developing economies, followed by publishingthe Latin America with 11per cent and Africa with about 7and performing arts. The export value and market share ofper cent. Again, design products contributed much of thisvisual arts and new media from developed to developinggrowth, followed by art crafts. Design also accounts for theeconomies increased during this share of Latin American and African exports of creative products. China continues to lead this process andFor developing countries, art crafts are the mostremained the world’s largest producer and exporter of cre-important creative goods, accounting for 65 per cent ofative goods in 2008. Efforts are being made to focus on athese countries’ share in the world market for creative indus-“created in China” strategy. Some developing countries,tries. Design and new media also have great potential;mainly in Asia, are benefiting from the dynamism of theexports from developing economies have been growing andglobal trade of creative products by tailoring policies toaccounted for nearly 50 per cent of the world demand inenhance their creative industries and the competitiveness of2008. This report stresses the need to improve market trans-their products in world markets (table ).parency, particularly in the area of audiovisuals and newmedia. It also examines opportunities to promote North-This evidence strengthens the initial trade analysis pre-South as well as South-South in the Creative Economy Report 2008. The global marketfor creative industries is highly dynamic yet poorly under-Developing countries accounted for 43 per cent ofstood, especially in the case of South economies due to lim-world trade of creative goods in 2008, but if China isitations in statistical methodologies. Although the rapidexcluded this share drops to 22 per cent (see chart ).growth of creative industries has been concentrated in Asia,Exports of creative services grew significantly between 2002and 2008, tripling from $62 billion to $185 industries: Exports of creative goods, The most dynamic sectors were architecture and adver-Chart economic group and China, 2008tising services, while cultural and recreational services1%and audiovisuals grew by at an annual rate of 10 percent. South-South trade of creative services reiterates43%this positive trend, growing from $ billion to $2121%%56%In particular, the total exports of creative goodsfrom South to the world grew from $76 billion to $176billion during the 2002-2008 period. The disaggregat-ed data indicate that the exports from South to SouthDeveloped economiesChinaeconomies have increased markedly from $18 billion toiesRest of developing economiesDeveloping economTransition Economies$60 billion, while exports to Northern markets grewfrom $56 billion in 2005 to $110 billion in : UNCTAD based on official data reported to UN COMTRADE databaseDesign products account for about $40 billion of137CREATIVE ECONOMY REPORT 2010International trade in creative goods and services: Global trends and features
all developing regions have increased their participation insharp increase in imports of creative industry products, espe-the world trade of creative goods (table ).cially television and radio programmes, films, books and edu-cational materials, including educational software. With theThe dynamic trade in creative goods and servicesconsolidation of FTAs and RTAs, new forms of coproduc-described in this section confirms the promising prospectstion are emerging in the field of film and television, includingfor increased regional trade flows among countries in alljoint ventures in both the South-South and the North-Southregions. North-South trade is expanding in traditional cre-spheres. Creative services such as architectural services consti-ative areas as well as new areas related to digitalization,tute one of the best examples of joint ventures. 4including new media. A study by UNESCOon cultural5exchanges confirms that regional trade agreements (RTAs),Further grounds for trade liberalization can be foundfree trade agreements (FTAs) and economic unions are stim-in the Economic Partnership Agreement between theulating trade and investment in audiovisual products amongEuropean Union and the ACP States; the FTA with otherstheir member , including the Euro-Mediterranean countries; andthe European Union bilateral treaties with other North-South trade, numerous bilateral agreementsThese agreements provide stronger grounds for trade liberal-as well as the Central American Free Trade Agreement areization than WTO agreements do through the application ofreinforcing this trend. Such agreements help account for theArticle XXIV of the General Agreement on Tariffs andTable goods: Exports of South-South trade, by regional group and product group, 2002 and 2008AsiaAmericaAfricaValue ( in Market Value ( in Market Value ( in Market millions of $)share (%)millions of $)share (%)millions of $)share (%)200220082002200820022008200220082002200820022008All Creative Industries14,66548,,3326,, Crafts2,3226,,, ,51332,,3884,, Media1,4073, Arts2191,, Arts3971,: UNCTAD, based on official data reported to UN COMTRADE databaseCreative goods: all creative industries exports of South-South trade, Table regional group and China, 2002 and 2008AsiaAmericaAfricaValue ( in Market Value ( in Market Value ( in Market millions of $)share (%)millions of $)share (%)millions of $)share (%)200220082002200820022008200220082002200820022008All developing economies14,66548,,,,,57048,,5654,,,31919,,,: UNCTAD, based on official data reported to UN COMTRADE database4UNESCO (2006), Trends in Audiovisual Markets: Regional Perspectives from the ECONOMY REPORT 2010International trade in creative goods and services: Global trends and features
Trade (GATT) and Article V of the General Agreement onthe Global System of Trade Preferences to spur furtherTrade in Services (GATS).expansion of South-South trade in this promising this impressive gains already seen, particularly inThe growth in South-South trade of creative goodsAsia, the other developing regions are not achieving the fullhas tripled in just six years, now accounting for 15 per centpotential of their creative economies to foster world trade of creative goods. Developing countriesA combination of domestic policy weaknesses and globalwould therefore do well to conclude their negotiations under5systemic biases are the main trends in international trade of creative industries, by sectorsThe structure of world exports of creative goods andbrations, festivals and folklore. In different parts of theservices by subgroup in 2002 and 2008 is presented in tableworld, native peoples and communities are keeping alive, . The components of this table will be referred to undersometimes reviving and rescuing, old traditions by reproduc-each group to widen the scope of the overall analysis. Theing ancient crafts, using their original designs. Through tra-order of the groups follows the UNCTAD definition of cre-ditional knowledge, many indigenous communities are keep-ative industries as described in chapter 1, starting with theing alive remnants of ancient civilizations, such as the Mayasmore traditional groups led by heritage and arts, followed byin Guatemala and the Incas in Bolivia and Peru. For thesethe more technology-intensive sectors of audiovisuals, pub-populations, the production and sale of handicrafts based onlishing and design and then the services-oriented groups oftraditional designs and raw materials are sometimes the onlynew media and functional of shown in table , the heritage domain comprisestangible and intangible goods and services. A carpet is of heritage goods, while heritage services cover thecultural and recreational services that are associated with his-Featurestorical monuments, archaeological sites, museum, librariesCultural heritage comprises the vestiges of our archives. Traditional cultural festivities are culturallyHeritage sites are relics of ancient civilizations, over theimportant creative activities for developing countries, partic-years considered as cultural patrimony of mankind and theularly when associated with tourism, even if data on theseheritage of nations. In addition to their cultural and historicfestivities are usually not collected , such unique endowments contribute to reinforcingour identities and broadening our education. Heritage sitesThe carnival in Brazil is a good illustration of the eco-are the main attractions in cultural tourism all over thenomic importance of traditional celebrations (see box inworld. For some countries, these sites are major sources ofchapter 2). The evolution of exports from the heritage goodsrevenue, albeit usually not reported as cultural services ofand services is shown in chart . This is the only group ofthe creative industries in which developing countries have astrong participation in world markets due to the importanceHeritage is also embedded in the traditional culturalof the production and trade of art of human creativity, manifested in cultural cele-5The key creative industries are the music and film industries, TV and radio broadcasting, performing arts, and trade of digitalized creative content. For a sense of the magnitude ofthe creative economy and its overall economic impact, see PricewaterhouseCoopers (2008), which forecasts that the global entertainment and media industry alone will inject around$ trillion in the world economy in ECONOMY REPORT 2010139International trade in creative goods and services: Global trends and features
mal workings; as a result, the classification of items is veryHeritage goods: Exports, by economic subjective. There is seldom a clear distinction between arti-Chart , 2002, 2005 and 2008san handmade work and machine-made Developing Transition economieseconomieseconomies Moreover, in some cases, it is difficult to identify significant25differences between art crafts and visual arts or design. Inthis situation, this report is presenting first-hand figures for20international trade in art our view, it would make little sense to analyse the515creative economy from the development perspective withoutgiving due attention to art crafts, which are among the most10traditional expressions of creativity and certainly the mostimportant creative industry for many developing aim is to furnish some evidence of the importance ofan essential economic activity that is often disregarded and0200220052008disconnected from public policies. The art crafts constituteSource: UNCTAD Database, based on official data reported to a genuine creative industry that should be supported andUN COMTRADE databaseenhanced, particularly in the most disadvantagedcommunities. The production and internationalArt crafts: Exports, by economic group trade of art crafts are vectors for job creation andTable and region, 2002 and 2008export earnings, and therefore are feasible tools for Value (in Change poverty alleviation, the promotion of cultural diver-millions of $)(%)sity and the transfer of community-based group and region200220082002-2008These are initial steps in an area that requires fur-World17,50332,32385ther research, analysis and policy economies8,25611,44339Europe6,2069,22049International tradeUnited States of America1,4431,5316Japan31344241Art craftsCanada238187-21International trade in art crafts totalledDeveloping economies9,20220,715125$32 billion in 2008. The global market for artEastern and South-Eastern Asia8,07916,200101China3,56910,722200crafts is expanding and clearly is not negligible;Western Asia5601,887237world exports increased per cent, from $ America and Caribbean43067156Africa91515468billion to $32 billion, during the period 2002-LDCs233691,5042008. Art crafts are the most important creativeSIDS7923industry for export earnings in developing coun-Transition economies45164264tries, and a major one for developed countries asSource: UNCTAD, based on official data in UN COMTRADE databasewell. Asia and Europe are the main exportingregions for art crafts products with greatest penetration inining and classifying art crafts is a complex 6world markets include carpets, celebration items, yarn crafts have distinctive features and they can beutilitarian, aesthetic, aructs and wickerwork. It is noteworthy that among the tentistic, creative, culturally attached,decorative, functional, traditional, and religiously and social-leading exporting economies, there are only four developing7economies. Worldwide, China is the leading exporter of arti-ly value chain in art crafts production is intri-san products, with a strong product diversification. The evo-cate due to the lack of formalized policies and often infor-6Terminology adopted by ITC and UNESCO defines artisan products as those produced by artisans either completely by hand or with the help of hand tools or even mechanicalmeans as long as the direct manual contribution of the artisan remains the most substantial component of the finished product. Artisan products can be classified in several cate-gories, the six main ones being basket/wicker/vegetable fibre works; leather; metal; pottery; textiles; and (2003). Promoting the Culture Sector through Job Creation and Small Enterprise Development in SADC ECONOMY REPORT 2010International trade in creative goods and services: Global trends and features (in billions of $)
oping countries hold a leading position in theArt crafts: Top 10 exporters among Table economies, 2008global market. For this creative sector, develop-ing-country exports more than doubled in six Value (in Market Growth millions of $)share (%)rate (%)years, from $9 billion in 2002 to $21billion in2008. Tourism and the expansion of leisure andRank Exporter200820082003-2008art markets will continue to contribute to the1Belgium2, of art crafts in world trade. At the2United States 1,, level, efforts to enhance the production4Italy1, art crafts in developing countries can help cultural identity and foster economic7United . However, policies and required to promote cultural policy new trade opportunities. These twoobjectives are mutually supportive and can pro-Art crafts: Top 10 exporters among mote inclusive development at the grass-rootsTable economies, 2008level. Value (in Market Growth China led in exports of art crafts in 2008,millions of $)share (%)rate (%)with a sizeable market share (33 per cent) com-Rank Exporter200820082003-2008pared with that of other developing countries1China10,(see table ). Asia dominated the art crafts2China, Hong Kong SAR2,,, as all ten major exporters of art crafts4Korea, Republic of1, developing countries were from ,, Taiwan Province from India doubled over the period, $1 billion in ..(1) revenues from cultural and recre-ational services, which include museums, libraries,Note: (1) Egypt only reports in 2008, not enough data for calculation growth : UNCTAD secretariat calculation based on official data in UN COMTRADE databasearchives and historical sites, rose from $7 billionin 2002 to $ billion in 2008. The level ofparticipation of developing countries in this mar-lution of exports of art crafts are shown by regional trade isket is low. Turkey, Malaysia and India benefitted most frompresented in table . For further details about trade flows,their cultural services in terms of export earnings, as per thesee tables and in the data. An overview of exports of other personal, cul-tural and recreational services is provided in table inIn 2008, art crafts exported from developed economiesthe annex, while information on imports is presented in tabletotalled $ billion. Yarn was the most important export, in the by carpet (see table in the annex). Belgiumand the United States led the developed economies inexports of art crafts in 2008, as shown in table . Artson economies in transition are very deficient with respect toall creative industries; in 2008, their exports totalled $ performing arts are an important creative indus-billion, accounting for about 1 per cent of total exports oftry, particularly owing to their interaction with other creativecreative such as music, costumes and broadcasting. Thissubgroup covers all sorts of stage art, performed live byKey players from the developing worldartists for an audience. The performing arts encompass suchArt crafts are the only creative industry in which devel-forms as theatre, opera, poetry, dance, ballet, concerts, the141CREATIVE ECONOMY REPORT 2010International trade in creative goods and services: Global trends and features
circus and puppetry; they are usually presented for cultural,forming arts sector is generated primarily through earnededucational, entertainment and business purposes. The sec-income since few mechanisms exist to fund operating or pro-tor includes everything from solo performances by individ-gramming expenses through corporate, foundation or 11ual artists to large-scale theatrical productions by commer-government grants or the focus in thecial, non-profit or hybrid of the performing arts is on the artist as the provider ofperforming services, and there are critical issues relating toThe world market for performing arts generates anlabour-market conditions and mobility that need to be8estimated $40 billion in box office largestaddressed at both the national and international are the United States, the United Kingdom and5France. In this report it is not possible to provide a compre-The employment conditions of artists are often pre-hensive analysis of the economic impact of performing arts,carious. Artists’ contractual obligations usually are project-owing to the lack of data for the commercial flows of per-based, and periods of unemployment between engagementsforming services in domestic and global markets. Incomeare a normal feature of their working lives. Most performingfrom performing arts derives from box-office revenues,artists work on an irregular, part-time or self-employednational and international touring, performance royaltiesbasis, with limited coverage for medical and pensionand taxation, for which data are seldom collected or report-schemes, particularly in developing countries. This is an areaed nationally; consequently, it is impossible to conduct arequiring public policies at the national level. The ILO, inglobal comparative analysis. Performing arts are a specialcollaboration with UNESCO and other international organ-case, since their products are expressed as an intangible orizations, is developing an international framework of allimmaterial service, unlike other creative industries where fig-occupational categories of the cultural sector. The aim is toures for tangible goods (such as a piece of sculpture in theassist governments to have the necessary information aboutcase of visual arts) serve as the basis for a quantitative analy-the labour aspects of their creative industries as a tool tosis. In developing countries, few countries collect nationalfacilitate policy formulation for improving employment con-data on cultural performances and activities as part of theditions and job creation in the for their satellite account for , the mobility of artists is an issuePerforming arts generally reside within the non-profitunder negotiations at the WTO Doha Round in the contextsector, which relies heavily on subsidization of activities andof the GATS agreement for liberalization of trade in servic-operations. In most developed countries, the performing artses. Issues related to the “free movement of natural persons”benefit from government grants or subsidies and fundingand the policy debate about the four modes of supplyingfrom foundations, other non-profit organizations and cor-services are particularly relevant for artists, performers, cho-porations. For instance, the European Parliament allocatedreographers, musicians, etc. (see chapter 9). The internation- million in 2007 for a project to facilitate the mobilityal community should find and agree upon solutions to pro-of EU artists, following the European Year on Workers’vide opportunities to enable those working in performing9Mobility in is increasingly producing regula-arts to have greater access to international markets so thattions regarding the live performance sector. At the same time,they will be able to offer and export their creative and cul-12performing arts organizations are focusing on their own con-tural services and challenges, in particular the financing of theirInternational touring of performing artists andartistic missions, extension of copyright term for performersgroups has a dual role. From the cultural perspective, it helpsand recordings, employment and social security as well asto promote cultural exchange and cultural , it not only generates revenue for the perform-In developing countries, despite the high degree ofers, which translates into foreign earnings for their countries,artistic excellence and the activism of several professionalbut it also induces positive spin-offs and financial benefitsorganizations, the situation is completely different. Whenfor the hosting cities. Thanks to the wider policy debatesuch funds exist they are very limited. Income for the per-about the importance of the creative economy in revitalizing8PricewaterhouseCoopers (2005).9European Commission (2007).10Performing Arts Employers Associations League Europe (2008).11Nurse et al. (2007).12Issues relating to WTO multilateral negotiations are further elaborated in chapter 9. 142CREATIVE ECONOMY REPORT 2010International trade in creative goods and services: Global trends and features
socio-economic growth, performing artists are becomingand tapes, cannot capture the huge contribution of the musicmore eloquent in asserting their labour rights and demand-industry to the economies of many countries. The valueing better employment conditions. On the other hand, gov-chain and the market structure of the music industry are veryernments seem more open for a dialogue and more willing tocomplex. The size of international markets eludes analysisadopt policy instruments to improve the social and econom-because statistics and economic indicators are situation of creative professionals — both artists andThe absence of figures for copyright revenues and the obscu-technicians — working in the performing sector. Mattersrity of intra-firm financial transactions of the large transna-related to intellectual property, in particular the extension oftional conglomerates, usually vertically and horizontally inte-5copyright term for performers, tax regulations and permitgrated, which dominate the production, distribution andapplication procedures are key issues that need to be effec-copyrights of music products, are missing links for anytively tackled. One of the success stories featured in chaptersound analysis of the world music (see box ) concerns a performing arts organization thatMusic is part of the performing arts subgroup of cre-reinvented a traditional art form, the industries when considered in terms of live perform-ances and concerts. However, it may also be included as partMusicof the broader area of audiovisuals when dealing with theFeaturescreation of sound records and compositions. Music can alsoMusic is one of the central creative industries, withbe classified under the new-media subgroup when musicgreat cultural and economic value in all societies. Everywheregoods and services are traded virtually as creative content inin the world, music is the universal idiom to give expressiondigitalized form. For these reasons, music is featured sepa-to our feelings and aspirations. Sharing a musical experience,rately in this report for the purpose of trade and statisticalwhether domestically or internationally, is an act that established boundaries and transcends existingThe music industry faces a difficult paradox: whiledivides. For centuries, composers, singers and musicians havemore and more music is being consumed worldwide, partic-been carrying their local musical traditions across geograph-ularly by youth, the earnings received by songwriters, produc-ical borders, contributing to the fusion of music stylesers and performers have been declining. This situationamong many cultures even if the lyrics remain an expressionreflects two key issues: (a) the lacunae in the current regimesof cultural diversity mirroring local realities. Music is anof IPRs, and (b) the need for songwriters and the singers toessential instrument of intercultural greater control over their music and make better use ofToday, thanks to technological advances, local musicall ICT tools for accessing global markets. The music indus-can reach global audiences almost instantaneously. Digitaltry faces a number of challenges in tackling these issues. Thetechnologies are also changing the way music is created, pro-first is to call for the enforcement of development-orientedduced, reproduced, commercialized and consumed incopyright legislation by governments and internationalnational and global markets. The trade in music has becometreaties. The second is to develop a commercially viable andvery closely linked to the use of new digital tools such aslegitimate alternative to the illegal but free downloading ofInternet peer-to-peer networks, mobile telephones and MP3copyrighted content. Indeed, a piece of written music can beplayers. As a consequence, the world market for music hasprotected by copyright and related rights at each stage of itsadapted to changing business models emerging from newlife, and the composition can be protected for the compos-forms of production, marketing and distribution of musicer’s lifetime plus seventy years. In practice, however, a pub-goods and services (see chapters 3 and 7).lisher offers to buy the rights of a piece of music and seeks13to exploit it by means of UNCTAD analy-Music is not only a form of cultural expression and asis has indicated, “Despite some early success in several for-source of entertainment, but also a dynamic industry inpay music download portals, the creative and business powerglobal trade and big business in the world economy, respon-of the Internet will be greatly advanced when artists, indus-sible for millions of jobs and income-generation and audiences master how to better commercialize Trade figures for physical goods alone, such as sales of CDs14peer-to-peer (P2P) file sharing” and online straightforward explanation is shared by Howkins (2001:100). This report further elaborates on issues relating to intellectual property rights in chapter (2004:61-94), E-Commerce and Development Report 2004, contains a comprehensive analysis of this ECONOMY REPORT 2010International trade in creative goods and services: Global trends and features
Against this picture, the trade figures shown in thisbe noted, however, that the UNCTAD figures are for inter-chapter as well as in the annex of this report should be seennational trade based on world exports and imports, while theas indicative of market trends, not absolute values, since theIFPI figures are for global music sales, including for domes-real value of the international market for music is muchtic . The issue is how to measure the full economic impactDigital music sales rose another 12 per cent from 2008of the music industry in the absence of disaggregated andto 2009, when they reached $ billion, ten times higherreliable data for trade, employment and copyrights as well as17than in channels now account for around 25for marketing and distribution services. Political will at theper cent of all trade revenues to record companies. Single5national level, combined with a well-coordinated efforttrack downloads are driving the online market, with about relevant international and national organizationsbillion units downloaded globally in 2008. In 2009 some the music industry, is needed to improve market trans-billion tracks from over 500 legal online music services wereparency and deal with the asymmetries affecting the func-identified by IFPI around the world. Music fans can nowtioning of the music world and pay for music in diverse ways, and more than 6The recorded music market consists of consumermillion music tracks are available online. UNCTAD does notspending on albums, songs and music videos, whether dis-yet collect data for the online music in physical and digital format. It does not includeA recent study published by the International Tradelive performances or other merchandising revenues. Digital18Centre (ITC)emphasizes that the “long tail” (see chapterdistribution includes music downloaded to mobile phones3) of niche product distribution over the Internet and onthrough wireless carriers or to computers over the Internetcellular networks offers tremendous possibilities by enabling15through licensed world production, market-musicians, producers and record companies around theing and distribution of recorded music has a complex mar-world to cater to small groups of consumers at much lowerket structure. On one hand, it is an oligopolistic marketcosts than in the physical world. For instance, newly dominated by four major labels in the North (Sony/BMG,digitized recordings of traditional music from TajikistanUniversal Music, EMI and Warner Music) and their sub-could be made available to world music amateurs and ethno-sidiaries spread out all over the world. Together, they more than 80 per cent of the world music market (seeThe ITC study, which involved a survey of six devel-competition issues in chapter 3). On the other hand, theoping countries (Brazil, India, Mali, Senegal, Serbia andmarket is extremely fragmented with thousands of inde-pendent artists and bands that function as small companiesChart music revenues, 2004 - 2008or microenterprises. As a result, independent domestic musicproducers from the South have few opportunities to (in billions of $)the world market, even within their own countries. This why revenues from copyrights are not available not reflected in the trade balance of developing The UNCTAD global database for trade in , based on national figures reported to the , indicates that the international trade flows music (mainly exported as CDs) totalled $26 in 2008 (table ). Meanwhile, global revenues music grew from $400 million in 2004 to $ bil-Source: IFPI, Digital music report 2009lion in 2008, according to the International Federation of16the Phonographic Industry (IFPI)(chart ). It should15For further information consult PricewaterhouseCoopers (2008).16IFPI publishes an annual report, Recording Industry in Numbers, with data from 1,450 member companies in 75 countries and affiliated industry associations in 49 countries. The IFPI figures are widely used as a reference for business in the world music market. Nevertheless, as many developing countries are not members of the federation, its data do not have a universal coverage and do not capture the interests of small firms or independent music composers, producers and performers from most countries in the (2009) and IFPI (2010). 18ITC/WIPO (2008). For further information consult or ifcreg@. ITC is the joint agency of UNCTAD and the World Trade ECONOMY REPORT 2010International trade in creative goods and services: Global trends and features
Tajikistan), underscores the promise thatFigure summarized version of the online music value-chainmobile technologies hold at both the nationaland regional levels. The study showcases bestConsumerspractices with an emphasis on support activitiesthat can be undertaken by governments andtrade-support institutions. The study confirmsOnline Website ofthe potential of mobile distribution channelsMusic the ProductionServicefor the local music industry. The Internet pro-Company5Aggregatorvides an exceptional opportunity for producersof creative content, such as music and film pro-ductions, to offer their products to Internetusers from all over the world in the form ofdigital files. It also emphasizes that whateverProduction Companythe technological options considered, with theSource: ITC Digital content: Trade in Soundssupport of organizations such as ITC, creativeentrepreneurs from developing countriesinvolved with the music industry have yet tocreated in the South is recorded, and exported, by recordingestablish a new marketing network, online and offline. Therecompanies in the three principal ways to distribute music to a large num-ber of potential consumers on the Internet:Key players in global markets contract with a digital distributor;World trade in music is driven by developed sign a direct agreement with an online service; andeconomies. As shown in table and chart , the five create one’s own downloading exporters collectively command about 60 per cent ofglobal markets. Germany predominates with a market shareInternational tradeof 21per cent, followed by the United States, theThe available data show that world exports of record-Netherlands, Austria, Ireland and United Kingdom. All ofed music tripled from $ billion in 2002 to $26 billion inthe top players benefited from market growth in the period2008. This spectacular increase — per cent average2002-2008, particularly Germany, which reinforced its leadannual growth — represents the fastest acceleration amongwith a growth rate of 23 per cent. What these figures do notall creative industries exports. Compact discs are the mainshow is the oligopolistic market structure of the world pro-physical good used for trade analysis of recorded music; theyduction and distribution of music. This structure is dominat-now represent more than 99 per cent of world music exportsed by four vertically integrated conglomerates that together(see tables and in the annex).and through their subsidiaries retain nearly 80 per cent of theworld market for recorded music. This situation inhibitsInternational trade in music continues to be dominat-music production by independent local producers in develop-ed by developed economies. As a group, these economiesing countries. However, downloading music from the Internetaccounted for about 90 per cent of total exports of record-is gradually transforming this picture, as indicated music (mainly CDs) over the period under review. Theirexports increased sharply from $9 billion in 2002 to $ the low level of participation of developingbillion in 2008. Similarly, imports by developed economieseconomies in the world trade of recorded music, theirtripled, following the same trend, reaching $22 billion inexports increased to $ billion in 2008 from 2002 to2008. Developed countries’ exports and imports of music2008. Economies in transition had $274 million in exportsCDs accounted for about 80 to 90 per cent of world tradeof recorded music and $458 million in imports in music goods. Among the top 10 developed economies,Developing economies and economies in transition are boththe market share remained mostly unchanged since 2002net importers of recorded music, primarily because the(table ). This demonstrates that the majority of musicmusic is created, recorded and commercialized by transna-145CREATIVE ECONOMY REPORT 2010International trade in creative goods and services: Global trends and features
frameworks in China and India are less con-Performing arts: Exports, by economic group, ducive for penetration by the major conglomer-Chart , 2005 and 2008ates, and therefore have independent domesticDeveloped Developing Transition music production. Singapore and the Republiceconomieseconomieseconomies of Korea have improved their export perform-25ance between 2002 and , Latin America and the20Caribbean are practically absent from world mar-5kets for recorded music despite the great appeal15of their music worldwide. Mexico is the region’sleading exporter, while Argentina is a small play-10er. Brazil is an important music producer, with a5large domestic market but with a relative timidcontribution of music exports on its trade bal-0ance, despite the fact that its famous music is200520022008played worldwide. This is a typical case of struc-Source: UNCTAD, based on official data reported to UN COMTRADE databasetural problems of marketing and distribution,similar to those that hamper foreign exchangeearnings from reggae and calypso music in thePerforming arts: Exports, by economic Caribbean (table ).Table group and region, 2002 and 2008 The case of Latin America and theValue (in Change Caribbean illustrates the difficulties that develop-millions of $)(%)ing countries face in their efforts to benefit fromEconomic group and region200220082002-2008the earnings of their own music. As stated earli-World9,68926,136170er, the key factors are the market structure andDeveloped economies8,94722,539152the dominant position of the major conglomer-Europe7,25317,505141ates and their business practices. Three aspectsUnited States of America1,1023,642230Japan178940429stand out: (a) intra-firm trade between headquar-Canada27030212ters and subsidiaries, where transfer pricing mayDeveloping economies6983,323376result in underestimation of trade figures; (b) theEastern and Southeastern Asia4922,746459China168723330origin of the cultural or creative content (most ofWestern Asia1346265the music is recorded in studios abroad, where itLatin America and Caribbean187446139Africa616163is published and from where it will be distributedLDCs1201900to world markets, the international sales of theSIDS--17final product are declared elsewhere); and (c)Transition economies43274531copyrights are collected by the publisher in theSource: UNCTAD, based on official data in UN COMTRADE databasecountry where the music is produced. As a result,export earnings from world sales as well as rev-enues from royalties and copyrights are retainedtional companies. As a result, developing countries importabroad instead of reverting to the homeland of the singer-not only foreign music but also their own in developing is the developing region with better, althoughAfrican countries are absent from table , partlysmall, penetration in global markets for music, reflectingbecause the big conglomerates have a weak presence on theincreases in exports, particularly from China and India. Indiacontinent. Music production in Africa is largely independ-increased its exports from a very low level, reaching $69 mil-ent, informal, small in scale and domestically oriented,lion in exports of recorded music in 2008. Regulatory146CREATIVE ECONOMY REPORT 2010International trade in creative goods and services: Global trends and features (in billions of $)
except in South Africa. Recently steps havePerforming arts: Top 10 exporters among Table developed economies, 2008been taken to improve the structure of themusic industry, mainly through private initia- Value (in Market Growth millions of $)share (%)rate (%)tives by African music stars such as YoussouRank Exporter200820082003-2008N’Dour in Senegal and Salif Keita in Mali aswell as by professional , States3, intervention is needed to support3Netherlands2, efforts, enact supportive fiscal regula-4Austria1,, and mechanisms for microcredit for6United Kingdom1, artists and reinforce IPR regimes7Sweden1, a more favourable : UNCTAD, based on official data in UN COMTRADE artsFeaturesPerforming arts: Top 10 exporters among In the visual arts, value inheres in theTable developing economies, 2008exclusivity and originality of an artwork. TheValue (in Market Growth more rare it is, the more value it is likely to of $)share (%)rate (%)Sales are highly personalized, and products areRank Exporter200820082003-2008created with a uniqueness that makes works of1Singapore1, hardly comparable. Consequently, each , Hong Kong its own value, which can vary over time, each transaction a unique , Taiwan Province , Republic markets operate differently in and developing economies. Auction sales9United Arab predominant in developed economies in the developing world. WhileSource: UNCTAD, based on official data in UN COMTRADE databasemost sales in major markets take place in gal-leries and museums, artwork in developingeconomies is typically traded informally in fleaendar and are contributing to the promotion of artworkmarkets targeting tourists. Owing to the limited number ofwithin regions and structures, appropriate legislation and social safe-The visual arts category of creative industries comprisesty nets, few artists from developing countries are able to sur-antiques, painting, sculpture and photography as well as thevive as full-time artists. Awareness of artist’s rights is usually“other visual arts”, a loose category consisting of engravings,limited. Moreover, most artists are vulnerable and unpreparedcarvings, lithographs, collages and other ornaments. The cat-19for negotiating with curators, collectors, dealers and of the products in this subgroup is more precise,Contemporary art from developing economies isbut due to tax regulations and trade secrets reported figuresreceiving increasing attention in world markets. There is alsodo not always correspond to final deals. Some exports ofrenewed interest in original art rooted in indigenous tradi-visual art and antiques are restricted or prohibited by govern-tional knowledge. New Internet-based delivery networksments to preserve cultural identity, national heritage or theoffer new opportunities for international exposure of visualenvironment, including wildlife, as in the case of the embar-arts from the South. Furthermore, international expositionsgo in many countries of exports of artworks made of trade fairs such as the biennales of Cairo, Dakar, HavanaIn the field of visual arts, there are controversial issuesand São Paulo have become part of the international art cal-regarding the application of intellectual property rights for19ILO (2003). Promoting the Culture Sector through Job Creation and Small Enterprise Development in SADC ECONOMY REPORT 2010International trade in creative goods and services: Global trends and features
the resale of original art works in public auctions. Somedictable. Few contemporary artists from the South receiveargue that the Berne Convention for the Protection ofinvitations from international biennales. The visual arts sec-Literary and Artistic Works should be reviewed, so thattor also suffers from a shortage of art galleries and insuffi-painters, sculptors and their heirs can draw royalties whencient economic and infrastructural work is sold. Within the European Union a debate hasGlobal art markets have soared in recent years. Worldarisen about whether EU directives on the resale rights oftrade in visual arts jumped from $15 billion in 2002 to $30living or dead contemporary artists approved in 2001shouldbillion in 2008, driven by sales of both contemporary artbe amended — and if so, whether any new legislation shouldand antiques. This translates to an average annual growth rate5protect the interests of the artists and their heirs or those ofof per cent and accounts for 5 per cent of total exports20commercial dealers and creative export value of paintings increased from $ bil-International tradelion in 2002 to $15 billion 2008. Second was sculpture,The real art market is a multi-billion dollar businessboth traditional ornamental articles and three-dimensionalcharacterized by lack of transparency, fierce competition andworks of contemporary art, whose exports reached $9 bil-potential for tremendous commercial gain. The largest pub-lion in 2008 — half of it originating in developinglic marketplace are the auction houses, which rarely discloseeconomies. The market for antiques grew from $ billionterms of sales such as reserve prices or commission agree-in 2002 to $ billion in 2008, when developed economiesments and which routinely withhold the identities of somecommanded 86 per cent of the global market. Photographysellers and nearly all buyers. For instance, auctioneers’ com-exports climbed to $ billion in 2008, with developingmissions can reach up to 20 per cent on each end of the win-economies increasing their share from 8 per cent in 2002 toning bid, far greater than the standard fees for buying or sell-17 per cent. These official data are certainly underestimated21ing is even more rare at art galleries,since they fail to capture the informal sales of paintings thatwhere private sales rely heavily on insider information passedtake place in flea markets for tourists in developing coun-among dealers and favoured collectors. Gallery sales are sel-tries. For detailed data on the trade flows of visual-arts prod-dom reported publicly, making it difficult to estimate aucts, see tables and of the ’s ultimate rate of return. Moreover, the art world islightly regulated, and no licenses are required to open Key players in global marketsa economies continued to dominate the mar-The largest markets for fine and contemporary arts areket for visual arts, and their market share remained relativelyNew York, London, Geneva/Basel, Berlin, Paris and Hongstable at around 77 per cent during the period . For the reasons stated above, the trade analysis pre-Antiques were the main item exported and imported. Withsented in this report is partial and unable to entirely reflectregard to paintings, developed economies were net importersthe huge economic contribution of the global market ofof works from developing economies. The key players in thevisual arts to the world economy. For instance, according toglobal market for arts were the United States and the Uniteda study published in 2010 by Arts Economics, the British artKingdom, which together accounted for 47 per cent of inter-market in 2009 directly supported about 60,000 jobs, andnational sales, as shown in table . London and New Yorkan additional 66,000 indirect jobs, generating $ billionare major hubs for artwork transactions, followed by Paris,in art sales and substantial tax revenues. In developing coun-Berlin, Geneva and Tokyo. These cities are typical examplestries, the visual arts sector is led by individual initiatives andof the spillovers of the creative economy, where cultural andentrepreneurship with minimal intervention of governments,trade objectives are intertwined to reinvigorate socio-eco-unwritten rules and predominance of informal norms andnomic growth. Moreover, they encompass the concept ofbusiness practices; in most cases the sector is unregulated and“creative cities” as elaborated in chapter . Because most art sales take place in galleries,For developing economies, the situation is moreframing stores or even flea markets, these intermediaries tendnuanced. While their total exports of visual arts increasedto benefit more than the artists, whose income is unpre-20Betts (2010).21Crow (2008). 148CREATIVE ECONOMY REPORT 2010International trade in creative goods and services: Global trends and features
from $ billion in 2002 to $7 billion inTable Visual arts: Top 10 exporters among developed economies, 20082008, representing a market share of 24 perValue (in Market Growth cent, these numbers reflect only a partial realitymillions of $)share (%)rate (%)since the increase took place entirely in Asia,Rank Exporter200820082003-2008and mainly in China. Other countries and1United States 8, of the developing world have negligible2United Kingdom5, in global markets for visual ,, instance, the world’s 49 poorest, or least5Germany1,, countries collectively exported $426 million in visual arts in 2008, up from $ in 2002. The SIDS exported about $ in 2008. Among the major exportersfrom the South are China, Korea, andSource: UNCTAD, based on official data in UN COMTRADE databaseSingapore. India demonstrated the greatestdynamism; its exports of visual arts are muchhigher than other countries during the periodTable Visual arts: Top 10 exporters among developing economies, 2008 2002-2008, as shown in table (also see Value (in Market Growth tables and in the annex).millions of $)share (%)rate (%)Rank Exporter200820082003-20081China3,, Republic , Hong Kong many creative industries, the audio-6China, Taiwan Province field — which includes include , television, radio and other forms of9Dominican — lacks clear definitions. With10Viet introduction of new ITC tools and theSource: UNCTAD, based on official data in UN COMTRADE databaseemergence of the new media and connectivity,definitions have become even more problemat-ic. As cultural and creative content are mixedVisual arts: Exports, by economic group, Chart , it is hard to say whether a digitized2002, 2005 and 2008cartoon film represents an audiovisual productDeveloped Developing Transition or a form of new media. Audiovisuals are oneeconomieseconomieseconomies of the most complex, politically sensitive and25underestimated subgroups among the creativeindustries, as well as one of the engines of the20creative audiovisual industry has important15public policy ramifications and poses difficultchallenges for governments, particularly in10developing countries, due to its economic pecu-liarities, structural problems and low levels of5investment. Many countries in the South needto establish or strengthen their regulatory0200520022008frameworks to encourage high-quality audiovi-sual production. This may require incentivesSource: UNCTAD based on official data reported to UN COMTRADE database149CREATIVE ECONOMY REPORT 2010(in billions of $)International trade in creative goods and services: Global trends and features
and support mechanisms to compensate for the lack ofbut they claim the need for policy space to act under the23domestic facilities and venture capital. For developing coun-scope of the WTO , film production istries, the key issue is the limited supply capacity of audiovisu-increasing in developing countries, led by India, Nigeria andals and the difficulty of accessing global distribution . Multiplexes, cinemas with more than three screens,are now pushing aside smaller theatres in the South, exceptData for audiovisuals are scarce and do not show theirin Africa, where cheaper admission prices have led to a real contribution to global trade and the world of “video theatres”.Regulatory regimes, market structure, specificities of eachaudiovisual product, diversity of business operations, differentRecent years have brought an increase in the produc-5forms of marketing and distribution, and market access aretion of digital films, which allows for economies of scale byamong the issues to be examined for a comprehensive analysismaking it easier to distribute films at global level without22of market trends in goes beyond our pur-making physical copies. This yields savings for film produc-pose in this study, which is to take stock of the current situa-ers, particularly in developing countries, but exhibition coststion and propose possible action to improve the global higher because adapting conventional cinemas involvesthe costly acquisition and maintenance of digital projectorsNevertheless, the figures shown in this report indicateand other equipment and services. Digital distribution issome trends that are useful for the formulation of both independent from the equipment with which the film iscultural and international trade policy. It is hoped that themade (super 16mm, 35 mm, mini DV, HD). What matterslimitations in data for audiovisuals will point towards the25 is that the master tapes are made in high to improve the quality and coverage of statistics onfilms can be distributed in three ways: as removable discs,trade in services for the sake of market transparency sinceover specialized networks and by satellite. The number ofthey are an essential tool for policy screens is growing rapidly in developed countries, butmore slowly in the South. In 2008 the United States hadFilm industrynearly 5,500 digital screens, representing about 65 per centIn the absence of key global indicators, it is difficultof world total, while there were about 1,000 digital screensto draw a complete picture of the economic impact of thein the European Union region, about 800 in China and 100world film industry. However, prevailing trends are evident indigital screens in Latin production, distribution and box office admissions forcertain regions or countries. Although fewer people are goingThe impact of the economic crisis on the world filmto the cinema, increased sales of DVDs and growing interestindustry varied from country to country. In the United States,in watching films on demand on TV and the Internet meanaccording to a survey made by the National Association ofthat more films are being seen. Revenue for the film industryTheatre Owners, cinema attendance grew by 5 per cent andderives from box-office sales domestically and abroad, as wellbox office receipts rose by nearly 9 per cent during the firstas from music rights, television and satellite rights, video andquarter of 2009, when the crisis peaked. A similar trend wasInternet rights, merchandising, CD and DVD rentals, andobserved in five out of the last seven recessions in the Americancopyrights for reproduction. Intellectual property righteconomy, suggesting that people go to the cinema for consola-(IPR) issues are thus crucial for the earnings of the filmtion during difficult times. However, the number of featureindustry. The making, distribution and exhibition of filmsfilm releases dropped to 520. Even so, international box officecontinues to be dominated by a small number of verticallyreceipts for American films reached a record high of $ bil-26integrated groups, and about 80 per cent of all films shownlion in Europe, the situation was more nuanced withworldwide are Hollywood office receipts and DVD rentals varying from one countryto another. Film production in the European Union increasedThis dominance inhibits the expansion of film indus-to 1,145 feature films, and attendance reached 924 million intries in developing countries and limits their role in the 2008. Moreover, some 240 video-on-demand services offeredglobal market. Some of these nations are trying to enact leg-27films inside the European and set incentives to stimulate national production,22For a comprehensive analysis, seeTrends in Audiovisual Markets: Regional Perspectives from the 9 addresses issues relating to WTO multilateral of UNESCO International Survey on Feature Film Statistics, based on data obtained from 101countries for the years 2005-2006. UNESCO Institute for Statistics (April 2009).25González (2008). 26According to reports from the Motion Pictures Association of America, available from ECONOMY REPORT 2010International trade in creative goods and services: Global trends and features
India remains the world largest film producer, releas-situation, with British film producers benefiting from taxing about 1,100 films annually in more than 25 local lan-breaks, funding and support, and the free movement of pro-guages, mainly for the domestic market. Film revenues thereduction equipment, and Jamaicans gaining opportunities forincreased 12 per cent in 2008 due to the growth in multiplexprofessional and technical training, possibilities for currently produces about 400 films annuallyand editing facilities, better understanding of distributionbut funding remains a bottleneck. 2008 marked the sixthchannels, and tax revenues from foreign film consecutive year in which box office grew by more than 20However, a recent studysuggests that such treaties canper cent. With more screens, more sophisticated marketingundermine local film industries, in part by tying up resources5by local distributors and strict distribution regulations,in foreign productions. Co-production treaties thereforeChinese films has 60 per cent market share at the nationalshould not be seen as a substitute for comprehensive nation-level. Co-productions involving mainland China and Hongal policies to enhance local creative are also important film producerThe struggle to preserve African roots, identities andin developing Asia is the Republic of Korea, which producedlanguages are well captured in the relatively small but quali-113 films in 2008 in response to both growing interest in34 tatively rich iconography of African present, theKorean movies overseas and government policies that film industry on the continent follows two distinct film , led by South Africa and Egypt, is structured along con-Latin America is experiencing a revival of film produc-ventional film industry lines. Indeed, Egypt is the centre oftion, particularly in Argentina, Brazil and Mexico, butfilm-making for the entire Arab world. It produces about 40domestic films continue struggle for screen space. Domesticfilms a year and had an 85 per cent market share in itsfilms rarely chart in the top 10, and their market share lagsdomestic market in 2008. The other model comes fromat the national and international levels. Nevertheless, encour-Nigeria. Called Nollywood, it is a low-budget, high-volumeaged by policy incentives, Argentina produced 85 films,industry supported by video sales. It is a creative response toBrazil 82 and Mexico 70 films in 2008, and more digitalsatisfy the cultural needs of modern Africa (see box in30screens are gradually becoming operational in the 9). Nigeria produces more than 1,000 films annual-Greater regional integration through MERCOSUR, partic-ly, which are distributed on DVD, VHS and TV across allularly around cultural policies in the region, is having a pos-Africa. Ghana and Kenya are following the Nigerian modelitive effect on the film industry. Independent production andfor their local productions, while Morocco is producingdistribution figures prominently in MERCOSUR’s effortsabout 10 films per year and intends to become a centre for35 to consolidate cultural, social and economic integration ininternational and national productions by Middle East is becoming a major player in theThe Caribbean has become a more popular locationfilm industry. According to Screen Digest, the region’s boxfor shooting American and European movies, creating sup-office revenues from the film industry increased 13 per centporting jobs, injecting foreign currency and helping to revi-in 2008, with the strongest growth seen in the United Arabtalize local economies. In the long run, however, this mayEmirates, mainly due to the growth of multiplex cinemas. Ininhibit productions by local film-makers, who have little2008 Abu Dhabi launched a multimedia park with a filmaccess to financing and modern infrastructure and are unableproduction and post-production facilities, and the Dubaito compete at home with foreign producers. Jamaica, forInternational Film Festival introduced a film market focus-example, signed a treaty for film co-production with theing on Arabic, Asian and African films. Dubai-based Gulf32 United Kingdom in principle it is a win-win Film is the leading distributor and exhibitor in the Audiovisual Observatory (2009).28Sources: Screen Digest, : CMM Intelligence, Screen Digest and Screen : Fundación del Nuevo Cine Latinoamericano, ANCIN and Screen (2007).32UNCTAD (2007). Creative Economy and Martin (2009).34Dos Santos-Duisenberg (2007)35Sources: European Audiovisual Observatory, African Film and TV Yearbook and Directory, Egypt ECONOMY REPORT 2010International trade in creative goods and services: Global trends and features
Other key cinema circuits include Kuwait National Cinemaing importance of multi-channel pay television (via cable,36 Company and Bahrain Qatar Cinema , or microwave distribution system) in the South,often to the detriment of local channels. Although the tele-One constraint developing countries face is that goingvision market in many countries continues to be structuredto the cinema is a relatively costly form of leisure. Comparedaround dominant monopolies or duopolies (public, privatewith GDP per capita, cinema admission costs are three timesor mixed), the free single channel television retains a highhigher in China and Thailand than in Europe. Many resi-level of concentration and a clear presence of public sectordents are thus excluded from watching films and, combined38 the low number of venues, this limits the industry’s537 growth potential in developing competition and increased trade in TV for-mats has created tensions and disputes regarding plagiarismTelevision and radioand unauthorized copying of television formats, such asTelevision and radio broadcasting are among the mostthose used for game shows, reality shows and talent creative industries. Both are in a phase of technolog-Programmes using these formats are often reworked for dif-ical shifts from the analogue to the digital system and fromferent markets using local parties. To address these issues, theterrestrial to satellite and cable stations cable stations. ThisWIPO Arbitration and Mediation Centre began providingtransformation has been taking place on a global scale, evenalternative dispute resolution and mediation services in 2010in the LDCs. Furthermore, many developing countries underto help format owners, producers and broadcasters resolve39 WTO obligations liberalized their telecommunicationstheir in the 1990s, opening the television market to fierceThe impact of the economic crisis on television andcompetition with foreign broadcasters and compromisingradio has been mixed. In some cases demand was stimulated,the local production of creative content. Advances in digitalparticularly for programming consumed at home, like televi-technologies led to higher penetration rates of VCRs andsion and radio broadcasting, music and video , although the situation varies inside countries andAccording to the European Audiovisual Observatory, whichregions. Penetration of cable television throughout the devel-is affiliated with the 12 main European television groups,oping world has brought challenges and opportunities. Onwhich in turn operate 534 television channels worldwide,the positive side, it expands choices for consumers, facilitat-private television channels weathered the crisis better in 2009ing access to world news and stimulating local business activ-than in 2008. After net losses of billion in 2008, netities. Conversely, it reduces the space for cultural diversity40trade yielded a profit of billion in diversi-owing to foreign programming that emphasizes dominantfication of activities certainly helped, as TV groups that weresocieties in the North. In the long term this may adverselymore dependent on advertising found themselves more impact education and cultural life, particularly among smallvulnerable during the in remote areas of the developing world. TheAnnual global television revenues were estimated atkey issue regarding the shift towards digital TV concerns41roughly $195 billion a few years disaggregated dataeconomic and cultural interests more than purely technolog-for television and radio services are not officially reported, itical impossible for UNCTAD to get trade data regarding thisCopyrights, trademarks, advertising, subscriptions,important market. Most developing countries are netsponsorships and viewer licenses are the sources of incomeimporters of television creative content. There are, however,for television and radio. In developing countries, advertisingsome success stories, such as Televisa in Mexico and TVrevenues remain the main source of television financing, rep-Globo in Brazil, which are major exporters of television pro-resenting on average 65 per cent of private resources. Overgrammes — mainly soap operas — to world markets (seethe last five years, however, resources from subscriptionsbox chapter 9).increased, particularly in Asia. This trend reflects the grow-36Sources: European Audiovisual Observatory, Dubai International Film Festival, Screen (2006). The Audiovisual Markets in Developing Countries: Statistical assessment centred on (2010).40European Commission (2010). “Private European television channels weathered the crisis better in 2009 than in 2008”.41Howkins (2001).152CREATIVE ECONOMY REPORT 2010International trade in creative goods and services: Global trends and features
Radioof audiovisual services in 2008, when its exports exceededDespite recent changes in lifestyle, radio remains a$ billion. The United Kingdom, France and Canadamajor communication tool, mainly due to its extremelywere the other major players. Hungary emerged as the fifthbroad coverage, which can reach very remote geographicalmajor exporter of audiovisual services in 2008. On the otherzones. In general radio has high rates of local production,hand, developing economies lost market share in audiovisualand advertising is its main source of income. In most coun-exports during the period , radio laws require broadcasters to maintain a minimalExports of audiovisual services from developingdomestic production to ensure that daily programmes coverseconomies totalled only $ billion in 2008. Argentina5local news and national music. Recently initiatives havewas the main exporter, followed by China and the Republicsought to strengthen community radio stations and involveof Korea. The Russian Federation was the largest exporter ofthem in societal and civic processes, such as ethnic affirma-these services from the economies in transition (tablestion, gender equity and grass-roots advocacy for youth, and in the annex). This overall trend isticularly in Latin America. In most countries, audiovisualsindicative of the world market for audiovisuals, even if thelaw regulates the functioning of the radio industry; usuallymagnitude of the reported data (amounting to $27 billion)stations are granted authorization to operate for ten years,does not reflect the real size of the global automatically for the same period; holders mustAudiovisuals constitute a large and dynamic subgroup thattypically be national citizens, and participation of foreignerswill remain one of the pillars of the creative often situation was similar for audiovisual goods, withIn Africa, radio is by far the most developed form ofexports nearly doubling, from $462 million in 2002 to $811media. The number of commercial and community stationsmillion in 2008 — an annual growth rate of per centcontinues to increase, despite such recurrent problems as lack(see chart ). Developed countries had per cent ofof training, obsolete equipment, low level of domestic pro-the world market share, compared to per cent for ductions, high level of imported programmes, financial con-developing countries and per cent for the economies instraints linked to fiscal obligations and the absence of a cleartransition. Exports of audiovisual goods from developedlegal framework. Moreover, despite the use of satellitecountries totalled $706 million in 2008, while those frombroadcasting, in some cases the radio stations have limiteddeveloping countries grew to $75 a certain extent, the shift towardsdigital radio poses similar problems as for , it is important to put in place a comprehen-Audiovisuals: Exports, by economic group, Chart , 2005 and 2008sive plan for enhancing the creative economy, includingDeveloped Developing Transition the development of 800International trade700International trade in audiovisuals tripled during600the period 2002-2008. Exports of audiovisual goods500and services increased from $ to $ bil-400lion, growing on average by 9 per cent annually. However,audiovisuals accounted for just per cent of total300exports of creative-industry products in 2008. Most of200this trade was for audiovisual services, which accounted100for $ billion, while audiovisual goods totalled only0200520022008$811million. Developed economies dominated the mar-Source: UNCTAD based on official data reported to UN COMTRADE databaseket, retaining nearly 90 per cent of world exports foraudiovisuals. The United States was the leading exporter42UNESCO (2006), Trends in Audiovisual Markets: Regional Perspectives from the ECONOMY REPORT 2010(in millions of $)International trade in creative goods and services: Global trends and features
Kmore attractive to readers at the same time that they are betterey players in the global marketequipped for online sales. Most important is the fact that theFor the reasons mentioned earlier, it is not helpful toannual number of new book titles is not decreasing. The news-present the list of the key players in the world market forpaper industry is reacting in its own way in different parts ofaudiovisuals since it would give an erroneous picture of thethe world to the shifts in the printed media industry broughtglobal market. The figures reported are few and relatively low,about by new technologies. In Europe, where news coverage iseven from countries with advanced systems for collecting sta-more global than local, and where affordable broadbandtistical data. (For details, see in particular tables and45Internet has the world’s greatest penetration,circulation for audiovisual services as well as the tables for creative5printed newspapers is declining. In developing economies,goods provided in the annex and ).however, where news is more locally focused and InternetIndia, Mexico, the Republic of Korea, Thailand andaccess is more costly, the circulation of printed daily newspa-Argentina are the main exporters of audiovisual goods frompers does not appear to be affected as greatly by electronicthe South. India has diversified both its products and the tar-publishing. Another important aspect is that print media areget markets, the same strategy adopted by Mexico, Argentinanourished by advertising revenues and these two creativeand Thailand, while the Republic of Korea aims to diversifyindustries are interdependent and mutually supportive. It isits markets and Singapore is the most diversified in terms ofimportant to remember that the publishing and printed mediaexport are responsible for many jobs, including those ofvery influential writers, editors and journalists willing to helpshape public opinion and adapt to this changing and printed mediaIn this scenario, the analysis presented in this report isFeaturesbased on physical goods only. E-commerce or trade of digi-The intellectual assets and the creativity driving thetalized creative content such as books, journals and newspa-publishing and printed media are broadly expressed in thepers is not captured in the figures shown owing to theform of literary production translated into all kinds ofunavailability of (novels, poetry, educational, professional, etc.) and theInternational tradeprinted media translated into all kinds of news circulated asnewspapers, magazines, etc. Publishing and printed mediaThe global market for internationally traded goodsstill constitutes an important subgroup of the creative indus-from the publishing and printed media industries totalledtries from both the cultural and the economic point of view.$48 billion in 2008, compared to $30 billion in creative industries had an annual growth rate of , however, the publishing and mediaper cent during this period and accounted for per centindustries face new challenges due to the growing trendof total trade of all creative goods in 2008. The most trad-towards electronic publishing. The explosion of distributiveed creative product from this group was books, whosemedia and the shrinking distance between the author and theexports increased from $11billion in 2002 to $19 billion inconsumer provides an opportunity for new market . Global sales of printed newspapers grew from $ the case of publishing, the introduction of 13-digit ISBNbillion to $ billion during this period. Finally, exports ofnumbers several years ago made it possible to track products“other printed materials” nearly doubled from $6 billion tothrough each stage of the value chain. Efficient services now$11billion. This group includes catalogues, brochures,monitor the retail sale of books, making it easier to analyse44advertising material, posters, calendars, maps and greetingmarket information for retailers, publishes and the (tables and in the annex).Regionally publishers and even authors conduct their owndistribution by visiting the respective markets, with largerDeveloped economies dominated the world market forbookstores in most cases serving as national and printed media exports, accounting for 80 percent of world exports in 2008. European exports rose toNevertheless, growing sales suggest that electronic and$ billion in this year. Eight of the top ten exporters wereprinted media can coexist. Retail bookshops are becomingEuropean countries. Germany and the United States ranked44For further information visit (2006). Information Economy Report 2006: The Development ECONOMY REPORT 2010International trade in creative goods and services: Global trends and features
first and second, exporting nearly $ billionPublishing and printed media: Exports, by economic of publishing and printed media materialsChart , 2002, 2005 and 2008annually; each country held a 24 per cent shareDeveloped Developing Transition of the world market for exports of creativeeconomieseconomieseconomies goods (table and chart ).45Developing countries, despite their slight40participation in world markets, showed great35dynamism during the period 2002-2008. Their530exports increased from $ billion to $-25lion. As a result, their share in global markets20reached nearly 17 per cent, owing mainly to the15rise in exports from China. Books gained the10greatest market share, increasing from $-5lion in 2002 to $ in 2008. Similarpositive trends were observed for other printed0200520022008materials as well as for newspapers. Table : UNCTAD based on official data reported to UN COMTRADE databaseshows the 10 leading exporters among develop-ing economies. Economies in transition export- ed $ billion and imported $ billion inPublishing and printed media: Top 10 exporters publishing materials and printed media in 2008. Table among developed economies, 2008The rapid expansion of this creative Value (in Market Growth millions of $)share (%)rate (%)industry in China over the period 2002-2008was remarkable. With an annual growth rate ofRank per cent, Chinese exports of publishing1Germany6, and printed media sharpl2United States5, increased3Canada4, $535 million to $ billion, although4United Kingdom4,, data cannot distinguish creative products6Italy2,“made” in China from those “created” in ,, developments also took place in most9Netherlands1, countries. Asia and Latin America10Spain1, a presence in world markets. For tradeSource: UNCTAD, based on official data in UN COMTRADE databaseflows, see tables and in the annex. Publishing and printed media: Top 10 exporters Table among developing economies, Value (in Market Growth millions of $)share (%)rate (%)FeaturesDesign deals with the crRank Exporter200820082003-2008eation of formsand the appearance of products. Creative design1China2,, Hong Kong SAR1, expressed in several ways: through the decorative luxury items such as jewellery, by4Korea, Republic uniqueness of a functional service such architectural design of a building, or as mass-produced goods such as an . Design products are usually creations based on concepts andSource: UNCTAD, based on official data in UN COMTRADE databasespecifications. Again, the definition of design155CREATIVE ECONOMY REPORT 2010(in billions of $)International trade in creative goods and services: Global trends and features
enters into the debate of IPRs. For many, design is an inputures under the design subgroup of creative all manufacturing processes and cannot be separatedDesign products include goods only. The analysis con-from any final physical product. Others, such as thetained in this report is based on trade data for architectureIndustrial Design Society of America, define “design” as(original drawings for architectural plans), interior objects,“the creation and development of concepts and specifica-jewellery, toys, glassware and fashion, as indicated in tabletions that optimize the functions, and value the and in the annex. Industrial design is notof products and systems for the mutual benefit of users andcovered, and architectural services are treated under “func-46manufacturers”.tional creative services”. All of the items included under5Without arguing the merits of different approaches,“fashion” are accessories; clothing and footwear are notdesign fits into the “functional creations” category of theincluded owing to the impossibility of differentiating designUNCTAD definition of creative industries. It is the result ofcreations from mass-production goods, as explained expressed as a knowledge-based economic activity,Furthermore, as for all creative industries, the lack of datawhich produces goods or services with creative content, cul-for copyrights, trademarks, brands, etc. makes it difficult totural and economic value and market objectives. As such, theassess the overall economic impact of each subgroup of design industry is part of the creative economy given that itcreative industries on national across the artisan, manufacturing and services compo-Fashion is a creative industry deserving special atten-nents of the value chain, interacting with technology andtion, given its trade potential. The global fashion industry isqualifying for IPRs (see chapter 1). As an artistic work,expanding; it goes beyond “haute couture”, which is distinctdesign is associated with copyrights and specifically withfrom the prêt-à-porter (ready to wear) and the trendy design“design rights” although the delimitation between the artisticwear. The fashion industry now includes a wide range ofexpression and the industrial manufacturing is not , including perfume, jewellery and accessories suchCertainly, without design, most goods and services would notas scarves, purses and belts. A unique, handmade fashion cre-exist or would fail to be differentiated in the is distinct from industrial-scale production. Therefore,As the 2010 World Design Capital, Seoul, Korea,fashion design products should be protected by copyrightsorganized a summit in February 2010 where municipal lead-or trademarks before entering into highly competitiveers from a number of cities could demonstrate the impact ofdomestic or international markets. Indeed it is the brand orstdesign on the competitiveness of cities in the 21century, aslabel attesting to the creative content and novelty of prod-well as the importance of design policies for urban develop-ucts that ensures value added and higher revenues for thement and business. More than 30 cities around the worldstylists. These and other intricacies of the global fashionsigned the “Seoul Design Declaration”, which recognizesindustry need to be better understood in order for the fash-48design as a core competency and an asset to cities. Seoul alsoion industry to be enhanced in developing a platform to showcase cities that have capitalized onThe originality of ethnic textiles, combined with thedesign to reinvent the urban fabric of their of works by fashion designers from developing coun-47Current statistical classificationsdo not allow a cleartries, is conquering world markets. The organization of identification of those functional products with higher cre-fashion weeks in developing countries like Brazil, China, India,ative content in the design value-added chain. Therefore, inJamaica and South Africa contributes to the promotion of thecarrying out the statistical analyses, an effort was made towork of designers and stylists and to the circulation of fash-select those products with a presumably high design models from the South through the world. In this respect,At this stage, it is not possible to isolate the design inputdeveloping economies are called upon to better explore tradefrom the final product. Thus, the export figures reflect theopportunities in world markets in light of the liberalized total value of the final products, not the design content. Tomarkets for textiles and clothing that emerged following the49a certain extent, this explains the predominance of high fig-expiration of the Multi-Fibre Agreement in further information, consult the websites of the Industrial Designers Association of America, the American Institute of Graphic Arts and the Design Council, international statistical classification used for the trade data presented in this report is the Harmonized System 2002. For further explanation, see the explanatory notes in the comprehensive analysis of the fashion industry in the Caribbean is presented in Nurse (2006).49International trade of fashion goods and services is ruled by multilateral and regional agreements. Issues relating to the removal of trade obstacles such as rules of origin, preferentialtreatment, safeguards and import quotas are negotiated within the WTO and are crucial instruments for access of products from developing countries to world ECONOMY REPORT 2010International trade in creative goods and services: Global trends and features
The aim of this report is to sensitize policymakers to theincreased from $61billion in 2002 to $118 billion in 2008,positive economic and social spillovers of these usually neglect-the market penetration of their products decreased fromed creative industries. In the absence of data for marketing per cent to per cent. Italy maintained its positionbrands, and owing to the difficulty in distinguishing between aas leading exporter, with per cent of world market sharefashion creation and the more popular mass-production man-thanks to its renowned role in the fields of interior design,ufacturing, only trade data for accessories are includedin the fashion subsector. The trade figures presented inDesign: Exports, by economic group, this report for the design industry are based on a revisedChart , 2005 and 20085list of products made by UNCTAD. Therefore, figuresDeveloped Developing Transition are slightly different from those shown in the firsteconomieseconomieseconomies 50report,as we have sought to improve the accuracy and140comparability of data for trade of creative trade80This assessment of global trade in design goods60has shown impressive results. Design was found to be40the leading subgroup in the world market for creativegoods. World exports of design goods nearly doubled20from $115 billion to $242 billion from 2002 to02005200220082008, with an annual growth rate of per cent(see chart and table ). The share of designSource: UNCTAD based on official data reported to UN COMTRADE databaseproducts in total exports of creative goods remainedstable at about 41per cent in 2008. The inclusion ofdesign as a creative industry has completely changedDesign: Exports, by economic group and region, the position of key players in the world market forTable 2002 and 2008creative goods and services. China and Italy becameValue (in Change leading exporters of creative-industry productsmillions of $)(%)thanks to their competitive position in the productionEconomic group and region200220082002-2008and trade of design goods and ,692241,972111Design appears to be the largest contributor toDeveloped economies60,967117,81693trade of creative industries, partly because it is the sec-Europe49,22198,16499United States of America6,28012,15093tor with the best reported statistics. It encompassesJapan1,5213,783149six main groups of goods, including interior design,Canada3,1042,773-11graphics, fashion accessories, jewellery and toys. ForDeveloping economies53,362122,439129Eastern and South-Eastern Asia47,53498,851108services, the main item is architectural services, whichChina23,52958,848150will be featured under “creative services”.Western Asia1,9168,452341Latin America and Caribbean3,2925,00752Africa4221,140170Key players in global marketsLDCs222467SIDS4796102During the years under review, exports ofTransition economies3621,716374design products from developed economies and theirshare in world markets indicated contrasting : UNCTAD, based on official data in UN COMTRADE databaseWhile the value of exports of design products50When UNCTAD revisited its list of selected creative goods, two elements were considered for the new selection of design goods. First, it adopted the statistical codes from the2002 revision of the Harmonized System, instead of the 1996 version. Second, it undertook a comparative analysis with the list of codes used by other institutions and nationalsources. As a result, the number of selected design products was reduced from 139 in 2005 to 102 codes in 2008. Thus, the coverage of products shown in this report for the period 2002-2008 is different from the figures presented in the Creative Economy Report 2008 for the period 1996-2005. 157CREATIVE ECONOMY REPORT 2010(in billions of $)International trade in creative goods and services: Global trends and features
fashion and architectural services. Germany,the United States and France followed, with allTable Design: Top 10 exporters among developed economies, 2008three economies capturing more than 16 per Value (in Market Growth millions of $)share (%)rate (%)cent of the world market (see table ).Rank Exporter200820082003-2008Design is the third-largest creative sub-1Italy23, for developing countries, after art crafts2Germany16, new media. The total value of their exports3United States 12,, design products increased considerably, from55United Kingdom7,$53 billion to $122 billion, as did their share in6Switzerland6,, markets. Exports of design goods from8Poland3,, economies in transition totalled $ billion10Netherlands3, 2008, representing less than 1per cent ofSource: UNCTAD, based on official data in UN COMTRADE databaseworld exports of creative he leading exporter of design goodsamong developing economies is China, whereDesign: Top 10 exporters among the scale of production is very high. From theTable developing economies, 2008trade perspective, design is the most important Value (in Market Growth creative industry for China. India also increasedmillions of $)share (%)rate (%)its exports of design products by per cent,Rank Exporter200820082003-2008achieving per cent of market share of1China58, goods in 2008 (table ).2China, Hong Kong SAR23,,, Arab Emirates4,, Media7Malaysia3, Nam2, media is the newest group among9Mexico2,, creative industries and the one that isexpanding fastest. It results from the rapidSource: UNCTAD, based on official data in UN COMTRADE databaseadvances in ICTs that started in the 1990s toshape a global information infrastructure andgave emergence to the so-called informationPeople of all ages are spending more time online, con-society. Today, in the era of the creative economy, where realsuming and co-creating content and new-media virtual worlds co-exist, collaboration and networking areClearly individual consumers are becoming more to new ways of life; the new media has been push-This behaviour stimulates creativity, while improving inter-ing this novel chain of knowledge and digital skills through participation in online games andsocial networks. As a result, the new-media sector is boom-In the creative economy, the new media industry playsing in all parts of the world, opening up new venues for col-two complementary roles:laborative creations, particularly in the areas of multiplayera)It is a creative product itself, expressed through digitalgames, videos, cartoons and multimedia of creative content such as software, cartoons andIt is not yet possible to capture the real dynamism ofinteractive products like video media as a driving force of the creative economy. Thereb)It is an enabler of connectivity used as a tool for market-are two reasons for this: first, the novelty embedded in theing and distribution of other creative products such ascontinuous updating of technologies used in producing andmusic, films, books and news, or creative services such asconsuming creative content; and second, the lack of a univer-advertising and architectural services (see chapter 7).sally agreed-upon system for collecting data on digital cre-158CREATIVE ECONOMY REPORT 2010International trade in creative goods and services: Global trends and features
ative content. Issues relating to measurement of ICT tools,regards video games. Europe supplied a third of global marketin particular how to collect accurate, useful and comparabledemand, and its exports were more diversified in terms of tar-51ICT statistics, are addressed in chapter 7 of this markets. The major exporter, however, was the UnitedStates. In Europe, the countries with greater participation inAgain, figures presented for new media are extremelythe global markets for new-media products were Germany, underestimated for the reasons explained earlier. Still, theythe Netherlands, Austria and the United Kingdom (see can contribute to a better understanding of current ).In the UNCTAD classification of creative industries, newmedia includes a wide range of creative content such as soft-In developing economies, there were contrasting trends5ware, video games, cartoons and other digital products. Thein exports of new-media goods. Asia had a dominant positionfigures shown clearly reveal shortcomings in the level of dis-in the global market for these goods. Total exports from devel-aggregation of statistical classification codes since they coveroping economies in 2008 reached $14 billion, up from aboutonly digital records and video games. Furthermore, the sub-$6 billion in 2002. This resulted in a substantial increase ingroup comprises several relatively new creative services, suchtheir share in world markets, from 34 per cent to 52 per Web-related services, for which data are non-existent In the case of video games, the upturn was even more (see also the general explanatory notes in the annex).accentuated, rising from 45 per cent to 52 per cent. Thisdevelopment reflected the remarkable increase in ChineseAs an enabler, the subgroup new media is the realexports. The exports of new media products from Chinaexpression of connectivity and as such is highly dependentreached $ billion in 2008, or about 30 per cent of globalon the accessibility of equipment such as computers, mobiledemand. Video games constituted the most important exportedtelephones, digital televisions and MP3s, as discussed inand imported item in 7. The third part of the annex presents additionalquantitative data on trade in related industries. Tables ,Mexico is the only country not in Asia to make and were prepared with the aim of providing empir-top-ten list of exporters among developing evidence of the magnitude of world trade of supportingOther Latin American economies were very marginalequipment for the creative . Africa, the LDCs and the SIDS were not activeparticipants in world markets. Economies in transition had aInternational tradeThe global market for new-media goods grewNew Media: Exports, by economic group, very rapidly during the period 2002-2008, with anChart , 2005 and 2008annual growth rate of per cent. World exportsincreased from $17 billion to $28 billion (tabDeveloped Developing Transition le and chart ). Video games were a very dynamic16group, as exports more than tripled from $8 billionto $27 billion. (For details on exports by major14countries, see tables and in the annex.)1210Key players in global markets8Developed economies led exports of new-6media goods over the period 2002-2008. Their4exports increased slightly, reaching $13 billion in2008, but their share in world markets for these goods2declined sharply, from per cent to per cent0200520022008(see table ). While their exports of digital record-Source: UNCTAD based on official data reported to UN COMTRADE databaseings remained relatively unchanged, they faced grow-ing competition from developing economies as51UNCTAD is a member of the Partnership on Measuring ICT for Development, together with 10 other international institutions. The partnership’s key objective is to close the ICTdata gap by collecting data and maintaining a database on the ICT sector and on business uses of ICTs. More information is available from ECONOMY REPORT 2010(in billions of $)International trade in creative goods and services: Global trends and features
very small participation in world trade,New media: Exports, by economic group Table and region, 2002 and 2008accounting for less than 1 per cent of total exports of new-media goods. It should beValue (in Change millions of $)(%)pointed out, however, that this dark picture isEconomic group and region200220082002-2008probably further aggravated by the lack of dataWfrom these developing regions (table ).orld17,36527,75460Developed economies11,42213,24816Europe6,8568,727275United States of America3,0283, ServicesJapan1,206345-71Canada18421215FeaturesDeveloping economies5,90814,423144The global economic crisis had seriousEastern and South-Eastern Asia5,06012,817153China2,3788,377252implications for the service sectors. ServicesWestern Asia739500Latin America and Caribbean8261,51083are a key component in the dynamics of theAfrica159-36creative economy, playing a growing role in allLDCs81137SIDS1163creative industries sectors. Certain servicesTransition economies3682128regarded as necessities, such telecommunica-tions and energy services, were less affected;Source: UNCTAD, based on official data in UN COMTRADE databasehowever, income-sensitive sectors like tourism and cultural and recreational services have suf-New media: Top 10 exporters among fered from the global economic developed economies, 2008Developing countries are recovering faster, Value (in Market Growth although there are significant inter-countrymillions of $)share (%)rate (%) Exporter200820082003-2008World services exports from 2000 to 20081United States 3, at an average annual rate of per cent,2Germany3,, $ trillion. Creative services are faster than more conventional sectors, and5United of creative services tripled in value from7Czech $62 billion in 2002 to $185 billion in sectors with greatest dynamism were and advertising services, while culturalSource: UNCTAD, based on official data in UN COMTRADE databaseand recreational services and audiovisuals grewby an annual rate of 10 per cent during this peri-od. Meanwhile, South-South trade of creativeNew media: Top 10 exporters among services grew from billion to $ developing economies, 2008 Value (in Market Growth To facilitate analysis of certain demand-millions of $)share (%)rate (%)driven functional creations, UNCTAD intro-Rank Exporter200820082003-2008duced into its definition of creative industries1China8, subgroup of “functional creative services”,2China, Hong Kong SAR3, covers services that intersect with more3Mexico1, one subgroup; advertising is a case in5China, Taiwan Province . The inclusion of , Macao and development services is Arab services fit into the broader scope of the10Korea, Republic economy and are closely associated withSource: UNCTAD, based on official data in UN COMTRADE databasescientific creations and technological innova-160CREATIVE ECONOMY REPORT 2010International trade in creative goods and services: Global trends and features
tions. The rationale for including these services is thatCreative industries: Exports of creative services, the creative economy is rooted in the overall interac-Chart economic group, 2008tions between economics, culture and technology and,therefore, that the creative economy is centred on, but6%not restricted to, arts and %Audiovisual services comprise motion pictureprojection services, motion picture and video production and distribution services, radio and tel-5evision services and transmission services. This creative sector is sensitive and relevant owing to itssocial, economic and cultural influence as a vehicle83%of expression of cultural identities, especially theDeveloped economiesradio and television services. This importance isDeveloping economiesalso reflected at the multilateral level; many coun-Economies in transitiontries feel compelled to protect the audiovisual Source: UNCTAD, based on IMF balance of payment and are reluctant to conduct negotiations ortake on specific liberalization commitments withinthe framework of , followed by the United Kingdom, Canada, France andSpain; it accounted for 50 per cent of exports in 2008 (chartInternational ). Among developing countries, Turkey, Malaysia andReported exports of creative services increasedIndia are the top performers in 2008 (chart ).sharply, with an annual growth rate of cent fromImports of creative services increased from $ 2002 to 2008. Developed economies accounted for 83 perbillion in 2002 to $ billion in 2008. Architectural andcent of total exports of creative services in 2008, whiledesign services ranked first, with imports increasing fromdeveloping economies had an 11per cent market share and$ billion to $ billion, representing per cent ofthe economies in transition had 6 per cent of the world total,total imports of creative services. Imports of advertising andas shown in chart . Among all creative services, architec-market-related services increased from $ totural as well as personal, cultural and recreational services$ billion, or 24 per cent of imports of creative serviceswere the most traded creative services in world markets inin . Both had remarkable increases in exports from about$ billion in 2002 to about $ billion in 2008 forImports of personal, cultural and recreational servicesarchitectural services and $ billion to $ billion forincreased from $20 billion to $35 billion, accounting forpersonal, cultural and recreational services respectively (seenearly 20 per cent of total imports of these services in ).These were followed by research and development, whoseimport value rose from $ billion to $ billion, or 18The United States maintained its position as lead-per cent of imports of creative services. Finally, audiovisualing exporter of personal, cultural and recreational services inTable Reported exports of creative services, 2002, 2005 and 2008 (in billions of $)Personal All creative Advertising Architectural Research &AudioOther cultural and atedand relatedDevelopmentVisualculturalservicesand : UNCTAD based on IMF balance of payments ECONOMY REPORT 2010International trade in creative goods and services: Global trends and features
Table Reported imports of creative services, 2002, 2005 and 2008 (in billions of $)Personal All creative Advertising Architectural Research &AudioOther cultural and servicesand relatedand : UNCTAD based on IMF balance of payments services: Top 10 exporters of personal, cultural and recreational services Chart developed economies, 2008 services increased from $ billion to $ billion, accounting for 13 per cent of totalUnited Statesimports of creative services in and licence feesFranceSpainAs addressed in other chapters, copyrightsare the most important IPR instrument for theItalycreative industries as they provide protection forGermanyauthorship of paintings, sculptures, music, novels,Hungaryarchitecture, etc. However, official figures for52Luxembourgcopyrights are not to(in billions of $)WIPO, statistical limitations and deficiencies inNetherlandsdata collection have made it impossible to date to0246810121416compile universal data on copyrights from theSource: UNCTAD, based on IMF balance of payment creative payments and license fees are asso-Creative services: Top 10 exporters of personal, cultural and recreational services Chart developing economies, 2008 ciated with the use of intellectual property forproduction and consumption of goods and serv-Turkeyices — for instance, licensing services for the rightto use entertainment, computer software, or otherMalaysianon-financial intangible assets. IndiaDespite data limitations mentioned earlier,Korea, Republic ofthis report includes world figures for royalties,Argentinawhich are shown in table as well as in and in the annex. This is complemen-Singaporetary information provided to complete the overallpicture, based on available national data on cre-China, Hong Kong SARative industries at the world level. Our intention isChileto emphasize the need to start collecting data on(in millions of $)South Africacopyright earnings. Since it is not possible to dis-0200400600800100012001400aggregate the overall royalty figures by identifyingSource: UNCTAD, based on IMF balance of payment and listing only the data relevant for the creative52The International Confederation of Societies of Authors and Composers (CISAC) compiles data for 210 management societies with which it is affiliated in 109 countries. Data cover only amounts raised by licensing activities of these societies in their national territories; thus income from international exchanges is not ECONOMY REPORT 2010International trade in creative goods and services: Global trends and features
industriesRoyalties and licence fees: World exports Table imports, 2002, 2005 and 2008There is no single definition of “creative industries”,Value (in billions of $)but there are different approaches to classifying them200220052008depending on the purpose of the analysis, as discussed in53chapter 1. For WIPO,the focus is on intellectual property, thus creative industries are divided into four groupsrelating to intellectual property: “core”, “interdependent”,Source: UNCTAD based on IMF balance of payments statistics.“partial” and “non-dedicated”. For UNESCO, emphasis is5placed on the cultural products, which are classified as“core” or “related” cultural products. In the case ofUNCTAD, the approach is more trade-oriented,Royalties and licence fees: World exports Chart imports, 2002, 2005 and 2008and the focus is on creative goods and creative serv-ices. Therefore, the related industries are treated200apart, as an additional economic indicator that is180driven by the creative are two types of related industries: some140serve as inputs in the creation process (., paint for120Exports100a painting), while others provide supporting equip-Imports80ment needed for the consumption or distribution of60creative content (., television sets for television40broadcasting). As they are part of a much broader20set of manufacturing, chemical and electronics sec-0tors, they are not included in the totals of creative200220052008 industries. Our concern is to avoid distortion and Source: UNCTAD, based on IMF balance of payment -accounting in the trend analysis of creative goods and services. Trade of related industries ispresented as an important indicator to identifyindustries, the data for royalties are, therefore, not includedtrends in the future demand for creative goods and the total of creative services. The purpose is to avoid anymisinterpretations of overall revenues from creative services. Following the path of the world market for creative54industries,trade in goods from the related industries alsoAnother consideration in the analysis of the eco-showed a remarkable annual growth rate of 10 per cent innomic impact of creative industries is the direct relation-the period 2002-2008. The greatest growth was in relatedship between the trade figures for the creative industriesindustries linked to the field of new media, where exportsand trends in domestic and foreign investments in the cre-jumped from $133 billion to $263 billion, and then audio-ative sector. In this regard, the UNCTAD World Investmentvisuals, where exports grew from $141billion to $249 bil-Report 2006emphasizes that creative activity-related ICTlion during this period, reflecting technological advancessectors were the most important destinations for FDI(tables and in the annex).worldwide, including in the context of North-South andSouth-South trade. World exports reached $727 billion in 2008, up from$376 billion in 2002 (table and chart ). The spec-Revenues associated with receipts of intellectual prop-tacular growth of exports from developing economies in thiserty rights (IPR) more than doubled between 2002 and — from $134 billion to $400 billion — is revenues rose from $83 billion to $182 billion. A This means that developing economies have a slightly largersimilar trend is shown for imports, which increased from $91share than developed economies. Moreover, the fast growthbillion to $185 billion during this same period (chart ).53The WIPO model of copyright-based creative industries identifies four categories: “core”, “interdependent”, “partial” and “non-dedicated” industries. The UNESCO approach tocultural industries includes “core cultural goods”, “related cultural services” and “related cultural products”. 54See also the general explanatory notes in the annex. 163CREATIVE ECONOMY REPORT 2010(in billions of $)International trade in creative goods and services: Global trends and features
of exports from developingeconomies of goods of relatedChart goods: Evolution of world exports, 2002 and 2008industries was much moreevenly distributed among all All related industriesregions, including Africa andthe Caribbean (tables , New mediaA and in the annex forthe trade flows). World5 Audiovisualsimports reached $739 billionin 2008 as compared to $400 Designbillion in 2002 (table ).The greatest growth was inrelated industries linked to the Visual arts2008field of new media, audiovisu-2002als and design. However, Publishingdeveloped economies import(in millions of $)more than 65 per cent of Performing artsglobal imports of relatedindustries is interesting to noteSource: UNCTAD, based on official data reported to UN COMTRADE databasethat exports of related goodsfrom the developing economiesproducts. An even more positive conclusion is that thegrew at an annual rate of 16 per cent, compared to 12 per centgrowth of the related industries, which includes supportingfor transition economies and per cent for developedequipment such as computers, cameras, and television andeconomies during the 2002-2008 period. This shows thatbroadcasting equipment, points to a continuous dynamicgoods of the related industries have a huge in demand for creative-industry goods and servicesT— and therefore to the growing importance of the creativehis is also evidence of the catching-up strategieseconomy pursued in a number of developing economies toincrease their production and exports of value-added Table goods: Exports, by economic group, 2002 and 2008 (in millions of $)DevelopedDevelopingTransitionWoeconomieseconomieseconomiesrld20022008200220082002200820022008All Related Industries375,845727,116239,820324,272134,982399,5881,0433,256Audio Visuals140,932249,42886,720100,02054,126148,93886470Design65,793169,52153,508103,05611,39463,9518912,513New Media133,287263,30271,48286,49861,767176,60837196Performing Arts3,6976,8432,5974,3401,0962,488514Publishing10,02514,9039,19413,3468211,539918Visual Arts22,11223,12016,31917,0125,7796,0631545Source: UNCTAD, based on official data in UN COMTRADE database164CREATIVE ECONOMY REPORT 2010International trade in creative goods and services: Global trends and features
Table goods: Imports, by economic group, 2002 and 2008 (in millions of $)DevelopedDevelopingTransitionWoeconomieseconomieseconomiesrld20022008200220082002200820022008All Related Industries399,738738,569313,406482,95884,002235,9182,33019,692Audio Visuals136,363269,455100,124171,99935,14287,7061,0979,750Design69,225164,04556,87796,20712,09865,0082492,831New Media158,320258,605130,987183,60526,65669,1666775,8335Performing Arts4,3457,5373,6325,8566911,50621175Publishing9,55615,1187,19410,6392,2223,749140730Visual Arts21,92923,80914,59214,6527,1918,784146372Source: UNCTAD, based on official data in UN COMTRADE database165CREATIVE ECONOMY REPORT 2010International trade in creative goods and services: Global trends and features
5166CREATIVE ECONOMY REPORT 2010International trade in creative goods and services: Global trends and features
PARTThe Role of Intellectual Property and Technology4
168CREATIVE ECONOMY REPORT 2010
The role of intellectual property 6in the creative economy chapter is concerned with intellectual propertyThe aim of this chapter is to analyse how IPRs arerights (IPRs) and the creative economy. This field clearlyparticularly important to the creative economy and the wayspresents difficult challenges to governments, artists andin which current modes of regulation and measurement arecreators as well as to analysts and agencies. There are sen-insufficient to allow a proper evaluation of the economicsitive areas and different approaches to addressing IPRimpact on IPRs on the trade balance of individual coun-issues. Most of the content and analysis presented in thistries. Of course, the creative industries are not alone in thischapter reflect the ongoing work and contributions of theproblematic. For some time, most economists have soughtWorld Intellectual Property Organization (WIPO) secre-to measure the trade in “invisibles”, but in general terms,tariat. Nevertheless, other perspectives have also beenthese measures are better adapted to the first generation ofintroduced to advance reflection on alternative ways tothe knowledge economy, associated with a trade in licensestackle contending IPR issues, taking due account of thelinked to the physical goods. Arguably, we have alreadyperspective of developing the creative-economy era associated with virtualgoods and rights. Accordingly, the tools currently used forIt is widely recognized that any analysis of the capturing income flows generated by the creative industriescreative economy must consider the role of intellectualand translated into copyrights are partial or inadequate, andproperty, which is a key ingredient for the development ofnew ones need to be devised. In part, chapter 5 offers athe creative industries in all countries. Intellectual proper-pragmatic way forward that marries the trade in tangiblety law is a major policy tool and part of the regulatorygoods and intangible services, but a key component —framework around the creative industries. If properly man-international flows of copyrights — is missing in order toaged, it can be a source of revenue for both developed andpresent the real picture of the creative countries. This chapter also reviews recent attempts made byCommon practice has been to measure and regulateWIPO to map the copyright-related industries in selectedthe physical movement of goods; this is what trade flows with a view to identifying broader economic andIncreasingly, other dimensions of products and ideas havesocial indicators, in particular the share of creative sectorsalso been traded in the form of licences, royalties and copy-in national economies. However, little progress has beenrights. This trade reflects a licence to use rather than havemade in capturing international flows of copyrights andpossession of an object. The notion of “intellectual rights”measuring the trade balance of countries in revenues fromhas a long history and an established regulatory system. Inintellectual property. There is a significant challenge to bethe past when such rights were embedded, locked into or infaced in measuring and understanding this important newsome way integral to the physical good, rights could be reg-flow of goods and services circulating in the creative econ-ulated as an adjunct to physical trade. Where it could not,omy, and it is not only statisticians and policymakers whospecial procedures were put in place: a licence to extract oil,are interested in this issue. The main challenge to bea tax on volume of a material extracted, etc. However, withaddressed is related to the new forms of property rightsdigitization, it is possible to totally separate the physical andand the ways of trading them in current business rights. This led to a crisis with respect to bothEntirely new business forms are emerging as new entitiesregulation and business models (see chapter 7).CREATIVE ECONOMY REPORT 2010169CHAPTERThe role of intellectual property in the creative economy
or entirely restructured structures. Thus the insight providedmandate to create better conditions and opportunities forhere will be useful to those hoping to enter the creative econ-international trade, development and growth in the creativeomy, as well as to those already participating in it. could help deepen the understanding of policymak-UNCTAD is implementing a transfer of technologyers and regulators. See also chapters 5 and IPR work programme and pays particular attention toA number of international and United Nations organ-the interface among international policies in the area of tech-izations deal with intellectual property issues. Notably,nology transfer, intellectual property and , a specialized agency of the United Nations, is Through its research activities on information technologymandated to develop a balanced and accessible internationalfor development, UNCTAD has on several occasions6intellectual property system throughout the world throughaddressed open-source and open-access issues. In the contextcooperation among States and in collaboration with otherof the WTO, the Agreement on Trade-Related Aspects ofinternational organizations. An important part of its missionIntellectual Property Rights (TRIPS) indicates minimumis promoting the creation, dissemination, use and protectionstandards for many forms of intellectual property regulationof works of the human mind for economic, cultural andand introduces intellectual property issues into the interna-social progress. The efforts of WIPO are inscribed in itstional trading are intellectual property rights?Intellectual property regimes are the legal rights thatcopying or imitation usually up to a maximum of 15 toresult from intellectual activity in the industrial, scientific,25 years;literary and artistic fields. They aim to safeguard creators and Trademark: may be one or a combination of words, lettersother producers of intellectual goods and services by grantingand numerals. It may consist of drawings, symbols, three-them certain time-limited rights to control the use made ofdimensional signs such as the shape and packaging ofthose productions. These rights do not apply to the physicalgoods, music or vocal sounds, fragrances, or colours usedobject in which the creation may be embodied, but instead toas distinguishing features. A trademark ensures the exclu-the intellectual creation as such. IPRs can take the form ofsive right to use it to identify goods or services, or tocopyrights or geographical indications and appellations ofauthorize another to use it in return for , topics that will be elaborated later, but IPRs can alsoTrademarks must be distinctive, but nowadays almost be applied as follows: anything can be a trademark. Patent: an exclusive right granted for an invention that hasThe aim of the intellectual property system is to encour-an element of novelty and utility. In a practical sense, theage the creative activity of local artists and businesses and sup-existence of the patent system constitutes an importantport the transformation of this activity into products that reachincentive for inventive, innovative and creative market, both local and global. Supporting domestic cre-Patent rights run for a limited length of time, generally upators and entrepreneurs engaged in the creation, production,to 20 years, as long as the maintenance fees are paid; marketing, broadcast or distribution of creative works is a key Industrial design: the appearance or aesthetic aspect of thestep towards cultural vitality and economic prosperity. The rolewhole or part of a product that may consist, in particular,of intellectual property is affirmed not only in internationalof the lines, contours, colours, patterns, shape, surface,property conventions but also in key instruments in other pol-texture of materials of the product itself. To be protected,icy areas, such as the Convention on the Protection anda design must appeal to the eye. Industrial designs arePromotion of the Diversity of Cultural Expressions, which applied to products of industry and handicraft, such asrecognizes “the importance of intellectual property rights in1jewellery, architectural structures or textile designs. Thesustaining those involved in cultural creativity”.owner is assured an exclusive right against unauthorized1Preamble to the Convention on the Protection and Promotion of the Diversity of Cultural Expressions (2005), available online at ECONOMY REPORT 2010The role of intellectual property in the creative economy
Box Design as a key ingredient for growth In his youth, Ingvar Kamprad began buying and selling a variety of items and reinvesting the profits. While he was still a teenager, he founded what wouldeventually become the multi-billion-dollar interior design company, IKEA, which has 104,000 employees worldwide. In 1947, his introduction of furnitureinto the company product line met with such success that in 1951, he dropped all other product lines and focused on furniture. The design processalways starts with the price tag. Kamprad’s vision “to create a better everyday life for many people” has guided the company, spurring creativity by forc-ing it to always strive towards new, ground-breaking design solutions. The aim is to produce well-designed yet functional products accessible to as manypeople as possible while encouraging innovation. The company also has a long history of working with talented, internationally recognized designers. In the 1960s, for example, it was helped by famousdesigner, Taipo Wirkkala, a recognized glass artist whose works can be viewed at the Metropolitan Museum of Art in New York. The tradition of these col-6laborations has continued to give customers the chance to decorate their homes with something a little more special. At the same time, it helps artiststo reach a wider audience through the remarkable influence and large target group of the company. The encouragement of design innovation has notonly proved successful in terms of economic revenues but it has led to widespread recognition through several design awards, such as the ExcellentSwedish Design Award and the internationally prestigious “red dot for highest design quality”. With a strong concept that is characterized by Swedish values, Scandinavian design, a healthy environment, cost-conciousness and informality, the com-pany not only helps to put Sweden on the map but it also uses its origin as an engine to reach its own goals since it is not tailor-made policy programmesthat explain the company’s success but rather, general conditions that enabled the company to grow. Professor Richard Florida, author of The Rise of theCreative Class, places Sweden at the top of his list for a global creativity index. By Tobias Nielsén -Lena Rune, QNB property and the creative industriesThere are different approaches to identifying which areturing, performance, broadcast, communication and exhibi-the creative industries, depending on the criteria chosen. Thetion, or distribution and sales of protected perspective stresses the relationship between creativityA second group, the “interdependent industries”,and intellectual property protection, most notably those industries that are engaged in the produc-Creative industries are involved directly or indirectly in thetion, manufacture and sale of equipment whose function iscommercial exploitation of intellectual property-based goodsto facilitate the creation, production or use of works andand services, ., mainly cultural, information and entertain-other protected subject matter. The interdependent indus-ment goods. Intangible capital and intellectual property tries comprise such economic activities as manufacture,protection play a fundamental role in these and retail of television sets, radios, CD players,From the WIPO perspective, the creative industriesDVD players, electronic games equipment, computers, musi-may be divided into four groups according to the degree ofcal instruments, blank recording material, paper, photo-2use of copyright most important are “corecopiers, and photographic and cinematographic ”, which are generally regarded as synonymous withA further group, the “partial industries”, includes those incopyright industries. The core is made up of industries thatwhich a portion of the activities is related to works and otherproduce and distribute works that are protectable underprotected subject matter. They comprise architecture, appar-copyright or related rights: film and video, music, perform-el, textiles and footwear, interior design, household goods,ing arts, publishing, software and database, television andchina and glass, furniture, jewellery and coins, crafts, wallradio, advertising, copyright collecting societies, and visualcoverings and carpets, toys and games, and museums. Theand graphic art, including photography. The core industrieslast category comprises the “non-dedicated industries” inare wholly engaged in the creation, production and manufac-which a portion of the activities is related to facilitating2WIPO (2003). Guide on Surveying the Economic Contribution of the Copyright-Based Industries. See chapter 1for the comparison of the models used in the WIPO ECONOMY REPORT 2010The role of intellectual property in the creative economy
broadcast, communication, distribution or sales of worksdesigns, trademarks, geographical indications and appella-and whose activities have not been included in the coretions of origin, and copyrights. It is the latter two that are ofindustries. They include general wholesale and retailing, gen-most relevance to the creative industries although all intellec-eral transportation, and telephony and the Internet. In ordertual property concerns apply to the creative fully capture the multiple effects that are produced bycopyright on the various economic activities, the indications approach includes all four of the above-mentioned groups inand appellations of originany comprehensive survey of the creative geographical indication is a sign used on goods thatThe creative industries encompass the narrower con-have a specific geographical origin (a village or town, a region6cept of the “cultural” industries, which are regarded as thoseor a country) and that possess qualities or a reputation thatthat produce products that have culturally significant contentare due to that place of origin, including local human fac-that is reproduced on an industrial scale (a term often usedtors, such as specific manufacturing skills and traditions. Forin relation to mass media production). The creative indus-example, “Switzerland” or “Swiss” is perceived as a geo-tries broaden the field of the cultural industries to add allgraphical indication in many countries for or artistic production, whether live or produced as“Bohemia Crystal” indicates that the product is made inan individual unit and traditionally used in relation to liveBohemia, Czech Republic, according to the region’s artisticperformances, cultural heritage and similar “high-art” tradition. An appellation of origin is the geographical nameactivities. They also include, in addition to the “cultural”of a country, region or locality used to designate a productindustries, all those industries that contribute indirectly tothat originates there and that has qualities and characteristicsthe production, sale, performance, distribution, etc. of that are due exclusively or essentially to the geographicalprotected , including human industries have firmly established themselvesThe significance of geographical appellation is that itas a vital component of our societies and they increasinglyhas a linkage to the cultural milieu of production and wayscontribute to the development of national life. First, geographical appellation does recognize andResearch has provided solid evidence of their growinghence legitimate a significance of a cultural tradition andimportance, and national decision-makers and opinion lead-provide ways to protect it from misuse or simply are more and more aware of the economic importance ofSecond, it provides a means of branding products for sale asthese industries. While contributing to cultural diversity andwell as places for tourists to visit. The French region ofthe enhancement of social values, these industries are also3Champagne is another good example. Therefore, geographi-generating wealth, creating jobs and promoting appellation is an area deserving greater attention fromWhile the term “intellectual property right” is widelydeveloping countries in their efforts to further promote andused, as examined earlier, it should be pointed out that it isprotect their traditional knowledge and general term for a number of rights: patents, and the creative economyCopyright is the area of intellectual property law thatthe rights of the public in the access to those creations. Theyprovides protection to original works of authorship, such asalso aim to promote, as a deliberate act of government policy,paintings, sculpture, music, novels, poems, plays, architec-creativity and the dissemination and application of its resultsture, dance, instruction manuals, technical documentationand encourage fair trading as a means by which to contributeand software. Copyright laws give statutory expression to theto economic and social and moral rights of creators in their creations andThe concept of “copyright and related rights” is3For data, see WIPO (2006), National Studies on Assessing the Economic Contribution of the Copyright-Based Industries, and the WIPO website: ECONOMY REPORT 2010The role of intellectual property in the creative economy
defined in national legislation. The basic concepts in nation-its reproductions in various forms, such as printed publi-al law are, however, largely consistent with the provisions ofcation or a CD;international instruments. The most important of these is its public performance, as in a play or musical work;the Bern Convention for the Protection of Literary and its broadcasting, including by radio, television or satellite;Artistic Works; at the time of drafting this report, there were4 its translation into other languages or its adaptation, such163 contracting parties to the the adaptation of a novel into a economic necessity for copyright legislation aris-These economic rights have a time limit, according toes from the need to provide an incentive and a reward for thethe relevant WIPO treaties, of 50 years after the creator’scommercial production and dissemination of creative . National law may establish longer time supports creativity by giving individuals — andlimit enables both creators and their heirs to benefit finan-the creative industries in which they are involved — incen-cially for a reasonable period. Once the copyright term hastives to invest time, efforts and money in creating, producingexpired, works fall into the public domain. and distributing works. In principle, copyright assures theownership of a tradable right that can be used to secure aCopyright provides exclusivity only over the form of5financial return on their legal philoso-expression of an idea but not to the idea itself. The creativi-phies consider copyright law as originating from the ever-ty protected by copyright law is creativity in the choice andincreasing need of society to consume products of creativearrangement of words, musical notes, colours, shapes and soindustries and see copyright as the tool to bring the largeston. For example, it is the way in which an artisan has cre-number of quality products to market where consumers willatively executed the idea of creating a tea set or the way aultimately judge their merit. Others seek the legitimacy ofphotographer has taken a picture of a specific subject that iscopyright in order to gain respect for works of the humancopyrightable, not the idea itself. Copyright law protects themind and rely on the moral principle that individuals shouldowner of rights in artistic works against those who “copy”,be rewarded for their creative labour and contribution to ., those who take and use the form in which the originaltural was expressed by the author. Ideas, processes, proce-dures, methods of operation and facts by themselves may befreely taken and applied or used, subject, of course, to rightstypes of consists of a system of rights given to creators in their literary and artistic works at the moment rightscreation provided they are not under contract that rights are tradable and may be sold to otherCopyright protection also includes moral rights, whichindividuals and firms. Creators and ultimately their heirs, orinvolve the right to claim authorship of a work and the rightrights owners, hold the exclusive rights to use or license to oppose changes to it that could harm the creator’s reputa-others to use the work on agreed terms. The holder of thetion. Moral rights correspond to the interests of creators incopyright of a work can prohibit or authorize, for example: being identified as the originators of a particular work, andthe ability to control the conditions that surround its dis-4According to the Bern Convention, literary and artistic works are protected without any formalities by the contracting parties. If a creator is a national or resident of a country partyto that Convention (or a member of the WTO), or has published the work initially in one of the member countries, his/her copyright will be automatically protected in all theother countries that are party to the Convention. Other major legal instruments include the International Convention for the Protection of Performers, Producers of Phonogramsand Broadcasting Organizations (at the time of drafting this report, there were 86 parties to the Rome Convention, as it is commonly known), the Agreement on Trade-RelatedAspects of Intellectual Property Rights (commonly known as the TRIPS Agreement; at drafting time, there were 151WTO members, all of which are parties to the TRIPSAgreement), and the WIPO Copyright Treaty (WCT) of 1996 and the WIPO Performances and Phonograms Treaty (WPPT) of 1996 (at drafting time, there were 64 contractingparties to the WCT and 62 to the WPPT). 5For a thorough analysis of the economics of copyright, see Landes and Posner (1989:325, 325-333, 344-353). 6If a creative product is produced under a “work [made] for hire” contract — which is common in the music and publishing industries — the contractor or employer is consideredthe legal author. In this case, the creator of the work may or may not be publicly credited for the work (attribution) and this has no effect on the ownership status. For example,news journals may attribute news articles as written by their staff but will retain the ownership and, from a copyright perspective, the authorship of the articles. In such cases, eventhough the commercial component of the copyright is detached from the real creators, countries that are signatories of the Bern Convention recognize certain non-commercial moralrights that are inalienable under work-for-hire contracts. 7For example, in India, the term is 60 years after the creator’s death; in the European Union and the United States, 70 years; and in Mexico, 100 years. Copyright laws of a widerange of countries can be consulted in the Collection of Laws for Electronic Access (CLEA) database of WIPO at 173CREATIVE ECONOMY REPORT 2010The role of intellectual property in the creative economy
Box The Da Vinci Code case A copyright infringement case was brought against the publishers of The Da Vinci Code by Michael Baigent and Richard Leigh, two of the authors of a1982 non-fiction work, The Holy Blood and The Holy Grail. According to an article in the June 2006 issue of WIPO Magazine,“At the centre of the dis-pute was a ‘hypothesis’ presented in The Holy Blood and The Holy Grail” according to which “references to the Grail in early manuscripts were disguisedreferences not to the chalice, but rather to holy blood or Sang real, . to the bloodline of Jesus Christ, and to the belief that this bloodline … had continued and merged with the French Merovingian dynasty”.The plaintiffs “claimed copyright in the literary work and alleged that Dan Brown”, author of The Da Vinci Code, “had copied the way in which they hadmade the sequence of connections of the facts of the merging of the bloodlines. Since there was little copying of the actual text of The Holy Blood andThe Holy Grail,the claim was that there had been non-literal copying of a substantial partof their literary work”.6The Holy Blood and The Holy Grail“is comprised largely of historical facts which are unprotectable ideas. Baigent and Leigh based their case, therefore,on the claim that Brown had taken a substantial part of the ‘manner’ in which they had expressed those ideas, as opposed to taking the ideas themselves”.“The court held that, while the evidence was clear that Dan Brown and his primary researcher (his wife) had drawn on The Holy Blood and The Holy Grailto a greater extent than Brown had acknowledged, this did not mean that he had infringed copyright in the book. Rather, they had used The Holy Bloodand The Holy Grail, and other books, to provide general background material for the writing of The Da Vinci Code”.“The significance of the case for copyright law relates to the fact that the lawyers acting for Baigent and Leigh attempted to make – and lost – an argu-ment that there can be non-literal copying of a work of literature. The non-literal argument has previously been successfully used, usually in the case ofcomputer programs or recipes or knitting patterns.” Source: Dr. Uma Suthersanen, “Copyright in the Courts: The Da Vinci Code”, WIPO Magazine, June 2006, available at: See Michael Baigent and Richard Leigh v. The Random House Group LimitedNeutral CitationNumber: [2006] EWHC 719 (Ch), available at: be it from the very decision to go public to theis not included in the world trade of creative industries. Thissafekeeping of authenticity, thus addressing both economicis a crucial area that requires more work in order to measureand cultural dimensions. Moral rights are inalienable fromand evaluate the full contribution of the creative industriesthe authors and cannot be transferred to third parties underto the world economy. WIPO is examining possibilities for8commercial its data collection system, so hopefully in the nearfuture we will be able to discern a clearer picture of the earn-ings from royalties originating from the creative rightsIn principle, works of the mind are created in order tobe disseminated to a wider audience. This generally cannotMany creative works protected by copyright requirebe done by an author alone, since it requires financial invest-mass distribution, communication and financial investmentment by intermediaries that have the necessary productionfor their dissemination (for example, publications, soundand reproduction infrastructure, access to retailers and dis-recordings and films); hence, creators often sell or license thetribution networks and professional competencies — such ascopyrights to their works to individuals or companies bestmanagement, marketing and public relations — that theable to market the works in return for payment. These pay-author may not possess. A play needs to be represented onments are often made dependent on the actual use of thestage; a song needs to be performed by artists, reproduced inwork and are then referred to as “royalties”. In chapter 5 andthe form of CDs or broadcast by means of radio annex of this report, statistics related to trade of royal-All persons who make use of literary, artistic or scientificties are presented as an indication of the magnitude of theworks in order to make them publicly accessible to otherstrade flows. The market of royalties has been expandingrequire their own protection against the unauthorized use ofquickly, from $83 billion in 2002 to $182 billion in contributions in the process of communicating theHowever, this data covers all royalties, of which creativework to the public. The field of rights related to copyrightindustries are just a part. As the data is not disaggregated, it8While the Bern Convention is “moral rights” friendly, the United States does not recognize ECONOMY REPORT 2010The role of intellectual property in the creative economy
has developed rapidly over the last 50 years. These relatedapproaches to this problem. The first is to encourage access:rights grew up around copyrighted works and provide similarcertain acts normally restricted by copyright may, in circum-rights, although often more limited and of shorter specified in the law, be carried out without theFrom the WIPO perspective, they provide protection to thoseauthorization of the copyright owner, for the benefit of soci-who assist intellectual creators to communicate their messageety. The second is that developing economies need to raiseand to disseminate their works to the public at large. Othersawareness of the existence and potential of content that,argue that this is an unfair practice, since the real authors ofwhile not in the public domain, is copyrighted but madethe artistic creation are somehow compelled to sell theiravailable under alternative and often less restrictive licencesrights to publishers and distributors for insignificant amount,such as those proposed by the Creative Commons principlesbecause they have no other the free and open-source technology technological developments have dramaticallyConcerning the first proposition, exceptions and limi-transformed the way in which related rights operate. Withtations embedded in the traditional copyright system areregard to the rights of performers, the performance of actorspart of the delicate balancing process between the needs ofor musicians, which a century ago ended with the play orcreators and creative businesses, and the interest of theirconcert in which they performed, may now be fixed on ausers, society and the public in access to information andvariety of mechanisms, including radio, television, satelliteknowledge. The challenge is to achieve the right balancetransmission and the Internet. What earlier was a localizedbetween the incentive to copyright owners to commercializeand immediate phase of a performance in a hall before a lim-the product and the copyright-based restrictions placed onited audience became an increasingly permanent manifesta-the use of protected capable of unlimited and repeated reproduction and useThere are two basic types of limitations: free uses andbefore an equally unlimited audience that went beyondnon-voluntary licences. Free uses are acts of exploitation ofnational borders. The development of broadcasting and works that may be carried out without authorization andtelevision had similar an obligation to compensate the owner of rights forLikewise, the increasing technological development ofthe use. For instance, under most national copyright laws, itphonograms, mainly through the rapid proliferation of dig-is permissible to reproduce a work exclusively for the person-ital and Internet-based media, has resulted in producers ofal and private use of the person who makes the reproduction,phonograms and broadcasting organizations calling for bet-provided that this person has already acquired a user licenceter and greater protection for their produced content as wellby buying the media (a CD or DVD) or agreeing to termsas against retransmission of their own programmes by otherand conditions when purchasing a content file from ansimilar organizations. In response, there have been sugges-online supplier, or to make quotations from a protectedtions by both media industry insiders as well as consumerwork, provided that the source of the quotation, includingprotection groups that the current business model of thethe name of the author, is mentioned and that the extent ofrecording, film and broadcast industries, which requires everthe quotation is compatible with fair practice. Exceptionsgreater content control and legal remedy, is out of step withoften include permission for private non-commercial use,the realities of the nature and usage of Internet and digitalquotation, parody, news reporting, and certain research uses. Non-voluntary licences enable acts ofexploitation to be carried out without authorization but withthe obligation to compensate the owner of and limitations In most countries, national legislation codifies excep-to copyrighttions and limitations with great specificity. It generally des-ignates a restrictive set of limitations, specific permitted usesDeveloping countries need to have access to productsidentified and enumerated in detailed rules. Some countries,of creative industries as they seek to bring education to all,however, particularly in the common-law tradition, recognizefacilitate research, improve competitiveness, protect their cul-more open-ended concepts of “fair use” and “fair dealing”.tural expressions and reduce poverty. There are two175CREATIVE ECONOMY REPORT 2010The role of intellectual property in the creative economy
“Fair use” began as a judge-made exception to theConcerning the second proposition on raising aware-rights of copyright owners in the United States and isness about less restrictive copyright licences, there is anapplied by the courts on a case-by-case basis, based on guid-increasing quantity of creative products available that areing principles contained in the statute. By contrast, “fairoften world-class products. The most obvious examples aredealing” is a term that groups together a number of limita-the Wikipedia scheme, where the content is published most-tions that are spelled out in more detail in the statute ratherly under some variant of Creative Commons or the GNU9than a general standard to be applied by courts as is the caseFree Documentation licensesor the GNU Linux comput-of “fair use” in the United operating system which, while used in for-profit activities6Box A collaborative approach to creativity and knowledge Wikipedia is a multilingual, Web-based, free-content encyclopedia project. It is written collaboratively by volunteers from all around the world and its arti-cles can be edited by anyone with access to the Internet. The name Wikipedia is a portmanteau word combining “wiki” (a type of technology that allowsusers to update a web page using their Web browser) and “encyclopedia”. The mission of the Wikimedia Foundation, which, among other things, man-ages Wikipedia, is to empower world citizens to share in the sum of all human knowledge. This is done by engaging people worldwide to collect anddevelop educational content under a free-content licence or in the public domain and to disseminate it effectively and globally. Since its creation in 2001,Wikipedia has grown rapidly into one of the largest reference websites. According to Alexa Internet, Inc., a company providing information on Web traf-fic, it is one of the 10 most visited websites in the every article, links will guide the user to associated articles. Anyone is welcome to add information, cross references or citations as long as they doso within the Wikipedia editing policy and to an appropriate standard. The Wikipedia software, known as MediaWiki, is carefully designed to allow easyreversal of editorial Wikipedia is an ongoing work to which, in principle, anyone can contribute and articles are “living”, it differs from a printed reference source inimportant ways. In particular, older articles tend to be more comprehensive and balanced, while newer articles may still contain misinformation, contentthat is not encyclopedic in nature, or vandalism. Users need to be aware of this so as to obtain valid information and avoid misinformation that has recent-ly been added and not yet removed. Information that remains in Wikipedia needs to be sourced. As a result, most articles have several links to primarysources, which are listed at the bottom of each article. Unlike a printed reference source, Wikipedia is continually updated, with the creation or updatingof articles on topical events within minutes or hours rather than months or years for printed is a registered trademark of the nonprofit Wikimedia Foundation, which has created an entire family of free-content projects. On all these proj-ects, people around the world are welcome to be bold and edit articles, contributing knowledge as they see fit in a collaborative was founded as an offshoot of Nupedia, a now-abandoned project to produce a free encyclopedia. During 2000, Jimmy Wales, founder ofNupedia, explored ways to make Nupedia a more open, complementary project. Eventually, he was introduced to the Wiki technology and Wikipedia wasborn. In 2003, Wales created the Wikimedia Foundation, a charity, essentially giving Wikipedia and its sister projects to the world. In March 2007, theword “wiki” became a newly recognized English are more than 75,000 active contributors working on some 700,000 articles in more than 253 languages. As of today, there are 2,096,561 arti-cles in the English-language version; every day, hundreds of thousands of visitors from around the world make tens of thousands of edits and createthousands of new articles to enhance the knowledge held by the Wikipedia of the text in Wikipedia and most of the images and other content are covered by a GNU Free Documentation Licence (GFDL). Contributions remainthe property of their creators, while the GFDL licence ensures that the content is freely distributable and visitors come to the site to acquire knowledge, others to share knowledge. In fact, at this very instant, dozens of articles are being improved andnew articles are being created. You can view changes as they happen. You can also view random articles. Over 1,708 articles have been designated bythe Wikipedia community as “featured articles”, exemplifying the best articles in Wikipedia. Another 2,500 articles are designated as “good articles”.Wikipedia also has portals, which organize content according to topic Sandy Ordonez, Wikimedia. Website: 9See or ECONOMY REPORT 2010The role of intellectual property in the creative economy
and made commercially available by the likes of IBM oris imperative to ensure that creators really benefit from theNovell, is available under the GNU General Publicearnings of their work. If the real problems could be solved, copyright legislation is obliged tothis would encourage better enforcement in developingenforce and respect the licence conditions as declared incountries. Therefore, the key issue is not only enforcementthese and other open public licenses, and recent cases havebut also the ambiguities of the current IPR regime, whichupheld the rights of the copyright owners distributing worksdeserve to be carefully addressed by alternative free and/or open considering the protection and enforcement ofcopyright and related rights, piracy appears as one of thecentral issues. All kinds of works are at risk of of copyright6use. Music, books, videos, DVDs and even craft design arecopied illegally. WIPO argues that in developing economies,The acquisition of copyrights is of little economicas a result of the flooding of markets with cheap “copyright-value if these rights cannot be enforced effectively. The cred-free” foreign products, domestic creators and producers loseibility of the system depends to a considerable extent on thetheir competitiveness, which in turn endangers cultural diver-enforceability of the rights it confers. Well-functioningsity and national identity. This is a huge challenge in manyenforcement mechanisms are the best means to limit thecountries, and the argument is that countries where piracy isnumber of violations of copyrights and to ensure that rightsrampant may forego opportunities for growth and develop-holders and society as a whole can reap the benefits from thement on several levels, both tangible and intangible, since itintellectual property system. However, this is another area indestabilizes the local creative industries and undermines thewhich more transparency is required. One of the main com-efforts of creative entrepreneurs and businesses. Inadequateplaints from artists and creators in developing countries isenforcement of copyright limits incentives to develop the lack of data related to the real rights transactions. Acreative products, especially for small and medium-sizednumber of questions have no simple answers: What are theenterprises. Other critiques point to the need to review thevalues of rights transferred inside corporations from thecurrent IPR legislation to address the root of the issue, notconsuming to the producing country? Who benefits from it?just the most cases, the rights holders are not the authors. Thus economics of copyrightCopyrighted works, like other intangible goods, sufferor eventually “All rights reserved”, anyone else who wants tofrom what economists call the public goods problem: theyuse the work needs to seek permission from the owner. Yetare non-rivalries and non-excludable goods. This means thatwhile these rights may be exclusive, they are not absolute andtheir use by one person does not reduce their usefulness forsome national IPR legislation provides limitations andother persons; thus an unlimited number of people may con-exceptions to help to keep the copyright system balanced tosume the work without using it up. In addition, while theavoid the costs of an overly extensive set of rights. These cost of creating copyright goods is often high, the cost ofso-called “fair-use” rights indicate a permissible degree ofreproducing them is low. This leads to an economic disincen-copying, in part or in full, within the family or householdtive to commercialize new , for creating backups in the production of comic andsatirical material, and for the purpose of study and academ-The limited monopoly granted by copyright laws pro-ic research. Creative Commons licences refers to a set of vides copyright owners with the legal entitlement to excludeliberal copyright licences, often referred to as “copyleft”,others from enjoying the copyrighted work. In the case ofthat instruct the users of the work as to which conditionstraditional copyright where the terms and conditions are not(none, some, any/all) govern copying, attribution and thespecified beyond the designation “Copyright [date]”, “©”10 ECONOMY REPORT 2010The role of intellectual property in the creative economy
creation of derivative works based on the original, as furtherment is winning favour among artists, creators and educatorselaborated to protect their intellectual property rights. CreativeCommons (CC) is a non-profit corporation dedicated toThe overextension of traditional copyright restrictionsmaking it easier to share creative works within the rules ofis also kept in balance by market competition. If the originalcopyright. Through free licences and other tools, CC pro-creator charges a sufficiently high price, other creators mayvides a mechanism for creators to embrace the capacities offind an incentive to invest producing a comparable alterna-the Internet to collaborate virtually, and expand access totive. The availability of such substitute goods for most worksinformation and opportunities. CC licences are not an alter-reduces market share and lessens the potential restrictivenative to copyright but are a permissive tool for facilitatingimpact of monopoly situations. Wherever monopolistic orthe release and waiver of rights, primarily for works of low6anti-competitive practices are detected, there is a role for12immediate commercial policy, which should be perceived as comple-mentary to the copyright system and an important counter-CC licences were created in collaboration with intel-balance to the exclusive rights that it property experts around the world to ensure that thelicences work globally, and are composed of a combinationof four basic choices. There are now more than 250 Commons licences: CC-licensed items on the Internet, created by artists,A fast-growing movementauthors, musicians, scientists, artisans, educators and otherswho seek to share their work, build their reputation andThe evolution of the Internet and digital technologyincrease the impact of their efforts. Among the better-has created an open market for the distribution and sharingknown institutions and groups using CC licences around theof intellectual properties. But in the fast-paced digital age,world are the Massachusetts Institute of Technology for itshow can those who work in the creative industries safeguardOpen Course Ware Initiative, Al Jazeera for its Creativetheir intellectual property? The protection of intellectualCommons video repository, Google for search and discovery,property rights has become one of the most difficult chal-and even the White House in the United States for all lenges for creative industries, affecting governments, artists,public communications , analysts and agencies alike. The most significantchallenge is how legal and policy frameworks can keep upCREATIVE COMMONS: with the constant change. Technology evolves quickly andTYPES OF BASIC LICENCESspawns new innovations that on the one hand help the cre-ative industries, but on the other create social and legal bar-ATTRIBUTIONriers to the effective use and protection of their others to copy, distribute, display, performand remix copyrighted work, as long as they give credit in theThe recent pace of technological change has created away between what is possible — often simply andinexpensively — and what is allowed. Sharing files? That’sNON-COMMERCIALillegal according to international copyright law. Mixing orAllows others to copy, distribute, display, performmashing music, text or video is also usually illegal. Postingand remix work for non-commercial purposes only. If theyexcerpts from a website or blog is still illegal in most to use the work for commercial purposes, they mustOf course, these “infringements” are still happening, but itcontact the creator for difficult to build legitimate, sustainable practices or busi-SHARE ALIKEness models when every participant is potentially a criminalAllows others to create remixes and derivative worksin the eyes of the on creative work, as long as they only distribute themWhile copyright remains the fundamental guarantorunder the same CC license as the original work was of the rights of authorship, the Creative Commons section is based on an article by Ahrash Bissell, Executive Director, CCLearn, Creative Commons, published by International Trade Forum ITC, Issue 3/2009. For more infor-mation about Creative Commons visit . 178CREATIVE ECONOMY REPORT 2010The role of intellectual property in the creative economy
NO DERIVATIVE WORKSment, like the use of CC licensing in many different domainsAllows others to copy, distribute, display and performand industries, is only just verbatim copies of the work — but not make derivativeThe architecture of the Internet has flattened theworks based on it. If they want to alter, transform, buildinformation landscape and opened opportunities for innova-upon or remix the work, they must contact the creator fortion by anyone with access, especially in the and in emerging markets. CC licences ensure that theseFor educators, this legal infrastructure gives flexibilitynew opportunities built on the open web enable broad, inter-to the creator, protects users and makes collaboration easier,national participation without risk of legal complications,since they don’t have to worry about copyright infringementbut allow creators to retain fundamental rights to their own6as long as they abide by the terms of use. For learners, open-work. Creative Commons has recently enabled new toolsly licensed materials provide access to a wealth of knowledgespecifically geared to making the most of the Internet with-and opportunities to learn in new ways. CCLearn, the edu-out compromising copyright including:cation division of Creative Commons, works to reduce or Search by Creative Commons: A search website installed as aeliminate the legal, technical and social barriers to thedefault directory on the Firefox browser that allows visi-growth of educational materials, generally referred to astors to search for content that can be used for commercialopen educational resources (OER). The impact of OER forpurposes and that can be modified, adapted and builtintellectual exchange among faculty, improved educationalupon. Visit for students and opportunities for collaboration is : A database of user-generated video content with aalready significant. For example, the OpenCourseWarefocus on content creators making “shows” or “serialized Consortium consists of over 150 member institutions allcontent”. currently distributes million episodesover the world. Similarly, regional initiatives like the Southproduced by more than 48,000 independently produced webAfrican Siyavula Project are transforming the educationalshows to audiences of 22 million people. Visit at a local level. According to the Siyavula website,“Open licences enhance innovation and lighten the load on Owl Music Search:Owl allows users to search for music byindividual teachers and result in localised, content–specificuploading sound files and searching the database for songsmaterials that are immediately useful to teachers.” The Openthat are similar. Owl has indexed more than 98,980 songsDatabase of Education Projects and Organizations has afrom commercial and independent song catalogues. Visitpartial list of projects and organizations involved with database is one of several community-engaged projects SpinXpress:A community site that encourages users to resident on the global open education community site, calledcollaborate by sharing video and other large files. VisitOpenEd, hosted by CCLearn. The open education move- of the creative industries to the economyA keen interest in measuring the contribution of thecially with regard to the capture of the non-economic returnscreative industries to national economies has been fuelled inof creativity. Clearly, a more transparent link to statisticalrecent years by the identification of creativity as a potentialreporting was needed to identify the multiple effects pro-driver in the creative economy. Many studies were undertak-duced by the creative sector on to evaluate and compare size, performance and competi-Developed by WIPO and a team of internationaltiveness of the creative industries as well as to monitor trendsexperts in 2003, the WIPO Guide on Surveying the Economicand provide policy options based on solid quantifiable evi-Contribution of the Copyright-Based Industries outlined a method-dence. These studies were based on a variety of approaches,ology in economic terms. It provided the basis for undertak-motivated by equally diverse policy objectives: social, eco-ing a comparative analysis of the size of the creative sectornomic or cultural. Difficulties emerged along the way, espe-in various countries that is built on reliable data and com-179CREATIVE ECONOMY REPORT 2010The role of intellectual property in the creative economy
mon methodologies. The guide summarized the exist-Chart Contribution of the creative industries to GDP ing experience and developed a step-by-step methodol-ogy to undertake measurement surveys. Based on a 12 on intellectual property and copyright, it10 presented new definitions of the copyright-based8 industries following the extent of use of (see also chapter 16 ). Since its publication, a number of countries the guideto, among other things, help position2 6the creative industries in the national economy and0 USASingaporeCanadaLatviaHungryPhilippinesBulgariaMexicoRussianLebanonCroatia Jamaica draw international and cross-sectoral comparisons. TheFederation contribution of the creative industries to the nationaleconomy in terms of value added, GDP, generation ofemployment and trade, are solid evidence of the impor-tries is often much stronger than in the overall economy. tance of this sector. Table the results fromThe dynamics in the creative industries as an employmentapplying the WIPO guide in 17 countries. Noticeably, mostgenerator are indicative of the development potential of theof the creative economic activities are taking place within thecreative economy in social terms. In some countries, such ascore copyright-based industries group, followed by the inter-Mexico and the Philippines, the creative industries employed13dependent contribution to employment is alsomore people than many of the traditional sectors of substantial, and employment growth in the creative indus-the Economic contribution of copyright-based industries using WIPO methodologyReference year Countryof study% Contribution of copyright industries to GDP% Contribution of copyright industries to employmentTotal Inter-Non-Total Inter-Non-shareCoredependentPartialdedicatedshareCoredependentPartialdedicatedBulgaria 2005 Jamaica 2005 Lebanon 2005 Mexico 2003 Philippines 1999 Canada 2004 Hungary 2002 Latvia 2000 Singapore 2001 USA 2004 Australia 2007 Croatia 2004 Romania 2005 Colombia 2005 Russia 2004 Ukraine 2005 Netherlands 2005 Source: WIPO Secretariat, June 201013For better understanding of the WIPO model and the composition of the copyright-based industries, see table chapter 1. 180CREATIVE ECONOMY REPORT 2010The role of intellectual property in the creative economy % of GDP
In 2006, WIPO published National Studies on Assessing theopens the door for policy interventions by providing robustEconomic Contribution of the Copyright-Based Industries, which pre-data that are comparable across countries and the results of the first national studies carried out onContribution of groups of copyright-based industries the basis of the methodology in the WIPO guide onChart to total of creative industries Surveying the Economic Contribution of the Copyright-Based % Interest in continuing this research has grown, and to % more than 24 surveys have been carried out. The % Partialexperience derived from using the guide is employed to Interdependentadjust its application to specific country situations. It % , the creative industries and traditional cultural expressionsTraditional music, designs, performances, symbols andHowever, cultural heritage is not only there to be leveragedother creative expressions of traditional cultures communi-as an economic resource. In this socially, culturally and tech-cate beliefs and values, embody skills and know-how, reflectnologically connected world, it is increasingly recognizedthe history of a community and define its cultural culture is not a mere commodity and that heritage asThese traditional cultural expressions are valuable culturalsuch is worthy of safeguarding and protecting. Intellectualassets of the indigenous and local communities who main-property tools can help prevent misappropriation and misusetain, practice and develop them. Traditional cultural expres-of creativity, including traditional creativity. The relationshipsions can also be economic assets: they are creations andbetween intellectual property and traditional cultural expres-innovations that can, if so desired, be traded or licensed forsions, and the cognate area of “traditional knowledge”, rais-14 income generation and economic development. They mayes complex legal, cultural, political and conceptual serve as an inspiration to other creators and innovators,The conventional intellectual property system haswho can adapt the traditional expressions and derive newbeen identified by some as not only inadequate to compre-creations and innovations from them. Traditional culturalhensively and appropriately protect traditional culturalexpressions and other elements of intangible cultural her-expressions but also as positively harmful in at least twoitage is therefore a mainspring of creativity as they are in adirections. First, intellectual property rules exclude many tra-permanent cumulative process of adaptation and cultural expressions from protection, consigningCultural products deeply rooted in the heritage ofthem to an unprotected “public domain”. Second, follow-ondeveloping countries have often crossed borders and estab-innovations and creations derived from traditional culturallished significant market niches in industrialized countriesexpressions receive protection as “new” intellectual property,but unfortunately they rarely benefit the countries of origingiving the holders of the IPRs the exclusive right to deter-adequately. Developing countries should respond by leverag-mine the conditions under which third parties (including theing their rich cultural heritage and creating and trading intraditional cultural expression-holding communities them-new, distinctive and locally rooted cultural goods and servic-selves) may use and benefit from the intellectual property. Ases. Developing countries should put in place strategies anda result, many call for new, sui generis (“special”) systems toact to encourage and reward creativity by their own nation-protect traditional cultural expressions, and several countriesals, drawing from their traditional cultures and already put in place national sui generis laws and meas-ures, such as Ghana, New Zealand, Panama and cultural expressions are also cultural , generally, WIPO, “Consolidated Analysis of the Legal Protection of Traditional Cultural Expressions/Expressions of Folklore”, WIPO Publication No. ECONOMY REPORT 2010The role of intellectual property in the creative economy
The relationship between intellectual property andthe promotion, preservation, revitalization and protection oftraditional cultural expressions is nuanced and complex. Forintangible cultural heritage. Expressions of traditional instance, contemporary expressions of traditional culturescreativity and innovation can serve as springboards for new15are protected by conventional copyrightand performancescultural expression, especially in the digital world. Digitized16of traditional cultural expressions are music, designs and art can reach new audiences inCertification trademarks and labels of authenticity have beenniche markets for distinctive, diverse and “local” culturalused successfully by indigenous communities in Canada, Fiji,goods and services and, in so doing, promote communityNew Zealand, Panama and Tonga to curb the sale of fakeand rural economic and cultural development. However, thetraditional creative arts. Further, some argue that the creativedigitization and dissemination of traditional cultural expres-use by third parties of “public domain” traditional culturalsions can lead to their misappropriation and misuse. In some6expressions sustains creativity and revitalizes, preserves andcases, safeguarding efforts have unwittingly led to the unau-promotes traditional disclosure or commercial exploitation of culturallysensitive there are diverse views on these questions, thereis wide consensus that traditional cultural expressionsAs a result, indigenous organizations, museums andembody innovation and creativity and should not be misap-archives, and researchers (such as ethnomusicologists) havepropriated and misused. The challenge, then, is to identifycalled for guidance on which intellectual property issues andgaps in the protection offered by current systems and con-options arise during recording and digitization initiatives. In17struct balanced and workable measures to fill these gaps inresponse, the WIPO Creative Heritage Projectis develop-accordance with the aspirations of indigenous and localing best practices and guidelines for managing intellectualcommunities and the broader public interest. However, whatproperty issues when recording, digitizing and disseminatingprecisely is a “traditional” cultural expression? When is useintangible cultural heritage. These best practices and guide-of a traditional cultural expression legitimate cross-culturallines will assist communities and cultural institutions toborrowing and when is it “misappropriation”? What are themanage intellectual property options so as to both preserveappropriate role, contours and shape of the “publictheir cultural heritage and protect it against misappropria-domain”? Who should benefit from the protection of tradi-tion and misuse. For example, copyright and related rightstional cultural expressions? Since much creativity is deriva-can provide protection for performances, recordings, compi-tive, are many traditional cultural expressions not the resultlations and contemporary interpretations of traditional cul-of centuries of cultural intermingling, making it difficult iftural expressions. Trademarks and other forms of protectionnot impossible to identify single community “owners”? Forfor distinctive signs and indications can also be long should any protection be granted? What public-Making traditional cultural expressions publicly avail-policy goals are to be achieved through granting intellectualable does not necessarily place them in the “public domain”;property-like protection to traditional cultural expressions?by creating and exercising IPRs in new digital recordings,protection of the cultural expressions can be enhanced. Thedecision as to whether or not to use new technologies communities intellectual property tools to participate in the informationand new technologieseconomy is tied to the overall cultural and economic goals of the tradition-bearers themselves, on which only they Digital technologies and computer networks — espe-can the Internet — offer unprecedented opportunities for15WIPO (2003), Minding Culture: Case Studies on Intellectual Property and Traditional Cultural Expressions. 16By the WIPO Performances and Phonograms Treaty, ECONOMY REPORT 2010The role of intellectual property in the creative economy
Box Jewellery: A magic marriage between tradition and contemporary design Diamonds, emeralds, aquamarines, amethysts, topazes, tourmalines, rubies, sapphires and many more inspiring beauties are some of the hundreds ofcolourful precious and semi-precious stones abundant in countries such as Brazil, Ghana, India, the Lao People’s Democratic Republic and South for a long time simply as raw materials for top foreign designers. Now, however, developing countries are perceiving jewellery as a perfectmatch between tradition and high value-added activity. The first facet of this market comprises traditional cultural expressions, defined by WIPO as “productions consisting of characteristic elements of the tra-ditional artistic heritage developed and maintained by a community … or by individuals reflecting the traditional artistic expectations of such a commu-1nity, in particular … tangible expressions, such as: …jewelry”.Indeed, jewels have always been intrinsic to the everyday life of traditional communi-ties. Works of art with religious and other symbolic meanings, jewels play an important role in maintaining traditions. Andean jewellery, for instance, has6its roots in pre-Hispanic times. In Africa, ornaments made of precious stones are believed to have a talismanic power. Indian jewellery is found in mosttraditional representations as sacred ornaments and takes on regional nuances. Old gemstone markets are also a rich part of the cultural and economic life in a range of countries. A paramount example is the gem market in the heartof the old Thai city of Chantaburi, a paradise for ruby and sapphire trade since the middle of the nineteenth century and a magnet for tourists. TheGhanaian tradition in jewel-making, dating back to the fifth century BC, has been passed down through the generations to craftsmen and craftswomenusing techniques such as granulation, lost wax casting, filigree and chasing and is now evident in the local industry of over 1,000 indigenous artisansbased in cities such as Accra and the centuries, precious stones were considered the proper ornaments for kings, queens and religious chiefs on all continents, with the power toprotect and cure their holders. The multitude of meanings of jewellery has shaped civilizations down the ages, as reported by Pliny the Elder in the lastchapter of his Natural History, written in 77AD. In describing their uses, he referred to famous artists and their creations and to Roman architectural stylesand technology. For thousands of years, traditional jewellery remained unchanged. Recently, however, producers of precious stones are approaching the jewellery mar-ket differently, expressing traditions through contemporary design. Trade and trends at a global level have favoured fashion as a fundamental sales driv-er, and jewellery manufacturers are rushing to adjust their product designs to cater to this segment while keeping a foot in their cultural roots. In Ghana,artisans combine traditional cultural influences such as traditional Ashanti and Fanti styles with contemporary design, turning old and rare glass beadsalong with brass, horn, gold and silver pieces into wearable jewellery. The market potential has not remained unobserved by the business world or governments. Tanishq, India's largest jewellery brand and part of the gigan-tic Tata Group, announced in 2007 the opening of its new 3,500 sq ft store in Koramangala, Bangalore. Tanishq specializes in creating contemporaryproducts inspired by India's rich heritage. The H. Stern Brazilian chain, created in the 1950s, nowadays employs 3,000 people and appears in the arti-cles and photographs of the most respected fashion magazines in the world. Its creations are strongly based on design in a dialogue with architecture,fashion, music and the arts in general. The 42,000 sq ft headquarters in Rio de Janeiro is the largest space built for jewellery production and trade inthe world. In Ghana, the industry is supported by training colleges and university courses such as the Jewellery College located at the Weija Industrialand Commercial Estates in Accra and the Metal Products Department of the Kwame Nkrumah University of Science and Technology, which graduatesskilled artisans each year. The Government of Ghana has a number of programmes to boost investment and productivity in the jewellery sector throughthe Ministry of Trade and Industry, the Ghana Export Promotion Council and the Ghana Investment Promotion Centre. These activities have resulted in asignificant rise in the domestic production and sale of jewellery in the country. 1Intellectual property and traditional cultural expressions/folklore, WIPO Booklet No. 1, p. 6. Available at: Ana Carla Fonseca Reis, Garimpo de Solucoes, economia, cultura & desenvolvimento and Avril Joffe, Director, CAJ: culture, arts and WIPO Creative Heritage Project also providesKenya, to assist it in recording, digitizing and commercializ-associated information technology support for the record-ing elements of its intangible heritage and managing IPing, digitization and dissemination of cultural materials byrights in accordance with the community’s overall goals andindigenous communities if they so decide. The WIPOaspirations. This project also works directly with museums,Creative Heritage Digital Gateway, an online portal on thearchives and other cultural institutions in developing coun-WIPO website, provides samples of the recordings made bytries to assist them to digitize and disseminate their collec-communities with WIPO assistance and facilitates access totions and manage IP issues while doing so. In particular,websites established by them. WIPO has, for example,WIPO is developing resources for the strategic managementworked with an indigenous Maasai community in Laikipia,of IP rights and interests by cultural institutions, so as to183CREATIVE ECONOMY REPORT 2010The role of intellectual property in the creative economy
both preserve and protect cultural heritage. Examples ofsion in an archive or inventory for non-commercial culturalsuch resources include surveys on practical experiences withheritage safeguarding in the archival practices of institutions and of indigenousIn September 2009, WIPO member states renewed18and local communities;a searchable database of codes,the mandate of the IGC, adopting a clearly defined work19policies and practices;and a draft publication on IP man-plan and terms of reference to guide the Committee’s workagement for museums, archives and libraries, tentatively enti-over the next two years. They agreed the IGC would under-tled “Intellectual Property and the Safeguarding oftake negotiations with the objective of reaching agreementTraditional Cultures: Legal Issues and Practical Options foron a text of an international legal instrument (or instru-20Museums, Libraries and Archives”.ments) that would ensure the effective protection of genetic6In parallel to this capacity-building work, negotiationsresources, traditional knowledge and cultural expressions. Inon the protection of traditional cultural expressions (TCE)July 2010, experts from WIPO member states reached anare taking place internationally at WIPO within theagreement on an international legal instrument to ensure theIntergovernmental Committee on Intellectual Property andeffective protection of traditional knowledge, traditional cul-Genetic Resources, Traditional Knowledge and Folklore (thetural expressions and genetic resources. Their work focused21IGC).Draft provisions for the sui generis protection ofon what is considered to be the most mature of the threeTCEs are currently in negotiation. The provisions seek,subjects, namely TCEs. This broke new ground in talksamong other things, to respond to the needs of safeguardingabout traditional cultural expressions; although the expertsand the specific IP aspects of registering and documentinghave no mandate to take decisions or adopt any text, their22 TCEs. For example, the draft states that measures to protectwork contributes to the evolution of the would not apply to the making of recordings andtopic is also addressed in chapter reproductions of TCEs for the purpose of their and new technologiesBoth treaties provide the legal rationale for copyrightThe purpose of the two 1996 WIPO treaties (theWIPO Copowners to be adequately and effectively protected in the dig-yright Treaty and the WIPO Performances and23ital environment when their works and sound recordings arePhonograms Treaty) was to update and supplement thedisseminated through new digital technologies and commu-major existing WIPO treaties on copyright and related rightsnication systems. They also create new online rights. Forprimarily in order to respond to developments in technologyinstance, Article 8 of the WIPO Copyright Treaty provides aand in the marketplace. Since the Bern and Romeright of communication to the public, “including the mak-Conventions were adopted or last revised more than a quar-ing available to the public of their works in such a way thatter century ago, new types of works, new markets and newmembers of the public may access these works from a placemethods of use and dissemination have evolved. Amongand at a time individually chosen by them”. In addition,other things, these two WIPO treaties each address the chal-Article 6(1) of the Treaty provides an exclusive right tolenges posed by today’s digital technologies, in particular theauthorize the making available to the public of originals anddissemination of protected material over digital networkscopies of works through sale or other transfer of ownership,such as the Internet. For this reason, they have sometimesthat is, an exclusive right of distribution. Such a right, surviv-been referred to as the “Internet treaties”.18Surveys are available at database may be accessed at more information about the IGC see WIPO News & Events, “Experts Break New Ground in Traditional Cultural Expression Talks”, PR/2010/652, July number of countries have enacted the provisions of the two treaties in their national legislation. Copyright laws of a wide range of countries are accessible through WIPO’s CLEAdatabase, available at: ECONOMY REPORT 2010The role of intellectual property in the creative economy
ing at least until the first sale of copies, is a powerful tool intent is public domain, hacking these technologies to right-the fight against piracy because it makes it possible for thefully access the content (in order to reuse, create derivativeofficials in charge of enforcement to seize illegal copiesworks, redistribute, etc.) becomes a copyright offence. Thuswhere they find them in the marketplace, in addition to hav-they may be seen as tools to reintroduce public-domain con-ing to track down the person responsible for the act oftent into the domain of proprietary copyright under tradi-reproduction, who often will not be the person offering thetional restrictive licence. Such an extension does absolutelycopies for sale to the for new talent and provides no incentives to currentor future maintain a fair balance of interests between theowners of rights and the general public, the treaties furtherAdditional problems relate to the notion that “anti-6clarify that countries have reasonable flexibility in establish-circumvention” and “rights management” technologies caning exceptions or limitations to rights in the digital environ-be used to decrease the scope of “fair use”. Clearly, makingment. Countries may, in appropriate circumstances, grantprivate copies for use in one’s own household, while being anexceptions for uses deemed to be in the public interest, such“exception and limitation” to copyright as discussed in partas for non-profit educational and research purposes. , becomes an unauthorized activity if the content isare some issues to be dealt with in the context of the WIPOprotected with “anti-circumvention” and “rights manage-Development ” to the WIPO treaties, countries areCritics of the current legislation argue that citizens’required to provide not only the rights described above butrights of fair use have been eroded. Another point is thatalso two types of technological adjuncts to the rights. Thesemany works of art are now produced collectively, particular-are intended to ensure that right owners can effectively usely in the area of digital media. Because it is based on individ-technology to protect their rights and to license their worksuality, copyright cannot adequately address this new . The first, known as the “anti-circumvention” provi-In analysing the pros and cons of the legal and economicsion, tackles the problem of “hacking”: it requires countriesperspective, another approach is that the power of disposalto provide adequate legal protection and effective remediesshould be distributed more widely among the numerous cul-against the circumvention of technological measures (such astural entrepreneurs, as a way to reduce the dominant force of24encryption). The second type of technological adjunct safe-conglomerates control too much of the the reliability and integrity of the online marketplaceAt present there is considerable debate around theby requiring countries to prohibit the deliberate alteration orprinciples of public domain. Some assert that public domaindeletion of electronic “rights management information”,plays a capital role in the fields of education, science, cultur-that is, information usually in the form of metadata that mayal heritage and public sector information. In this sense, it isaccompany any protected digital material and that identifiesunderstood as the massive flow of information that is freethe creator or other owner of the work, performers, rights,from the barriers to access or reuse usually associated withand the terms and conditions for its protection, either because it is free from any copy-From a policy perspective, “anti-circumvention” andright protection or because the right holders have decided to“rights management” technologies pose an important prob-remove these barriers. Therefore, as this material is availablelem: content distributors are free to provide public-domainand its reproduction costs are close to zero, it becomes thecontent in media that have “anti-circumvention” andraw material from which new knowledge is derived and new25“rights management” technologies in order to improve orcultural works are revenue streams. However, if the underlying con-24Joost Smiers & Mariekevan Schijndel (2009), “Imagine there is no copyright and no cultural conglomerates too”. Amsterdam, Institute of Network Cultures, Issue N° 4, from The Public Domain Manifesto at or . 185CREATIVE ECONOMY REPORT 2010The role of intellectual property in the creative economy
Box Collective management of copyright “How is it possible to ensure that an individual musician is remunerated each time his song is played on the radio?Or a writer whenever his play is performed? How can the copyright and related rights of such creators be managedefficiently so as to enable them to concentrate on their creative activity while receiving the economic reward due tothem?“From Artist to Audience, a WIPO booklet produced in cooperation with the International Confederation of Societiesof Authors [and Composers] (CISAC) and the International Federation of Reproduction Rights Organisations (IFRRO),aims to answer some of these questions by exploring one way in which the copyright and related rights systemworks, namely through the collective management of rights.”6“From Artist to Audience (Publication No. 922) is available in PDF in English or French on the WIPO Free Publicationswebsite: Excerpt from “From Artist to Audience — Collective Management of Copyright”, WIPO Magazine, January 2007. Available at: . policy options The analysis in this chapter underscores the idea thatenhances the enjoyment of, culture, knowledge and enter-an efficient and fair international intellectual property sys-tainment all over the world. Ideally, under this system oftem is in the interest of creators, creative industries and con-rights, rights owners are assured that their works can be dis-sumers in all countries, and the level of its implementationseminated without fear of unauthorized use of their creativeis often the subject of discussions in free trade intellectual products. In practice, viable enforcement isIPRs are territorial, which means that they are protected onlyoften a more critical issue than legal the country or region where protection has been appliedIncreasing awareness of the contribution and potential offor and obtained. Protecting intellectual property in exportthe creative sector for development is a major is crucial if a creator is to enjoy the same benefits ofProtecting copyright is a public-policy goal of countriesprotection abroad as are enjoyed in the domestic sustained growth in the creative economy. The rich,intangible cultural heritage of many indigenous and From the WIPO perspective, adherence to interna-local communities and developing countries is a source oftional instruments allows developing countries to have equalcreativity that should be tapped for the direct benefit ofaccess to the markets of other member nations, and tothese communities and that their local creators’ works are protected allows the creation of a domestic creative-industry infra-According to WIPO, the inefficiency of intellectualstructure that competes with foreign products. This helps toproperty legislation and enforcement systems imperils theestablish credibility in the global growth to which the creative industries is as important as the education and property provides incentives to creatorsCountries that wish to see their creative industries prosperand entrepreneurs in the form of a tradable economic assetmust take a strong stance for the promotion of the full — a copyright — that is instrumental for investing in thespectrum of copyrights and their licences, for the best waydevelopment, production and distribution of goods andto expand the creative economy is to implement a balancedservices, in a market economy, that are largely based oncopyright framework that realizes their development poten-human creativity. This in turn helps increase access to, and186CREATIVE ECONOMY REPORT 2010The role of intellectual property in the creative economy
tial. The right balance should be found by providing a spec-trum of choices for creators and entrepreneurs on the onehand while enabling access to creative and intellectual content and the socio-economic and cultural benefits thatsuch access provides on the views remind us that developing countriesamong themselves are quite diverse with respect to theirsocial and economic environment and capabilities, and theimpact of copyright varies according to their socio-economic6circumstances. Therefore, a tailored approach could take intoaccount the diverse needs and capacities of developing coun-tries, particularly the least developed countries, and ensurethat action is consistent with national objectives and development theory, all countries shape laws to fit their , while most developed countries have, in the past,moulded their copyright regimes to suit their particular eco-nomic, social and technological situations, developing coun-tries today have relatively less policy space available under thecurrent international regime — although they should betterexplore the flexibilities of the TRIPS Agreement. Given thislimitation and the concurrent need that intellectual propertylaw must allow and even promote choice, and recognizingthat there is no one-size-fits-all model, some alternativesshould be considered, for instance, to develop and use copy-righted and other intellectual works that fall into the “somerights reserved” and “free/open” categories, in between theextremes of the “public domain” and “all rights reserved”works. This does not mean that traditional copyright worksor the public domain should be disfavoured but that theymay provide nuanced economic options to authors, innova-tors and entrepreneurs, be they individuals, organizations or this sense, intellectual property can offer a range oftools that can address, in a complementary way, both economic and cultural concerns, reinforcing links betweencultural values and cultural valuables. Using the full spec-trum of rights options, the copyright system can serve toadequately balance the incentives and rewards to creatorswith the issue of access in a way that truly promotes creativ-ity without entering into contradiction with internationalintellectual property ECONOMY REPORT 2010The role of intellectual property in the creative economy
6188CREATIVE ECONOMY REPORT 2010The role of intellectual property in the creative economy
Technology, connectivity 7and the creative aim of this chapter is to examine issues relatingtelevision) over an Internet Protocol-based platformto the interface between technology, culture and econom-became a reality in a number of high-income , highlighting the ways in which information and Meanwhile, some of the poorest countries are pioneering1communication technologies (ICTs) have brought aboutnew forms of mobile usage for banking lifestyle changes and invigorated the creativeStill, the digital divide remains a challenge, and wide gapseconomy. In recent decades, ICTs have proven to be aremain in ICT infrastructure and access to accelerator of economic and social chapter focuses on the implications of ICTsAt this writing, it is still premature to draw defini-for the creative economy, and creative production in partic-tive conclusions about the long-term implications of theular. The impact of ICTs on this part of the economy hasglobal financial and economic crisis on the digital-relatedgrown recently as digitization and convergence have gener-creative industries. Despite signs of economic recovery inated new opportunities for innovation and new businesssome regions, uncertainties remain regarding the appropri-models. As distribution costs fall, the potential forate policy interventions needed to mitigate key structuralincreased demand comes into play. Certainly, the issue ofproblems at the international and national levels, and sev-copyright regimes remains a challenge in this context. Ineral countries need recapitalization. Some parts of theprinciple, digitization presents no problems for copyright;ICT industry have been affected by weak householdhistorically, rights have been regulated via the control ofexpenditures, while trade in ICT-enabled services appearsphysical goods and, more recently, via various forms ofto be among the most resilient areas of the world econo-encryption. “Pure” digitization requires the developmentmy. The mobile telephony sector in developing countriesof secure, solely digital control of copyright. Indeed, overhas a good chance of weathering the storm. For example,the past ten years, this transition from physical to digitalin 2009, subscriber growth remained strong in the twostorage has been far from easy to manage for even the mostlargest developing country mobile markets, China andtechnically, legally and electronically advanced countriesIndia. Given the strong correlation between ICTs and theand corporations in the world. Not surprisingly, it hasproduction and consumption of digital creative products,proven very difficult for those in the developing world. together the creative and digital sectors can help to supportThe essence of the challenge goes beyond the con-the path to recovery and promote better problems of copyright; many creative-economyThe speed at which connectivity has been diffused“products” are potentially digitized and thus subject toaround the world in recent years has exceeded new business models and need novel regulatoryMore than half of the world’s people now have access toregimes. Even those that have their basis in a physicalsuch technologies, especially to mobile telephones, whichproduct, such as a craft object, may be subject to copyingbecame much more than just tools for talking. The intro-unless registered as intellectual property. Likewise, in theduction of “triple play” services (telephone, Internet andcase of music, dance or theatre, these products can be1UNCTAD (2009). Information Economy Report 2009 – Trends and Outlook in Turbulent ECONOMY REPORT 2010189CHAPTERTechnology, connectivity and the creative economy
recorded and copied. In both cases, this potentially createsintellectual property system carries with it many issues to allvulnerabilities for developing economies and the class ofproducers, and notably cultural producers, and especiallygoods and services known as “traditional cultural expres-those in the developing world, of not receiving adequatesions”. In essence, most creative-economy practitioners makereward for their intellectual and labour investment in creativetheir living from trading in ideas; intellectual property rightsgoods and services. Second, a regulatory regime that only(IPRs) offer a possibility for them to earn “rent” on the userecognizes IPRs and a single business model is unlikely to beof these ideas. An unevenly developed, operated or governedeither successful or effective in our and its wider impact7One of the targets set by the world leaders at theadoption creates unprecedented opportunities for industriesWorld Summit on the Information Society (WSIS) in 2003and businesses in developing countries to overcome the con-— more than half of the world’s population should havestraints posed by limited access to resources and access to ICTs — appears to have been reached sevenThey also provide an opportunity for enterprises in develop-years ahead of schedule. This is due largely to the mobileing countries to obtain better access to finance throughphone revolution, which now has more than 4 billion sub-improved online credit information structures. Most impor-scribers worldwide. The advent of digital and Internet-basedtantly, ICTs lower transaction costs and facilitate trade, there-ICTs has opened a new set of marketing and distributionby opening new international business , thereby boosting the economic potential ofDeveloping countries with better and more efficient ICTthe creative economy. At the 2003 Summit, the internationalcommunity recognized the ICT sector as a pillar of econom-Contribution of segments of ICT industries ic growth and competitiveness. Paragraph 8 of the WSISTable to global GDP, 2003-2007 Declaration of Principles states:Contribution to global GDP (%)We recognize that education, knowledge, informa-Segment20032004200520062007tion and communication are at the core of humanTelecom , endeavour and well-being. Further, informa-Telecom and communication technologies (ICTs) have anSoftwareand computer impact on virtually all aspects of our lives. TheTelevision progress of these technologies opens completelyConsumer opportunities to attain higher levels of develop-ment. The capacity of these technologies to reduce manytraditional obstacles, especially those of time and dis-Source: DigiWorld (2007:24)tance, for the first time in history makes it possible touse the potential of these technologies for the benefit ofinfrastructure attract more foreign investment and outsourc-millions of people in all corners of the contracts and, generally, trade more. Research being carried out by UNCTAD affirms thatIt is noteworthy that most Internet users now reside inICTs contribute positively to economic growth in both devel-the developing world. Mobile phones have emerged as the2oping and developed boost productivity bymost widespread ICT tool in Africa, Asia, Latin America, theimproving the efficiency of individuals, firms, sectors and theCaribbean and the Pacific; they are used extensively, not onlyeconomy as a whole. ICTs can also generate positive sidefor voice communication but also for SMS (short messageeffects in the economy through learning-by-doing, fasterservice) and increasingly for other data applications such astransfers of know-how and increased transparency. ICT2UNCTAD (2006). “Using ICT’s to achieve growth and development” Available from ECONOMY REPORT 2010Technology, connectivity and the creative economy
m-commerce and m-banking. Mobile telephonyGlobal mobile telephone subscriptions by main country groupings, Figure – 2008 (millions and per 100 inhabitants)enables users to access information and creative con-tent, especially that relating to news, education,Developed Developing EIT % Change health, jobs, culture and family life. There are good30%5,000reasons for developing countries to prioritize broad-25%4,000band connectivity in their development %Although every user may not need broadband, there3,00015%are many applications that do not operate without2,000sufficient bandwidth. Improved broadband connec-10%tivity can help to achieve education and health tar-1,0005%gets set out in the Millennium Development Goals00%7(MDGs). Therefore, monitoring the diffusion of2003 2004 2005 2006 2007 2008various ICTs, in particular telephony, Internet andbroadband, is crucial to evaluate trends in worldwideWorld Developed Developing EIT 120connectivity and to estimate its potential for the cre-100ation and marketing of creative goods and fixed telephone subscriptions are declining,60mobile and Internet usage continues to expand 40rapidly in most parts of the world. 2002003 2004 2005 2006 2007 2008Source: UNCTAD, based on ITU and national mobile revolutionIn 2008, the number of mobile subscriptionsGlobal internet users by main country groupings, 2003 – 2008 Figure (millions and per 100 inhabitants)worldwide reached 4 billion, while the number offixed telephone lines has been stalled at around Developing EIT % Change billion since 2006. The rise of mobile telephony20%1,500reflects the high cost of fixed infrastructure com-15%pared to wireless solutions as well as limited access1,00010%to electricity, especially in rural areas of developing5005%countries. There are now an average of 60 mobilephone subscriptions for every 100 people world-00%2003 2004 2005 2006 2007 2008wide. Between 2003 and 2008, the penetration ofmobile phones grew dramatically, even in the poor-3est countries account forWorld Developed Developing EIT 60two-thirds of all mobile subscriptions, as shown in50figure . In Africa the average penetration of40mobiles was over one-third of the population. In30developing Asia the average is 45 subscriptions per20100 inhabitants. In Latin America the regional aver-10age was 80. In the Caribbean, practically all of the02003 2004 2005 2006 2007 2008Anglophone island states have already achieved apenetration rate of 100, while the overall regionalSource: UNCTAD, adapted from ITU and national dataaverage is around 70 per cent. By the end of 2008,almost one out of every two persons in developing3UNCTAD (2009). Information Economy Report 2009 – Trends and Outlook in Turbulent ECONOMY REPORT 2010Users per 100 per 100 , connectivity and the creative economy
countries already had a mobile phone. The income barrier toeconomic development objectives. Many applications do notmobile ownership has continuously been reduced due torun or do not operate effectively without sufficient band-more efficient network equipment and cheaper . Distinguishing between fixed and mobile broadbandGrowth prospects remain favourable for developing countries,is not always easy; thus the distinguishing feature is the typeincluding the LDCs. A number of developing countries willof communication technology used rather than the launching 3G networks in the near future, enhancing theWith the growing use of smart phones, such as Blackberriesfunctionality of mobile services, Internet access and otherand iPhones, it is becoming increasingly difficult to separatedata applications from portable from mobile phones. Today’s smartphones clearlyhave more computing power than the early personal comput-ers. According to UNCTAD, in 2008 the number of growth of Internetbroadband subscribers around the world was estimated at7users in the South398 million, and developing countries accounted for almost40 per cent of this total, as shown in figures and 2008 there were an estimated billion InternetThus, broadband is one of the few ICTs where developedusers around the world, as shown in figure . In developingcountries still represent the majority of users; the Nordiccountries, the number of users grew by a quarter, almost fivecountries have the highest household penetration, followedtimes faster than in developed countries. As a result, develop-by Canada and the Netherlands. But this picture may sooning countries now account for more than half the world’schange, as broadband markets are growing fast in the emerg-Internet users. China hosted the largest number of users (298ing economies. China has become the world’s largest broad-million), followed by the United States (191million) andband market, with 83 million subscriptions in 2008, com-Japan (88 million). A little over one-fifth of the world’s pop-pared to 79 million in the United States. Brazil has alsoulation used the Internet in 2008. Public Internet facilitiesmoved into the top ten broadband markets. Recently, there issuch as Internet cafés, educational establishments and digitalmore attention paid to wireless technologies such as 3Gcommunity centres are also important for boosting Internetusage in developing countries. This is partic-ularly true for countries where householdGlobal fixed broadband subscribers by main country groupings, connections are limited and where many peo-Figure – 2008 (millions and per 100 inhabitants)ple work in the informal sector. The spreadDeveloped Developing EIT % Change of mobile phones in the developing world70%450could also be impacting the extent of40060%Internet use, as people use them first to send35050%text messages, and then for e-mail and30040%Internet access. Some developing countries25020030%are caught in a vicious circle, with insufficient15020%demand due to high prices and inadequate100infrastructure. Limited supply of web con-10%50tent in local languages and adapted to local0%0needs is another impediment in some parts ofWorld Developed Developing EIT the world. countries10lag behind in terms of5broadband connectivity 02003 2004 2005 2006 2007 2008Broadband is critical for the deploy-ment of the most recent Internet-based serv-Source: UNCTAD, adapted from ITU and national dataices and can help advance various social and192CREATIVE ECONOMY REPORT 2010Technology, connectivity and the creative economySubscribers per 100 inh.
Global mobile broadband subscribers by main country groupings, 1998 and 2007, the value of ICT goods exports roseFigure – 2008 (millions and per 100 inhabitants)from $813 billion to $ trillion. Recently, devel-oping countries have gained market share in the worldDeveloped Developing EIT % Change trade of ICTs, increasing from 38 per cent in 1998400100%90%to 57 per cent in 2007. This surge was almost entirely35080%attributable to Asian developing countries. South-30070%250South trade has also gained in importance, reaching60%50%200more than 32 per cent of global ITC exports in40% top five exporters of ITC goods are30%100China, United States, Hong Kong China, Japan and20%5010%Singapore, which together accounted for over half the700%global market. The rise of China and the rest of Eastand Southeast Asia as an export platform for ICTWorld Developed Developing EIT 35goods results from an increasingly integrated global30production system. ICT goods production has grad-25ually converged in locations that offer a combination20of relatively high human capital in terms of skills and15relatively low labour costs. Figure provides a pic-10ture of trade flows of ICT goods by main regions,50including South-South and 2004 2005 2006 2007 2008South-South investment is already a major source ofSource: UNCTAD, based on ITU and national datafunding for developing country mobile networks, andthis is likely to continue despite the economic down-mobile. Developments in the creative economy go hand-in-hand with the evolution of these ITC technologies. Figure of ICT goods by main regions, 1998 and 2007 (per cent) The EU Digital Agenda is one of seven flagship ini-1998tiatives of the Europe 2020 strategy. The European15%24%Commission is committed to creating a true single market42%for online content and services, with borderless and safe EUNorth to Northweb services and digital content markets, high levels of trustSouth to Northand confidence, a balanced regulatory framework governingNorth to Souththe management of intellectual property rights, measures toSouth to Southfacilitate cross-border online content services, the fostering19%of multi-territorial licenses, adequate protection and remuneration for rights holders and active support for the200732%4digitization of Europe’s rich cultural %North to shifts boost South-SouthSouth to Northtrade and investment in ICT goodsNorth to South26%South to SouthWorld trade in ICT goods has fluctuated during the16%past decade. While ICT goods belonged to the most dynam-Source: UNCTAD, based on COMTRADE areas of world trade until 2000, they have subsequentlyNote: Economies in transition are included in the “South.”expanded less rapidly. According to UNCTAD, between4European Commission (2010). “Unlocking the potential of cultural and creative (2009). Information Economy Report 2009 – Trends and Outlook in Turbulent ECONOMY REPORT 2010Subscribers per 100 , connectivity and the creative economy
turn. Large investors from developing countries announcedsuming deployment of fixed-line infrastructure owing tothat their fundamentals remained strong, that demandthe remoteness of underdeveloped areas. In Africa, mobileremains robust and that they do not envision much negativephones have proven so successful that in many cases theyimpact from the crisis in their operating regions. Some localhave replaced fixed lines. Given the increasing penetrationcompanies in developing countries could profit from theof mobile phones in the developing regions, the role ofhesitancy of foreign investors. There is of course a risk thatICTs in fostering the creative economy will relate to project financing and aid could become less accessible asinformation access and data sharing as well as to new global liquidity has been contracting. Certainly, the financialmultimedia creations. crisis affected various segments of the ICT market in differ-This positive impact of ICTs on developing countriesent ways. In terms of infrastructure, mobile telephony mayis counterbalanced by a number of factors besides physicalbe best equipped to weather the economic crisis due to itsaccess that contribute to the disparities with developing7high growth and the established players in most . Apart from the appropriateness of the products,Mobile telephony has become the most importanttheir costs and the regulatory framework governing ICTs,mode of telecommunication in developing is an important knowledge gap in the skills required toInternet access has become a reality for many businesses andunderstand, absorb and act on the information available onpublic institutions as well as for individuals with higher lev-the Internet. The low level of formal education among theels of education and income. Even for the vast majority oflower-income populations in many countries in Africa, Asialow-income populations, mobile telephony is likely to beand Latin America is an absolute barrier to ICT use andtheir most relevant communication technology. Much likeadoption. This problem relates to: (a) education, since tech-the Internet, mobile telephony helps to create businessnical skills as well as basic literacy (linguistic, numeric andopportunities, enables efficient sharing of information andcomputer) are needed for people to benefit from ICTs; (b)knowledge, and empowers households and communitieslanguage, since the dominance of English on the Internet iswith information. Many developing countries are quicklya problem for many populations in developing countries; andcatching up or even surpassing developed countries, since(c) human resources, since ICT professionals and techniciansmobile connectivity sidesteps some of the major obstacles toare highly sought after in the developed world, leaving aother types of connectivity, such as the costly and time-con-dearth of these skills in the developing countries. issues and creative contentThe difficulty of capturing indicators for ICTs is oneglobal digital divide and establishing relevant benchmarks. Tofactor that complicates measurement of the creative econo-reflect the evolving nature of many ICTs, the core list of6my. Besides the lack of data availability, collected data are notICT international indicators was revised in comparable across countries, and certain specificitiesE-business refers to the use of ICT to facilitate apply. Demand for ICT statistics keeps growing as morebusiness processes. Creative entrepreneurs can use ICT tocountries seek to design, monitor or review national policiescommunicate with suppliers and clients; to manage finance,to maximize the advantages of information resources and materials; and to purchase and sell Moreover, strategies for the creative economy require con-creative goods and services online. Electronic transactions orcerted policies to induce creativity and innovation as well ase-commerce is a form of Internet use that has seen strongto assist creators to reach global markets, and for these growth in many countries. However, there is still untappedpurposes ICTs tools are essential. At the international level,potential due to the low level of ICT used by small andcomparable ICT indicators are critical in making cross-microenterprises in developing countries. E-commerce is atcountry comparisons of ICT development, monitoring thethe core of the statistical measurement of e-business, but it6UNCTAD and the UN Statistics Division jointly prepared the “Manual for the Production of Statistics on the Information Economy – 2009 revised edition”(UNCTAD/SDTE/ECB/2007/), available from ECONOMY REPORT 2010Technology, connectivity and the creative economy
intensity of ICT usage and, finally, the impact and out-Interconnected dimensions of digital life: Enablers, Table , content and transactions comes of ICT on business organizations, the creativeeconomy and the economy as a whole. ICT indicatorsDimensionTechnology and/or serviceunderstandably reflect some of the issues concerningMobile broadbandDigital enablersFixed broadbandmeasurement of the creative economy. Though a few indi-Portable Internetcators are easily mapped, such as those relating to infra-Digital communicationsVoicestructure and access, other, more complex ones remainMessaginglargely unavailable. Underlying this issue are four inter-Social networkingconnected dimensions of the information society: digitalGlobal knowledge webenablers, digital communications, digital content and dig-Sights and soundsDigital contentAdult content and gamblingital transactions. These aspects of digital life and relatedOnline gambling7technologies and services are shown in table -generated contentContent-aware servicesDigital homesThe most common ICT indicators can be groupedinto four sets, following the methodology developed byDigital transactionsContactless payment systems7Mobile paymentsthe Partnership on Measuring ICT for vast majority of these parameters refer to the avail-Source: Adapted from the International Telecommunication Union, ,ITU Internet Report of infrastructure and access to ICTs and the use ofICTs for individuals and businesses. Broadband expan-sion, for instance, is seminal to boosting the developmentpresents specific difficulties in collecting data because it isof knowledge-sharing in the creative economy, and the num-hard to distinguish Internet electronic commerce from elec-bers of employees using computers reveal not only access totronic commerce conducted over other networks. To startcomputers but also computer literacy. The last row, digitalmeasuring the information society, a taxonomy is neededtransactions, adds an economic perspective to the data provides indicators for tracking the progress of ICTs inThese undeniably useful indicators are the first step towardsa staggered process, first by measuring e-readiness, then thea more complex analysis of on Measuring ICT for Development: Core ICT indicators Infrastructure and accessBasic coreFixed telephone lines per 100 inhabitantsMobile cellular subscribers per 100 inhabitantsComputers per 100 inhabitantsInternet subscribers per 100 inhabitantsBroadband Internet subscribers per 100 inhabitantsInternational Internet bandwidth per inhabitantPercentage of population covered by mobile cellular telephonyInternet access tariffs (20 hours per month), in $, and as a percentage of per capita incomeMobile cellular tariffs (100 minutes of use per month), in $, and as a percentage of per capita incomePercentage of localities with public Internet access centres by number of inhabitantsExtended coreRadio sets/100 inhabitantsTelevision sets/100 inhabitantsAccess to, and use of, ICT byBasic corehouseholds and individualsProportion of households with a radioProportion of households with a TVProportion of households with a fixed line telephoneProportion of households with a mobile cellular telephoneProportion of households with a computerProportion of individuals who used a computer (from any location) in the last 12 monthsProportion of households with Internet access at home Individuals who used the Internet in the last 12 monthsLocation of the individual use of the internet in the last 12 monthsInternet activities undertaken by individuals in the last 12 months7The partnership brings together experts from ITU, UNCTAD, UNESCO, the Economic Commission for Africa, the Economic Commission for Latin America and the Caribbean,the Economic and Social Commission for Asia and the Pacific (ESCAP), the Economic and Social Commission for Western Asia, EUROSTAT, OECD and the World ECONOMY REPORT 2010Technology, connectivity and the creative economy
Table continuedPartnership on Measuring ICT for Development: Core ICT indicatorsExtended coreProportion of individuals with use of a mobile telephoneProportion of households with access to the Internet by type of accessFrequency of individual access to the Internet in the last 12 months (from any location)Use of ICT by businessesBasic coreProportion of businesses using computersProportion of employees using computersProportion of businesses using the InternetProportion of employees using the InternetProportion of businesses with a Web presenceProportion of businesses with an intranetProportion of businesses receiving orders over the InternetProportion of businesses placing orders over the Internet7Extended coreProportion of businesses using the Internet by type of accessProportion of businesses with a Local Area Network (LAN)Proportion of businesses with an extranetProportion of businesses using the Internet by type of activityProportion of total business sector workforce involved in the ICT sectorICT sector and trade in ICT goodsValue added in the ICT sector (as a percentage of total business-sector value added)ICT goods imports as a percentage of total importsICT goods exports as a percentage of total exportsSource: UNCTAD, Information Economy Report 2006: The Development Perspective, pp. 154-156. Available at: and their impact on the creative economyThe general impact of ICTs has been well reviewed;a distributed network platform; ., everything is becominghowever, the specifics of this debate — how ICTs may haveavailable or doable on the Internet). a variable impact on some activities and not others — hasDigital convergence and its manifestation throughbeen less well examined. It is our hypothesis that ICT devel-increasingly interlinked and interoperable online technolo-opment will have a disproportionate impact on the creativegies are driven by consumers and by suppliers. A report economy. The reasons for this impact relate to the specificpublished by ITU states that “the market environmentpotential for transformation of the creative-economy pro-increasingly resembles a digital ‘ecosystem’ in which compa-duction processes, and in the value chain that will benies must cooperate to provide jointly provisioned services atanalysed in a subsequent section. the same time as they compete for resources and for have enormous power to leverage the develop-Equally, customers become suppliers and suppliers becomement of new links in the value chain in virtually all creativecustomers in evolving relationships of bewildering complex-9industries, albeit at different levels. The key concept under-ity”.From mobile content on demand to online art pinning these changes is “digital convergence”, which can beauctions, the new features of the value chain emerge at a veryof three types: technological convergence (a shift in patternsfast pace. of ownership of media, such as film, television, music andThe spillover effects of these shifts in developing8games), media convergence(allowing users to consume dif-countries seem to be quite limited though, owing mainly toferent media at the same time using a single personal com-the fact that generalized ICT access and use remain lowerputer) and access convergence (all production and distribu-than in developed countries. Compounding the problem istion of media and services are being reengineered to work on8Jenkins (2006). 9ITU (2006).196CREATIVE ECONOMY REPORT 2010Technology, connectivity and the creative economy
new creative industries which can help stimulate domesticTop 20 audiovisual companies Table and their 2004 turnover industry and employment. Furthermore, digital inclusion isincreasingly measured, not by computer or Internet access,RankCompanyCountrybut by technological fluency and multimedia content cre-101Walt DisneyUnited is most important is people’s ability to make2Viacom United Statesuse of those technologies for producing creative work. Today,3Time WarnerUnited States 4SonyJapanalmost everyone can be a “prosumer”, a combination of 5Vivendi UniversalFranceproducer and consumer of interactive creative CorporationAustralia7NBC UniversalUnited StatesIn this changing environment it is important to understand8The DirecTV Group States9BertelsmannGermanyhow infrastructure and access are being used. Indicators such10Liberty Media Statesas online purchases and sales allow a comparative analysis of11BBC (Group)United Kingdom712ARDGermanythe performance of digital markets vis-à-vis traditional chan-13NHKJapan14Blockbuster Statesnels. In the case of the creative industries, for example,15NintendoJapanInternet music sales showed a consistent increase in share16MediasetItaly17RAIItalyacross markets. In 2008, the digital music business interna-18ITV PLCUnited Kingdomtionally grew by around 25 per cent, and digital platforms19TFIFrance20France TelevisionsFrancenow account for around 20 per cent of recorded music sales,up from 15 per cent in 2007. The recorded music industrySource: KEA, European Affairs (2006), The Economy of Culture in Europegenerates a greater proportion of its revenues through digi-with figures from the European Audiovisual sales than the film, magazine and newspaper industriescombined. Downloads of single music tracks were 24 percent higher in 2008, reaching billion units globally, andthe fact that major media and content producers are large11this continues to drive the online companies from developed countries, and itfollows that this is where most of the value-added activitiesThe dynamic growth of creative industries orientedare generated. The top 20 companies in the audiovisual andtowards digital content is outlined in the OECDvideo-game industries are all based in Europe, Japan or theInformation Technologies Report 2008, which covers user-United States — the same group responsible formost of the exports of selected creative goodsMarket size and growth of digital content sectors, 2007 Figure billion (left scale): percentage year-on-year growth (right scale)and services. It bears mentioning that 17 of the20 leading audiovisual enterprises worldwide areOffline revenues Online revenues Online revenues growthmainly or partly active in broadcasting, thus ben-efiting twice from technological convergence and120100%making profits in both total revenueUSD 445 billion90%100Film and video online 80%revenue growth: >100%70% growing importance60%of ICTs for the creative50%60industries40%4030%People with broadband access use the20%20OnlineOnlineOnlineOnlineInternet more often and more : %share: 17%share: 16%10%share: <1%Broadband drives online shopping, education,00%Advertising Computer/ Music Film/Video Video Gamesuse of government services, downloading musicand other forms of digital content, and videoStatlink: Broadband is essential to support10Warschauer (2003).11International Federation of the Phonographic Industry (2009).197CREATIVE ECONOMY REPORT 2010Technology, connectivity and the creative economy
created content; online computer and video games; film,of 30 per cent. Online revenues are around one-sixth of thevideo and music; and online advertising. An increasing sharetotal for computer and video games and music, and they areof revenues for the content industry derives from productsgrowing fastest for films, albeit from low levels (see figure ).delivered via the Internet, but with marked differences acrossThe development of user-created content has been . Advertising is the largest online market, with rev-Video and social networking sites are leading the development,enues of more than $30 billion in 2007 and annual growthand virtual worlds have become a major hub of recently, the mode of transmission and storageeconomy”. It is claimed that cost-free reproduction and of information on the creative economy was analogue. ICTs,distribution, and perfect copies, create a new mode of however, allow a new form of recording of information: dig-economics that differs from the old one based on physicalitization. Digitization is significantly different in two and manufacture. Second, as indicated earlier,First, previously separate forms (sound, images, texts) nowthere is the possibility of novel products. Some authors havehave the same basic format and are thus readily integratedhypothesized that the use of ICTs will remove the need forinto one medium, often using the same editing techniquesface-to-face interactions, and the co-location that followsand similar software. Additionally, integration, when basedmight minimize transport costs. This has been referred to ason the same platform, enables a field of convergent media.“the death of distance”. These totally new spatial implica-This has both artistic business possibilities and represents ations have been challenged on the basis that the productionsignificant field of potential innovation. Second, the of intellectual property still involves labour and the transfor-common digital basis of information allows it to be easilymation of intellectual property. As such there may still becommunicated and transferred with no degradation of thespecific co-location effects associated with embodied skilloriginal in subsequent copies. This has huge implications forand expertise in labour markets and in physically embodiedthe distribution and copying of digital works (as well as dig-knowledge exchange. In fact, evidence points to a renewedital transformation of analogue works). The digital formatimportance of place in the digital age (namely, creative clus-12means that new ways of editing and integrating media, pre-ters).While there is potential for the developing world,viously unimagined, can be achieved. Again, this has openedthere is also the threat that divisions of opportunity may beup the possibility of altogether new art forms as well as thefurther hardened. To answer this question fully, we need moretransformation of existing of the nature of changes in creative-economy pro-duction and the particular character of the transformation ofThe economic implications of ICTs generally haveproduction and value chains. been discussed in the context of debates about the “ and new business modelsBecause much of the output of the creative economymade possible at the simplest level by the closer integration ofcan potentially be digitized, we are likely to see an evenseparate product lines (books, films and music, for example).greater impact and transformation in business course, the media already display a striking concentrationThis transformation is also producing new business models,of ownership and power. Most major media organizations13market structures and governance. New business models areaspire to be “convergent organizations”that trade and use12Pratt (2004). “Creative Clusters: Towards the Governance of the Creative Industries Production System”. Pratt (2000).13The merger of Time Warner and AOL was the first and best publicized of these ECONOMY REPORT 2010Technology, connectivity and the creative economy
IPR rights that may be “re-purposed” (or reused) from oneucts, maximum choice is available; this is called the “long tail”medium to another (for example, a cartoon character in ahypothesis. In the long term, however, the potential forcomputer game, a film, a book, a toy or on a piece of cloth-monopoly profits are reduced, hence posing a threat to the cur-ing). This multiplies the possibilities of exploitation of intel-rent media structure but opening up significant possibilities forlectual property from a single investment in addition to thesmall producers. Under a system of direct micro-payments, fortraditional monopoly profits possible in the medium. example, profits may be spread thinly and hence little tradi-tional benefit from the creative economy will be creates a number of new possibilities forClearly, this is a huge area for future debate. New businessdistribution. With analogue distribution systems, reproduc-models are emerging to exploit these new possibilities (.,tion leads to degradation of the product; hence it is less thanwith respect to music) and it has been suggested that there maythe original and declines further with the number a variety of models — ., free music — offering possibil-With digital formats, reproduction is free of degradation and7ities for making money from different aspects of the no extra cost per item. This opens up the possibilitiesThe real issue is the challenge that these activities (which arefor infinite expansion of markets and reduces or eliminatesnot understood or regulated) pose to governance and to howthe need to warehouse or store products. One dilemma thatintellectual property is to be used and regulated, since thiscreative producers face is how to deal with the uncertainties ofrequires an enormous investment in infrastructure. demand and the need to maximize economies of scale by con-centrating production in as few items as possible so as toIncreased access to information gives global breadthreduce stockholding and excess production costs. These func-and depth to the mapping of suppliers, buyers and outsourc-tions must commonly be combined with the physical transfering possibilities. Therefore, ICTs may play a major role inand exchange of goods, ., distribution. For obvious reasons,this transformation process, reducing costs, improving pro-distributors seek to manage their stock by restricting choice toductivity in the value chain and making companies more vis-the best sellers. Many mechanisms are used to achieve this, butible in the global market. This contribution is more evidentcharts are a common way to organize and focus consumers. Inin those creative industries depending on technology at theira digital age, however, it is potentially possible for producersvery core (software, games, multimedia content). However,and consumers to be in direct contact, thereby bypassing theeven in the more traditional, less technology-driven indus-control of the gatekeepers of the distribution system, whichtries such as handicrafts, ICTs open new ranges of trade forare economically powerful. services previously not traded, inaugurating distributionchannels and generating innovative production forms. Because stockholding costs are minimal for digital prod-Box When ICTs give rise to new business models For every action, there is an equal and opposite reaction. ICTs and the creative economy seem to form the perfect ground for the validity of Newton’sthird law. The more concentrated the audiovisual and music markets become in the hands of a few transnational conglomerates, the more alternativebusiness models emerge. Back in 2000, the music sector was revolutionized by peer-to-peer file-sharing programmes such as KaZaA and Napster, whichby 2001 had conquered no less than million users. As creativity seems to reinvent itself, a similar business model was created with Skype. Sold to eBay for $2 billion in 2005, it is now being applied toJoost Internet TV, with a promise to disrupt the oligopoly of the television industry. By the same token, a myriad of open-source initiatives mushroom in other creative-economy markets, presenting more humble turnovers but provokinga shift in mindset on all continents. In Mexico, Tortillería Editorialis an association of authors, professionals and beginners who decided they would nothave much control over their books if they were to follow the usual publishing-house circuit. As a reaction, they created a mix of database, software andsite where they share their books and writings, allowing any user to generate, print and sell them. In 2007, it reached more than 4,000 texts and hun-dreds of Brazil, where internet use is comparatively high, Web is facilitating the spread of open-source software. Overmundo, a Government-funded proj-ect, was commissioned to ensure the alternative cultural coverage, mainly outside the São Paulo-Rio de Janeiro axis. Incorporating strong communityparticipation, users are responsible for its content and design. Overmundo has become a globally recognized cultural database of Brazilian culture withmore than 700,000 references via Google. Not surprisingly, it won the Prix Arts Electronica International Competition for CyberArts in ECONOMY REPORT 2010Technology, connectivity and the creative economy
Finally, the possibility of delivering services onlineboth developed and developing countries. Despite recentrather than through a physical presence allows developingprogress in the area of connectivity, there are still many bot-countries to benefit from their comparative advantage intlenecks that prevent creative entrepreneurs and small firmssome labour-intensive services that make use of ICTs. Therefrom using ICTs efficiently. Their use is often limited by loware various ways in which governments can promote greaterlevels of ICT literacy, slow connection speeds, lack of localuse of ICTs by companies, especially SMEs, that lag in termscontent and high costs of use. Moreover, in rural areas ofof ICT uptake. SMEs represent the backbone of the creativemany developing countries, even basic connectivity remains asector and employ a large majority of creative workers inchallenge. across the production chain7The use of ICTs can potentially have significantmake money through recording and by which music compa-impact on all steps of the production chain: conception, pro-nies can target their production, distribution and sales asduction, distribution, access to audiences, and engagement inmuch as possible. feedback from the audience/market. The specificities are dif-This model is based on a world of physical products;ferent for each production activity in the creative new model is based on virtual products where storageThe aim of this section is to provide some illustrative exam-costs of digital files are practically zero and a potentially infi-ples of impact across the production chain. New ways ofnite range of music can be available to the consumer. In fact,making money or developing audiences are possible with dig-the role of the music companies to promote and focus con-itization and new business models, but the future direction issumers could be bypassed altogether if artists were to selluncertain. All cultural producers face potential instability indirectly to their audience. Of course, by exploiting the “longthe years ahead as well as huge potential growth. The new sys-tail” of products, any one artist is likely to make smalltems could undermine what have become, in the last 50 yearsreturns from intellectual property and the same is true for theor so, the normal ways to organize, say, music or film produc-music companies. For the latter, the old economics of thetion and distribution. Understandably, those corporationsextra administrative costs of managing a large number ofthat currently occupy key positions in such a system will seekartists and the costs of recording, etc. will be an incentive toto defend the “old ways”. create a “short tail” or limited range of products. In such aRecent shifts in the music industry illustrate the chal-situation, it may be logical for artists to focus on activitieslenges that creative producers are likely to face in adoptingthat make money, that is, live performances and the merchan-new ways of doing business. The old model of the musicdising opportunities that these afford. In this way, they canindustry has production and distribution at the centre, withearn a modest income. Moreover, since they are not relyingthe objective of promoting and selling huge numbers of aprimarily on income from intellectual property, it is logicalsmall range of music. This channels monopoly profits intothat they reduce the price of their product, or give it away, inmusic companies and ensures very high intellectual propertyorder to generate demand and attendance at concerts. Ofreturns (for a small number of bands). This process reducescourse, they would still want to copyright the work to sell itstockholding costs and increases profitability although it isdirectly to the public. risky when it is unclear whether a hit is likely to be achievedThis example is instructive in that it shows how thefrom any one recording (although marketing can influencesignificance of intellectual property may change from its rolethis situation enormously). This is why in music, as in film,as income generator to one of simple protection and moralcompanies expect a large percentage of failure to be discount-right under different conditions of production. The balanceed by a small number of super successes. Thus, in this sys-of power might shift from large companies to independenttem, intellectual property is a key means by which artists can200CREATIVE ECONOMY REPORT 2010Technology, connectivity and the creative economy
producers; in short, the business model is turned upsideresolution of this distribution issue has a profound impactdown: in the past, the T-shirt was seen as the extra elementon the cultural sector and the sustainability of creativeor souvenir of a concert whereas now it may be the majorindustries. With some justification, it has been said that com-income stream. While this is an example of an actual situa-mercial distribution narrows choices and focuses on thetion, it does not mean that this is the necessary or generalcommercial exploitation of products; the old business modelfuture of the music industry or any other industry; it simplyforces production in this direction. Perhaps, however, we aredemonstrates the complex and destabilizing possibilities ofat a branching point where a range of distribution systemsICTs field of culture and the creative industries. might be entertained as possibilities, some closer to the oldnarrow system, and some closer to the “free for all”. WithoutA step-by-step exploration of the production chaindoubt, the challenge for the creative economy will be toreveals other areas of potential transformation. Initial con-actively engage with this debate. Otherwise, the financialception is more difficult in the sense that many new digital7power and the pressure of the risk-averse “old model” mayapplications require knowledge and access to computingcreate a future for creative production that is as narrow as, orresources and skills. Beyond this, however, the barriers areeven narrower as compared with what is presently in . With a simple video camera and editing software, amodest film can be produced in the home; the same appliesCritically, the possibilities for greater engagement forto most digital forms. Moreover, these “one-offs”’ can bethe developing world lie in there being a wider range of cul-easily and exactly manufactured, replicated and distributed,ture available and for sale. There is a balance, however. Ifwith minimal costs, directly from the producer (without thethere are no monopoly profits, then the super profits thatneed for intermediaries). buoy the creative economy will not exist. Thus, in this peri-od of growing consumption, a step change must be effectedPerhaps the most striking example of the potential ofto achieve some modest redistribution. Arguably, this changenew production is the development and use of free andis a complex cocktail of regulation and governance; it will14open-source software (FOSS).Created through a processnot be achieved by the total clampdown on piracy or via aof sharing knowledge through exchanging source code —global cultural commons. the instruction set behind a computer program — FOSSprograms are today provided and maintained by a range ofThis raises the issue of the governance of transitionICT experts ranging from individuals to corporate giants,between the existing models. At present, countries that havesuch as Sun Microsystems or IBM. FOSS programs can havepoorly developed intellectual property regimes are vulnerablea particular significance for developing countries as well asto theft, not simply local theft but international theft andfor shaping our understanding of creative processes andthen copyrighting by third parties. This is legal but . There is a large range of innovative FOSS soft-One possibility, among the options available, is to incorpo-ware that enables the owner of a basic personal computer torate traditional cultural expressions (TCEs) under copyrightengage in what was, until recently, possible only with studio-law, not by statute but through common practice. There havequality production. been a number of initiatives established to create digitalarchives of dance, music, oral narrative, etc. While these mayTraditionally, distribution and exchange were special-not have the same formal recognition as registering copy-ized, expensive and exclusive services that had strong right, they are a first protective step that could be done at agatekeepers in the form of publishing and distribution com-low cost. Moreover, such collections would also have intrin-panies to protect profitability. As has been discussed, it issic value to both local and international communities. Whiletechnically possible to bypass such systems altogether, orfree for locals to use, such an archive might charge outsidersconstruct alternative or parallel systems, or develop for use, providing a form of revenue and legal protection. multi-stranded versions of the old systems. The particular14UNCTAD (2004). E-commerce and Development Report ECONOMY REPORT 2010Technology, connectivity and the creative economy
Box Free and open-source software and the creative economy The development of the creative economy relies to a certain extent on digital information and communication technologies (ICTs) that have, on their own,1been widely recognized as important pillars for economic and social development, most recently within the WSIS process and its accessto network infrastructures and hardware technologies is fundamental, it is also insufficient. Access to software and the knowledge needed to understand,adapt and use it is critical if digital technologies are to achieve a positive development effect. Specifically addressing the issue of software helps to refo-cus policy and development thinking towards the human element. After all, software is the interface between cold digital hardware and the impulses ofcreative and innovative individuals. The development and production of software itself are a fundamentally creative and conceptual effort of problem-solving and and open-source software (FOSS) is software that does everything that other software does. It is used for writing text, email, Internet browsing,spreadsheets, statistics and data management, etc. There are many programmes that can be used in music and audiovisual production. The opposite ofFOSS is proprietary software. Proprietary software, through copyright law and end-user licences, forbids users to copy, redistribute or alter the software7and permits use only as narrowly specified within its particular is FOSS?FOSS is different from proprietary or closed-source software in three important ways, which are interlinked and . FOSS has distinct copyright statement and end-user licences. FOSS licences permit users to copy and redistribute the software without most popular licence, the so-called General Public License (GPL), imposes a unique restriction: all copies, regardless of how much the softwarehas been altered, must also use the GPL and thus permit perpetual unrestricted . FOSS licences require that authors of a particular software programme make the source code publicly available. The source code is the software writ-ten out as ordinary text in a programming language. Access to the source code allows anyone to copy or technically alter the performance and fea-tures of a programme. It also allows young computer scientists to learn how a world-class software programme is designed and . Finally, FOSS generates important positive economic externalities. It reduces cost redundancies in redeveloping similar software, in particular whenthis is procured by public bodies or government. It reduces the risk of being locked in by a vendor selling a proprietary software product and seek-ing monopoly rents. FOSS also reduces the risk of vendor failure, whereby the producer of a proprietary software ceases to do business but does notrelease into public domain the source code of the software, making it unserviceable in the future and impossible to upgrade and follow advancesmade in the other computer hardware and software. It reduces market imperfections and promotes greater competition among ICT service compa-nies that can, using FOSS, compete on quality of service and competence since it is not possible to charge rents from copyright monopolies – thesesimply do not exist for FOSS. Finally, FOSS permits “looking under the hood” and allows better and faster technological capacity development in ICTand computer is nothing in any FOSS licence that forbids anyone to sell any FOSS programme. However, many companies that market FOSS programmes actu-ally sell only the service component while the licence is free. In general, in the software business, the service component accounts for more than half ofthe revenues of most software companies anyway. Thus, providing FOSS on a commercial basis does not represent a significant shift in the businessmodel for the ICT software, FOSS or proprietary, can be commercial. Commercial means “available on the market and used in a commercial, for-profit environment”.Proprietary software companies will sometimes try to distinguish their software as “commercial” as opposed to “FOSS”. This is a marketing strategymeant to convince buyers that there is a “commercial” grade or quality that is lacking in FOSS. Nothing could be further from the truth: the most robustand technically advanced software programmes as used by , , NASA, many ministries of defence (including the Pentagon), aca-demic and research institutions (the European Organization for Nuclear Research known as CERN and Massachusetts Institute of Technology), and ICTindustry behemoths such as IBM or Sun Microsystems are for developing economiesThe advantages for developing economies in developing and using FOSS are big and reduces dependency on expensive and imported proprietary technology and the accompanying ICT consultancy services that are often tied upwith various non-disclosure . FOSS, through its open code and public licences, promotes knowledge-sharing, technology transfer and unrestricted cooperation in knowledge andtechnology development and . FOSS enables the development of local human capacity and home-grown ICT service industries that can become more than merely fronting busi-nesses selling imported . FOSS is economically more efficient because of the positive economic externalities that it generates as described in the previous . As the main cost involved for using any software is the service component and because FOSS allows local computer experts to learn to work withand service FOSS programmes, FOSS is more affordable than non-pirated – ., legal – proprietary software alternatives for the vast majority of devel-oping ECONOMY REPORT 2010Technology, connectivity and the creative economy
Box continued Free and open-source software and the creative economy 6. FOSS is fully intellectual property-regime compliant: it needs and uses copyright to maintain and promote its openness. While its spirit is anti-restric-tive, it does not confront current intellectual property from a formal, technical or legal perspective. Countries, institutions, businesses and individualsthat switch from using pirated software to FOSS work to fulfil their obligations as designated by WIPO and WTO/TRIPS conventions and agreements7. FOSS promotes good governance: It means that public data will be kept in public data-formats and managed by software the source code of whichcan be inspected and verified by independent bodies. This is immensely important in applications such as taxation, voting or military and . FOSS promotes the use of open standards and this improves interoperability among different software programmes, thereby reducing the costs whenthese need to be made to work together – such as merging databases or establishing common project or financial management . FOSS allows easy localization. Any FOSS programme can be translated and altered to suit the linguistic, cultural, commercial and regulatory needsand requirements of any location, all without having to seek permission from the original authors or exchanging terms and conditions while using(expensive) legal intermediaries and experts feel that FOSS is more secure, more reliable and more stable than proprietary software. While the debate is inconclusive, what is sureis that FOSS problems can be fixed locally by local international community should promote the idea that government policy bodies need to be aware of FOSS and include it in their ICT and e-strate-gy programmes, in e-governance activities and in procurement policies. More importantly, it should promote the notion that when Governments choosea particular technology, the decision to select FOSS or a proprietary (or mixed) solution is an important policy issue and not a purely technical, practicalor cost FOSS generates important and positive economic externalities, software choice – and technology choice in general – should not be relegatedto oversimplifications and assessments along the lines of “what works” (even though FOSS actually works better most of the time) or how costs com-pare from an accounting perspective. Accounting “analyses”, often referred to as “total cost of ownership” or TCO calculations, are notorious for ignor-ing local economic conditions as well as positive externalities, such as the development of local human capital through FOSS use. Therefore, while thedecision to use FOSS initially is often understood to be a technology-awareness issue, it finally becomes an important policy and LDCsWhile ethical principles, skills development, compliance with international copyright conventions and national law, public-data governance and bettersecurity are often cited as key reasons for adopting a positive policy stance towards FOSS use, for LDCs, cost issues can be a primary concern. While indeveloped market economies proprietary licence fees may constitute as little as 5 to 10 per cent of total costs of running a computer resource – withadministration, maintenance, integration and support, and hardware representing the rest – in low-income economies, licences may represent the bulkof total costs. This is owing to the fact that aside from hardware and licences, all other costs are essential, non-tradable, labour-intensive services andthese demand correspondingly low wages in LDCs. While hardware costs are manageable to some extent through bulk purchasing from original equip-2ment manufacturers, using thin-client technologiesor recycling outdated hardware from developed market economies, FOSS offers an opportunity toavoid paying licence fees : .2A thin client is a minimal, stripped-down computer and software combination that depends primarily on a powerful central server for data processing and memory andtherefore serves mainly as an input-and-output device between the user and the central server. By: Dimo Calowski, UNCTAD, E-Commerce Branch. into the futureThe emergent theme of this chapter is that the effectsopportunity to develop new production and distributionof the adoption and use of the ICTs are likely to be ampli-systems that might promote a real expansion of democracyfied in their impact on the creative economy. The preciseand diversity in cultural productions, and to create new andimpact is complex, varying by industry and by the organiza-interesting business models and opportunities. In contrasttion and means of incorporating and using ICTs in creativeto this is the historical and vested interest of the mediaproduction. Critically, this change opens up a window ofindustries dominated by powerful players. It is clear that a203CREATIVE ECONOMY REPORT 2010Technology, connectivity and the creative economy
business-as-usual agenda may deliver pronounced increasesdebt financing during the last two years, 80 per cent ofin inequality, access and range of cultural offerings. The realwhich were successful in obtaining debt capital from finan-challenge will be to develop new forms of governance in thecial institutions. However, the research data do not explaincreative economy that will support and encourage the posi-whether cultural SMEs succeeded in obtaining the entiretive and minimize the negative effects. amount of capital that they had requested or whether thecapital was obtained at favourable rates. A clue that such wasThe creative industries are clearly well placed to bene-not the case, however, is provided by the fact many culturalfit enormously from the development of ICTs. However,SMEs (and 42 per cent of those receiving debt funding) usethere are a number of challenges that will need to be careful-16personal savings to operate their managed. First, the creative economy often lacks profes-sionals in financing and accounting that would enable it toAs pointed out earlier, the digital divide is narrowingsecure funding from financial institutions. Second, SMEsbut still exists; the development of inexpensive computing7normally face legal uncertainties relating to cross-boarder e-services and of open-source software is very important as acommerce and the need to keep up to date on the dynamicsstepping stone in closing the gap. However, another digital15of e-commerce , investment and commer-divide is opening up, one that may have even greater conse-cial banks are not always prepared to value intangible than the first. It is the investment-intensive universalThis is a veritable lose-lose situation as companies find itbroadband. The example of countries such as the Republic ofhard to prove the financial potential of their creative prod-Korea is notable in that such investment has driven anducts and services and investment and financial institutions doexpanded the market as well as the innovative use of increase their portfolio of clients. Smaller creative com-This is one of the main advantages in ICT applications andpanies must then refer to a mix of internal and externala way to engage the public. Given the increasing importancefinancing sources. A recent Canadian study revealed thatof a closer interaction between producers and consumers asapproximately 57 per cent of cultural SMEs have soughtwell as the growing interactive and educational learning Box Eurovision Geneva-based Eurovision is not only the home of the world's most popular musical talent show, the Eurovision Song Contest; for almost 50 years, it hasalso offered a distribution platform to Europe’s public broadcasters for an exchange of news items. Since October 1958, Europe’s public broadcastershave provided one another with coverage of news events in their countries on a reciprocal basis. The added value of the Eurovision News Exchangeswas already clear during the first experimental news exchange, when Pope Pius XII fell ill. When he passed away two days later, the editor of the Dutchtelevision news bulletin made history by asking for “the dead Pope live”, and Eurovision arranged for a live broadcast from the Vatican. Today, the Eurovision News Exchanges handle over 42,000 news items per year, using two satellite channels for both news reports and extensive livecoverage of events. Eurovision News Exchange items cover wide-ranging topics from the worlds of politics, culture, science, business, religion and Nations agencies began offering items to the Eurovision News Exchanges in the mid-1970s. Today, content provided by FAO in Rome, ILO, IOM,UNCTAD, UNHCR, UNICEF, UNTV, WFP, WHO, WIPO and WMO as well as the International Atomic Energy Agency in Vienna, the International Criminal Tribunalfor the Former Yugoslavia in the Hague, and others adds additional breadth to the Eurovision News Exchanges and helps more than 100 national andinternational broadcasters fill their daily news bulletins. United Nations videos, particularly concerning unfolding humanitarian crises, provide broadcast-ers with essential material from regions of the world where press access may be limited and about conflicts in their earliest stages. Video material from the United Nations is also distributed outside of the News Exchanges via Eurovision’s World Feed Service, which began in 2005. Livecoverage of the 62nd General Assembly in September 2007 was distributed to more than 300 broadcasters worldwide. This cooperation betweenEurovision and the United Nations is only the most recent in a fruitful partnership that dates back more than 30 years and puts United Nations materialin front of editors in major TV newsrooms around the world. Additional information about Eurovision is available online at: Laura Downhower, Group Ltd (2004).204CREATIVE ECONOMY REPORT 2010Technology, connectivity and the creative economy
patterns developed by ICTs, rich societies are becoming moreclosely bound together in a virtuous interaction both onlineand off. This will be one of the major challenges to thedemocratization of cultural development in the coming years. There are also a number of pressing challenges withrespect to intellectual property. The development of archivesis essential for building reflective and critical knowledge ofart and cultural forms, and to develop adequate educationsystems. For a variety of reasons, one of the institutionalweaknesses of many developing economies concerns cultur-al communication and critique. The use of ICTs to develop7a wider public discourse on art and culture could be a mar-vellous dividend for the digital age. 205CREATIVE ECONOMY REPORT 2010Technology, connectivity and the creative economy
7206CREATIVE ECONOMY REPORT 2010Technology, connectivity and the creative economy
PARTPromoting the Creative Economy for Development5
208CREATIVE ECONOMY REPORT 2010
Policy strategies for the and creativity are becoming powerfulintangible cultural heritage, where the sites, artefacts and tra-8drivers of economic growth in the contemporary globaliz-ditions involved are vulnerable to exploitation and possibleing world. They have profound implications for trade andloss through deterioration or disappearance. development. Together with technology, they open up aLately the notion of “cultural policy” has broadenedhuge potential for developing countries to develop newto has broadened to emcompass creativity and the creativeareas of wealth and employment creation consistent withindustries. This expansion parallels the widening of thenew trends in the global economy. For such countries toscope of the creative economy from the traditional culturalrealize this potential, it is necessary to carefully formulateindustries, as discussed earlier in this report. In Europe, forspecific policies for enhancing creative capacities throughexample, policy interventions in support of the culturalstrategic actions to be taken by governments at local,industries began in the 1920s and were reaffirmed in thenational and regional levels, while exploring possibilities forTreaty of Rome (1957) and the Maastricht Treaty (1992),international cooperation and strategic alliances. which progressively defined the support for culture in theA wide range of measures is available to governmentscountries of the European Union. Originally such supportat all levels to stimulate the creative economy; to reinforcewas directed towards traditional art forms, but as the marketthe connections between social, cultural and environmentaleconomy has grown and diversified, the scope has widenedaspects of its functioning; and to promote the achievementcontinually to embrace the audiovisual industries, publish-of sustainability through linking economic and culturaling, the media and so on. The Europeans have stressed thedevelopment. The policy arena within which governmentimportance of the cultural content of the output of theseaction dealing with the creative economy falls is the broadindustries. Public expenditure on culture in the Europeanarea of creative-industries policy. Traditionally in manyUnion has continued to expand, with countries such ascountries, this area of policy concern has been known asFrance and Germany committing more than 8 billion to“cultural policy”. Yet the scope and coverage of the termculture in the early years of the twenty-first century, with“cultural policy” differ from country to country. For sometotal public expenditure on culture across the enlargedcountries, especially in the industrialized world, cultural pol-European Union now totalling approximately 50 billionicy simply comprises policy towards the creative arts. Such(KEA 2006:125). countries support the arts through measures such as subsi-In line with the cross-cutting and multidimensionaldies to artists and performing companies; tax concessionsnature of the creative economy, creative-industry policy infor donations to the arts; assistance to education and train-its broader interpretation embraces aspects of a number ofing in music, drama, the visual arts and so on; and the oper-other areas of economic and social policy. Perhaps mostation of public cultural institutions such as museums andimportantly, consideration of the creative economygalleries. For other countries, particularly in the developingbecomes a key element of industrial policy, whereby indus-world, cultural policy has tended to connote principally pol-trial development strategies can exploit the potentialicy towards cultural heritage. In these cases, the policy task isdynamism of the creative industries in generating growth inseen as one of preserving or protecting both tangible andoutput, exports and employment. A positive outlook forCREATIVE ECONOMY REPORT 2010209CHAPTERPolicy strategies for the creative industries
industrial policy in which creativity and innovation areOther areas of economic and social policy with linkages toimportant drivers of growth is well suited to the conditionsthe creative economy include: tourism; urban and regionalof globalization and structural change. For developing coun-development (especially the “creative city” area); culturaltries in particular, a refocusing of industry policy along theserights and cultural diversity; education and training; andlines can begin to open up many of the exciting possibilitiescopyright and intellectual property. If the widened scope forfor growing the creative economy that have been outlined inpolicy towards the creative economy is to be entertained, itthis report. will require significant collaboration between the variousministries and bureaucratic departments. Only by such coop-Another major area of economic policy for which theeration will the full development potential of the creativecreative economy has significant implications is, of course,economy be realized. trade policy. Trade in products such as audiovisual serviceshas had significant impact on the cultural sectors of coun-It is important to bear in mind the international con-tries in the developed and developing worlds alike, and hencetext within which policymaking takes place. Multilateral8on the formation of cultural policy. For many countries, theprocesses are the essence of international policies and thetraditional concepts of cultural policy have expanded todriving force to move forward the international economicincorporate the promotion of cultural exports and the and development agenda. These processes will be discussedprotection of vulnerable domestic creative industries. in the next chapter. role of public policiesThe economic role of government is conventionallyif global corporations producing cultural products are intaken to comprise public interventions to promote:a position to monopolize local markets to the exclusion oflocally produced cultural expressions. efficient resource allocation in the economy; Market failure (research and development).The involvement of full employment, price stability and external balance; andgovernment in promoting R&D is justified on the equitable distribution of income and that beneficial externalities might be producedand/or that the public sector may be in a better positionWith regard to domestic policy towards the creativethan private companies to assume the sorts of riskeconomy, the rationale for involvement of the public sectorinvolved, with the prospect of sharing in the payoff fromcan be described under several areas of intervention, as fol-successful discoveries. In the case of the creative economy,lows: governments can and do facilitate R&D investments in Market failure (public goods).The cultural sector in generalcreative product development for either or both of theseand the creative arts in particular are normally regarded asreasons and may undertake strategic investments in thea source of diffused community benefits that have thecreative sector with the hope of “picking winners”. characteristics of non-rival and non-excludable public Education and have particular respon-goods. A particular public benefit of relevance here is thesibilities in the areas of education, training, certificationsocial cohesion that can be expected to flow from cultur-and licensing. Significant strides have been made in theal activities and creative production within communities. developing world towards achieving universal literacy and Market failure (imperfect competition).If industries becomeensuring access to education opportunities that are bothconcentrated to such an extent that competition breaksrelevant and of high quality. The resources available fordown, government intervention may be warranted tospecific training programmes are, however, often very restore competitive conditions. A specific case of this inlimited. For the time being, training and education the creative economies of developing countries may ariseopportunities relating to the creative industries are almost210CREATIVE ECONOMY REPORT 2010Policy strategies for the creative industries
entirely limited to the major urban centres. The successfulCultural identity/cultural diversity. An area that has traditionallypromotion of creative industries requires that they beformed part of cultural policy in the broadest sense hasreflected in the national education system, which wouldbeen government responsibilities for the cultural life of theoffer targeted training opportunities at different levels (for-people as reflected in the traditional knowledge and themal, non-formal, informal) in skills and knowledge that areintangible cultural capital of the community. Althoughrelevant to professional participation in the creative-indus-there are demonstrable economic ramifications arising fromtries sector. Such training also needs to serve as a reposito-areas such as the expression of cultural identity or the pro-ry of knowledge relating to the rich cultural traditions thattection and celebration of cultural diversity, this is an areaunderpin these professions. It is also necessary to conferof policy that is generally regarded as intrinsically impor-the status and importance that are due these specializationstant in its own right. For our purposes, it is clear that through a programme of certification and licensingpolicy in these areas should undoubtedly be regarded as partdesigned specifically for the creative-industries sector. of an overall domestic policy strategy that encourages andsupports the creative economy. 8Box creative industries: The Chinese way The concepts of “creative economy” and “creative industry” have had great impact on China’s social and economic development, the most importantbeing the discovery of the economic value of culture. The academic and public sectors in China have focused on the value of the creative economy as“a kind of newly emerging culture perspective and economic practice that stresses the support and promotion to the economy of art and culture”.Therefore, in many cities of China, instead of “creative industry”, the “cultural creative industry” is a more commonly used a country with a long history and rich cultural heritage, China has always experienced a strong demand for cultural products. The industries are man-ufacturing products for international brands, making China one of the biggest exporting countries in the world, but these products are “made in China”,not “created in China”. As a result, China’s new generation is playing Korean games and watching Japanese cartoons and Hollywood movies. Chinesepeople are increasingly surrounded by products originating in the creativity and culture of other countries. A 2006 survey on the consumption of creativeproducts in Shanghai showed that the group between 20 and 35 years of age prefers international brands much more than local brands, and this ten-dency is even stronger in younger groups. This tendency is caused by the dominant idea that culture and economy are separate entities; however, thecreative industries may help to reverse this trend. Creative industries focus on culture and creativity and then extend to other related industries in theform of a value chain, providing broader ways of generating value-added products and China, Shanghai was a pioneer city in the promotion of the creative industries, with the Municipal Government playing a key role. In the 11th Five-YearPlan of the Shanghai government, promoting creative industries has been listed as a key issue in developing modern service industries. In the past,Shanghai was very strong in manufacturing, but now it is shifting towards the service and finance industries. Hence, in 2007, it was a government priority to accelerate the development of creative industries so as to promote the structural reform of industries with a view to building a new frameworkfocused on the service economy. In the “Key Guide for the Development of Creative Industries in Shanghai”, the five main areas of creative-industry devel-opment are: R&D, including advertising, animation, software and industrial design; architectural design, including engineering and interior design; culture and media, including art, books, newspaper publishing, radio, television, film, music and performing arts; business services, including education, training and consulting services; and lifestyle, including fashion, leisure, tourism and industries already account for about 7 per cent of Shanghai GDP. Seeking to turn Shanghai into a creative city, the government has set a targetof 10 per cent for the contribution of creative industries to total Shanghai GDP in of development of Shanghai creative industriesShanghai has divided its development of creative industries into three stages: creative-industry parks, creative-industry clusters and creative-industryprojects. Stage 1: Creative-industry parks– the model of old factory warehouses plus artists. In the first stage, many old warehouses in the downtown areawere renovated and furnished to become modern office buildings while retaining some of their original equipment and appearance. These buildingsare usually spacious with high ceilings, making an ideal environment for the start-up of creative businesses by artists and entrepreneurs. Since thesebuildings were almost useless in the past, the rents were comparatively low and thus good for creative companies and individual artists. This modelhas proved to be quite successful: by the end of March 2007, 75 creative-industry parks had already been built in ECONOMY REPORT 2010Policy strategies for the creative industries
Box continuedShanghai creative industries: The Chinese way Since most creative businesses start small and are modestly capitalized, these creative-industry parks play an important role at bringing such busi-nesses together and providing an enabling environment. In addition, they may facilitate marketing such companies since the clients may approachcreative-industry parks when searching for suppliers. M50, an old warehouse converted into painting and sculpture galleries and studios, is a verygood example of these creative-industry parks. Numerous very creative artists are now concentrated in M50 and receive many visitors and of the artists at M50 became very successful and now have their artwork listed in Sotheby the support of the government, owners of culture-industry parks are able to convert unprofitable warehouses into prosperous office turn, the surrounding environment also improves. This model has proved to be very successful from a business perspective. However, it has someshortcomings. Creative-industry parks remain owners, while creative businesses are renters. As real estate values increase and rents rise, some com-panies and artists are forced to relocate, consequently hindering the industries’ development. Stage 2: Creative-industry clusters– clusters formed according to the local art and cultural resources. Eventually, creative-industry parks were foundto be insufficient to fully support the development of the creative industries. The Shanghai Municipal Government has stopped building new creative-8industry parks but continues to maintain and develop the existing 75 parks. Based on the latter, the government starts to explore the development ofcreative-industry clusters, which take into consideration the characteristics of the local art and culture and intentionally focus on certain a result, a full range of companies and businesses in the value chain are concentrated in these clusters so as to foster the development of thatparticular industry. The main industries include: the theatre and performance-art cluster, the film and television cluster, the comic cartoon and gamecluster, the gallery cluster and the intellectual-property cluster. For example, the Zhangjiang Culture and Technology Creative Cluster has attractedenterprises relating to comics and cartoons, games, television and movies, and post-production services. At present, this cluster concentrates 70 percent of the total production value of game software in China, including some of the top game businesses. Stage 3: Creative-industry projects– big and important events and projects based on the value chain. Shanghai is also trying to promote such proj-ects in the creative industries. For the 2010 World Expo, a creative project is being carried out that will place in one service system all the elementsattractive to a participant in the World Expo, including clothing, food, accommodation, travel and entertainment. This kind of big project has greatpotential to promote the creative enterprises in these quick developments require strong support from the government. A long-term policy and related strategies are necessary for the stable promo-tion of the creative industries. Moreover, five-year plans are an effective way of informing people of the direction of development. Government initiativestake the leading role and must continue to be the main impetus, particularly when facing competition from more developed creative industries in othercountries. For China, the development of creative industries involves almost all industries, and people are increasingly aware of this trend. Our target,however, extends beyond GDP increases and includes the exploration of the potential of deeply-rooted Chinese culture for making creative products richin Chinese culture and heritage. The cultural value of the creative industries lies not solely in its products but also in the emergence of culture as a coreelement of industrial and economic activities. Much progress remains to be made, though, as Chinese industries have been mainly , as exemplified by the experiences of other countries, creativity will become a driving force in the whole is facing the twofold task of promoting new industries and improving traditional industries. Fostering cultural development is also paramount. The creative industries provide us with a new perspective on our current gap vis-à-vis developed countries and a new way to explore the potential ofdevelopment as a big country rich in cultural of the value of creativity is just beginning in China. In the last two to three years, many cities have begun to explore the creative the 16 cities that belong to the Yangtze delta, 14 are boosting creative industries. Moreover, Beijing has taken powerful measures to support its creative industries. The value of creative talents is also increasingly recognized in society, with schools encouraging greater creativity among their students, a change that may influence China’s entire education system. To properly understand and take advantage of this trend, the Ministry of Educationhas started a three-year research project on China’s strategy for the creative industries. This exemplifies China’s commitment and vision for develop-ment. Though its experience may not be easily replicated, it could be an interesting reference for other countries, especially developing Prof. He Shou Chang, Executive Vice Chairman, Shanghai Creative Industry ECONOMY REPORT 2010Policy strategies for the creative industries
policy processThe process of formulating and implementing publicrequired objectives are being achieved, what the benefitspolicies often entails the following sequence: and costs of intervention have been, and whether therehave been any untoward or unexpected side-effects, either Specification of first step is critical in specifyingpositive or negative. The process of monitoring and evalu-clearly which outcomes policy is designed to is normally seen as part of a feedback loop wherebyGenerally, multiple objectives are involved, and the neces-the assessment of the effectiveness of policy measures cansity of some trade-off between them might be anticipat-be used to inform the further development and refinemented. For example, the standard goals of macroeconomicof policy formulation and implementation. policy may require that some balance be sought betweenThe above sequence of the policy process is relevant8levels of growth, inflation, unemployment, external bal-generally to the dynamics of government action in regard toance, etc. In some cases, however, synergy between objec-the creative economies of developed and developing countriestives may be possible. With regard to the creative econo-alike. Some further considerations to be borne in mind, par-my, for instance, a linking of the goals of economic andticularly in the developing-country context, are the following: cultural development can readily be imagined wherebygrowth in cultural production can yield both economic There is a need in the developing world to create a frame-and cultural benefits. work of objectives, shared values and measurable outcomes; Choice of guiding principle in the allocationdefine the roles and responsibilities of all role players; andof policy instruments to tasks is the so-called assignmentconsolidate the role of government as a facilitator and coor-problem, whereby the most effective and efficient policydinator of the creative sector and its development. measure or package of measures is aligned with the objec- Much of the policy implemented in the developing worldtive or objectives that they are expected to achieve. Thehas used models from developed countries in its array of policy instruments available for use inThe current challenge is to ensure that policy embracessupporting the creative economy includes: fiscal measuresvalues relevant to the developing countries themselves,(subsidies, tax concessions, investment allowances, businessincorporating indigenous knowledge systems and localstart-ups); regulation (copyright, local content quotas,experiences into the policy, institutional and programmingplanning laws, regulations on foreign direct investments);environment. trade-related measures (import quotas, etc.); education and A critical challenge for policy in the arts, culture and heritagetraining (direct or subsidized provisions of services); pro-sectors of developing countries is the lack of articulationvision of information and market development services;between cultural policy and other priorities, and the degreeinternational cooperation (cultural exchange, culturalto which a concern for culture and cultural diversity isdiplomacy); and social security and welfare policy (includ-embedded in development agendas. ing measures to protect cultural diversity). The usefulness One of the most significant challenges to the creative sec-of particular instruments is discussed in more detail latertor in developing countries is the implementation of goodin this principles across the sector as well as the Implementation, monitoring and implementationimprovement of the relationships between producers, of cultural policy requires appropriate measures to gatherdistributors, creative workers, employers and retailers. the data necessary for monitoring whether or not the213CREATIVE ECONOMY REPORT 2010Policy strategies for the creative industries
directionsCritical areas where developing countries need newtry. The overlap with the private infrastructure needs of thepolicy initiatives in order to boost their creative economiesemployees and the small scale of the needs for the individualinclude the provision of infrastructure, the provision ofindustry may, on the other hand, balance this cost. The pro-finance and investment, the creation of institutional mecha-motion of creative clusters is one way to overcome this costnisms, an appropriate regulatory framework, the develop-but it may not carry the social and cultural advantages ofment of export markets, the establishment of creative lodging creative industries within existing and a mechanism for effective data-collection meas-Moreover, the problem of lack of infrastructure relates par-ures and to gaps in the supply chain for inputs into creativeprocesses, inadequacy of distribution networks for effective8marketing of products, and lack of institutional of infrastructuremechanisms. One infrastructure requirement particular to the It is a fundamental function of government to createcreative industries is the need for access to information andand maintain the conditions under which the economic,communication technology (ICT). Access to informationsocial and cultural life of the citizens can prosper. Thisneeded to boost business development is in many regions ofresponsibility takes shape through the ways in which thethe world still far from universal and will never be so with-public sector provides both tangible and intangible infra-out conscious public sector efforts to expand access. There isstructure. Given the predominance of the market economy asno doubt, however, that access to ICT, in terms of identifi-the basic form of economic organization in the world today,cation of market opportunities, training, innovations, the types of infrastructure required are those institutionsnetworking and sales, is a significant factor in the develop-that enable markets to function effectively but at the samement of the viability of small business units. Access to ICTtime to protect and promote the public interest. As provides a link between education and commerce and assistsUNCTAD puts it in The Least Developed Countries Report 2004:in turning knowledge into marketable products. FacilitatingIn implementing post-liberal development strategies,the movement of workers is another key issue for the devel-public policies in LDCs should use market-supportingopment of creative industries, especially in those industriesmechanisms aimed at market creation, market develop-that entail a collective creative process (see chapter 7).ment and market acceleration. These policies must notLike any other industry, creative industries are onlysimply provide the right price incentives, but also createtruly sustainable if they contribute to building the assetthe right institutions and the infrastructure necessary resource base. This they can do only through the integrityfor a modern market economy to function properlyand authenticity of their products. In the longer run, the cre-(UNCTAD, 2004:xi-xii). ative industries depend on the vitality and strength of theThe infrastructure needs of the emerging creativecultural sector and the investments in cultural capitaleconomies of developing countries arise at all points in the(knowledge and heritage). The sustainability of the creativevalue chain from initial creative production (which may beindustries therefore depends on the safeguarding of culturalundertaken on a small scale at the local level or on a largercapital and the development of the cultural asset resourcescale in towns and cities) right through to marketing andbase. Hence, comprehensive cultural asset management is aretailing. As with any other industry, the creative industriesprerequisite for sustained growth in the creative-industriesneed affordable access to appropriate space in which to worksector and, in a wider perspective, for sustainable economicand to live, transportation, and distribution facilities. Thedevelopment and vibrant community life. It is therefore dispersed but interdependent nature of creativity in the cre-necessary to maintain the principle that cultural assets areative-industry sector may make the provision of these basicintergenerational capital and that their viability may legiti-infrastructure needs more costly and complicated than formately be sustained by public investment. the development of more traditional heavy and light indus-214CREATIVE ECONOMY REPORT 2010Policy strategies for the creative industries
The creative sector face capital rationing at all of finance and Start-up financing is often difficult to access because of theinvestmentuncertain prospects in markets for creative products; forecast-The actual role played by government in dispensinging demand for creative goods such as films is generally morefunds for the cultural sector and the creative economy maydifficult than for more standardized products so public andinvolve direct cultural provision via the state apparatus or viaprivate investors often look upon projects in these areas as tooan enabling role administered through a ministry of culturehigh-risk. Occasionally, firms have access to public investmentor the equivalent. The expansion of cultural policy beyondassistance programmes, business incubators or private venture-the concerns simply of core artistic and cultural activities, ascapital sources. Nevertheless, difficulties in obtaining financediscussed earlier, entails a similar expansion of the ways incontinue into the operational stages of creative businesses,which cultural funding is provided. In particular, publicwhen working capital is needed and funds for business expan-finance and investment in the creative economy are expectedsion are also typically in short supply. Contrary to the cultur-to extend beyond cultural ministries and to involve, in par-al sector, which relies mostly on public funds, the creative8ticular, ministries responsible for industrial development,industries are more market-driven. Therefore, creative entre-technology and finance. Traditionally, investment in the cul-preneurs have to be more pro-active in dealing with commer-tural sector has directed investment and programmingcial banks and private investors, instead of relying too muchtowards projects, institutions and large enterprises that are allon government subsidies. A conventional model of publicheavily dependent on public incentives and financing. funding for the cultural sector is illustrated in figure Funding flows to the cultural sector Incoming transfers from non-resident institutional units(foreign governments and international organisations) HouseholdGovernment sectorDOMESTICSectorCulturSECTORalNational administrations“Arm’s Length”(Treasury, Ministries or SectorHouseholdagenciesDepts. of Culture,sectorInterior, etc.)(publicbroadcastingcorps, artscouncils)State/RegionalAdministrationsLocalAdministrationsNPISHsCorporateFoundationsNon-(Non-profitSectorresidentsinstitutionsserving household)Outgoing transfers to non-resident institutional units(foreign governments, international organisations, NPISHs and households) Source: Gordon and Beilby-Orrin (2007:30). 215CREATIVE ECONOMY REPORT 2010Policy strategies for the creative industries
The sustainability of the creative industries dependsdegrees of collaterals, obligations and responsibilities. Inon a different and more comprehensive model of , it comes from public-sector funding programmes ofWhile parts of the creative economy have been very success-various sorts; private-sector investment; venture capital; pub-ful in identifying funding and have become very profitable,lic-private partnerships; grants from foundations; company’smany activities may appear to have only a limited commer-cultural-social responsibility tax exemption schemes etc., butcial potential. These activities may not have been able to real-other non-conventional alternatives could also be their potential because they have lacked the capital andMicrocredit schemes are a viable option which should beinvestment needed to scale up their activities and operate asmade more easily available by public and private credit insti-demand-driven, sustainable businesses. A major problem intutions to finance small creative enterprises and independentthis respect is that entrepreneurs in the creative industriesartists in developing countries, particularly for start-ups. often find it difficult to present a convincing business modelNowadays, there is a range of non-traditional fundingand many of the professional skills involved — ., chore-options to stimulate creative business that can be regarded asography, dancing, drawing, editing, weaving, doll-making —8tools to promote local development. Indeed, the lack of con-simply are not perceived as leading to profitable in financial markets which resulted from the 2008While this may be changing in some places under the influ-financial crisis became influential to attract greater publicence of success stories of one kind or another, many skillsinterest for alternative schemes for funding and commercialand professions related to the creative economy are not rec-transactions. Among the new financing instruments mostognized as business categories in legal terms. Because of this,used by creative economy circles are: (i) collaborative co-many small creative industries do not have access to creditfinancing via networks, and (ii) alternative currencies via thefacilities or to the loans and investments that would makesolidarity-based economy. Both are cases of new businesstheir businesses more viable. models functioning through networks, used particularly byThe credit-crunch which followed the financial crisisthe new generation of creative entrepreneurs in differentof 2008-2010 continues to affect a large number of creativeparts of the world. Certainly more evidence and researchbusinesses, thus calling for new approaches for is needed not only to better understand the func-Financing and credits for businesses in the creative economytioning and operational efficiency of such alternative mod-may arise from different sources requiring distinct kinds andels, but also to examine the regulatory framework in whichFigure of monetary circuit applicable to the creative industriesProfessionaland WagestnLabor MarketseInmcyoamP reotcaPFaGovernmentsymseexnatTsstnTaexmesyaPBusinesses and dHouseholdsnaOrganizations tseretsndIInnteedrievistDsgLoneiravnausStidneSpaxFinancial Institutionsle E nRoeictepipmtussnoCProduct andServiceMarketsSource: Bernard Lietaer and Gwendolyn Hallsmith, Global Community Initiatives, 2006216CREATIVE ECONOMY REPORT 2010Policy strategies for the creative industries
they operate and to evaluate the short and long-term mone-Social or alternative currency refers to any currencytary implications of these alternative models, in particularused as a complement to the dominant national currencytheir interactions with the conventional banking system andsystems, responding to both commercial and social objec-the overall economy. Nevertheless, it is important to betives. They can be created by an individual, corporation oraware of their existence and why and how they are fast pro-organization, and even by national, state or local govern-liferating. The scheme presented in figure is an indicationments; in most cases they arise naturally as people begin toof a monetary circuit more oriented towards the needs ofuse a certain commodity or a creative product or service as acreative business in local communities, involving key stake-currency. Mutual credit is a form of alternative currency, andholders: wage-earning workers, self-employed workers andthus any form of lending that does not go through the bank-liberal professionals; families; companies; governments,ing system can be considered a form of alternative institutions, organizations of the civil society; andWhen used in combination with or when designed to workmarkets of products and e-services. in combination with national currencies they can be referredto as a complementary currency, but can only be used with-8Solidarity-based economyin a closed circuit, therefore limited to a certain communityWhat became known as the solidarity-based economyor region. Barters comprise another type of commercialis a non-conventional model to deal with economic activi-transaction, an exchange system which trades items withoutties on the basis of alternative currencies. To a certain extentthe use of any currency. these social-related business models go in line with the needAnother alternative scheme gaining traction in recentto rethink the functioning of the world economy in anyears is the Local Exchange Trading Systems (LETS), a spe-innovative and creative manner. The use of social currenciescial form of barter which trades points for items. One pointis receiving more attention in a number of countries notstands for one hour of work. Often there are issues relatedonly from the developing world; indeed alternative curren-to paying tax. Some alternative currencies are considered tax-cies are legally in circulation in more than 35 countries (seeexempt, but most of them are fully taxed as if they weretable ). In practice, they are systems created and national currency, with the caveat that the tax must be paidadministered by social groups to execute payments,in the national currency. The legality and tax-status of alter-exchanges or transmission of obligations among the mem-native currencies varies widely from country to country;bers of a community, with the aim to make local economiessome systems in use in some countries would be illegal inself-sustaining. This model is being applied in the context ofothers. Various approaches are being proposed to link Localthe creative economy particularly by the young generationExchange Trading Systems in communities around the in poor communities. It is neither public nor private, butThe Ripple monetary system has been proposed as a virtuala kind of a hybrid human-centred scheme applied for certainsystem to connect the diverse LETS systems. LETS are char-economic activities inside a pre-determined geographic by a level of innovation, and many new networksThe main principles driving the solidarity-based economychoose to experiment with the system’s mechanics. Localare: social justice, solidarity, cooperation, self management,exchange trading systems now exist in many countries and areconcern for the environment and responsibility for the nextused in the creative economy. Table backgroundgenerations. The solidarity-based economy functions withininformation of its worldwide application, and Box using a range of alternative currencies for trade andprovides an interesting example of how alternative currenciescommercial exchanges. are being used in a developing country. 217CREATIVE ECONOMY REPORT 2010Policy strategies for the creative industries
Table Illustration of Local Exchange Trading Systems (LETS)AfricaIn 2003 the Community Exchange System (CES) started operating an Internet-based LETS in Cape Town, South Africa. This has grown into aglobal network of over 180 local exchange systems in more than 20 countries (early 2010), among them New Zealand, Australia, Spain, theUnited States, the United Kingdom and Vanuatu. Many of these are former LETS groups but others are time banks and the Peanuts system in Chiba, near Tokyo, Japan, approximately 10 per cent of all payments made at local stores are in the community currency(2002). The LETS movement saw its peak around Korea has some active LETS too, such as Hanbat LETS in Daejeon and Gwacheon Pumasi in Gwacheon. The Fureai kippu system is wide-spread in the United Kingdom, an estimated 40,000 people are now trading in around 450 LETS networks in cities, towns and rural communities. LETScurrencies have their own local names, for example: Locks in Camden Town, London - Camden LETS Readies in Reading, Berkshire - ReadingLETS Scotia in Scotland - LETSlink Scotland Rheidol in Aberystwyth, Wales - CyFLe Aberystwyth LETS (group closed down in Aug 2009).8In France, a consortium of social economy financial institutions including Crédit Coopératif and the Mutual MACIF and MAI have joined with theChèque Déjeuner cooperative to launch an alternative currency called the Sol, which will be held on a smart card. The Sol will be piloted in theIle de France, Brittany and Nord-Pas de Calais regions as part of an EQUAL development partnership in 2005-2006. (More information is avail-able from .)Germany established a number of local currency systems with different names such as “Talents” or “Batzen” using LETS principles. Germanyhosted an International Conference in Monetary Regionalisation in October 2006 to debate those Hungary the term used is “Community Service System” (KÖR). One group from the capital city is Talentum Kör (Gold Talent Group), a BritishCouncil-supported Netherlands has spawned a number of innovative concepts based on the LETS formula, some of which try to lower participation barriers bycompletely moving their exchange platforms online, like Switzerland, the WIR Bank operates a system close to a AmericaThe original LETS, the Comox Valley LETSystem developed by Michael Linton in 1982, is now dormant, however; there are plans to revive it. Thesecond LETSystem in Canada was the Victoria LETS, established in 1983. LETS have been established in several Canadian cities, includingKitchener-Waterloo, Niagara, and Peterborough in Ontario, Halifax, Nova Scotia, and St. John’s Newfoundland. Although less common than localpaper currencies, several LETS have taken root in the United States. These systems include Asheville LETS in western North Carolina, the Community Exchange in the Midwest and Fourth Corner Exchange in the Pacific Psychologist Jill Jordan started the first Australian LETSystem in the town of Maleny, Queensland in 1987, after visiting Michael Linton inCanada to observe the LETSystem functioning in Courtenay, British Columbia. He also pioneered the idea of naming local currencies after iconsof local importance: in Maleny their currency is the bunya, named after the local nut of the bunya pine. In 1989 the Western Australian govern-ment had given $50,000 for the development of LETSystems, including the running of state conferences, the production of software, aLETSystems Training Pack, and assistance to Michael Linton to visit Western Australia. By 1995 there were 250 LETSystems in Australia, withWestern Australia having 43 separate systems serving a population of million (although actual participation is by only a tiny fraction of thatpopulation) making it then the region with the highest LETS coverage in the world. South Australia also pioneered an “InterLETS” allowing mem-bers of one system to trade with members of other systems. Data on more Australian sites can be found at of the mid 1990s there were approximately 70 “Green Dollar Systems” in New Zealand. A National Conference of Systems was a means ofsupporting new groups through the various developmental AmericaSince 2000, there are now 140 Ecosimia-Groups in : UNCTAD adaptation based on wikepedia information about LETS systems in operation in various countries 218CREATIVE ECONOMY REPORT 2010Policy strategies for the creative industries
Box Currencies in BrazilPalma, Maracanã, Castanha, Cocal, Guará, Girassol, Pirapire, Tupi. The list of various names includes more than 40 local currencies that circulate inBrazilian neighbourhoods and small towns where there are community banks, created to strengthen the economy in needy communities. The worth ofthe local currency is identical to the real, the official currency of Brazil, but it is more valuable than the real because businesses give discounts for pur-chases made with this alternative money. The use of the currency is simple: the local residents can trade the real for the local currency in a communitybank and use it in regional businesses. If it is necessary to buy something with a real outside of the community where the bank is active, then a personcan do the exchange in reverse. The objective of the local currency is to have the currency circulate in the local community. The practice increases salesand generates more jobs in those Palmas is a pioneer in this area. It was the first community bank created in Brazil, founded in 1998. Two years later it brought out the currencyof the same name, the palmas. The communitarian experience yielded such positive results that in 2005 the Network of Community Banks in Brazil wascreated. Today, there are some 50 community banks across the country. The real can be used outside of the community, generating wealth in other areas, whereas the local currency has the power to generate prosperity in8the neighbourhood. It is recommended that the local bills be distinct in appearance from the real. The other provision is that the local currency is not worth more than official Brazilian currency and that for each unit issued there is a real in the community bank. This measure aims to control theeconomy: if the alternative currencies are worth more or if more are printed than the official currency, it can destabilize the economy of the country. Thealternative banks report how much local currency is in circulation to the Central community itself profits from the earnings, which is different from what happens with the large banks where the money of the customers is used forfinancial transactions. “The community bank does not serve the speculation market. It just serves to generate wealth locally. This is economic democracy,”says an official at the Bank of : UNCTAD adaptation of an article by Mariana Sanches e Inácio Aguiar; available at on Creative Economy could be envisaged, as of institutional mechanisms standing body to play a key role in shaping public policiesIn a large majority of developing countries, there are ainvolving government officials from all the relevant of institutional weaknesses hampering the perform-Such a committee would also establish a regular dialogue (atance of the creative economy. Among the major constraintsleast twice a year) with key professional associations and insti-are: (i) the inadequate integration of cultural objectives intotutions of the creative sector in order to allow greater owner-the economic, technological and social policies; (ii) inade-ship in the process and better respond to the demands andquate dissemination of policies, legislation and regulationsexpectations of the creative professionals. A step further couldrelated to culture and the creative economy, to enhance bet-be envisaged by establishing a Creative Economy Centre, as ater understanding of their cultural and economic value to allplatform to facilitate networking and partnerships, share relevant stakeholders; (iii) poor institutional capacity toexperiences, collect and disseminate information, studies andarticulate, implement, monitor and evaluate policies, strate-policies, and facilitate interactions between creative business,gies, programmes and projects, contributing to weak delivery;private sector and academia. The centre would be the meeting(iv) lack of linkages and networking among institutions; andpoint for creative practitioners, where seminars and capacity-(v) excessive dependence on the government by cultural andbuilding activities could also be held, as stimulus for creativitycreative innovation. A centre or several centres could be set up atAgainst this scenario, there is a need for a workable andnational, municipal or regional institutional mechanism to facilitate the elaborationThe problem of weak institutions extends also to theand implementation of a plan of action based on a long-termregulatory environment within which the creative economystrategy for enhancing the creative economy. It is advisable tofunctions. As elaborated below, institutions are also neededintroduce a mechanism to facilitate concerted cross-cuttingto support a sound legal framework like the collecting policies. The establishment of an Inter-ministerial Steering219CREATIVE ECONOMY REPORT 2010Policy strategies for the creative industries
societies for copyrights management; to attract investmentsnational film agency and association of musicians. Usuallyand promote exports, an Investment and Export Promotionthe associative structures in place are quite weak and need toAgency; to implement competition policies, a Competitionbe reinforced, in order to be able to promote effectiveAuthority, etc. Equally important are the sectoral and profes-changes in the creative sectors. sional institutions within the various sectors, such as theBox Egyptian film industry: The waning of the “Hollywood of the East”? Egypt has a long and proud tradition of moviemaking dating back to the late nineteenth century when projections were shown in cafés. The first featurefilms to be produced were romantic movies intended for the urban middle class while the first full-length silent feature and the first made with an 1entirely Egyptian crew was “Leila”, produced and co-directed by Azira Amira with Turkish director Orfi Bengo in then, the Egyptian movieindustry has become the most important in the Arab world. More than 75 per cent of the 4,000 short and feature-length films made in Arabic–238speaking countries since 1908 have been its peak, the film industry of Egypt produced some 60 to 70 feature films a the late41990s, however, the industry managed to produce only film industry was boosted by the creation of Studio Misr in 1935, becoming “the nucleus of a genuine film industry as part of 20 or more enterprises5by Talaat Harb meant to contribute to the Egyptianisation of the economy”.Studio Misr grew to be one of Egypt’s largest production companies, Egypt’sequivalent of Hollywood, and continued to play a prominent role for more than three decades. The internationally successful films of the 1950s, including musicals and comedies, became classics while their stars became screen legends and theirproducers were internationally acclaimed. Filmmakers produced serious films; Youssef Chahine, for example, won accolades and awards throughout hislong career such as the golden anniversary award at the fiftieth Cannes Film Festival in 1997 for lifetime achievement. He also was the only Egyptian6director honoured by the Berlin, Cannes and Venice film film industry did not fare well during the time of Gamal Abdel Nasser. Attendance at movie theatres as well as actual film theatres declined dramat-ically with the nationalization of radio and television industries in the early 1960s. Film theaters in the period 1955-1975 declined from more than 3507to fewer than 250 while at the same time, imported foreign films flooded the losses incurred by the State film organization saw the grad-ual halting of film production by the early 1970s. The financing from oil-rich Gulf countries of films for television (1980s) and satellite production (1990s),accompanied as it was by the tightening of censorship requirements covering sex, politics and religion, exacerbated the decline of the film industry. Manyfilm critics point to the current power of censors to limit artistic creation and freedom of expression, particularly with respect to criticism of religion. Inaddition, funded television shows benefited enormously from the Gulf petrodollars of the 1980s, also to the detriment of film, so that by the mid-1990s,the Egyptian film industry was thought to be in a state of crisis, with the annual production of films falling to single digits. At the same time, the last 10 years have seen a new group of Egyptian women film directors emerge such as Hala Khalil, whose “Ahla Al-Awquat” (“Bestof Times”, 2004) reflects on the reality of her generation of Egyptian women set in present-day Cairo. While the Egyptian film industry is still the biggest in the Arab world, Egyptian filmmakers are concerned about many issues from the quality of film-making, the standard of film courses at the High Cinema Institute, censorship, religious fundamentalism, level of production and technical standards inEgyptian film-making to financing and the level of intellectual property protection. Prominent Egyptian director, Inas al-Deghedy, spoke to Guy Brown inCairo about the quality of film-making, financing and fundamentalism: “Poor quality movies are a reflection of economic difficulties. People are not look-ing for movies that explore important issues; they are trying to escape the economic situation. That is why comedians dominate the industry at themoment … There is no comparison between Egyptian and American or European movies. Production standards in American movies are far ahead of us;European movies are not so far ahead, which is partly because they are also experiencing financing problems … Now the whole industry is based onfilms that are self-financed. They do not have a good source of financing from Arab countries … Seventy-five per cent of revenues come from the cinema, and 25 per cent from video and satellite. Revenues disappear into thin air because of inadequate intellectual property right protection, particu-larly on the international scene … The Egyptian people are the true censors … Fundamentalists are creating a serious problem for the industry, because8they are wrapping new films up in red tape”.Today Egyptian cinema straddles both those films with high artistic quality attracting international attention and popular films, particularly those in thecomedy core of Egypt’s flourishing film industry is based in Cairo, which hosts the world-class annual International Film Festival. Some films have success-fully bridged the art/individual-popular divide, such as the 2003 “Sahar el Layali” (“Sleepless Nights”) and the 2006 “Imarat Yacoubian” (“The YacoubianBuilding”). The latter is based on a novel by dentist author Alaa El-Aswani, published in 2004 and “containing all that the majority of Egyptians talk about9in private”.This film with its depiction of homosexuality and other issues considered taboo as well as some newer releases indicates a film industrythat is increasingly willing to take risks. “Awkat Faragh”, for instance, is a social commentary on the decline of youth in Egypt and the sexual undertones220CREATIVE ECONOMY REPORT 2010Policy strategies for the creative industries
Box continuedThe Egyptian film industry: The waning of the “Hollywood of the East”? in today’s society, and despite being controversial and produced on a low budget, the film went on to become successful. The Egyptian film industry is again in a delicate position not only because of societal taboos and the rise of fundamentalism but more importantly alsobecause of how film is viewed both by the authorities and society more generally as being outside of culture and heritage. As Samir Farid points out,“Arab countries, including Egypt, do not view their cinemas as part of their national heritage or an art worthy of government subsidy. Film is not taught10in colleges of fine arts and newspaper film reviews tend to be located on the entertainment pages, rather than in the arts and literature pages”.Thereare no negative archives, cinematheques, video libraries or film museums and copyright protection is poor. As is the case with music in much of Africa,Arab film production companies prefer up-front payment rather than waiting for possible future financial rewards, which leads to a lack of attention towhat happens to their originals and copies. As film critic, Mohamed El-Assiouty, laments, “…they are not in the least concerned with preserving their11 originals and more often than not neglect to place a positive copy in the Egyptian National Film Centre (ENFC)’s store room”.The proposed Media Production City, a $200-million, 5,000-acre production venue with a development projection of 10 years will become the newEgyptian equivalent of Hollywood. It will have 13 state-of-the-art sound stages, outdoor sets (from Pharaonic cityscapes and medieval Islamic backdrops8to Egyptian villages, modern Egyptian street scenes and agricultural settings), film processing laboratories, an open-air theatre, a training centre, admin-12istration offices and a hotel for actors, production personnel and , it will ultimately be up to the artists – from scriptwriter to directorand producer – to ensure that Arab cinema remains creative and vibrant. 1See Farid, “Lights, camera --- retrospection”, Al-Ahram Weekly, no. 462, 30 December 1999-5 January 2000. Available online at: Warg (2007), “Egypt’s Hollywood mammoth film centre going up near Giza”, in New Middle East Magazine. Available online at: Brown (2002), “The movie business in Egypt”, AME Info, 8 December 2002. Available online at: Saad El-Din (2007), “Plain talk”, Al-Ahram Weekly, no. 838, 29 March-4 April 2007. Available online at: Farid (2006), “An Egyptian story”, Al-Ahram Weekly, no. 821, 23-29 November 2006. Available online at: Inc. (2007), “Economics and Politics, Egypt”. Available online at in Guy Brown (2002), Farid, “Seven”, Al-Ahram Weekly, no. 849, 14-20 June 2007. Available online at: Farid, “Lights, camera – retrospection”, El-Assiouty, “Forgotten memories”, Al-Ahram Weekly, no. 445, 2-8 September 1999. Available online at: Warg (2007), Avril Joffe, Director, CAJ (Culture, Arts and Jobs).balance needs to be struck, however, between framework and legislationIPRs and strengthening the public domain. Ensuring thatFor the effective functioning of the creative economy,this balance is established is essential to asset managementit is essential to establish or reform the regulatory and insti-and wealth creation in the creative economy. Copyright sys-tutional frameworks, in order that they will be conducive totems need to be more transparent and fully accountablesupporting the development of the creative the management of IPRs. Even where collectingSound national regulations and institutional frameworkssocieties do exist, their successful operation is sometimesadapted to countries’ conditions and capacities are adversely affected by shortcomings of sister societies in otherparamount to nurture the creative economy. There is a widecountries. For example, a frequent complaint by musiciansrange of complex issues that can only be dealt with throughfrom developing countries is the failure of collecting soci-effective and updated to capture airplay and live performance statistics for– Intellectual property legislation: Effective andtheir music played overseas. This perceived unfairness inmodernized intellectual property regimes that protect thetreatment means that artists from the South receive very lit-originators’ interests and stimulate creation and innovationtle in the way of copyrights payments from outside theirare therefore a pre-requisite for access to global markets. Acountries. Without a realistic copyright regime, creative 221CREATIVE ECONOMY REPORT 2010Policy strategies for the creative industries
producers are unable to receive equitable payment for theirbroadcasting can greatly facilitate the development of theoutput and hence lack the financial incentive to continue infilm and TV industry, since the absence of a supportive production. Although many countries in the developingregulatory framework means serious difficulties for local world are making progress in establishing workable legislativeproducers of creative content. Another issue is that in manyarrangements for dealing with intellectual property, there iscountries musical instruments and audiovisuals and mediastill a long way to go (see chapter 6). equipments are considered luxury items, being heavilyimposed with import duty plus value added tax (VAT).– Fiscal regimes:In order to enhance the creativeGovernments are therefore encouraged to examine possibili-industries it is important to review the current fiscal regimeties to review fiscal policies, including possibilities for taxand see what should be done in terms of fiscal treatment toexemptions, reductions on duties and levies on the import ofsupport creative activities. Very few countries have fiscal ben-equipment used in creative enterprises, etc., by providing fis-efits to encourage the creative industries, although usuallycal incentives to artists, cultural producers and the corporatethey grant fiscal and customs incentives for investors in thesector involved in the creative sector. Some countries have a sponsorship law butusually they need revision (tax rebates should be linked to– Monetary and exchange rate policies:Governmentsspecific conditions) or effective implementation to effectivelyand central banks are encouraged to undertake supportingcontribute to the growth of the creative industries. In somepolicies for financial institutions in order to inject constantcases, special decrees are need to define rules and criteria forflow financial resources to creative business activities. Thisthe commercialization of certain art works, antiques, toinitiative could provide impetus to business that wouldavoid abuse and unscrupulous commerce and exports of pro-increase business profits and incomes earned from the cre-tected creative and heritage goods. Effective audiovisuals andative activities. In the context of the current global financialThe Biennale of Contemporary African Art of Dakar: Box contribution to economic and cultural development in Africa For several years, Africa has proposed a variety of events for the promotion of different forms of artistic expression. The Biennale of Contemporary AfricanArt of Dakar undoubtedly makes a critical contribution to ensuring the promotion of artists and the diffusion of contemporary creative works within andbeyond the Biennale of Contemporary African Art was born from the desire of the Government of Senegal to position Dakar as a place of encounters and culturalexchange for the entire African continent. The event started as a Biennale of Arts and Literature in 1990, with literature occupying a predominant ’Art was organized for the first time in 1992, and since then, the visual arts component has moved to the forefront. Nowadays, 289 artists from 34African countries, with 16 representing the African Diaspora and 13 from the rest of the world participate. Among the countries with the highest rates ofparticipation in the Dak’Art exhibitions are Cameroon, the Democratic Republic of the Congo, Ivory Coast, Morocco, Nigeria, Senegal and South , in 1996, the Biennale started to incorporate the Salon of Design, which showcases the work of talented designers from Africa; 92 creatorswere selected to represent 15 countries from the African continent during the period 1996-2006. Dak’Art 2006 also was attended by 63 art critics, 25 specialized press agents, 19 African journalists, 32 representatives from galleries and museums, 13 organizers of 7 Biennales at the international level and a dozen art collectors. Several important events are scheduled for 2008. The first one is Africa Now, an important programme under the initiative of the World Bank and in honourof Africa. The second one is the first Foire d’art contemporain africain de Tenerife in Spain. In addition, the Biennale is associated with the UNCTAD secretariat for the launching of the “Creative Africa” initiative during the UNCTAD XII Ministerial Conference to be held in April in Accra, Ghana. For theoccasion, an exhibition of African contemporary art will reveal the breadth of African talents in the field of visual arts, showing new approaches in art anddesign and raising public awareness about contemporary creations in Africa. Creative Africa will feature the work of artists from 10 African countriesthrough paintings, sculptures and collages. The economic spillovers of Dak’Art are linked mainly to the sales of important African art works. The event is also beneficial for several economic activitiessuch as international tourism, international transportation, local transport, the hospitality industry and other services. In brief, Dak’Art is an illustration ofthe positive impact of international cultural manifestations for socio-economic Ousseynou Wade, Secretary-General of the Biennale of Contemporary African Art, Dakar, Senegal. Website: .222CREATIVE ECONOMY REPORT 2010Policy strategies for the creative industries
crisis, the active participation to influence monetary and for-exportable creative products in order to respond to theeign exchange market can improve the functioning of therequirements of major markets. Trade facilitation issues mustfinancial sector and institutions in supporting trade-relatedbe addressed, including for example the slow clearance ofactivities in creative through ports and customs offices and the need tosimplify inspection and paperwork for exports. It is impor-– Competition laws: Considering the oligopolistictant that creative industries be included in the national strat-structure of several creative industries, particularly in the areaegy for export development. of music, media and audiovisuals, government should ensurethat competition policies and a Competition Authority areThere are noteworthy examples of domestic creativein place to allow fair competition. Competition laws areindustries that are outward-looking and that actively targetexpected to regulate several areas of relevance to the creativeforeign direct investment and export markets in addition toindustries, such as abuse of dominant positions, agreementslocal markets for creative products. In this context, East Asianbetween companies and concentrations that impede compe-countries stand out. For example, the Singapore strategy aims8tition. Efforts should be made to strengthen the legal andto establish a reputation for Singapore as a new Asian creativeregulatory framework, including for the creation of creativehub. Among the international creative industries that it hasand cultural enterprises, including the registration of suchsucceeded in attracting are international film financing com-entities, and their constitutions. pany RGM Holdings, electronic games developer KoeiCompany, Ltd. from Japan, and automotive and product– Labour and social laws: In most developing coun-design studio BMW Group Designworks USA. In addition,tries, the majority of artists and creative entrepreneurs are53 foreign media companies have set up regional headquar-still part of an informal and/or very fragmented or hubs there in the last five years. Similarly, the indus-Thus, they do not benefit from the usual rights and obliga-tries of Hong Kong SAR are highly export-oriented given thetions covered by general labour regulations. Social and small size of the local market and have benefited from theireconomic security for art workers and creators is essential tospatial and cultural proximity to the huge market of mainlandchanging the traditional misperception that creative activitiesChina. Likewise, United States’ creative industries, which areare transitory or recreational activities or competitive and have an established reputation, vigorouslyComprehensive national legislation is required to regulatepursue opportunities in export markets. occupational creative activities and their relationship withemployers in order to set up a social and economic securityscheme for these workers. It is widely recognized of creative clusters employment conditions for artists are often very ’ contractual obligations are usually project-based,Every creative industry has its own particular needs,with long periods of unemployment between and modes of organization — the music industry orMost artists, particularly in the performing arts, work on anthe publishing industry, for example. From a policy perspec-irregular, part-time or self-employed basis, with limited ortive, however, a small-scale publisher is likely to have moreinexistent coverage for pension and medical schemes. Whereneeds and problems in common with a small professionalit does not exist, it is highly recommended the drafting andmusic ensemble or a small pottery and weaving business thanapproval of a Law for Artists and Creators, taking intoit has with a larger-scale publisher, wherever these creativeaccount the specificities and vulnerabilities of this profes-professionals are located. Thus, although the performance ofsional individuals may differ from country to country, theirimpact on the development of the creative industries is like-ly to be optimized through national and regional of exports markets tion within a cluster strategy. As discussed earlier in thisreport, clustering is a system to network independently func-In terms of export promotion, tailor-made exporttioning units. It optimizes the individual unit’s function andstrategies should be designed for the most competitive cre-potential instead of exploiting them. A cluster brings togeth-ative sectors. Development of brands, new markets, and newer individuals and groups that create products that competeproducts all these targets should be well must also cooperate within the broader context of theSpecialists should be in charge of quality control forcreative industries. Clusters can develop naturally or be cre-223CREATIVE ECONOMY REPORT 2010Policy strategies for the creative industries
ated for a specific purpose; they may cover many or a fewport should also be extended to enable small and medium-industries; and they may contribute to development in a par-sized enterprises to become vibrant and contribute to theticular geographical location, as in the many creative-indus-economy. Indeed, providing capacity-building and adequatetry parks established in recent years in cities such astraining and exposure to creatives can have a multiplyingBarcelona, Spain, Rosario, Argentina and Shanghai, on creativity. Issues such as the preparation of soundcommercial business plans and the submission of applica-The promotion of cluster development has proved totions to a micro-financing facility or commercial bank couldbe an efficient way of organizing the creative industries andbe decisive for many potentially successful creative projects. the non-formal sector. Cluster development contributes tothe creation of synergy both within and between differentsub-sectors of the creative industries. It also contributes of effective data-collectionthe identification of needs of the sector and areas for policymeasures development, and helps to justify relatively large investments8that focus on the drivers (the infrastructure) needed to cre-The issue of the necessity of reliable statistics is ever-ate the necessary enabling environment for the promotion ofpresent in all reports and discussions about the creativegrowth in the creative-industry sector. industries and the creative economy. It is almost redundantto say that effective and useful data collection is necessaryand an imperative for any type of assessment and policy creative entrepreneurshipmulation. The problem of a lack of quantitative and quali-tative data for the creative industries is a key impediment forThe management of creative businesses requires spe-informed policymaking. cific skills in both the entrepreneurial and the artistic or cul-This report stresses the need for the adoption of atural aspects of the business operation. In developing coun-methodology for the collection and analysis of universallytries, skill-development programmes and vocational trainingcomparable and reliable data on creative industries that map-courses can address these difficulties, but progress tends toping studies rarely meet. The creative industries in the Southbe slow. Often, there is lack of understanding of the valueoperate mainly in the informal sector, where the terrain ischain in the creative industries and the roles and responsibil-usually uncharted and the infrastructure of the industriesities of the players at each stage of the value chain. Forremains opaque. There is no doubt that targeted investmentinstance, African artists who have successfully penetratedWorld Music and wand policy can go a long way in realizing the growth poten-ho have been recorded locally need inter-tial of the creative industries, but unless the economic valuemediaries to distribute their work internationally, so theof these industries can be benchmarked and measured, fewcommercial value of their success is usually not retainedconcrete policy steps can be taken towards this goal. Allwithin their countries. This lack of understanding extendscountries, but in particular the developing ones, should col-not only to role-players within the industry but to the indus-lect reliable and consistent data on the creative economy intry and government, where commercial goals and objectivesorder to formulate a comprehensive strategy and allocateof cultural policy collide over the purpose of the supportresources to develop the sector. An initial effort to identifyand where role-players see themselves in competition withwhat data is collected, both quantitative and qualitative,one another. would give policymakers a useful overview. In enhancing capacities of creative entrepreneurs, creative nexus for enhancing the creative economyDespite encouraging prospects for the growth of thedeveloping countries face huge obstacles, such as lack ofcreative economy in the developing world, there are and entrepreneurial skills, inadequate infrastruc-Many opportunities for value creation, employment expan-ture, absence of appropriate financing mechanisms and weaksion, technological upgrading and market development in theinstitutional and legal frameworks to support the growth ofcreative sector have gone unrealized. As described above,the creative industries. As a result, access by Southern coun-224CREATIVE ECONOMY REPORT 2010Policy strategies for the creative industries
tries to the benefits of growth in the global creative econo-ter access to financing, including microcredit for independ-my has been limited at best. Indeed, there is a danger thatent creative workers and microenterprises; the formation ofwhen these countries are brought into international marketcreative clusters for sharing know-how and infrastructurenetworks, they will be relegated to the lowest value-addingfacilities; investment promotion and public-private partner-stages in the value chain. ships; greater efficiency in the functioning of networks oflocal creative firms; and increased competitiveness of creativeproducts and services in global markets. In this schema, creative nexus modeltailor-made capacity-building activities to improve entrepre-neurial skills and trade and investment-related policies areAgainst this background, the UNCTAD secretariathighly recommended. has been shaping an economic model to assist developingThe conceptual approach of this scheme is inspired bycountries to optimize trade and development gains from theongoing policy-oriented research in areas of competence ofcreative economy. The basic premise is the recognition model is in its embryonic stage, still requir-trade plays an increasing role in promoting socio-economicing empirical analysis with a view to capture how the eco-growth, employment and development. Trade alone, howev-nomic and technological spillovers interact or, in otherer, is an insufficient condition for strengthening creativewords, how the so-called “positive externalities” may occurcapacities. The contribution of domestic and foreign directin practice. It should also be recalled that creative industriesinvestment to capital formation is essential to induce tech-comprise a vast and heterogeneous group of firms with dis-nology-led, as well as soft innovation, artistic creativity andtinct and usually flexible organizational structures specific totechnical inventiveness. In addition, creative entrepreneurshipeach creative sector (see chapter 3). The model is still a set ofcan provide the basis for well-adapted and result-orientedtestable propositions requiring practical application to pro-market strategies. vide evidence and validate these assumptions. Indeed, toFurthermore, in order to positively influence exportdate, there is insufficient evidence about the impact of theperformance while enhancing creative capacities, effectivecreative industries on the wider economy, particularly theircross-cutting mechanisms should aim at strengthening insti-2spillovers into other segments of the and regulatory instruments, particularly to supportIn this scenario, a pragmatic way to nurture creativeintellectual property regimes, competition law and fiscalcapacities is to lay the foundation for putting in place a cre-policies. Such a framework can facilitate the following: bet-ative nexus. The starting point is to reinforce thenexus between creative investments, technology,Figure creative nexus: The C-ITET model entrepreneurship and trade, which is named theC-ITET = Creative Investment Technology Entrepreneurship Trade C-ITET model (see figure ). The rationale isthat effective public policies are likely to stimulateprivate-sector investments, attracting technologiesand therefore leading to export-led strategies forEntrepreneurshipTechnologycreative-industry firms. These in turn would leadto greater convergence between macro and microCreative Nexuspolicies as a result of better synergy among gov-ernment interventions and business initiatives byenterprises, including by providing incentives forTradeinvestments and mobilization of domesticInvestmentresources. Sequenced and mutually supportivemechanisms would provoke a virtuous circle toSource: UNCTAD (Dos Santos, 2007). optimize the impact of target investments in themost competitive creative industries, identified by1In July 2007, the Secretary-General of UNCTAD set up the Ad Hoc Inter-divisional Task-Force on Creative Economy and Industries with a view to building on in-house expertisein the multifaceted aspects of the creative economy, such as development policies, trade, investment, technology and enterprise development. 2Frontier Economics (2007). 225CREATIVE ECONOMY REPORT 2010Policy strategies for the creative industries
a value-chain analysis. Investments, preferably foreign directNevertheless, caution is needed to avoid arriving atinvestments, would induce knowledge innovation or the usemisleading conclusions through exclusive reliance on anof more advanced technologies, particularly ITC tools, facil-analysis of trade statistics for creative goods and market penetration of creative products from devel-Obviously, exports figures alone do not capture the wholeoping economies in global markets. Creative entrepreneur-picture of the contribution of the creative industries toship towards product-specific marketing strategies wouldnational economies. The greater part of creative/artistic rev-complement the circle to improve export performance ofenues originates from copyrights, licenses, and marketingcreative products and services from developing economies inand distribution of digitized creative content, for which dis-global markets. aggregated, reliable and comparable data to enable analysis at3the global level are 4 and 5 provideThe C-ITET creative nexus would ease the process ofmore evidence on this topic. reconciling national cultural and social objectives with tech-nological, industrial and international trade policies. TheFurthermore, in the absence of consistent internation-8aim is not only to strengthen creative capacities but also toally comparable quantitative indicators for mapping andassist developing economies to leapfrog into high-growthmeasuring the economic, social and cultural impact of thesectors of the creative economy by enhancing the competi-creative industries and hence the creative economy at thetiveness of their value-added creative products and servicesnational and international levels, trade statistics are used forin world markets. trend analysis despite their lacunae. A number of trade indi-cators relating to export performance such as market share,Trade is a key component in this model because innet trade, growth rate and per capita exports by GDP arerecent years, creative industries have been among the mostpossible benchmarks that can be calculated on the basis ofdynamic sectors in the global trading system. The averagenational trade statistics, as shown in the annex. In this regard,growth rates of creative services are increasing faster thanUNCTAD has undertaken empirical research with a view tothose of other more conventional services. While the growthidentifying the components for a trade and developmentrate of total world exports of services rose per cent for4indexin order to assist governments in the formulation ofthe period 2000-2008, the performance of creative servicesinternational trade policies. The level of trade openness andincreased more rapidly, for instance 18 per cent for advertis-market access relating to trade liberalization of creativeing and architectural services. Indeed, trade-related indexesgoods such as tariff barriers and non-tariff barriers isare currently the only official and comparable indicatorsanalysed in chapter 9. available for comparative analysis and to assist governmentsin policymaking for the creative measures for strengthening the creative economy To complement the creative nexus model, it is impor-tion of goods and services which does not comply with gov-tant to review the production structure of the creative sectorernment regulation. Informal activity is a common feature ofas described in chapter 3, and examine some specific policymost countries; however it is greater in size and more perva-5measures that governments can undertake with respect to par-sive in developing the conventional view,ticular components: the non-formal sector, the creative arts,the informal sector represents the inferior segment of a dualSMEs, public cultural institutions and the corporate sector. labour market, which expands counter-cyclically duringdownturns when workers are rationed out of the formallabour market. Recently however, this conservative view -formal sectorinformality has been challenged on various grounds, particu-Informality refers to that share of a country’s produc-larly because informal activity is not exclusively by E. dos Santos, “Capturing the Creative Economy in Developing Countries”, at the OECD seminar on “Measuring the Impact of Culture in the Economy”, Paris, 2006. 4For a comprehensive analysis, refer to the UNCTAD publication, “Developing Countries in International Trade: 2006 Trade and ”.(UNCTAD/DITC/TAB/2006/1), Geneva, 2007. 5Schneider and Enste (2000); and Tokman (2007).226CREATIVE ECONOMY REPORT 2010Policy strategies for the creative industries
There is significant evidence that informality, at least in themakers to address size-related constraints. SMEs in creativecreative economy, is driven by dynamic, small-scale entrepre-industries are susceptible to the same constraints that afflictneurial activity. Therefore, a rise in informality is not neces-small enterprises in other areas of the economy. Chiefsarily the outcome of a negative economic shock, but it canamong these constraints is access to finance for developing6also result from a positive shock to the non-tradable projects. The transformation of creative ideas intoproducts or services is usually capital-intensive and the costMany activities in the creative economy, especially inof technological inputs or other professional services makethe poorest countries, are (or at least start out as) small-scale,up significant business components of these industries. Inoften household or cottage industries that are not targeted byshort, access to finance remains one of the key hurdles forexisting government regulation and support for businesscreative entrepreneurs looking to resize their creative . Indeed, today many creative businesses byLarger enterprises in the economy may be one source ofyoung talents even in the most advanced countries also startfinance to SMEs. In economies where the financial sector isin a garage or small studio. The fact that many of thesebetter adapted to financing small businesses and where cre-8“industries” may be part of the non-formal sector compli-ative industries are officially recognized, SMEs are at ancates matters. To realize the full potential of the creative-advantage. This is not the case in most developing sector, there is a need to formulate strategies andpolicies that mainstream the non-formal sector by providingOther challenges faced by SMEs include a lack oflegal support and an enabling environment for the develop-business skills relating to marketing and financial manage-ment of these business activities in the same way that suchment, information asymmetries and resource constraintsfacilities extend to other sectors of the economy. affecting access to up-to-date technologies. Available infor-mation indicates that size-related constraints are an issue indeveloped and developing economies. For SMEs in artsing countries, however, these challenges are more acute, par-Individual artists can be seen as primary sources ofticularly since the concept of “creative industries” is still verycreative ideas and interpreters of traditional knowledge. Asnew to most of the developing world and the supportingsuch, they are an indispensable element at the very first stagenetwork of local-industry participants providing comple-in the value chain for most, if not all, creative products. Yetmentary services is largely absent when compared to moreas sole traders or as workers on casual hire or short-termdeveloped countries. Consequently, the competitiveness andcontracts, they frequently lack the industrial power or busi-ability of developing countries to grow recognizable indus-ness acumen to make a reasonable living and to receive antries in the creative sector are compromised. equitable reward for their work. Areas of government assis-For instance, in many developing countries, it is moretance that are appropriate here include:common that the head of the business fulfils a number of organizational roles: producer, agent, marketer and to support the creative activities of artists, provid-This is problematic since the level of specialization or avail-ed on a project basis (for individuals or groups) or as con-ability of local specialized participants along the supplytinuing support funding; chain appears to be highly correlated with the competitive- assistance for education, training and skills development; ness of creative industries. On the whole, the supply chain of support for artists’ organizations that can act ascreative industries in many developing countries appears tospokespersons, advocates and negotiators on behalf ofexhibit a number of gaps and fragmentation, in particular,members; and the absence of intermediaries who play an important role as copyright regulation to ensure proper remuneration forgatekeepers. For example, there are numerous cases in thethe creation of artistic works in various art forms. South African music industry where there remains a dearthof entertainment lawyers despite the fact that the musicindustry is fairly well established. As a result, many and medium-sized enterprises opt to sell their rights in exchange for a one-time upfrontThe prevalence of small and medium-sized enterprisespayment, thus forgoing a regular and steady flow of income(SMEs) in the creative sector underlines the need for policy-in favour of a livelihood that is dependent on a punishing6UNCTAD Policy Issues in International Trade and Commodities Study Series (2010).227CREATIVE ECONOMY REPORT 2010Policy strategies for the creative industries
schedule and the prolific release of albums. cultural institutionsGiven the prevalence of SMEs in the creative economyGovernments in most countries play an important roleof developing countries, it is not surprising that financingin the creative economy by their ownership and operation ofavenues such as microfinance will feature prominently in anypublic cultural institutions such as art galleries, museums andpublic/private investment strategy. Successful microfinanceheritage sites. They are also often owners of significant tan-programmes operate in a number of countries, such asgible cultural heritage such as historic public buildings andGrameen Bank in Bangladesh and Banco Sol, which was estab-collections of nationally significant artworks, artefacts, in Bolivia in 1992 and operates in Latin America and theThese cultural responsibilities of government should be seenCaribbean. For the most part, these organizations provideas integral to the creative economy, especially because of thefinance for small businesses in agriculture, retail, etc. and haverole of these institutions and activities in encouragingto date little to do with the creative sector, perhaps because cre-tourism, promoting social cohesion and fostering the benefi-ative producers are unaware of the availability of such funds. cial aspects of cultural diversity. As such, their capital and8current expenditure needs should be seen not as inessentialThe potential for microfinance as a source particularlyluxury items in government outlays but as an essential con-of start-up capital for SMEs in the creative sectors of devel-tribution to the vitality of the creative industries. oping countries would appear to be strong. As argued byCunningham et al. (2007:80), microcredit is attractive as asource of investment funds for creative businesses because: sector it is a proven and effective model;The existence of large-scale enterprises in the it provides amounts suitable both as start-up and workingeconomies of developing countries arises as a result both ofcapital;the growth and amalgamation of domestically owned compa- it has the potential to develop small-scale enterprises to anies and the establishment of offshoots of transnational cor-point where they become more attractive to investors andporations. Such large corporations can be found in the cre-eligible for other forms of credit;ative sectors especially of the more advanced countries in the the model is flexible and adaptable to specific local condi-developing world. Since they are essentially commercial oper-tions; andations motivated by the prospect of financial gain rather than by any “pure” cultural objectives, they are likely to be treatedit offers a way of overcoming some of the problems ofby governments in the same way that businesses in any othercommercial financing such as risk management and thesector of the economy are treated. Nevertheless, governmentsintangible nature of creative see some particular attraction in facilitating the growthof specifically creative businesses in order to “surf the wave”of growth that the creative economy appears to Tailoring policy action at the national levelAs this report has demonstrated, the creative industriestries are different and that there will not be a standard or uni-are a potential source of real development gains for countriesform package of policy measures that will fit every circum-in the developing world. But such gains cannot be achieved instance. Nevertheless, this chapter pointed to some overall fea-a vacuum. They require carefully formulated policy strategiestures of policy strategies that are likely to be applicable inthat recognize the complexities of the interaction betweenmost developing-country situations. These are: economic, cultural, technological and social dimensions of the need to strengthen the infrastructure that supports thethe development process and that are implemented on a mul-creative economy; tidisciplinary basis. It must be acknowledged that all coun-228CREATIVE ECONOMY REPORT 2010Policy strategies for the creative industries
the desirability of capacity building to ensure that coun-the need for appropriate copyright legislation and thetries can continue to oversee the development of their cre-administrative infrastructure to provide effective a bal-ative economies on a sustainable basis; anced system that privilege the creatives; and the critical role of finance and investment in areas wherethe importance of protecting the fundamental artistic andthe government can play an important facilitating role; cultural resources on which the creative economy depends. the desirability of adopting measures to expand theIn addition to domestic policy strategies, internationalexports of creative products and to foster import replace-action is also required, as will be discussed in chapter 9. ment, especially with respect to audiovisuals; Box policy in action: The Nairobi Plan of Action 8As a prelude to the full implementation of the African Economic Community, cultural leaders in Nairobi in 2005 urged their governments to include in thelegal and institutional frameworks for the development of cultural products their free movement in all African countries and to detail legislative and fis-cal measures to foster cultural industries through a “policy subsidy”. The Common Market will be based in broad outline on the Nairobi Plan of Action1for the Development of Cultural Industries adopted in December objectives of the Nairobi Plan of Action are summarized in the following :Guarantee the organization, production, distribution, exhibition and preservation of the products of African cultural industriesEconomicSocialPoliticalGenerate new resources for the Strengthen the African cultural Reduce the dependence on the wider worldeconomic development of Africa identify and creativity as welloutside of Africa for the productionand the creation of new jobs and as broaden people’s participation and distribution of cultural -generation endogenous cultural up new markets for African Facilitate new institutional partnerships culture in and outside of the public sector, private sector and civil society such as within the framework of the UNESCO Global Alliance for Cultural Diversity and the New Partnership for Africa’s Development. Strengthen the competitiveness of Strengthen the acknowledgementAdopt flexible responses to initiatives from African cultural goods within the of the cultural dimension ofthe African private sector towards theframework of globalization and the sustainable development in of cultural of markets. Improve national capacities for creating, Bring about new and pluralisticAchieve better regional , distributing and exhibiting forums of cultural expressioncultural the installation of democracy in African private and community Strengthen the role of the private sector initiatives of small and medium-sized and civil the organization and protection of South/North cooperation as well as South/South cooperation and real up an African Cultural Common Market and develop intra-African ECONOMY REPORT 2010Policy strategies for the creative industries
Box continuedCultural policy in action: The Nairobi Plan of ActionThe priority recommendations arising from the Nairobi Plan of Action are fourfold: to map existing cultural activities, structures, resources and products in all member States; to identify and consider regional and sectoral specificities and strengths to enable the rationalization of legislation, policies and resources; to conduct research to assess the economic impact of cultural industries and initiatives; and to establish regional cultural think tanks to source information and debate the status of each Observatory of Cultural Policies in Africa has been assisting African governments and promoting private-sector initiatives aiming at better coordination of culturalpolicies on the continent. It has developed a network for sharing regular international information and promoting regional initiatives. See: . 8230CREATIVE ECONOMY REPORT 2010Policy strategies for the creative industries
The international dimension 9of creative-industries international policy frameworkMultilateral processes are the essence of interna-and economic and social well-being, seriously jeopardizingtional policies and the driving force to move forward thethe achievement of the MDGs targets set for 2015. As a9international economic and development agenda. The cre-result, the poverty gap within and between countriesative economy is growing and innovating at an unprece-increased, and global unemployment reached 212 million1dented rate in regions that previously were lagging behindin and rural poverty rose due to fallingthe development curve. However, the creative economyhousehold incomes and more limited access to basic food,cannot be seen in isolation. Global processes play a keyhealth, education, jobs, energy and essential services. Theserole in shaping public policies at the national and interna-crises had serious consequences for many developing coun-2tional levels. Multilateral negotiations and intergovern-tries, in particular the signs of recovery, bymental debates taking place in international organizations,mid-2010 it was still unclear how long the crisis willparticularly in the context of the United Nations familyendure and when the real economy, employment and tradeand the WTO, are paramount to advancing internationalwill and to ensuring that the full economic and develop-The developmental impact of the crisis has beenment benefits of the creative economy are realized in deep. It was estimated that more than 40 per cent of devel-developing countries. oping countries were exposed to poverty effects in 2009,The creative economy concept emerged within anwith 55 million more people living below the poverty lineinternational policy framework highly influenced by thethan before the crisis. Deteriorating economic conditionsMillennium Declaration that was unanimously adopted athave broad repercussions for the MDGs, with up tothe United Nations General Assembly in 2000 by the400,000 more infant deaths per year; a major increase ofinternational community, comprising 189 Member living with chronic hunger reaching 1billion;In order to achieve the eight Millennium Developmentreduced prospects to empower women; serious impacts onGoals (MDGs) by 2015, United Nations bodies havehealth and education; and increased financial constraints inarticulated a series of policy instruments to assist develop-building the infrastructure needed to meet environmentaling countries in the process of responding to these . In this sombre context, the creative economy is notIn 2008 an unprecedented and multifaceted globalthe only solution but is a feasible option that can help fos-crisis erupted, sending the entire world into a full-fledgedter development. By dealing with economic, cultural, socialrecession in 2009. The economic collapse reflected a seriesand technological issues, it offers some possible ways toof other recent crises affecting not only the financial sys-support developing-country efforts to advance develop-tem, but also the prospects for food, energy, commodities,ment in line with the MDGs. This chapter highlights thehealth and climate change. The global recession under-mandates and the work being carried out by multilateralmined opportunities for many countries for jobs, growthorganizations with relevance for the creative (2009).2UNCTAD (2009). Evolution of the international trading system and international trade from a development perspective: impact of the ECONOMY REPORT 2010231CHAPTERThe international dimension of creative-industries policy
: Creative industries on the economic and development agendaSince the year 2000, UNCTAD has been promotingheld in Bangkok, Thailand, and attended by representativesinternational policy action to assist developing countriesof 168 Member States, the UNCTAD secretariat was man-with enhancing their creative industries and hence their dated to carry out research and analysis with a view to for-creative economy for trade and development policy recommendations in the area of trade in3services, including convened anintergovernmental Expert Meeting on Audiovisual X: Audiovisual services in 2002 in close collaboration with UNESCO. This forumAt the tenth session of UNCTAD (UNCTAD X),provided insights to assist developing countries to examine9Box Television and soap operasTV Globo is a Brazilian broadcast television channel whose signals reach 189 million viewers across the continent. It offers a rich range of programmingat no cost to millions of homes across the country, from entertainment to news, helping to spread a variety of points of view as it strives to constantlyinnovate both in format and language. With its continental reach, TV Globo touches all creeds, classes and geographic regions and has emerged as oneof the most valuable tools for preserving the nation’s cultural heritage not merely because of its commanding geographical presence but also as a sourceof inspiration for literature, theatre, film, music and the visual arts. There are no limits to exploring the frontiers of knowledge on television, only the challenge of making complex ideas easily comprehensible without becoming superficial, and reporting what is essential and true to the widest possibleaudience. This is the daily demand of television, a job that calls for both professionalism and Globo’s rise as a major production centre (generating some 2,500 hours of entertainment programming a year) and as a training ground for actors,directors, screenwriters, technicians and producers also creates valuable spin-offs in the audiovisual industry, from independent production companiesto the growing market for Brazilian-made films. The network’s artistic footprint falls far beyond national borders. Exporting programming to over 130 coun-tries, it is no exaggeration to say that Globo has become Brazil’s cultural ambassador to the world. TV Globo employs 18,000 people and has 5 channelsand 117 affiliates. Today, TV Globo reaches audiences across the world. In 2009, it exported 65 programmes to 83 countries worldwide. Not to mentionTV Globo International, the first Brazilian 24-hour channel to be beamed by satellite to Brazilians and Portuguese speakers abroad. Launched in 1999, thischannel now airs in 115 countries and boasts more than 550,000 premium subscribers. More than 300 productions were sold to 130 Globo also strives to fortify civic responsibility and awareness even as it entertains. Among privately owned networks, we are world pioneers in sys-tematically working themes of social relevance and matters of public interest into our everyday programming grid — without the slightest interferencefrom sponsors or a cent in government funding. In recent years, TV Globo has also brought an innovative social dimension to its sports coverage. Whetherin publicity drives, straightforward reporting or though outright entertainment, TV Globo widens its lens beyond the thrill of competition to capture howsporting events can serve as a springboard for social inclusion. Calling on sports figures from famous athletes to physical education instructors, we striveto demonstrate the importance of education, discipline, dedication, respect, and solidarity as well as the need to overcome TV Globo’s programming plays a central role in Brazilian society, our contribution to the media industry and the national economy as a whole is no lessremarkable. Advertisers themselves tell of how TV Globo’s high programming standards raised the bar for their own industry, driving commercials to newlevels of technological sophistication and creativity. No wonder Brazilian television advertising has won applause and prizes the world over. In Brazil, thevast majority of advertisers are small and medium-sized companies and agribusiness, which together provide most of the jobs in the formal these initiatives and the community response they generate are part of the process of creating what might be called the “public value” of broadcasttelevision, represented here by the Globo Network. Building public value is a goal prized by institutions the world over and one that a private companysuch as TV Globo managed to achieve thanks to the democratic choice of our viewers — a partnership that has kept us in synch with Brazil for 45 record of accomplishment is what gives us the will to keep on working, to the best of our abilities, to advance social development and so to carry outour mission to create, produce and disseminate top-quality products that inform, educate and entertain to better the lives of individuals and their commu-nities. After all, in the very document that lays down our institutional vision and principles, we define the media as an instrument of a social organizationthat turns the quest for the common good into a Luís Erlanger, Director, Central Globo de Comunicação, TV Globo, (2002). Audiovisual services: Improving participation of developing ECONOMY REPORT 2010The international dimension of creative-industries policy
7the issues relating to trade in audiovisual services and formu-ment agendafor the first time on the basis of recommenda-late positions in the context of WTO negotiations, particu-tions made by the High-level Panel on Creative Industrieslarly as regards the General Agreement on Trade in Servicesand Development. The São Paulo Consensus, negotiated8(GATS) and the Agreement on Trade-Related Aspects ofamong 153 countries,stated that: Intellectual Property Rights (TRIPS Agreement).Creative industries can help foster positive externali-ties while preserving and promoting cultural heritagesand diversity. Enhancing developing countries’ United Nationsipation in and benefit from new and dynamic growthConference on the Least Developedopportunities in world trade is important in realizingCountries: Music development gains from international trade and tradeThe Third United Nations Conference on the Leastnegotiations, and represents a positive-sum game forDeveloped Countries, organized by UNCTAD in its capac-developed and developing countries (paragraph 65). ity as the United Nations focal point for issues relating toThe international community should supportthe LDCs, was held in Brussels in May 2001. The conferencenational efforts of developing countries to increase9provided an opportunity for the music industry to becometheir participation in and benefit from dynamic sec-4part of intergovernmental rationale was to sen-tors and to foster, protect and promote their creativesitize governments of LDCs to the fact that the richness ofindustries (paragraph 91). the poorest countries lies in the abundance of their talentsMember States recognized that “creative industries rep-translated into cultural expressions such as music and dance,resent one of the most dynamic sectors in the global tradingwhich in turn have significant economic value. Recalling thatsystem” and that “their dual economic and cultural functional-recorded music products worldwide were part of a $50 bil-9ity calls for innovative policy responses”.The High-level Panel,lion market, far exceeding the markets for traditional com-with the presence of the United Nations Secretary-General,modities, the Secretary-General of UNCTAD emphasizedstated that “special measures were needed for the developmentthat “the music industry feeds into a wider policy discussionof creative industries at the international level, particularly in5about how to diversify economic activity in LDCs”.As fol-the trade and financing arena and in ensuring cultural diversitylow-up, a series of studies were carried out to examine thein developing countries”. The panel also stated that “increasedeconomic potential of the music industry to improve earn-and better coordinated international efforts was needed for theings from trade and IPRs in a number of developing coun-promotion of more collaboration among different internation-6tries, particularly in the LDCs and studies10al agencies and the investment community”.paved the way for policy initiatives and technical assistanceprojects to strengthen the music industry in some countries,In discharging its mandates, UNCTAD shaped aparticularly in Africa and the Caribbean. The fourth Unitednumber of international and national policy initiatives in theNations Conference on Least Developed Countries will bearea of creative industries and the creative economy. In thisheld in Turkey in , it built synergies among the United Nations organi-zations, aiming at exploring complementarities, undertakingjoint technical cooperation projects and promoting XI: Creative industrieseffective concerted international actions. In this spirit, the— A turning point United Nations Multi-Agency Informal Group on CreativeIndustries was set up by UNCTAD in 2004. The group,At the UNCTAD XI Ministerial Conference, held inwhich brings together ILO, ITC, UNCTAD, UNDP,São Paulo, Brazil, in 2004, the topic of creative industriesUNESCO and WIPO, maintains a regular dialogue andwas introduced into the international economic and develop-4UNCTAD (2003).5Opening statement by R. Ricupero, Secretary-General of UNCTAD, at the Youth Forum, 19 May 2001, cited in UNCTAD (2003).6Reference to case studies by the UNCTAD/WIPO research project on the Caribbean music based on UNCTAD (2004). Creative Industries and São Paulo Consensus, contained in the report of UNCTAD (2004). UNCTAD XI High-level Panel on Creative Industries and Development (2004). Summary of High-level Panel on Creative Industries, para. 4. 10Ibid., para. ECONOMY REPORT 2010The international dimension of creative-industries policy
meets annually in Geneva. This has paved the way for part-synergies with the United Nations agencies, in particularnerships and prompted a new impetus for collaborative initia-with the UNDP Special Unit for South-South Cooperation,tives, taking into account the competencies, mandates andUNESCO, WIPO and ITC. UNCTAD should continue todifferentiated approaches of the bodies involved. A concretefulfil its mandates and assist governments on issues related toexample of such initiatives was the Creative Economy Reportthe development dimension of the creative economy, in line2008, a joint endeavour by five United Nations agencies towith the three pillars of its work: (a) consensus-building, byimprove policy coherence and the impact of internationalproviding a platform for intergovernmental debates; (b) pol-action on issues relating to the creative economy. icy-oriented analysis, by identifying key issues underlying thecreative economy and the dynamics of creative industries inworld markets; and (c) technical cooperation, by XII: From the creativedeveloping countries to enhance their creative economies forindustries to the creative economy trade and development , two other important events were heldA High-level Panel on Creative Economy andduring the twelfth session of the quadrennial MinisterialIndustries for Development met on 14-15 January 2008 in9Conference of UNCTAD held in Accra, Ghana, from 20 toGeneva as an UNCTAD XII pre-conference event. The ses-25 April 2008: (a) the launching of the Creative Economysion was attended by eminent government officials, policy-13Report 2008by the Partnership between UNCTAD and themakers, experts and practitioners from the cultural and UNDP Special Unit for South-South Cooperation as thecreative community and academia. They represented 49 coun-first multi-agency study to present the United Nations per-tries, 19 international organizations and 9 non-governmentalspective on this emerging topic; and (b) the launching of theorganizations. The panel was convened by the Secretary-14UNCTAD Creative Africa Africa wasGeneral of UNCTAD with the aim of assisting Member11an initiative put forward by the UNCTAD secretariat with aStates in their deliberations on this topic at UNCTAD to bringing greater pragmatism to the policy session had three specific objectives: (a) to provide a plat-The aim was to showcase the diversity of African culture andform for progress in the intergovernmental debate in the areathe vigour of African creative industries through a series ofof the creative industries and the emerging creative economy;cultural events held during the conference. Creative Africa(b) to review the work undertaken by the UNCTAD secre-marked the starting point of a strategy to strengthen the cre-tariat in fulfilling its mandate on this innovative topic, reassertative economy so as to foster development in Africa. Theits role and identify areas for possible future work; and (c) toevents spotlighted the continent’s visual arts, music, dance,take stock of progress made on the analytical and policyfilm and fashion. The initiative was articulated as a tool foragenda surrounding the creative economy. It was recognizedpromoting government and business interests and to open upthat, in line with its mandate (São Paulo Consensus, para-new avenues to effective international cooperation. Thegraphs 65 and 91), UNCTAD has been playing a key role inCreative Africa concept is based on ownership and partner-sensitizing governments to the potential of the creative econ-ships involving all stakeholders. Famous African artists per-omy to foster trade and development gains, promoting policy-formed through music, poetry, dance, film, and fashion asoriented initiatives and enhancing cooperation with countries,12well as arts crafts exhibition. Moreover, two seminars provid-institutions and the international community at a forum for free open dialogues to shape business, invest-The panel discussed policy strategies, multilateralments, partnerships and international cooperation throughprocesses, national experiences, assessment tools, and areasaction-oriented initiatives. As a follow-up, UNCTAD wasfor international cooperation aiming at enhancing creativeinvited to address a meeting convened by the EU Parliamentcapacities in developing countries. It also recognized thatin Brussels in March 2009, gathering around 60UNCTAD’s work in the area of the creative economy andAmbassadors and Parliamentarians from the Europeanthe creative industries should be pursued and and Africa, as well as the Director General forParticipants expressed support for UNCTAD to strengthen11UNCTAD (2008). For further details about the meeting, consult: ECONOMY REPORT 2010The international dimension of creative-industries policy
Development of the European Commission and thePolicies (OCPA), a key partner for the implementation ofSecretary General of ACP States, to highlight the potentialthe initiative, and attended the OCPA Council session heldof the Creative Africa Initiative and shape concrete Maputo, Mozambique, in June 2009. (v) UNCTADenhanced its cooperation with the ARTerial Network andSo far, six outcomes have resulted from Creativeprovided technical advice on the establishment of anAfrica: (i) The Second Session of the African Union“African Fund for Arts and Culture” along the lines of itsConference of Ministers of Culture, held in Algiers inproposal for the creation of a “Creative Africa InvestmentOctober 2008, debated the objectives of the Creative AfricaFund”. UNCTAD presented the main findings of thein the context of the “African Cultural Policy Framework”.Creative Economy Report 2008in seminars held in Maputo,(ii) The Vice-President of Nigeria launched the NigerianMozambique, and Johannesburg, South Africa, in July of Creative Africa in Abuja in November 2008,(vi) For Ghana, Creative Africa motivated the creation of theemphasizing that “Creative Africa is a brainchild of UNC-Foundation for Creative Industries, which has been workingTAD XII and is an inspiration to develop the creative econ-with the Government to include creative industries as a omy in Nigeria”. (iii) The Alta-Moda Fashion show held inpriority on the Ghana Poverty Reduction Strategy II, asFebruary 2009 in Milan, Italy, presented the collections of9mentioned in Chapter 2. As a result, the government is com-the Ghanaian designer Kofi Ansah, who was engaged in themitted to strengthening Ghana’s creative economy and todebates at UNCTAD XII in a panel entitled “From fashionexpanding opportunities for creative specialists to upgradeto African communities and the MDGs”. Creative Africaskills and resources so they can achieve better distribution,helped to link the African Federation of Fashion Designersexhibitions and live performances nationally and interna-with the Italian Fashion Group. (iv) UNCTAD has beentionally. UNCTAD has been liaising with the World Bankcollaborating with the African Observatory for Culturaloffice in Ghana to further support this multilateral negotiations and implications for creative industriesThe ongoing multilateral trade negotiations underWTO negotiations, there is no specific definition for “cul-the WTO Doha Round, which was launched in 2001andtural services”, which is widely considered as a subsector inwas to conclude in 2005, met impasses and remain incon-the broader category of “communication services” and veryclusive at this point in 2010. These negotiations involveoften, data for audiovisuals are credited in other sectors suchmany cross-cutting issues relevant to the creative industries,as telecommunications. This makes it even more difficult tosuch as trade in goods, trade in services, trade-relatedarticulate trade policies in this area. aspects of intellectual property rights (TRIPS) and otherIPRs and investment-related policies also have a long-topics such as regional integration and trade facilitation,lasting impact on the performance of creative industries andwith the special and differential treatment for developingtherefore on the development agenda of developing coun-countries being an important systemic horizontal dimen-tries. Trade policymaking and other ancillary governmentsion in these are necessary to assure the implementation ofThe WTO framework deals with trade of goods andcommitments and obligations under bilateral investmentservices of the creative industries, including trade of digi-treaties, TRIPS provisions, and other WTO agreements astized creative content associated with ICT as regional trade agreements (RTAs), including freeAudiovisuals, cultural and other related services are discussedtrade areas (FTAs), have flexibilities that developing coun-under the General Agreement on Trade in Services (GATS).tries should give a careful consideration. The lasting effect ofHowever, there are problems related to definitions. Althoughthese instruments is to influence supply capacity and stimu-the term “cultural goods and services” is the one used inlate trade performance in all sectors of the creative industries. 235CREATIVE ECONOMY REPORT 2010The international dimension of creative-industries policy
Development of creative industries should be included as crisis and the internationalpart of their built-in trade agenda to confront externaltrading system shocks and manage trade balance. Moreover, the crisis hasThe global economic and financial crisis has triggeredpushed countries to embrace trade defence instruments likea renewed interest among policymakers to conclude thetariffs, safeguards, anti-dumping and countervailing meas-Doha Round. Since early 2009, several attempts were made,ures, as well as balance-of-payments import restrictions toincluding by the G20 summit, to conclude the round beforeprotect domestic industries, producers and services sectors,the end of 2010 as a credible multilateral policy response toincluding the creative goods and services. the crisis and post-crisis stability. As of mid-2010, theWTO could not foresee any signals from the major emerg-ing and developed countries on its successful conclusion. access, tariff and non-has been widely acknowledged that the success of the Dohatariff barriersnegotiations will send a positive signal that countries wereUnder this backdrop, the issues of tariff liberalizationcommitted to multilateralism after an economic and finan-and the reduction of non-tariff measures (NTMs) havecial crisis that, in part, was precipitated by a lack of interna-9gained importance in order to promote trade expansion fortional policy coordination. It is also believed that proactivecreative industries. The tariff analysis indicates that there areand targeted government policy interventions, particularlysignificant differences between most-favoured nationfor LDCs, as well as for small and vulnerable developing15(MFN) applied and bound tariff rates(table ) for cre-countries, should given priority to a meaningful developmentative industries sectors. Moreover, tariffs are sometimesin the round’s final package. Once the round fulfils such con-applied as specific or mixed rates, whose ad valoremor per-ditions, the developing countries could maximize the round’scentage equivalents can be difficult to estimate in a straight-contribution to recovery and post-crisis manner. Furthermore, given the complex nature ofAccording to a WTO estimate, the successful conclusion ofregional and national schemes including that of preferentialthe Doha Round would provide global stimulus and estimatedtrade agreements as well as the Generalized System ofgains of about $150 billion to the world and other autonomous preferences (. AGOA),As a consequence of the crisis, tensions have growntariff duties are sometimes waived to enhance trade integra-between trade and development policies, and uncoordinatedtion and thereby provide opportunities for creative industriestrade, financial and monetary policies have been increasingsectors to grow faster than other manufacturing sectors. Incountries’ vulnerability. Moreover, with the crisis, signs ofthis context, the issues of NTMs became crucial for chang-economic nationalism became widespread as pressureing the competitive and free flow of goods, under the guisemounted to protect crisis-hit domestic industries. The Dohaof complex and opaque trade practices. Apart from the usualRound was expected to redress imbalances, but the protract-tariffs, the use of NTMs remains particularly important ined negotiations meant that the overall balance has increasing-the case of creative industries. Therefore estimating theirly shifted away from the development agenda. The moduspotential negative impact, when non-tariff measures are usedoperandi of the multilateral trading system needs carefulin conjunction with tariffs, is a matter of key national tradereassessment bearing in mind the imperatives of the MDGs. policy. In particular, NTMs related to labelling, markingThe global crisis has sent a clear message to the devel-and packaging requirements under technical barriers to trade,oping countries regarding risks of their deep integration tolocal content measures under trade related investment meas-the developed world and potential vulnerability to externalures and intellectual property rights are critical to creativeshocks through trade and financial market channels. A keyindustries sectors such as design, new media and for them now is to improve productivity, competitive-Table an overview of MFN applied andness and diversification of goods, services and markets,bound tariff rates levied on different creative industries sec-which is also the case for their creative economy . It shows that the simple average of both MFN applied15The market access schedules are not simply announcements of tariff rates. They represent commitments not to increase tariffs above the listed rates — the rates are “bound”. Fordeveloped countries, the bound rates are generally the rates actually charged. Most developing countries have bound the rates somewhat higher than the actual rates charged, so thebound rates serve as ceilings. Countries can break a commitment (. raise a tariff above the bound rate), but only with difficulty. To do so they have to negotiate with the countriesmost concerned and that could result in compensation for trading partners’ loss of trade (see ).236CREATIVE ECONOMY REPORT 2010The international dimension of creative-industries policy
and bound tariff rates have declined globally fromCreative goods: Imports, MFN applied and bound 2002 to 2008 for all seven creative sectors. The tar-Table (simple averages), 2002 and 2008iff rates on art crafts amounts to per cent for20022008all countries in 2002, which has come down to Creative IndustriesMFNBoundMFNBoundper cent in 2008; however, the bound rates haveArt very high at per cent. The other sec-Audio of creative industries tariff rates are also shownNew indicate that except for audiovisuals, performingPerforming and publishing, all other rates are above 10 perVisual in : TRAINS/UNCTAD database Table shows simple averages for appliedMFN and bound tariff rates bydeveloped, developing and transi-Creative goods: Imports, by groups of countries, MFN applied tion economies. Significant dif-Table bound tariffs (simple averages), 2002 and 20089ferences exist among the threeDevelopedDevelopingTransitioneconomieseconomieseconomiesgroups of economies in levyingAll Creative IndustriesDuty Type200220082002200820022008tariffs on the creative industriessectors. For example, while lowArt tariffs ( per cent per cent in 2008) prevail Audio performing arts and audio-visuals respectively in imports, high tariffs( and per cent in 2008)New imposed on the art crafts andPerforming product groups. per cent tariffs most of the including audiovisuals,Visual media, performing arts arts with an exception ofSource: TRAINS/UNCTAD database publishing, where tariff rates per cent in 2008 in develop-ing countries. The tariff rates arerates as well) of developed countries from developedrelatively lower in transition economies as compared toeconomies, developing economies and transition economiesdeveloping economies in all the sectors. These results clear-respectively in 2002 and 2008. Developed economies havely indicate that average MFN applied tariffs are much lowergradually reduced the tariffs on products groups from allamong developed economies than among developing coun-three groups of countries. The tariffs imposed on develop-tries on all creative sectors. ing partners are very close to those imposed on developedIt is interesting to identify the divergences in theand transition economies, and are noticeably low for audio-applied MFN tariff rates that the three groups of countriesvisuals ( per cent) and performing arts ( per cent). Itimpose on their partners. This information is one of the keyshould be pointed out however, that most audiovisual andcomponents in providing policy guidelines on the trade lib-performing arts creative products are traded as intangibleeralization process of creative industry product groups. Tableservices rather than as physical tangible shows the applied MFN tariff rates (and bound tariffApplied MFN tariff rates are much higher for developing237CREATIVE ECONOMY REPORT 2010The international dimension of creative-industries policy
Creative goods: Imports, by developed economies, MFN applied Table bound tariffs (simple averages), 2002 and 2008DevelopedDevelopingTransitioneconomieseconomieseconomiesAll Creative IndustriesDuty Type200220082002200820022008Art : TRAINS/UNCTAD database countries importing creative industries from developingdeveloping countries for imports from other developingeconomies, developed and transition economies. For exam-countries. Lower rates could accelerate South-South tradeple, except for imports of audiovisuals ( per cent) andexpansion and deepen liberalization processes in the case ofpublishing ( cent) from developing countries, allcreative industries (table ).other sectors face a tariff as high as per cent for designThe tariff results clearly indicate the need to renewin 2008. Relatively high applied tariff rates prevail in Creative goods: Imports, by developing economies, MFN applied Table bound tariffs (simple averages), 2002 and 2008DevelopedDevelopingTransitioneconomieseconomieseconomiesAll Creative IndustriesDuty Type200220082002200820022008Art : TRAINS/UNCTAD database 238CREATIVE ECONOMY REPORT 2010The international dimension of creative-industries policy
and continue negotiations on the Agreement on the Globalber of FTAs. As a result, very few countries have made com-System of Trade Preferences among Developing Countries inmitments regarding cultural services. By and large, develop-order to further cut tariffs and non-tariff barriers anding countries have taken the position that liberalization ofexpand trade relationship among developing remains the way forward but that progressive liberal-ization is the preferred of talents is a crucial element for the Agreement on Trade of creative and cultural services from developing countries toin Servicesglobal markets. Therefore, Mode 4 on the temporary move-ment of natural persons (that is, the provider of the serviceThe General Agreement on Trade in Services (GATS)crosses the border) is of particular relevance to developinggoverns trade in cultural and entertainment services. It hascountries since it would include services provided by theatri-built-in flexibilities that can be used by both developed andcal producers, singer groups, bands and orchestras, authors,developing countries. Nevertheless, developing countriescomposers, sculptors, entertainers, dancers, choreographersneed to ensure that these flexibilities are implemented andand other individual artists in global . These flexibilities may allow for the phasing9in of disciplines according with the level of development andUnder market-access commitments, WTO membersare an important tool for strengthening the creative indus-may inscribe in each mode of supply quantitative restrictionstries in developing countries. They include the right to regu-or numerical quotas restricting the numbers of providers,late; the right to provide due respect for national policytotal value of services transactions or assets, number of serv-objectives; the positive list approach to undertaking commit-ices operations, limitation of the total number of naturalments on market access and national treatment; the possibil-persons that may be employed in a particular service sector,ity of attaching limitations and conditions to market accesstype of legal entity or joint venture to provide a service, andand national treatment; the possibility of not making com-limitation on the participation of foreign on audiovisual services; and most-favoured-nationProvisions on services and temporary movement ofexemptions. At the negotiations on domestic regulations,labour are now common in many regional trade countries are trying to ensure a balance betweenGiven the nascent state of the services sector in developingdisciplines that effectively underpin market access commit-countries, the implications of North-South reciprocal open-ments on the one hand, and maintaining sufficient policying of the services market for developing countries need tospace and flexibility on the other, with a view to putting inbe carefully assessed. Adequate pacing and sequencingplace the policies that they need in the pursuit of develop-between domestic reform and regional and multilateral liber-ment objectives, including protection of cultural are important to promote service trade in creativeDuring 2009, little progress was made in liberalizing services in general and in particular audiovisuals, in theThe treatment of issues related to the creative indus-Doha Round of including audiovisuals is challenging and open endedThere is a perception that audiovisuals deserve specialbecause there is no universal international trade agreementtreatment as they are inherently cultural to trade in cultural goods and services that covers allProponents of this view contend that countries should retainthe issues of the trade agenda. In the absence of such anthe ability to use policy measures to support their domesticagreement that explicitly and exclusively deals with culturalcultural industries as a public good. Other countries arguetrade and investment per se, there are instead many tradethat audiovisual services as entertainment products should beagreements administered by WTO (GATS in particular) astreated like any other sector, calling for greater commitmentswell as regional trade agreements that affect the terms byby members as well as for the discussion of new cultural goods and/or services are traded across This policy interface has also come up in several regionalborders (together with other goods and services that are nottrade agreements such as the Central American–Dominicancultural in nature).Republic Free Trade Agreement (CAFTA), the NorthAmerican Free Trade Agreement (NAFTA) and a large num-239CREATIVE ECONOMY REPORT 2010The international dimension of creative-industries policy
Box Puppet planet A puppet is a manmade object, usually but not necessarily representing a character, operated directly by a puppeteer or indirectly by the use of stringsor by another mechanical means or by remote control. In contemporary puppet theatre, puppets are often called a “creative object”, classified underthe performing arts. Puppetry involves manipulating these objects and is found in almost all human societies both as entertainment and ceremoniallyin rituals and celebrations such as the Brazilian figures among the European countries that have active puppet theatres. It is one of the eight co-founder countries (jointly with Austria,Bulgaria, Czechoslovakia, France, Germany, Yugoslavia and the Soviet Union) that created the International Union of Puppet Artists (UNIMA), a deci-sion taken in Prague in May 1929. It is noteworthy that from the point of view of cultural history, UNIMA was the first international body in the worldof theatre at large. UNIMA, an NGO affiliated to UNESCO, brings together people from around the world who contribute to the development of theart of puppetry with the objective of using this art in the pursuit of human values such as peace and mutual understanding between peoples regard-less of race, political or religious convictions and differences in culture, in accordance with the respect for fundamental human rights as definedin the United Nations Universal Declaration of Human Rights of December 1948. The Romania UNIMA National Centre implemented innumerableinitiatives under the leadership of Margareta Niculescu, who was elected as a member of the International Executive Committee of UNIMA and thenas president of this organization in leading UNIMA member is the Tandarica Puppet Theatre, founded in 1945 in Bucharest. In 1949, Tandarica was declared a State theatre andMargareta Niculescu was nominated director of the company. She created a strong group of competent designers, directors and puppeteers whomade Tandarica world-famous. The holding of the First International Festival of Puppet Theatre in Bucharest in 1958 was a very important momentin the history of the Romanian puppet theatre. The Romanian artists had the opportunity to see the best performances of the best companies fromover 50 , Tandarica has over 80 employees sustaining around 300 annual performances in the two theatres. As a repertory theatre subsidized by the Statebudget through the Bucharest Municipality, Tandarica Theatre has deliberately chosen to offer low ticket prices, a practice that opens wide the theatredoors to an audience stemming from all social categories. In an agreement with the Ministry of Education of Romania, the schoolchildren are allowed toattend performances during their school courses and the theatre provides transport from the school to both theatres. All these elements result in the children’s greater interest in these special performances. During the 2005-2006 season, Tandarica gave performances to 70 000 people. Since its birth, it has produced over 200 creations. All of them drawtheir inspiration from the marvellous tales pertaining to the Romanian as well as to universal culture. In its permanent portfolio, Tandarica offers spe-cific puppets shows for all age groups, from small children to adults. Most of the shows are presented in the Romanian regions and on almost all thecontinents, with over 100 tours in more than 40 countries. The company organized six international festivals and two national ones and participatedin 20 national festivals and 40 international ones, becoming one of the best-known puppet theatres, appreciated all over the world and proving to bea strong ambassador of the Romanian culture abroad. International festivals and international tours are very important tools to stimulate a constant renewal of puppet theatre. A number of festivals are organ-ized worldwide. The most famous is the “Festival international de la marionnette de Charleville-Mézières” in northeastern France. This event takes placefor two weeks every three years, gathering puppet companies from more than 130 countries for an international public of over 130,000 spectators. Inthis regard, it must be stressed that governments should facilitate the free circulation of artists to present and promote their creations in global marketsand offer their services. The puppet theatre should remain a valuable traditional expression of cultural diversity to advance intercultural dialogue in Liviu Berehoi, a master puppeteer who has worked for more than 25 years for the Tandarica Theatre and who is a regular collaborator on the Théâtre des marion-nettes de Genè ECONOMY REPORT 2010The international dimension of creative-industries policy
parties to liberalize trade in goods in accordance with AgreementXXIV and the enabling clause of GATT and trade in servic-With respect to the provisions of the TRIPS Agreement,es in accordance with Article V of GATS within the frame-topics relating to the creative economy such as the protectionwork of economic unions such as the European Union, RTAsof traditional knowledge and folklore have not received promi-such as ASEAN and MERCOSUR, and FTAs such asnent attention in the WTO Doha Round, where negotiationsNAFTA. WTO has been notified of more than 462 agree-have focused on biotechnology and traditional such as RTAs and FTA among WTO , one of the critical issues for the culturalmain implications of these agreements for creative industriesand creative industries is copyrights and neighbouring rights,is that trade flows, ., imports and exports of creative indus-in particular the need to reinforce domestic copyright legis-tries and the IPRs, are subject to binding commitments andlation and institutions. This topic should remain at the coremultilateral disciplines that might be enforceable by disputeof the IPR debate since there is a need to push the bound-settlement. The cultural exception to audiovisual servicesaries of existing models and explore innovative solutions thatimplies the non-application of the “once-in-time exception”will maximize the benefit of the creative economy in devel-of most-favoured-nation treatment to audiovisual services,9oping countries, seeking social inclusion and equitable devel-which allowed the concerned countries to exclude audiovisu-opment as a primary objective. Lacunae in the current IPRal from their schedules of commitments under the GATS inregimes are being dealt with at the international level bythe commitments appended to the Final Act embodying theWIPO in the context of its Development of the Uruguay Round of Multilateral TradeNegotiations signed in Marrakech in work of WIPO is closely interwoven with govern-mental and intergovernmental cooperation, including theRTAs such the Andean Community, ASEAN, CARI-WIPO agreement with WTO to assist developing countriesCOM, the Central American Common Market, thein the implementation of the TRIPS Agreement. The chal-Common Market for Eastern and Southern Africa, MER-lenge of development is compounded by rapid technologicalCOSUR and SADC have universal coverage and commit-and scientific progress. WIPO helps countries to identifyment to full liberalization within a reasonable length of to promote international solutions to the legal andThese agreements include special provisions for culturaladministrative problems that digital technology poses to thetrade and common disciplines applied to many segments oftraditional notions and practices of intellectual property. Tocultural industries. FTAs such as CAFTA, NAFTA andmaximize synergies, a better interface is required betweenbilateral treaties of the United States with Chile have specif-development programmes implemented by WIPO for devel-ic provisions or exclusions in negative lists of some creativeoping countries and other international organizationsindustries with intellectual property and economic develop-In addition to specific commitments, members mayment include additional commitments. This may allow thecountries to undertake commitments on cultural services andaudiovisual services under transparent conditions of of regional tradetions, standards, licensing and administrative for creative industriesThese additional commitments requires incumbent coun-Trade agreements influence trade flows of culturaltries to update domestic regulations on creative industries bygoods and services as a result of the mutual granting ofimplementing non-“trade distorting” standards, which con-most-favoured-nation treatment among signatories, which isstitute non-tariff measures such as licensing and packagingthe fundamental principle of trade commitments and com-requirements, and administrative procedures that nullify ormercial relations among a specific WTO rules recognize the right of contracting16Some 462 RTAs have been notified to the GATT/WTO up to February 2010. Of these, 345 RTAs were notified under Article XXIV of the GATT 1947 or GATT 1994; 31under the Enabling Clause; and 86 under Article V of the GATS. At that same date, 271agreements were in force (see ).241CREATIVE ECONOMY REPORT 2010The international dimension of creative-industries policy
Box A breakthrough to promote trade flows of cultural goods and servicesThe conclusion of negotiations in 2008 of an Economic Partnership Agreement (EPA) between the 27 members of the European Union on one hand, and17the 15 members of the CARIFORUMgroup on the other, with provisions on the cultural sector, marked a breakthrough to liberalize trade and investmentsin cultural goods and services among these two important markets. The EPA replaces and extends the coverage of the trade provisions of the CotonouAgreement, which has governed the political dialogue and economic relations between the EU and the 79 African, Caribbean and Pacific (ACP) States since2000, aiming at expediting the economic, cultural and social development of ACP countries. The EPA, is a new WTO-compatible trading arrangement, ini-tially negotiated in the form of an interim agreement that started to be implemented for some ACP States in 2008. The EU and the Caribbean negotiatorsadopted the positive list approach and agreed to liberalize trade and investments between the two regions on a reciprocal basis putting more emphasison market access issues. Over the last decade there has been a proliferation of regional trade agreements (RTA) worldwide, including among North-South18regions, which tend to enforce deep trade liberalization between major trading nations and weaker partners from the developing , thistrend has been accentuated due to the impasses that have overtaken the multilateral trade negotiations under the WTO Doha Round. During the negotiation process towards the EPA, there were some divergent views inside the Caribbean community as regards the positive and negativeaspects of this legally binding instrument. It is recognized that challenges arise to developing countries to design policies and approaches that would max-imize gains from both multilateral and regional integration processes. It is important that both processes are mutually supportive and complementary in19terms of their scope, pace and the sequencing of policies and measures committed in 2010, the key issue is how the Caribbean countries can 9better benefit from the provisions of the agreement in order to obtain development support from the EU with a view to enhance local creative capacitiesand increase the competitiveness of their cultural and creative goods and services taking advantage of new market access the first time, European countries granted market access to all entertainment services, except audiovisuals. This has never been granted before to any otherregion or country. “Mode-4-type” movement of services suppliers is provided for as temporary provision of services without setting up business. Through the EPAchapter on Services, Contractual Service Suppliers, the EU Member States undertook commitments in the entertainment sector allowing for the supply of entertain-ment services through the temporary entry of natural persons for up to six months, without quotas. The commitments came into effect when the EPA started to beprovisionally applied in 2008. The provisions cover the following cultural activities: theatrical producer and ancillary theatrical services; singer group, band andorchestra services; services provided by authors, composers, sculptors, entertainers and other individual artists; circus, amusement parks and similar attraction serv-ices; ballroom, discotheque and dance instructor services and other entertainment services. It should be pointed out, however, that the access granted to Caribbeanentertainers, artists and other cultural practitioners may be subject to qualification requirements and are subject to economic needs tests. As underlined, by expertsfrom the Caribbean Regional Negotiating Machinery (CRNM), the entertainment sector covers highly skilled categories that require many years of training such asclassical concert musicians, composers, conductors etc., while the economic needs tests is not a new requirement since it has been in practice in several states fora long time. Caribbean artists, musicians and other cultural practitioners who are registered as an employer of a firm will have a legal right to offer their entertain-ment services to EU countries on a contractual basis, and in case of eventual difficulties a dispute resolution process can be formally initiated. EPA is a North-South regional trade agreement that potentially may improve market access opportunities for the Caribbean in the cultural sector as it covers modes of supply of export interest to the region and also incorporates a cooperation package. The Cultural Cooperation Protocol is expected to 20 generate development and trade gains, if effectively implemented as a mechanism for strengthening institutional, regulatory and supply provides for bilateral cooperation on all cultural fronts with special provisions on the audiovisual sector. Technical assistance is also envisaged inthe form of training, exchange of information, expertise and experiences. Moreover, EPA made a step forward by allowing for Caribbean firms to invest inentertainment activities in Europe and vice-versa. This provision is expected to facilitate joint-ventures including co-production agreements, as well as pub-lic-private partnerships and cooperation between private companies. It should be recalled that the European Union remains the world’s leading donor fortechnical cooperation. In 2008, the European Commission and the Member States collectively provided 60 per cent of total development assistance. For ACPthcountries a budget of 23 billion has been allocated under the 10European Development Fund for the period 2008-2013, nearly doubling the amountth21under the , the “European Agenda for Culture” was adopted in 2008, highlighting the role of culture in Europe and in EU external relations, and proposing objectives for a new common EU agenda for is premature to draw conclusions on the positive or negative impact of the EPA cooperation agreement on development; time will show if the expectedresults will be achieved or not. Other developing regions should follow closely how the EPA agreement will evolve and deliver. In principle, this EPA should notbe seen as a template since each agreement should be tailor-made to suit the specific needs and the priorities of each region. Nevertheless, the EU-CARIFO-RUM partnership agreement opened an important precedent, particularly because previous EU trade agreements had almost nothing on cultural this sense, EPA shaped the basis for future international cooperation on cultural issues and creative industries, taking also into account the engagement ofthe international community as regards the implementation of the UNESCO Convention and their commitment to respect and promote cultural : Edna dos Santos-Duisenberg, Chief UNCTAD Creative Economy Programme17CARICOM Member States plus the Dominican Santos-Duisenberg (2009). “Expanding trade flows of cultural goods and services”.19UNCTAD (2008). “Globalization for Development: The international trade perspective”.20UNCTAD (2007). Trade in Services and Development European Commission Annual Report ECONOMY REPORT 2010The international dimension of creative-industries policy
cultural-diversity perspectiveThe Intergovernmental Conference on Culturalconcept of “diversity” stipulated that plurality is the neces-Policies for Development convened by UNESCO insary requirement for freedom and that, in political terms,Stockholm in 1998 after several years of research and prepa-such pluralism is inseparable from a democratic society. Theration reflected growing international interest in identifyingDeclaration stated that “Freedom of expression, media plu-more successful models for sustainable , multilingualism, equal access to art and to scientificUNESCO’s main goal at the conference was to transform theand technological knowledge, including in digital form, andideas behind this initiative into more clearly formulated cul-the possibility for all cultures to have access to the means oftural policies and modalities for international cultural coop-expression and dissemination” constitute essential guaranteeseration. The conference concluded that cultural policies, asof cultural diversity and of development. Though it also rep-the true driving force in cultural diversity, must foster theresents a challenge to cultural diversity, the globalization ofproduction and dissemination of diversified cultural goodsthe economy and trade creates the conditions for a renewed9and services, especially in terms of the promotion of cultur-dialogue among cultures and civilizations based on human22al industries and creative enterprise in all countries. rights and respect for their equal recent years, the United Nations has increasinglyThe Declaration led to the approval of the Conventionrecognized the inalienable role of culture in development andon the Protection and Promotion of the Diversity of Culturalhas focused programming accordingly. The conviction wasExpressions by the UNESCO General Conference on 20evident in General Assembly Resolution 57/249 of 20October 2005. As a legally binding international agreement,February 2003 on Culture and Development. The resolutionit ensures that artists, cultural professionals and citizensdirectly commented on the potential of cultural industriesworldwide can create, produce, disseminate and have access tofor poverty reduction, noting that the General Assembly: a diversity of cultural goods, services and activities, includingtheir own. The Convention was adopted because the all Member States, intergovernmental bodies, tional community signalled the urgency of recognizing theorganizations of the United Nations system and distinctive nature of cultural goods, services and activities asrelevant non-governmental organizations: vehicles of identity, values and meaning and emphasized that(iii) To establish cultural industries that are viable and while cultural goods, services and activities have importantcompetitive at the national and international levels, in the face economic value, they are not mere commodities or consumerof the current imbalance in the flow and exchange of cultural goods that can be regarded as objects of trade. As of Julygoods at the global level; 2010, there are 112 Parties to the Convention. (iv) To assess the interconnection between culture and Since the Convention entered into force in Marchdevelopment and the elimination of poverty in the context of 2007, its governing bodies (the Conference of Parties andthe First United Nations Decade for the Eradication of the Intergovernmental Committee) have approved a set ofPoverty (1997-2006). operational guidelines that are serving as a road map for theThe importance of culture in development strategiesimplementation process, currently in its early stages. Thesewas underscored with the Universal Declaration on Culturalguidelines demonstrate how the Convention ushers in a newDiversity, adopted by the UNESCO General Conference ininternational framework for the governance and managementNovember 2001and endorsed by the United Nationsof culture by:General Assembly in 2002. For the first time, cultural diver- encouraging the introduction of cultural policies and measuresthatsity was acknowledged as “the common heritage of humani-nurture creativity, provide access for creators to participatety” and its defence was deemed to be an ethical and practicalin domestic and international marketplaces where theirimperative, inseparable from respect for human dignity. The22UNESCO (2005). Ten Keys to the Convention on the Protection and Promotion of the Diversity of Cultural (2007). “L’UNESCO et la question de la diversité culturelle1946-2007, Bilan et stratégies”.243CREATIVE ECONOMY REPORT 2010The international dimension of creative-industries policy
artistic works/expressions can be recognized and compen-especially those from the global and ensure these expressions are accessible to theThe Convention engages a diversity of stakeholders inpublic at implementation, and the guidelines identify their various recognizing and optimizing the overall contribution of the culturalroles and responsibilities. This includes not only Parties toindustriesto economic development and social cohesion,the Convention but also the active participation of civil soci-particularly in developing , artists, cultural professionals and SMEs in the cultural industries. One of the first operational activities was theintegrating culture into sustainable development policies and of the International Fund for Cultural Diversity and promoting international cooperationto facilitate the mobility ofa first call for applications in March as well as the flow of cultural goods and services,Box tourism: Impressions of the Peruvian experience9Why cultural tourism is a way to reduce poverty but also a risk for the preservation of traditional peoples’ valuesPeru is a country with a rich and varied nature, a place of contrasts. People have a thousand-year-old culture of building irrigation channels, which enablesthem to cultivate areas that previously were desert. Its heritage, including the ancient Inca Empire, Cuzco and the lost city of Machu Picchu, is spectacular. Peruvian traditions are distinctive and cultural tourism appears to be a good alternative to increase people’s quality of life and self-esteem, creating newjobs, economic growth and development. One may think it is an easy task. Peru has forests, beaches and mountains, archeological sites, indigenous peoples with a rich tradition of art crafts; it offers adventure. So it would seem that it is only a question of advertising – and tourists, certainly, will they have responded. Tourism is the third most important economic activity in Peru, employing 500,000 people to serve the million visitors who spent $ million in the country in 2006. Certainly, tourism helps them to live more comfortably and thus the measured Peruvian quality-of-life indices improve. Cuzco is a beautiful colonial city, ranking seventh in Peru in number of inhabitants – 304,152. The historic capital of Peru, Cuzco was declared as Patrimonyof Humanity by UNESCO in 1983. It used to be mainly a farming and mining region, but in the last several years, tourism has come to be its main econom-ic activity. The central square of Cuzco looks like a shopping mall, and there are animated parties at night. The city is experiencing steep economic 2005 to 2006, employment rose 6 per cent and the tax revenue increased per cent. From this perspective, the expansion of historical and cultural tourism is very good news. Machu Picchu is the hidden fortress of the ancient Inca Empire. Discovered by the western world only in 1911, it is a breathtaking experience to visit itspalaces, temples and over 150 buildings, most of them six centuries old. There, one can fully appreciate the complexity of the hybrid culture born fromthe fusion between Spanish and Inca. And it comes as no surprise that the number of visitors to Machu Picchu ruins increases by 5 per cent a year. People who live in the little town of Ocongate, which is also atop the Andean mountains, hope to have similar fate. This because there is an image of theLord of Qoyllur Rit’i (which in Quechua means something like Snow of Stars) carved in the rock at the top of the 6,362-metre mountain Ausengate. Andthere is a traditional festival to honor the Lord of Qoyllur Rit’i that attracts more than 10,000 people from many countries every year. Investments havebeen made, the road is improving, people are building new places and restoring old ones to attract more tourists – and they are already arriving. However,such results need to be achieved without people losing something that is fundamental to their success: tourism is an important topic when we think about the creative economy as a way of reducing poverty, especially in developing countries. Butthere are many challenges for policymakers in this field. What is really needed are sustainable projects, designed so that real people – with unique skillsand knowledge – are not transformed into actors with no Eliana G. Simonetti, ECONOMY REPORT 2010The international dimension of creative-industries policy
Development AgendaAt the WIPO General Assembly in 2004, two devel-norm-setting, including in the field of copyright and otheroping countries, Argentina and Brazil, proposed the intro-areas that may be of relevance to the creative industries. 23duction of a Development Agenda for WIPOaddressingThe June 2007 meeting of the Provisional Committeethe needs and concerns of developing countries with regardon Proposals Related to a WIPO Development Agenda alsoto IPRs. Another 12 developing countries supported therecommended the establishment of a Committee onproposal and negotiations have started. In June 2007, WIPODevelopment and Intellectual Property to plan, monitor,Member States reached an agreement on a WIPOassess and report on the implementation of the WIPODevelopment Agenda, a set of proposals aimed at integrat-Development Agenda. Such a Committee would also have aing development concerns more closely into policymaking inbroader mandate to discuss intellectual property and devel-the field of intellectual property protection. The 45 itemsopment-related issues. It would therefore be a forum inrecommended to the WIPO General Assembly for action are9which Member States could present new issues of concerngrouped into the following six broad clusters: that relate to intellectual property and development, includ-ing issues of relevance to the creative industries. technical assistance and capacity building; In November 2009, WIPO convened a conference onnorm-setting, flexibilities, public policy and public domain; “Building Partnerships for Mobilizing Resources for IP and technology transfer, information and communication;Development” to address Recommendation 2 of the WIPO technologies and access to knowledge; Development Agenda. The aim was to support developing assessment, evaluation and impact studies; countries, with a particular focus on LDCs and Africa, toaccess resources to promote the legal, commercial, cultural institutional matters, including mandate and governance; andand economic exploitation of intellectual property in the other world. The conference provided practical exam-Many of the proposals agreed upon refer directly to theples illustrating how the development impact can be achievedcreative industries, copyright or the protection of creativethrough the integration and use of intellectual propertyworks. For example, one proposal calls for a greater emphasisrights in national development plans and in the context ofon the cultural industries in WIPO technical assistance activ-the UN Development Assistance Framework and Povertyities, and another mentions the importance of strengtheningReduction Strategy Papers. Debates focused on three mainnational capacity for the protection of domestic creations. Inareas related to intellectual property, namely: (i) aid foraddition, several proposals deal with issues that are relevant totrade; (ii) science, technology and innovation for develop-copyright and the creative industries without explicitly refer-ment; and (iii) the digital divide. The purpose was to helpring to them. These include, for example, proposals calling forforge partnerships with development agencies and the donordeepening the analysis of a rich and accessible public domain,community, and to identify ways in which this work mightexpanding the scope of activities aimed at bridging the digi-be supported by charitable foundations and through public-24tal divide, promoting pro-competitive licensing practices, ini-private discussions on how to further facilitate access toThe Convention establishing WIPO entered into forceknowledge and technology, and undertaking new studies toin 1970. In April 2010, the agency celebrated the 40thassess the economic, social and cultural impact of the use ofanniversary of this date by unveiling a new logo and newintellectual property systems in Member States. visual identity, in line with the new directions being taken toFurthermore, there are a number of proposals thatkeep pace with the rapid evolution of intellectual property instoutline principles that WIPO is to follow when conductingthe 21century. The intention was to send a clear sign of thedevelopment-related activities, such as technical assistance orOrganization’s revitalization and strategic reorientation with23WIPO (2007). Press Release: “Member States Adopt a Development Agenda for WIPO”.24http:// ECONOMY REPORT 2010The international dimension of creative-industries policy
25service marks, and commercial names and designations; anda focus on innovation and ’s work coversvii) protection against unfair competition, and all otherseven main areas: i) literary, artistic and scientific works; ii)rights resulting from intellectual activity in the industrial,performances of performing artists, phonograms, andscientific, literary or artistic fields. broadcasts; iii) inventions in all fields of human endeavour;iv) scientific discoveries; v) industrial designs; vi) trademarks,: Engaging developing countries in the creative economy for developmentThe UNDP Special Unit for South-Souththe opening session, the Minister of Foreign Affairs andCooperation was established by the United Nations GeneralForeign Trade of Jamaica, then the President of the G-77,9Assembly in 1978 to promote, coordinate and supportrecognized the global trends in Southern trade and requestedSouth-South and triangular cooperation worldwide and to“that developing countries explore new and dynamic ways offacilitate the activities of the United Nations system inresponding to these growing disparities”. At the concludingSouth-South initiatives. The Special Unit works closely withsession, delegates adopted two documents, one making rec-the China and the Group of 77 (G-77), which is the largestommendations for South-South cooperation and the otherintergovernmental body in the United Nations, representingrecommending specific South-South projects. The document133 developing countries and providing the platform for theon South-South cooperation asked the Chairman of the G-countries of the South to articulate and promote their col-77 to submit a study on new and dynamic sectors, includinglective economic interests. Many multilateral processes are setservices and creative industries, and encouraged that arrange-in motion via debate at the level of the G-77 with implica-ments be made for South-South sectoral cooperation. tions in international and national contexts. As a response, the Special Unit for South-SouthThe Special Unit for South-South Cooperation andCooperation initiated an inter-agency dialogue in Septemberthe G-77 engaged in the “Creative Economy for2005, followed by the Creative Economy Forum in ShanghaiDevelopment” agenda owing to the immense potential ofin early December that same year. Outcomes of the forumdeveloping countries but also of their marginal contributionincluded a partnership with UNCTAD, the “Partnership forto the rapid expansion of the global creative economy andTechnical Assistance for Enhancing the Creative Economy intheir limited participation in the international flows of cul-Developing Countries”, and the recommendation for thetural goods and services. With the support of the G-77, theorganization of a Creative Economy Expo, which wouldSpecial Unit began to mobilize the United Nations systemdevelop and reinforce market mechanisms for Southern to build capacity along the entire creative industries valuecreative goods and services. This initiative strengthened thechain in developing countries so that the full benefits of theirpartnerships that had begun with the United Nations Multi-innate creativity could be fully realized. Hence, the missionAgency Informal Group on Creative Industries initiated byentrusted to the Special Unit by the G-77 in this context wasUNCTAD in 2004, and it reinforced commitment to theto promote better understanding of the potential of the cre-fledgling plans for an Expo. Later in 2005, the Unitedative sector and the new opportunities that it could create forNations Day for South-South Cooperation highlighted economic growth, poverty reduction, social inclusion andcreativity and diversity and called for the United Nationsdevelopment in the South. bodies to coordinate efforts with respect to the creative econ-omy in order to bring about real development impact forThe Creative Economy for Development agenda begandeveloping nations. to be formulated at the Second South Summit of the G-77and China, which was held in Doha, Qatar, in June 2005. AtSince then, the Special Unit for South-South25For a summary of the draft and references to the full draft, see: ECONOMY REPORT 2010The international dimension of creative-industries policy
Cooperation has continued to work with the G-77 andthe African Group laid out a seven-step plan that any mean-China and United Nations entities on increasing Southerningful discussion of IPRs and development should take intoattention to and support for the “creative economy for devel-account. The discussions at the International Forum on theopment” concept. It has championed an “InternationalCreative Economy for Development, which was held in RioForum on the Creative Economy”, which had several meet-de Janeiro, Brazil, in November 2006, provided an opportu-ings since the first meeting in Shanghai in December 2005,nity for this framework to be discussed and helped to exposefollowed by another dialogue held in Jamaica in June 2006,some of these growing tensions in the developing worldin Rwanda in August 2006, and in Brazil in Novemberabout the IPR . These meetings received much attention and supportMultilateral recognition was given to the value of this dia-and have given impetus to creative thinking, development oflogue in the Paris Consensus, adopted by the Thirty-Ninthpolicy platforms and network-building. Meeting of the G-77 Chairman and Coordinators of theA significant benefit of both the formal and informalChapters in February 2006: “The emerging new dynamicdialogues facilitated by the Special Unit for South-Southeconomies of the South provide new and potential opportuni-Cooperation is that they have created a flexible, responsiveties for taking South-South cooperation to a higher level of col-9and open environment for stakeholders at different levels oflective self-reliance through trade, investment and technologicalgovernment, the United Nations system and their partnerscooperation. In this context, we support the ongoing efforts byto discuss the more sensitive or controversial topics relatingthe Special Unit for South-South Cooperation organizingto the creative economy. For example, this dialogue processimportant initiatives to boost South-South cooperation thehas enabled the exploration of the critical issue of IPRs, aGlobal South Creative Economy Expo; as well as other public-subject on which the G-77 countries have been very vocal. Atprivate partnership initiatives in new and dynamic sectors.” the WIPO Development Agenda meeting in February 2006,Box A new model leading to sustainability and better futures Since 2005, the UNDP Special Unit for South-South Cooperation has been working on a new model of the creative economy, one that is better suited to thecontext of the Southern countries. In seeking to achieve sustainable development, this model incorporates four driving forces that are shaping our future. 1. Systemic, inclusive and multidimensional approach. The creative economy plays a role in all four dimensions of sustainability: economic, social,environmental and cultural. It is an activity with a strong economic performance, but it goes beyond that, building cohesion and social transformation;advancing environmental sustainability; and strengthening the values, differentials and credibility of communities, business enterprises and nations. To beeffective, projects and activities that promote the concept of “creative economy for development” should include the following dimensions: generating andexchanging knowledge (cultural dimension); forming and expanding markets (economic dimension); fostering networking and strengthening the socialfabric (social dimension); and focusing on environmental sustainability (environmental dimension). These are the pillars of the work of the South-SouthCooperation Creative Economy . Intangible assets: A new concept of resources and shows that the sustainable development equation is not simply a matter ofeconomics: each dimension has its own capital: human capital, cultural capital, social capital, environmental capital. These dimensions are mutually inter-dependent. Financial capital may generate intellectual capital, which in turn might generate technological capital, which can foster natural capital, whichmay build financial capital. Examples such as the music from the State of Pará in Brazil or audiovisual arts from Nigeria show how such conversion of‘capital’ works: the key factor in these models’s success lies in distribution, because these products are sold by street vendors. In this process, artistsrarely receive monetary capital resulting from copyright, but instead gain capital in the form of reputation; as they become well known and desired, theirmarket is enhanced and triggers a dynamic process that eventually generates monetary capital. By broadening the concept of assets to encompass nat-ural, cultural and human resources as financial ones, creative economy for development opens a new work front, with close links to sustainability andinnovation, not only of products, but especially of processes and models of management. It also enables Southern countries to turn their huge intangibleassets and cultural diversity into other forms of wealth. 3. Evaluation of Intangibles. Measuring the intangible also implies shifting from an exclusively quantitative vision to one that also includes the qualita-tive. The focus on results must be broadened to include the assessment of impacts: checking what has changed and the resulting benefits in dimensionsbeyond the economic one. Assessing results of cultural/social/entrepreneurial programs in the slums, as is the case in Brazil, solely by calculating theincome of youth who become professional artists is like measuring liquid with a measuring tape. How much is the preserved cultural diversity of a com-munity worth? How much are spared lives worth? How much are innovative governance models for a better future worth? Assessing and measuring cre-247CREATIVE ECONOMY REPORT 2010The international dimension of creative-industries policy
Box continuedA new model leading to sustainability and better futures ative and cultural activities requires parameters yet to be developed. For instance, the dance sector economy is small, maybe just the sum of dancers,choreographers and performances. However, the economy of “dancing” as an activity is large because it includes festivals (such as Carnival), nightlife andquite a number of fitness centres, courses and . A new era: The centrality of the intangible. For a better understanding of why the creative economy is so strategic to sustainable development, it isimportant to place ourselves within the present time. Evolution occurs in leaps, and we are in the middle of a huge one — a transition from a time whenlife was organized around material, tangible matters to an era when the intangible plays an increasingly central role. This is also a time of ecological cri-sis, because finite natural resources like land, gold and oil are being depleted. Knowledge, culture and creativity are intangible resources that cannot bedepleted; they may be the only ones that are renewed and multiplied by use. Whereas the tangible/material is finite and limited, the intangible is elastic,unlimited, and can open the way to more inclusive models based in cooperation. When added to digital technologies (bits are also infinite), we get a myr-iad of collaborative options among society and a new term, “abundance economy”, which may originate more solidary challenge now is to ensure that the leaders of the public and private sectors, together with non-profit and/or non-governmental organizations andcreative entrepreneurs, are conscious of this change of era, recognize the great potential that it presents and advance the policies needed to take better9advantage of it. For example, in addition to the sectoral approach, we need a territorial approach, which is better suited to local development goals. Weneed to design strategies and policies for the future, based on diversity and the niche economy. We need to develop collaborative governance tools thatallow multisectoral convergence and action. And we need to cultivate new professionals who possess the transdisciplinary skills that will allow us to con-nect with others from different Lala Deheinzelin, Senior Advisor, Creative Economy Programme, Special Unit on South –South Cooperation. : Creating business opportunities for creative industries The International Trade Centre (ITC) is a joint tech-Protection: Spreading understanding of the principles ofnical cooperation agency of UNCTAD and WTO for busi-marketing and of the intellectual property system alongness aspects of trade and development. Its efforts in helpingwith recognition of the value of intellectual propertythe developing world have traditionally included the exportissues in marketing, and providing practical guidance inof craft products. This traditional ITC contribution in thethe proper use of them; domain of creative expression will be pursued while opening Collection: Soliciting and facilitating the gathering of inter-up to, and progressively embracing, new creativity forms innational sector-specific data for market analysis. order to help other creators export their art. Initially, theRecently, the focus of ITC work in the area of thefocus of ITC was on the crafts and visual arts in developingcreative industries has been on ethical fashion. The rich cul-countries and economies in transition. ture, diverse traditions and skills of Africa, for example,ITC assistance is concentrated in three main areas: have long been a source of inspiration for the internation- Markets: Facilitating access by the craft and visual artsal fashion industry. Equally, the industry has benefitedenterprises to distribution networks in importing markets,from African raw materials such as cotton and by leveraging new information technologies toHowever, it is rare that the communities from which thestreamline their supply chains and promote their produc-inspirations and inputs are derived have benefited from thetion abroad;successes of international fashion. It is necessary to over-248CREATIVE ECONOMY REPORT 2010The international dimension of creative-industries policy
come obstacles faced by poor communities, designers andPromotion of Imports from Developing Countries, ITCSMEs in entering the value chains in order to access glob-launched an interactive web portal in March 2010. Calledal markets. ITC has been examining positive and negativeArtisanconnect, it seeks to connect artisans and experts inexperiences, with the aim of assisting developing countriescreative and indigenous crafts and provide them with a plat-to link designers and retailers/distributors in fashion mar-form for sharing their experiences and information. Whilekets with businesses with a view to developing win-wininitial content was provided by ITC, the success of the por-supply-chain models. tal, which is based on Web technology, will depend on itsusers who can easily add or modify content. This new webIn the context of UNCTAD XII, held in Ghana inportal provides information on markets, design and produc-April 2008, UNCTAD invited ITC to organize a free dia-tion development, materials and techniques, and projects. Itlogue in collaboration with the African Federation ofalso hosts a database of over 1,500 organizations, glossaries,Fashion Designers and other relevant institutions anda database of events and useful links. The site was construct-NGOs. Entitled “From fashion to African communitiesed so that users can highlight or share their expertise, share26and the Millennium Development Goals”,it provided adocuments and expand their networks. The aim is to encour-forum for addressing issues related to the fashion industry9age the exchange of information about craft markets, newand exploring business possibilities offered by ethical fash-technologies, designs and events, which has been scarce soion for African creators and communities. The dialoguefar, particularly for French-speaking users. The portal isidentified concrete proposals for strengthening the produc-available in English, French and Spanish at -tion of socially and environmentally sustainable raw with a view to ensuring that value addition takesplace in Africa. ITC has also devoted an issue of its quarterly publi-28cation, International Trade Forum,to explore the potential ofIn September 2009, ITC organized its “Ethicalcreative industries in developing countries. Through contri-Fashion Catwalk Show” in the context of the Worldbutions from international commentators, it examinedCongress on Organic Cotton, which was held in Interlakensuch themes as the impact of globalization, technology andwith organizational support from the Swiss Association fordigitization and the promotion and financing of creativeInternational Development. The aim was to demonstrateindustries in emerging economies. It also highlighted thethe potential of organic cotton as a fashion material andopportunities created through engagement with the corpo-showcase the glamour of well-known African andrate sector and creative industries, such as film and fashionEuropean designers. In ITC’s view, the market for organicin developing countries, and showed how the design indus-cotton is experiencing rapid growth, but it needs a moretry is having a considerable impact on how cultural heritageglamorous image so that it can break out of the “ethical”and tradition are transformed into products ranging also promoted a “Fashion Award inhousehold goods and fashion items to solutions for healthRomania” in December 2009. Garments have long been acare and new media and entertainment. ITC emphasizescrucial and successful sector of the Romanian economy,that technology is creating new opportunities foraccounting for some 15 per cent of the country’s exports,economies in both the North and the South, and thatand there is a strong potential for Romania to become ancountries will need the right policy mix and strategies tointernational fashion reference, with its own creativity,optimize the job- and wealth-creating opportunities thatbrands and retail collaboration with the Netherlands’ Centre for26Further details available from (2009). Press (2009). “Creative Industries an Engine for Growth”.249CREATIVE ECONOMY REPORT 2010The international dimension of creative-industries policy
Box : A creative response Nollywood, the so-called Nigerian film industry, has been acknowledged as the third largest film industry in the world, after America’s Hollywood andIndia’s Bollywood. Nollywood produces more than 1,005 home video films annually. A total of 6,221 films were produced during the period 1997-2005;about 50 per cent are exported unofficially. There are well over 500,000 Home Video Distribution and Rental Clubs across the length and breadth of thecountry, thereby creating thousands of jobs as a result of the boom in the industry. Furthermore, the potential size of the Nigerian film industry has beenestimated at more than N522 billion (that is, about $ billion). The industry has generated revenue for the Government through corporate income andsales taxes; its estimated contribution to GDP is over N86 billion (nairas per US dollar: in 2006). Although film was introduced into Nigeria in 1903, film production actually began in 1948 but was limited to documentaries and newsreels. It was not until1972 that the first commercial film was produced. The industry experienced a boom in the production of celluloid films in the 1970s but witnessed a declinein the 1980s with the introduction of the Structural Adjustment Programme (SAP), which affected the cost of production. The Government established theNigerian Film Corporation in 1979 to develop the sector. Through the programmes, policies and activities of the Corporation and efforts by other relevantinstitutions in the sector, the industry has grown to have a remarkable impact on the economic, social and cultural development of the socio-cultural impact of the film industry on the nation cannot be overemphasized. The benefits have been enormous as the films constitute an effective means of communication (education, entertainment, socialization, information and mobilization), projecting and promoting our national image9such as values, art and rich cultural heritage to the outside world (it is being used as a medium for driving the Heart of Africa project, which is a cohe-sive information programme for Nigeria’s image management and economic transformation). They also promote national cohesion and integration of thediverse cultures of the people as the Nigerian home video films have instilled a sense of national pride and patriotism in Nigerians at home and though the Nigerian film industry has recorded impressive growth, the sector is still beset by challenges that impede its growth and development,constituting a major constraint to Nigeria’s home video entry into the global market. The challenges include: an informal local and international distributionand marketing network; piracy of works produced by filmmakers; poor content and production quality; lack of production, distribution and exhibition infrastructure; absence of funding opportunities in the industry; inadequate requisite professional skills and training; lack of cohesion leading to industryfragmentation; and lack of industry data for planning and Government, in recognition of the potential of the film industry for the development of the country, has taken positive steps in line with its reform programmesto reposition the film sector. These steps are in the areas of institutional and policy reforms, which include: (a) the institutional restructuring and reorganization ofrelevant federal government agencies in the film industry; (b) creating the necessary policy environment for the growth of the film industry; (c) training and capacity-building; (d) promotion of the Nigerian film industry; (e) production infrastructure; (f) the Film Development Fund; and (g) professionalizing the sector. The private sector in Nigeria has been very active in the film industry by providing content and production as well as exhibition facilities in the , it can also take advantage of the huge opportunities to invest in the sector. Areas of investment include training and capacity-building, film village development, distribution and marketing, equipment leasing/sales, and local manufacture/assembly of film equipment and video is unique and particular to Nigeria as a format of film production and distribution. Several factors might account for this: the high cost of celluloidproductionand post-production, decaying exhibition theatre infrastructure, lack of trained professionals in cine film tradition, etc. Nigerian producers have therefore found an alternative, the video format, to provide entertainment for the people. They have equally perfected the distribution system, usingexisting informal trade channels and retail outlets of other complementary products, ., electronics stores, supermarkets, and hawking of the film and video industry, if properly developed, could be a very significant source of wealth for any country, particularly its contribution to GDP. It isalso a very powerful tool for communication, education, cultural integration and image projection. It is both an art and an industry whose developmentshould be of great national interest in terms of its social as well as its economic Afolabi Adesanyam, Federal Head of the National Film Corporation and Managing Director of the Nigerian Film ECONOMY REPORT 2010The international dimension of creative-industries policy
: Promoting biodiversity benefits for the creative industriesThe United Nations Environment Programmethe use of genetic resources. It covers biodiversity at all lev-(UNEP) provides leadership and encourages partnershipsels, including ecosystems, species, genetic resources, andin caring for the environment. It inspires, informs andbiotechnology, and in its role in development, includingenables nations and peoples to improve their quality of lifescience, politics, business and compromising that of future generations. UNEPThe Convention on International Trade inand UNCTAD are collaborating on the Capacity BuildingEndangered Species of Wild Fauna and Flora aims tofor Biotrade Project, which indirectly supports creativeensure that trade in species of wild animals and plants doesindustries such as eco-fashion, jewellery and some designnot threaten their survival. Annually, international wildlifeand art-crafts products, as well as natural health, is estimated to be worth billions of dollars. The tradeUNEP also hosts the Secretariats for the Convention onis diverse, ranging from live animals and plants to a vast9Biological Diversity and the Convention on Internationalarray of wildlife products derived from them, includingTrade in Endangered Species of Wild Fauna and Flora, bothfood products, exotic leather goods, wooden musicalof which are critical to supporting international and nation-instruments, timber, tourist curios and medicines. Highal policy on trade in natural products used by the creativelevels of exploitation and trade of some animal and plantindustries, while at the same time protecting traditionalspecies, together with other factors, such as habitat loss, areknowledge and promoting traditional cultural expressions. capable of bringing some species close to extinction. ManyThe Convention on Biological Diversity is an inter-wildlife species in trade are not endangered, but the exis-national, legally binding treaty with three main goals: con-tence of an agreement to ensure the sustainability of theservation of biodiversity; sustainable use of biodiversity;trade is important in order to safeguard these resources for29and fair and equitable sharing of the benefits arising fromthe : The fashion caravan Seidnaly Sidhamed, alias Alphadi, was born on 1 June 1957 to trader parents in Timbuktu, Mali. One of nine children, in Niger he grew up in the companyof his siblings and liked to put makeup on his sisters and mother. He also studied the makeup of actresses in Hindu films. At a young age, this designer-to-be was already intrigued by everything that could enhance and better showcase feminine beauty. In Niger, however, fashion was taboo for boys. While his father had envisaged that Alphadi would pursue a medical career or work in the family business, following graduation from high school, Alphadiwent to Paris to study tourism. In this centre of fashion, he was able to attend fashion shows and he also took night courses at the Chardon Savard atel-ier. Once he had completed his studies, he accepted a director’s position at the Ministry of Tourism in Niger, but he still had a passion for fashion. Whileworking at the Ministry, he continued to perfect his fashion skills by receiving in Niger professors from Chardon Savard. In 1985, two years after having decided to devote his life to fashion, he presented the haute couture fashion line that he had created at his first fashionshow, which was held in the City of Light during the International Tourism Tradeshow. From that time on, Alphadi has had many successes, including theBest African Designer award from the Fédération française de la couture et du prêt-à-porter in 1987. His fashion shows are familiar worldwide – inAbidjan, Brussels, New York, Niamey, Paris, Quebec, Tokyo, Washington. In 1999, he expanded his label by creating a line of sportswear called AlphadiBis. With Wrangler, he also created Alphadi Jeans, and 2000 saw the launch of l’Air d’Alphadi, the first perfume by an African couturier. After twenty years of a career in fashion, with fashion shows organized all over the world, boutiques in Africa, Europe and the United States and, mostimportantly, an internationally respected brand, Alphadi is one of the most well-known African designers from the continent. Warm, very affable and experienced, this artist is ever ready to talk about his field. Inspired by the rich traditions and colours of Africa, Alphadi “firmly believes that fashion andculture are the industries that can lift Africa to the ranks of prosperous nations”.Alphadi, Nations Environment Programme, ECONOMY REPORT 2010The international dimension of creative-industries policy
fashion show and exhibition, an international policy andIn this context, in January 2010 UNCTAD launchedbusiness-oriented seminar was held to engage the interna-the celebration of the United Nations 2010 Internationaltional community in more environmentally and sociallyYear of Biodiversity, by convening three intertwined eco-sensitive practices with regard to the use of the biodiversityoriented events with a focus on eco-fashion, natural health,while promoting and the luxury industries. In addition to an eco-9252CREATIVE ECONOMY REPORT 2010The international dimension of creative-industries policy
10Lessons learned and policy Lessons learnedThis report broadly reaffirms and validates the find-Gradually these trends are being reflected in the ings and recommendations of the 2008 report, but goes aexperience of developing countries. Some parts of thestep further. It not only provides a deeper analysis, includingdeveloping world, notably Asia, are enjoying strong growthadditional research and more recent data and information,in their creative industries. However, in other developing10but also broadens concepts and identifies more clearly criti-regions the situation is more nuanced. This report showscal areas requiring target policy interventions by rapid growth in the exports of creative goods and serv-Moreover, it brings new reflections taking into account theices as indicators of the strength of the creative industriesfar-reaching consequences of the economic crisis and thein contemporary society. In the period 2002-2008, worldmitigating policies towards economic recovery. The reportexports of creative goods and services grew at unprecedent-also contributes to the process of reorienting developmented levels by 11and 17 per cent, respectively. Growth ratesthinking towards more equitable, people-centred and sus-in developing countries as a whole exceeded those in devel-tainable policies. oped countries, thanks to the exceptional performance ofAll countries, developing and developed alike, areChina. South-South trade of creative goods accounted forenormously rich in cultural diversity and creative per cent of world exports in 2008, a sign of the grow-Their traditions provide a unique heritage of music, crafts,ing penetration of developing countries in global , rituals, dances, performances, storytelling and culturalThese results provide a strong hint of the potential that stillpractices. These manifestations of local and national cul-awaits developing countries to take better advantage of their tural expressions are assets, representing the indisputablecreative economy for development gains. cultural capital, both tangible and intangible, on which theCertainly there are obstacles, at the national andlives of the community are founded. These assets can, ininternational levels, that need to be tackled so that devel-turn, give rise to a complex array of creative products —oping countries can optimize the new opportunitiesgoods and services (commercial and non-commercial) withoffered by the creative economy for generating jobs, rev-both cultural and economic value that personify the expres-enues and export earnings while promoting social inclu-sions of the creativity and talent of the people. sion, cultural diversity and a more human products and cultural activities have realThese opportunities are more visible today and cannot bepotential to generate economic and social gains. The pro-missed. In general, some of the main domestic constrainsduction and distribution of creative products can yieldconfronted by many countries are: income, employment and trade opportunities, while fos- the lack of a clear framework for understanding and ana-tering social cohesion and community the overall interactions of the creative economy asGlobalization and the rapid uptake of new informationa basis for tailored and forward-looking policymaking; and communication technologies (ICTs) have opened up the absence of data about the performance of differenthuge possibilities for the commercial development of creative industries as a basis to shape concrete initiativescreative products. Indeed, it is the adoption of new such as support for small and medium-sized enterprisestechnologies and a focus on market expansion that are dis-(SMEs), clustering, financing, etc.; tinguishing characteristics of the creative industries asdynamic sectors in the world economy. the unusual organizational characteristics of the creativeCREATIVE ECONOMY REPORT 2010253CHAPTERLessons learned and policy options
economy that call for country-specific and sector-specificthe need for an institutional mechanism such as arather than generic policies; “Creative Economy Committee” to facilitate cross-cuttingpolicies and consultations with key stakeholders; and the lack of institutional and regulatory frameworks as abasis for a conducive climate to support the strengthening the fact that the developed world has enormous “first-of the creative industries, such as fiscal policies, intellectu-mover” advantages in the field of creative industries, mak-al property rights regime, investment promotion, domesticing it more difficult for developing countries to competeand export-led schemes, etc.;in global markets for these products. Major findingsTEN KEY MESSAGESof the creative economy for development gains. For develop-This policy-oriented report examines a number ofing countries, the starting point is to enhance creative capac-issues, but would like to draw the attention of governmentsities and identify creative sectors with greater potential10to its 10 key messages:through articulated cross-cutting policies. Efforts should beoriented towards the functioning of a “creative nexus” ableI. In 2008, the eruption of the world financial andto attract investors, build creative entrepreneurial capacities,economic crisis provoked a drop in global demand and aoffer better access and infrastructure to modern ICT tech-contraction of 12 per cent in international trade. However,nologies in order to benefit from global digital convergence,world exports of creative goods and services continued toand optimize the trade potential of their creative products ingrow, reaching $592 billion in 2008 — more than doubleboth domestic and international markets. A positive spillovertheir 2002 level, indicating an annual growth rate of 14 pereffect will certainly be reflected in higher levels of employ-cent over six consecutive years. This is a confirmation thatment generation, increased opportunities for strengtheningthe creative industries hold great potential for developinginnovation capabilities and a high quality of cultural andcountries that seek to diversify their economies and leapfrogsocial life in those one of the most dynamic sectors of the world . Policy strategies to foster the development of theII. The world economy has been receiving a boostcreative economy must recognize its multidisciplinary naturefrom the increase in South-South trade. The South’s exports— its economic, social, cultural, technological and environ-of creative goods to the world reached $176 billion in 2008,mental linkages. Key elements in any package to shape aaccounting for 43 per cent of total creative industries tradelong-term strategy for the creative economy should involvewith an annual growth rate of per cent during theconcerted inter-ministerial actions to ensure that national2002-2008 period. This indicates a robust dynamism andinstitutions, a regulatory framework and financing mecha-developing countries’ fast-growing market share in worldnisms are in place to support the strengthening of the markets for creative industries. South-South trade of creativecreative and related industries. goods amounted to nearly $60 billion, an astonishinggrowth rate of 20 per cent over the period. The trend is alsoV. A major challenge for shaping policies for the creativeconfirmed in the case of creative services, whose share ofeconomy is related to intellectual property rights: how to meas-South-South trade grew to $21billion in 2008 from $ the value of intellectual property, how to redistribute profitsbillion in 2002. In the light of this positive evolution, devel-and how to regulate these activities. The evolution of multime-oping countries are highly encouraged to include creativedia created an open market for the distribution and sharing ofgoods in their list of products and to conclude negotiationsdigitized creative content, and the debate about the protectionunder the Global System of Trade Preferences in order toor sharing of IPRs became highly complex, involving govern-give even more impetus to the expansion of South-Southments, artists, creators and business. The time has come for gov-trade in this promising to review the limitations of current IPR regimes andadapt them to new realities by ensuring a competitive environ-III. A right mix of public policies and strategic choic-ment in the context of multilateral discourse. es are essential for harnessing the socio-economic potential254CREATIVE ECONOMY REPORT 2010Lessons learned and policy options
VI. The creative economy cuts across the arts, businessMunicipalities are therefore acting faster and more astutelyand connectivity, driving innovation and new business mod-than the spheres of federal government, which can be moreels. The digital era unlocked marketing and distributionconstrained by power issues and bureaucracy. Ideally, targetchannels for music, digital animation, films, news, advertis-plans of action for the creative economy should be shaped ating, etc., thereby expanding the economic benefits of the cre-all levels, from the community to the municipality to theative economy. The mobile revolution is changing the lives ofnational level, independent of order. It is important, howev-millions of people in the developing world. In 2009 over 4er, to reconcile cultural and social objectives with instru-billion mobile phones were in use, 75 per cent of them in thements of trade, technology and tourism. South. In 2008 more than one-fifth of the world’s populationIX. In the aftermath of the crisis, the firmness of theused the Internet, and the number of users in the South grewmarket for creative products is a sign that many people in thefive times faster than in the North. However, developingworld are eager for culture, social events, entertainment andcountries are lagging in terms of broadband connectivity. Forleisure. They are devoting a higher share of their income tothe creative industries, this is a constraint because many appli-memorable life experiences that are associated with status,cations to stimulate creative production and e-business do notstyle, brands and differentiation; this phenomenon, a symbolrun without sufficient bandwidth. Therefore, national andof the way of life in much of contemporary society, is regional investment efforts should be guided, in collaborationrooted in the creative economy. Evidence suggests that even10with international agencies, towards better infrastructure forduring the global recession people continued to go to cine-broadband in the and museums, listen to music, watch videos and TVVII. The creative economy is both fragmented andshows, play video games, etc. Even in times of crisis, creativesociety-inclusive. It functions through interlocking and flex-products continue to thrive as an integral part of our networks of production and service systems spanningThis explains why some creative sectors appear more resilientthe entire value chain. Today it is strongly influenced by theto economic downturns and can contribute to a more growing role of social networks. These new tools, such assustainable and inclusive economic , forums and wikis, facilitate connectivity and collabo-X. Each country is different, each market is special andration among creative people, products and places. Pragmaticeach creative product has its specific touch and requires a better understanding of who theNonetheless, every country might be able to identify key stakeholders are in the creative economy, how they relate tocreative industries that have not yet been exploited to their fullone another and how the creative sector relates to other sec-potential so as to reap developmental benefits. There is no tors of the economy. Policies and initiatives should be spe-one-size-fits-all prescription; each country should formulate acific rather than generic, and preferably not top-down or bot-feasible strategy to foster its creative economy, based on its owntom-up but allowing for ownership and for partnershipsstrengths, weakness and realities. The time for action is stakeholders from the public and private sector,artists and civil society. Schemes that are more inclusive andflexible will facilitate effective and innovative measures and conceptsrevitalize the creative of the “creative economy” may vary, but itVIII. Policies for the creative economy have to respondis generally agreed that at the heart of the creative economynot only to economic needs but also to special demandslie the creative industries. There is no single agreed definitionfrom local communities related to education, cultural identi-of the “creative economy” or the “creative industries”ty, social inequalities and environmental concerns. Analthough clearly, they embrace the concept of “creativity” asincreasing number of municipalities all over the world arean essential characteristic. Today, creativity is often referred tousing the concept of creative cities to formulate urban devel-as a primary resource in the knowledge-based economy, lead-opment strategies for reinvigorating growth with a focus oning to innovation and technological changes, and conferringculture and creative activities. The main principles can becompetitive advantage on businesses and national for rural areas and disadvantaged communities as aThe transformation of creative ideas gives rise to bothtool to generate jobs, particularly for youth, empower cre-tangible products and intangible services, which are collec-ative women and promote social inclusion in line with thetively referred to as “creative goods and services”. In theachievement of the Millennium Development of this report, “cultural goods and services” consti-255CREATIVE ECONOMY REPORT 2010Lessons learned and policy options
tute a subset of the creative industries, which are a broaderphers focus on the locational aspects of creative activity inconcept centred in but not limited to arts. Creative industriesthe form of creative clusters, networks and districts. Theare defined as a set of knowledge-based products, with multifaceted nature of the creative economy means that itcreative content, cultural and economic value and marketcuts across a wide range of areas of economic and social pol-objectives. It comprises the cycle of creation, production andicy. Moreover, there is a similar multiplicity of involvementdistribution of goods and services that uses creativity andacross the public sector, the corporate sector, the non-profitintellectual capital as primary inputs. This led to the defini-sector and civil society. Thus policymaking for the creativetion used by some countries of “cultural creative industries”.economy is not confined to a single ministry or governmentDifferent models of the creative economy have differentdepartment; rather, it is likely to implicate a number of ways of identifying and classifying the creative policy fields, including: What matters is not really the definition but the use of the economic development and regional growth; concept as a new approach for a development strategy. This urban and national planning; report is based on the UNCTAD definitions and classifica- trade and industry; tion of creative industries as follows: labour and industrial relations; cultural heritage, including traditional cultural expressions;10 education; visual and performing arts; domestic and foreign investment; audiovisual industries; technology and communications; publishing and printed media; art and culture; new media; tourism; and design; and social welfare. creative services, including advertising and report seeks to establish a realistic benchmark ofdefinitions of the “creative economy”. The concept creative economy ues to evolve, broadening its understanding and field ofin the developed worldapplication. Now, however, there are clearer views and sharedAlthough this report covers trade flows up to 2008, itperceptions. Hopefully, in the near future a more innovativecan be said that during this decade the creative industries grewclassification system will emerge not dictated simply by faster than more traditional services and manufacturing sec-convenience or statistical data but rather based on a bettertors. A major driver of this growth was the extraordinarilyunderstanding of what evidence is really required to formu-rapid pace of technological change in multimedia andlate effective measures. telecommunications over the last decade. Digital technolo-gies, in particular the mobile revolution, opened up a range ofnew media and mobile-based services through which -cutting linkagescontent can be fast delivered to consumers around the world,The “creative economy” is a multidisciplinary conceptand the creative industries responded by supplying an ever-with linkages to a number of different sectors in the overallwidening array of creative products to the market. On theeconomy. Different approaches to analysing the creativedemand side, rising real incomes among consumers in devel-economy reflect different emphases. For instance, a sociolog-oped countries, coupled with changing preferences for modesical approach has examined the notion of a “creative class”of cultural consumption, helped to sustain the growth of thein society, comprising professional, scientific and artisticcreative economy. By the middle of the first decade of theworkers whose presence generates economic, social and cul-new millennium, the creative industries had been inducingtural dynamism. Other approaches have stressed the role of employment, trade, innovation and economic development inculture in terms of cultural diversity and identities. Evenmany advanced countries, with the proportion of GDP con-beyond urban planning circles, the concept of the “creativetributed by the creative industries in developed countries aver-city” has become established, while architects and geogra-aging 3 to 6 per cent. A recent study estimates that in 2007256CREATIVE ECONOMY REPORT 2010Lessons learned and policy options
the creative industries in the United States contributed to of the creative economy for the continent andper cent of the American economy and is a leading exportinggrowing mobilization in certain countries mostly led bysector. In the United Kingdom the creative industriesartists, the creative community and NGOs. Internationalaccounted for per cent of the economy in 2007 measuredcooperation is also contributing to this process, not onlyas value added, accounting for per cent of total Britishthrough the presence of several UN agencies which areexports, growing by 5 per cent annually during 1997-2007 asimplementing technical cooperation projects in the area ofcompared to 3 per cent for the rest of the UK creative industries, like UNCTAD, UNESCO, ILO, ITCand WIPO but also through donors such as the EU/ACP,British Council and la Francophonie, as well as in the creative economy text of bilateral cooperation by several EU countries likein the developing worldSpain, the Netherlands and the Scandinavian countries. Also,a few African countries introduced the creative industries inA growing number of developing countries are explor-their World Bank poverty reduction strategy papers. Policying ways to nurture their creative economy with the aim ofdebates are also addressing the creative economy more strate-generating jobs, trade and socio-economic growth. Asia isgically with the aim of speeding up the development processleading this process. Several ASEAN countries have beenand meeting poverty reduction strategies. In Africa this is10formulating target policies identifying the creative industriesalso taking place within regional economic integration insti-as a priority sector in their national development plans. Astutions like the African Union, SADC, COMESA, etc. Theshown in chapter 5, more Asian developing countries arecombination of all those international actions are step byamong top exporters of certain creative goods. Some Asianstep paving the way for results-oriented initiatives to assistcountries, mainly in the Asia-Pacific and Middle East, are atAfrican countries to make better use of their creative talentsthe leading edge of innovation in creative production, with aand rich cultural heritage to advance on technology-intensive areas such as new media andA salient feature common to most developing coun-audiovisuals, or services-oriented products like advertising,tries is the need to establish or reinforce institutions, as wellarchitecture or digital a regulatory framework and a financing mechanism, as theIn Latin America and the Caribbean interest is grow-basis for strengthening the creative economy. It should being but the majority of countries are still in the phase ofbetter understood that creative economy policy should bestudies instead of action. In South America the potential isseen as a feasible development option. The creative economyhuge but remains underutilized and the process is moving atis much more than the cultural policy, requiring politicala slower pace, with very few exceptions. Certainly thisarticulation at several levels to be effective. The responsibili-reflects the differences in the stage of development of thety for the creative industries should be shared among differ-countries, but also the fact that creative capacities and insti-ent ministries and cannot rely only on ministries of culture,tutions should be enhanced, and products and markets morelike in the majority of cases. It is crucial to set up a schemediversified. Obviously, this also reveals the degree of engage-to facilitate cross-cutting policies and inter-ministerial deci-ment of each country in implementing a focused agenda tosions, such as a National Creative Economy Committee tofoster the creative economy. In the Caribbean and Centralfacilitate regular consultations, even if in practice this is notAmerica, the state of the creative industries varies consider-an easy task. For instance it is essential to involve ministriesably across the board, with different sectors like music, filmof finance to examine fiscal policies, taxation, investmentand festivals being the main focus of attention in most coun-incentives, etc. Another fact is that several cities in the Southtries. Regional economic integration institutions such as theare using the creative cities concept to formulate urban devel-OAS, MERCOSUR, CARICOM, OECS and theopment strategies to promote socio-economic , have been playing a role in facilitating theMunicipalities are therefore acting faster to promote theirprocess of raising awareness, undertaking studies and creative industries. promoting intergovernmental debates aimed at articulatingpolicies at the regional level. In Africa, there is also increasing responsiveness The value chain for creative productsgovernments and public opinion, greater awareness about theIt is essential to have some understanding about the257CREATIVE ECONOMY REPORT 2010Lessons learned and policy options
functioning of the entire value chain of each creative indus-industries in principle are highly fragmented, with manytry, from the idea to the end user, in order to determine opti-microbusinesses and in many developing countries operate inmal points of policy intervention. A systematic understand-the informal sector, and this further complicates data collec-ing of who the stakeholders in the creative economy are, howtion and analysis. The mapping exercise is a costly and time-they relate to one another, and how the creative sector relatesconsuming process, and most developing countries lack theto other sectors of the economy is critical for informed human and budgetary resources to embark on a comprehen-policymaking. sive mapping of the creative tool that has proven useful for studying the Although UNESCO proposed a new framework forcreative economy is value-chain analysis, which depicts thecultural statistics in 2009, the databases are empty for theprogress of creative goods from an initial idea to the finaltime being. To date in 2010, only a few countries have a lim-consumption. It is important to examine the early stages inited set of measures of creative-industry output, employ-the chain, in particular the structure for the creation and pro-ment and trade. In an ideal world, these are the data withduction of the creative goods or services. Production units inwhich we might start. In addition, data on participation inthis sector range from individual artists and producers on thecultural and creative activities would help to develop a broad-one hand to large transnational corporations on the other. Iner perspective. Obviously, new models are required since the10between are small and microenterprises, which in the largecurrent methodologies are outdated. Regarding creativemajority of countries comprise the most significant structureemployment, statistics on occupation by industry are neces-in terms of volume of output and levels of employment andsary to assess the linkages between the creative industries andcommunity engagement. In a number of instances, theseother sectors while data on the locational distribution ofbusinesses offer the best prospect for combining economicemployment is important for the analysis of creative clusters. revenue potential with the development of authentic cultur-Concerning trade, although exports and imports ofal symbols and traditions, as is the case in the production ofphysical products produced by the creative industries arecraftwork, fashion products, music recordings, etc. Indeed,documented and analysed by UNCTAD (see chapter 5 andsmall and medium-sized enterprises are the cornerstone ofthe annex of this report), the increasing dematerialization oflocally based creative industries, and play a key role in inject-cultural products has made statistical tracking of trade prob-ing economic, cultural and social life in the communities andlematic. In the case of audiovisuals and music, the interna-cities. Value-chain analysis equally enables the identificationtional market in rights and services definitely exceeds theof creative products and services with particular competitivephysical market in value terms, yet documentation of theadvantages or with potential of being target as niche markets. volume and value of rights trade does not exist. In effect, thematerial goods of the creative industries are potentially lessimportant than its immaterial/rights dimension; Data issuesnately, this is an area on which there is no official data avail-able at global level. Moreover, little is known about the effec-Reliable data on the creative economy — on its inputs,tive modes of governance of rights earnings relating to theoutputs, value of production, prices, employment and tradecreative industries. WIPO has made some interventions in— are in short supply, and not only in developing field, but its objective is regulation; thus it focuses onThere is an urgent need to improve the collection of statis-different variables. tics to serve as a basis for formulating creative-industry pol-icy. The lack of a tradition for economic valuation and meas-Despite these limitations, it is possible to assembleurement in the cultural sphere, combined with difficulties ofconsistent data on trends in exports and imports of creativedefinition in the realm of cultural activities and creativeproducts classified by region and by product category andgoods and services, has meant that there has been a dearth ofmake a trade analysis, on the basis of available data withoutreliable indicators on which to base assessments of the sizeextra costs or work for countries. UNCTAD started this exer-and scope of the creative economy. Moreover, the rapid pacecise in 2007 and considerable improvements have since beenof technological change has made it difficult to keep abreastmade to improve the quality and coverage of the creativeof the new products and services constantly coming onto theindustries trade statistics, as elaborated in chapter 4. Themarket. Another difficulty is linked to the fact that creativework presented in this report — in addition to the fact that258CREATIVE ECONOMY REPORT 2010Lessons learned and policy options
policymakers, researchers and practitioners can freely use thehigher than the world average annual growth rate during theUNCTAD Global Database for Creative Economy to makesame period. This clearly indicates a growing dynamism andtheir own creative-industries country profiles — undoubted-rising market share of developing countries. ly is a positive step to facilitate national level policymaking,In 2008, South-South trade of creative goods reachedstudies and business practice. Due to the complexity and thenearly $60 billion and has tripled in six years. South-Southheterogeneity of the creative industries, difficulties in concep-trade in creative goods grew at an astonishing rate of 20 pertualizing, classifying and measuring trade of the creativecent annually over the period of 2002-2008, while theindustries persist, but work has to continue. The trade figuresSouth’a exports to the North have been growing at an annu-presented below are clearly an underestimate. They cannotal rate of per cent. South-South trade of creative serv-capture the true contribution of the creative industries toices reiterates this positive trend, the meagre amount of trade, due to methodological shortcomings and thebillion in 2002 sharply increased to $21billion in 2008. Inabsence of data for the international flows in revenues ofthe light of this upward trend, developing countries areintellectual property rights. Nevertheless, this is our contribu-encouraged to conclude their negotiations under the Globaltion to advance the economic and development agendaSystem of Trade Preferences in order to give more impetusaround the creative economy. The market is booming, andto the expansion of South-South trade in this promisingdeveloping countries should act now. The priority should bearea. In brief, trade in creative industries has shown an10the policy actions rather than growth as compared to other sectors in recentyears. As this growth is likely to continue in the coming years, there will be even more ways for to benefit from this trade opportunity to realizedevelopment gains, while fostering, protecting and promot-The creative industries have been one of the mosting their creative economy. dynamic sectors in world trade during this decade. This is apositive sum-game for both developed and developing coun-tries. Exports of creative goods and services amounted and ICTs$592 billion in 2008, compared to $267 billion in 2002,which means an annual growth rate of nearly 14 per centUndoubtedly, a major driver of the growth of the cre-over six years. In the case of creative services, exports signif-ative economy worldwide has been the rapid advance of newicantly increased, tripling its trade value from $62 billion ininformation and communication technologies (ICTs). Of2002 to $185 billion in 2008. The sectors with greatercourse, these technologies benefit the whole economy butdynamism were architecture and advertising services, whiletheir role in the creative industries is of particular signifi-cultural and recreational services and audiovisuals recordedcance. ICT tools offer new distribution channels for creative10 per cent annual growth during the 2002-2008 ; allow the adoption of innovative entrepreneurialThe predominance of developed countries in world trade ofbusiness models; and strengthen the links between creativity,creative goods is undeniable. In 2008, their share in totalarts, technology and business. exports of creative goods is estimated at about 90 per centIn developing countries, ICTs developed extremelyfor music and audiovisuals, about 80 per cent for publish-quickly over the last five years. Mobile technology is drivinging/printed media, 75 per cent for visual arts and about 50change for millions of people in the developing world. In 2009per cent for new media and design. For developing countries,over 4 billion mobile phones were in use, of which 75 per centart-crafts and design products are the most traded productswere in the South. Many creative entrepreneurs are benefitingaccounting for 65 per cent and nearly 50 per cent respectivelyfrom new mobile services, as they secure business deals andof their share in the world market for creative transactions and seize the opportunities to broadenA new feature in this report is an analysis of South-their customer bases and increase their participation in globalSouth trade, which constitutes a vibrant avenue for futuresupply chains. ICTs can leverage new links in the value chain intrade growth. The South’s exports to the world havemany creative industries, such as music, film, digital animation,increased significantly from $76 billion in 2002 to $176 bil-advertising and e-news. In Nigeria, for instance, Nollywoodlion in 2008, account for about 43 per cent of total creativemovies can be downloaded on newer mobile phones within theindustries trade. More importantly, the creative goodscountry and internationally. exports increased by per cent annually, which is even259CREATIVE ECONOMY REPORT 2010Lessons learned and policy options
In 2008 more than one- fifth of the world’s populationMoreover, as mentioned earlier, policy developmentused the Internet, and the number of users in the South grewcannot be confined to a single ministry but requires coordi-five times faster than in the North. However, developingnated action across a range of agencies. Policies should notcountries lag behind in terms of broadband connectivity. Forbe exclusively oriented to big cities and urban areas, but itthe creative industries, this is a constraint because many appli-should also explore possibilities for smaller cities and cations that facilitate creative production and e-commerce docommunities including in rural areas. The objective shouldnot run or do not operate effectively without sufficient band-be the elaboration and execution of a long-term plan ofwidth. Therefore, efforts should be channelled to furtheraction that identifies needs and priorities as well as the cre-improve the infrastructure for broadband in the South. Today,ative sectors with greater comparative and competitiveSouth-South investment is already a major source of fundingadvantages for the implementation of tailored policies. Thisfor mobile networks in developing facilitate concrete initiatives to attract investors, public-private partnerships, and business and marketing strategiesfor the domestic and global markets. towards the creative economyThe cross-cutting nature of the creative economy means context10policy process for the creative industries must be formulatedIt is imperative to align national policies for the creativeon a coordinated inter-ministerial basis. A wide range ofeconomy with multilateral processes and international coopera-instruments can be used by policymakers in charting develop-tion. Today, explicitly or indirectly, the creative economy is top-ment strategies for the creative industries. By and large, theical in several arenas for multilateral negotiations and interna-need is for infrastructure development and capacity buildingtional policy. The main challenge is to optimize the potential ofto reinforce and promote creative entrepreneurship and pass athe creative economy to promote a more equitable developmentclear message to the private sector that creative industry is a bigand alleviate poverty. Given the multifaceted nature of the cre-business for many countries. Moreover the regulatory frame-ative economy, governments can benefit from the expertise andwork should be in place to adapt fiscal policies, competitionthe platform of the United Nations system for policy-law and intellectual property regimes. More specifically, policyoriented analysis, technical assistance and timely interventions ininitiatives should be gradually shaped in the following areas: the various areas of competence of relevant agencies. mapping of inventories of cultural assets and creativePolicymakers are aware of a number of subtleties inindustries; dealing with the creative economy. In the area of the multi- SME business development and finance (., microfinance); lateral trading system, ongoing WTO negotiations continue promote creativeto face difficulties in dealing with cultural products and clusters to stimulate collaboration, inno-vation and linkages;audiovisuals. On balance, the General Agreement on Trade inServices has some built-in flexibilities that developing coun- copyright awareness and legislation; tries may wish to explore for strengthening their creative support for artists and the arts, both direct (via taxation,industries. The Agreement on Trade-Related Aspects ofsocial security) and indirect (private sector support, train-Intellectual Property Rights offers some prospect for con-ing, professional associations, laws); sideration on topics related to the creative economy, but to conservation of tangible and intangible cultural heritage; date, matters such as folklore and traditional knowledge have received little attention. Indisputably, a major area forexpansion of digital capacity and know-how; national and international action is copyrights, and many market development (quality, brands, trade facilitation)developing countries depend critically on having in place notdomestic/export; only legislation and institutions at the national level, but also better articulation between creative industries and tourismthe ability to voice their concerns about the lacunae of theobjectives;current intellectual property rights regime in the context of education, vocational training and business skills develop-the implementation of the WIPO Development ; and Initiatives to further promote South-South trade could be dealt with in the context of negotiations among developingindustry assistance (investment incentives, tax concessions,countries under the Global System of Trade agreements, co-production contract negotiation etc.). 260CREATIVE ECONOMY REPORT 2010Lessons learned and policy options
Another mechanism to promote South-South cooperation isa source of economic and cultural empowerment, particularlyunder way as part of the work of the UNDP Special Unitin the developing world. In addition there a number offor South-South Cooperation, including for business facili-processes at the regional and bilateral level which are takingtation and the South-South Gate exchanges. into account the creative industries, such as the EconomicPartnership Agreements under negotiation by the EU withAnother important multilateral process that greatlydifferent groups of developing countries. All these interna-contributed to raising the profile of the creative industries intional aspects should be seen in the context of thedeveloping countries has been the ratification and implemen-Millennium Development Goals. The MDGs provide a settation of the UNESCO Convention on the Protection andof strategic objectives to be met by 2015, and the creativePromotion of the Diversity of Cultural Expressions. Theindustries are well placed to contribute in this emphasizes the role of the creative industries The role of key stakeholders 10Creativity is found everywhere in the world and is antechnological disadvantages. Any strategy should be realisticinexhaustible resource. However, it can be argued that someand feasible; it cannot be based on what is going on else-countries have been greatly benefiting from the dynamism ofwhere, but should be achievable on the basis of the country’sthe creative economy while the great majority of developingown realities, weaknesses and strengths. Strategies for thecountries are not yet doing so, despite greater awareness andcreative economy must be updated in order to assimilate thegrowing political interest. far-reaching economical, cultural, social and technologicalshifts under way in our society. These are crucial considera-A number of questions have been raised but there aretions required to put in motion a process to optimize theno simple answers or a unique recipe. Why are developingdevelopmental impact of the creative economy and to foster,countries net importers of creative goods and services, accu-protect and promote national creative industries. mulating deficits in their trade balance of creative products?What are the structural factors limiting creative capacities inEach stakeholder has a role to play, and this sectiondeveloping countries despite the profusion of creative talent?intends to shed light on possible courses of action, and theHow can cultural and social objectives be reconciled withrole that eventually could be played by the different actors ininternational trade and technology policies? How can weshaping a feasible, sustainable and more inclusive growthbuild creative capacities and make the best use of internation-strategy for the creative economy. al cooperation? How can we integrate local creative industriesinto national development strategies and global markets? of governmentsIn order to enhance the creative economy, several constraints have to be tackled in an effective and strategicA crucial lesson learned from the financial crisis is thatmanner. Governments are encouraged to address nationalmarkets alone are unable to correct the imbalances affectingbottlenecks and international systemic asymmetries, as a pre-the functioning of global systems. This also applies for thecondition for diversifying their creative industries and find-creative industries. Distortions in the market structure ofing new opportunities to better place the creative economymost creative industries, which in most cases are highly ver-for development. This concluding section is intended totically integrated, pose problems of distribution and marketassist not only policymakers but also the decision-makersaccess for the penetration of products from developingand the creative people engaged in the day-to-day business ofcountries in global markets. Thus, the role of governments isthe creative economy, to identify areas requiring policy inter-essential for the formulation of national and internationalventions and concrete private sector initiatives. policies to nurture solid creative industries able to competeat the global level. The point is not whether governmentsInitially, a needs assessment should be carried out toshould be leading or responding to calls from their creativeidentify priorities taking into account the country’s own eco-industries, but how they can put in place effective mecha-nomic aspirations, cultural identities, social disparities and261CREATIVE ECONOMY REPORT 2010Lessons learned and policy options
nisms to articulate tailor-made policies to stimulate creativi-as a facilitator. Policymakers are expected to create a con-ty, creative capacities and innovation. Efforts should be madeducive climate and provide the necessary infrastructure toto improve the competitiveness of those creative productsstimulate concerted and mutually supportive domestic poli-with the best chance to compete in major markets. Certainlycies. Institutions, regulations and mechanisms should be putcreative products are not commodities. Creative goods andin place. This will be the foundation for attracting investorsservices are special because they have symbolic meaning; theyand creative business from the private sector. It is the role ofexpress cultural identity and should have a touch of specificitygovernment to ensure that the “creative nexus” (see chapterto bring differentiation and diversity. Developing countries8) will be able to function as a virtuous circle, able to inducehave been struggling to retain policy space to be able tothe positive externalities of the creative sector in the overallshape national policies for enhancing their creative indus-economy. Table some elements of a broadtries. There is fierce competition from large conglomerates,national framework and the different levels of action andparticularly in the area of audiovisuals and new media, butareas to reinforce public policies, identifying expected objec-the world is changing and new opportunities should betives and steps toward harnessing the creative economy forseized for new markets and new the national level, the role of governments is more10Table Creative industries policy options Policy levelObjectiveOptionMicroAnalysis and mapping of the economic and socialSituational analysis of value-chain cycles, review of the (non)existing sectoralimpact of the creative and the ecology peculiar to each creative creative SMEs development initiatives: financial and fiscal support, businessskills training, tools for start-up businesses and market analysis of the relationship betweenEstablish creative clusters and creative-industry infrastructures to motivate the creative and the related practices, sharing of knowledge and absorb the informal networking and sectoral associations; facilitate partnerships, joint ventures involving different stakeholders including NGOs and the use of ICTs and promote the use of other new technologies to benefit from new business models in all stages of the creative crucial interfaces and intermediaries among all of an informed, evidence-based Set up a monitoring system and collect necessary information to identify thepolicymaking appropriate the gap between national statistics and real market activities forassessment -departmental institutional up a multidisciplinary centre or an inter-ministerial task force to facilitatecoordination among different departments, such as culture, trade, finance,tourism, labour, technology, education and -economic the uniqueness, strengths and weaknesses of local creative industriesand opportunities for international trade. Examine the limitations of existing copyright schemes and other IPRs and implementan appropriate competition cultural diversity and social inclusion policies, particular tailored for theyouth and of national creative industries “branding” as a national strategy to promote of the long-term impact of creative Analyse the changes in aesthetics, lifestyle, commodification over a long their impact on national strategies. Source: ECONOMY REPORT 2010Lessons learned and policy options
ative or cultural projects, including new of creative entrepreneurs options for co-financing through the Internet; All creative activities involve a high degree of risk. The intellectual property rights issues, especially copyright leg-success or failure of a creative product is difficult to and functioning; Artists and creators are rightly concerned with their own cre- new business models, new options for collaborative creations;ations and in an ideal environment should not be distractedwith marketing and business aspects. However, in an increas- how to benefit from social networks and professional ingly flexible structure peculiar to the creative economy,networks; independent artists and creators are becoming much more new technologies and ICT tools for the creation, produc-autonomous and are compelled to deal with business aspectstion and distribution of creative content; including the usein order to be able to survive from the commercial activitiesof free open-source software (FOSS); creative commons;resulting from their creations. The so-called creative class orandworkforce has a high level of education and the knowledge continuous learning in their respective fields for upgrad-and skills needed to make use of the most sophisticated ICTing of know-how. tools and the new business models (see chapter 8). In thischanging environment, the role of the intermediaries is grad-10ually disappearing or being replaced by that of the of civil society and thearies, and creators are increasingly recognizing the importanceplace of strategic alliancesof developing creative entrepreneurial skills with a view tolink arts, creations, business and connectivity. As most creative industries are fragmented, it is impor-Mortant to forge strategic alliances to facilitate interactions witheover, as the large majority of creative industriesare small, ifall stakeholders in order to overcome small-size constraints. not microenterprises, special attention should beEfforts should be made to promote dialogue, synergy,given to the development of SMEs, with a view to ensuringexchange of experiences, etc. Artists and creators, whethertheir survival and sustainability. These businesses, whichworking independently or in creative enterprises, shouldcharacterize most creative industries in all countries, have thebuild alliances and networking with the following: capacity to create jobs and stimulate employment andincome generation despite the market-entry barriers they agents from government, both public and semi-public sectors; face. Therefore, it is imperative to promote cultural or cre- private-sector and profit-led enterprises and businessative entrepreneurship through specific vocational-traininggroups, potential sponsors, etc.; initiatives. Creative practitioners can enhance their capacities lobbying groups, federations, professional associationsthrough different types of training through capacity-and unions; and building activities such as formal professional education,informal training and specific training programmes. non-profit organizations such as foundations, NGOs andacademia. The main role of the creative entrepreneur should bethe search for excellence and continuous learning. The market,It is important to remember that every individual is atherefore, should provide incentives for creators to innovate,consumer of creative products. Every day we might listen toto become more creative and take pride in their work. Theymusic, read books and newspapers, watch television, enjoy ashould also be able to live from their creative work, whichmovie, go to the theatre, visit an art exhibition, purchase orrequires expertise and creative talent and should therefore bewear fashionable clothing, etc. Networking with civil societysufficiently remunerative as with any other profession. Artistsas a whole can be part of a marketing strategy. In a numberand creators should be treated as professionals even if they areof countries, associations of independent producers havedreamers. The main areas in which creators should be famil-been set up for advocacy and lobbying purposes, some withiarized include: positive results. employment, wages and working conditions, includingThe important role played by the NGOs and founda-contracts and regulations; tions engaged in the creative economy should not be over- looked. They usually have an active presence at grass-rootsfinancing tools and access to credit and funding for cre-263CREATIVE ECONOMY REPORT 2010Lessons learned and policy options
levels, promoting social inclusion in communities particularlyon issues related to the development dimension of the in the most deprived areas. Many NGOs promote greatercreative economy, in line with the three pillars of UNCTAD’sinclusiveness and equity, with leading initiatives particularlywork: (a) consensus-building, by providing a platform foron the promotion of youth, women, elderly people andintergovernmental debates; (b) policy-oriented analysis, byminority groups. identifying key issues underlying the creative economy and thedynamics of creative industries in world markets; and (c)technical cooperation, by assisting developing countries of international cooperationenhance their creative economies for trade and developmentgains. The Creative Economy Report 2010is a response from theThis work is an initiative of the UNCTAD-UNDPPartnership UNCTAD/UNDP to this mandate. partnership and an illustration of how international cooper-Another possible strategy is to set up a regular High-ation by the United Nations system can be used to assist gov-level Panel on Creative Economy, bringing together policy-ernments to better understand the dynamics of the creativemakers and experts from relevant United Nations bodies andeconomy and to identify areas for possible policymaking. international institutions in order to advance policy andThe aim of the Creative Economy Report 2008was to research agendas. Let’s build on this creative momentum. clarify the basic concepts necessary for a proper understand-10ing of the creative economy, putting forward objective evidence, providing some analytical tools and suggestingdirections for policy action. The positive feedback receivedover the last two years motivated us to proceed. In effect, theCreative Economy Report 2008became a world reference andpaved the way for advancing the policy and research agendasaround the creative economy. This encouraged furtherresearch not only by academics but also by governmentalinstitutions. Many governments started reviewing their policystrategies to place the creative industries among priority sec-tors. This has been a stimulus to keep the work in the second in this series, the Creative Economy Report2010builds upon the main findings and policy proposalsput forward in 2008, which remain valid. In the meantime,however, the world has changed. This served as motivation todeepen the analysis and to introduce new research and morerecent data and information. In fact the challenge of thisreport was to provide further evidence that the creative econ-omy is indeed a feasible development option, and that themost appropriate time to take policy decisions to enhancethe creative economy is now. The analysis was intended toassist governments by providing complementary and perti-nent policy orientations. In conclusion, in the context of the intergovernmentalpolicy debate held at UNCTAD XII in 2008, governmentsrecognized that work in the area of the creative economy1should be pursued and was felt that UNCTADshould continue to fulfil its mandates and assist governments1See: Outcome of the Secretary-Generals’ high-level panel on the creative economy and industries for development. UNCTAD XII document TD/423, February ECONOMY REPORT 2010Lessons learned and policy options
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Statistical Annex
Explanatory notesThis explanatory note summarizes the content of each part of this annex and provides a detailed explanation of the UNCTAD model for creative econ-omy trade statistics. The data presented in this annex derive from the UNCTAD global database on the creative economy, which provides free accessto its content worldwide. The tables on trade statistics for creative goods and related goods are based on official statistics reported by national sourcesto the United Nations COMTRADE using the 2002 version of the Harmonized System (HS 2002). Data on creative services were extracted from the IMFBalance of Payments Statistics using BPM5 and EBOPS codes and further elaborated and processed by the UNCTAD were made to present a universal coverage by providing trade data for all 192 Member States of the United Nations. However, for some coun-tries data are not available for some years or particular creative categories of products throughout the period 2002-2008. Therefore, the total numberof reporting countries in each year is not necessarily the same. Thus, the value of “world” figures in any given table presents only the sum of the totalnumber of reporting countries in a specific year, and these figures should be treated with caution when used as an analytical tool. The unavailability ofstatistics is further accentuated by the category of creative services, and this is the case even in developed countries such as France, Japan, the UnitedKingdom and the United States. The value of total exports and imports in each table on creative services is inevitably , two country profiles are provided before all statistics tables. These examples not only show the trade performance of each country’s creative industries, but also demonstrate the multiple possibilities for analytical tool offered by the UNCTAD global database on creative economy. Thecountry profiles present statistical information for the selected years of 2002 and 2008, with a breakdown of all creative goods and services by sec-tors in order to facilitate understanding of the evolution and the sector-specific performance. The first part of the country profile summarizes nationaltrade performance, including trade balance and time series information from 2002 to 2008, including a detailed disaggregation by product groups. Parttwo of each profile surveys the country’s major trade partners of creative goods and illustrates some important issues positioning the selected coun-tries in the context of their respective detailed data at the country and sectoral levels are available through the website for UNCTAD’s global database on creative economy, accessibleat or . The latter is a new UNCTAD data dissemination system. UNCTADstat willbe continuously updated and enriched to provide users with the latest available data. The website of the UNCTAD Creative Economy Programme includesa comprehensive guide to help users manipulate and extract trade statistics data and generate detailed product and country-level information to conduct economic analysis. In certain instances, the electronic version might contain different figures from those in this report as they will be frequentlyupdated in order to present the latest available explanations of the measurement of creative economyPart 1. Creative goodsAs noted earlier, the compilation of trade data presented in this annex is based on the 2002 version of the Harmonized System (HS 2002). A summaryof selected HS 2002 codes for creative goods in each subgroup is listed below. The reasons to use HS 2002 instead of HS 1996 have been explainedin chapter the comparative analysis of various statistical methodologies, 211 codes were selected from the list of HS 2002 based on the UNCTAD classifica-tion and methodology for a trade model for creative industries as presented in chapter 4 of this report. An evidence-based comparison is made withthe 2009 UNESCO Framework for Cultural Statistics, the EUROSTAT pocketbook of cultural statistics and other relevant references for trade statisticsfor creative goods and services. Given the complexity of making clear distinctions and distinguishing between a creative good that is exclusive and mass produced, between handmadeand machine-made, between decorative and functional, etc., this exercise of compiling statistics for creative goods includes all the creative goods withthe above characteristics since they fall under the criteria of the UNCTAD classification of “the cycle of creation, production and distribution of a tangi-ble product with creative content, economic and cultural value and a market objective”.The number of codes included in each creative sector is as follows: design, 102 codes; art crafts, 60 codes; visual arts, 17 codes; publishing, 15 codes;performing arts, 7 codes; new media, 8 codes; and audiovisuals, 2 codes, summarized as follows:Design. This is the largest subgroup, with 102 codes. The number of codes in each subsector is as follows: architecture, 1; fashion, 37; interior, 32;toys, 17; jewellery, 10; and glassware, 5. architecture– original drawings for architectural plans. fashion– handbags, belts, accessories (ties, shawls, scarves, gloves, hats, hairpins, etc), sunglasses, headgear, leather goods, etc. Clothing andshoes are not included. interior –furniture (living room, bedroom, kitchen, bathroom), tableware, table linen, wallpaper, porcelain, lighting sets, etc. toys– dolls, wheeled toys, electric trains, puzzles, games, etc. jewellery– articles of jewellery made from gold, silver, pearls and other precious metals as well as imitation jewellery. glassware– table/kitchenware, drinking glass made with ECONOMY REPORT 2010Statistical annex — Explanatory notes
Explanatory notes (continued)Art is the second largest subgroup, covering a total of 60 codes. The number in each sector is as follows: carpets, 17; yarn, 30; wickerware, 4; celebration, 2; paperware, 1; others, 6. carpet– includes carpets of wool or other fine animal hair, cotton, coconut fibres and other plant fibre, knotted or woven. yarn –handmade lace, hand-woven and needlework rugs, embroidery, bed linen, man-made or printed, knitted or crocheted materials, etc. wickerware – plaits, mats, basketwork, wickerwork, etc. celebration– articles for Christmas, festivities, carnivals, etc. paperware– handmade paper. others– candles, tanned or dressed fur skins, artificial flowers, wood marquetry, arts. This sector covers 17 codes. The number of codes in each subsector is as follows: photography, 4; painting, 3; sculpture, 7; and antiques, 3. photography – photographic plates for offset reproduction; photographic film and microfilms, exposed and developed. painting – paintings, pastels executed by hand, wooden frames for paintings. sculpture– statuettes and other ornamental articles of wood, porcelain, ceramics, ivory or other metals, worked carving materials. antiques– antiques more than 100 years of . There are 15 codes in this subgroup. The number of codes in each subsector is as follows: newspapers, 3; books, 4; and other printingmatter, 8. newspapers – newspapers, journals and periodicals. books– books, dictionaries, encyclopedias, brochures, leaflets, children’s drawing and colouring books and other printed matter. other printing matter – maps, brochures, postcards, calendars, advertising materials, 7 codes. It covers 6 types of recorded laser discs and recorded magnetic tapes as well as printed or manuscript media. This subgroup has 8 codes: 6 code for recorded media for sound and image, and 2 codes for video . This subgroup has 2 codes; only 2 types of exposed cinematographic film are included in this 2. Creative servicesData on trade in services by category of service rendered are becoming more available for developing countries as well. Generally aligned with the def-initions of the IMF Balance of Payments Manual, figures for trade in services, comparable across the world, are found mainly in the IMF Balance ofPayments Statistics database and, more recently, in the United Nations Statistics Division Services Trade database. EUROSTAT and OECD also collectdata for their member countries, as do other regional , the available data disaggregated by category of services do not provide the detail necessary for drawing conclusions about the impact of cre-ative-services activities on economies. The 11 principal BOP categories of services cover many aspects of creative industries that cannot be separately extracted. The Extended Balance ofPayments Services Classification (EBOPS) — presented in the Manual on Statistics of International Trade in Services (MSITS, 2002) — still does notoffer categories detailed enough to enable the designation of the creative-industry services , what is offered in the MSITS and further elaborated in this study are the elements of Central Product Classification (CPC) that can be relat-ed to EBOPS categories and that directly cover creative industries. The data on such a detailed level are rarely internationally reported and assembledon a comparable basis (CPC 5-digit-level items are usually necessary).What countries report at the moment that was identified as covering creative industries but not exclusively is the following categories of services: advertising, market research and public opinion services (EBOPS 278, level 3); architectural, engineering and other technical services (EBOPS 280, level 3); research and development services (EBOPS 279, level 3); personal, cultural and recreational services (EBOPS 287, level 1); audiovisual and related services (EBOPS 288, level 2); and other personal, cultural and recreational services (EBOPS 897, level 3).The definitions of each category of services are from the fifth edition of the IMF Balance of Payments Manual (available at and are listed below:CREATIVE ECONOMY REPORT 2010283Statistical annex — Explanatory notes
Explanatory notes (continued) Advertising and market research and public opinion polling services (Advertising):“Advertising and market research services transacted betweenresidents and non-residents cover the design, creation and marketing of advertisements by advertising agencies; media placement, including thepurchase and sale of advertising space; exhibition services provided by trade fairs; the promotion of products abroad; market research; and pub-lic opinion polling abroad on various issues.” Architectural, engineering and other technical services (Architectural):“Architectural, engineering and other technical services cover resident andnon-resident transactions related to architectural design of urban and other development projects; planning and project design and supervisionof dams, bridges, airports, turnkey projects, etc.; surveying, cartography, product testing and certification, and technical inspection services.” Research and development services (R&D):“Research and development services cover those services that are transacted between residents andnon-residents and associated with basic research, applied research, and experimental development of new products and processes. In principle,such activities in the sciences, social sciences and humanities are covered; included is the development of operating systems that representtechnological advances.” Personal, cultural, and recreational services (Personal recreation): “Personal, cultural, and recreational services involving transactions between res-idents and non-residents are subdivided into two categories:”(a)Audiovisual and related services (Audiovisual). “The first category comprises services and associated fees related to the production of motion pictures (on film or video tape), radio and television programs (live or on tape), and musical recordings. Included are receipts or payments for rentals; fees received by resident actors, directors, producers, etc. (or by non-residents in the compiling economy) for productions abroad; and fees for distribution rights sold to the media for a limited number of showings in specified areas. Fees to actors, producers, etc. involved with theatrical and musical productions, sporting events, circuses, etc. and fees for distribution rights (for television, radio, etc.) for these activities are included.” (b)other personal, cultural and recreational services (Other cultural services). “The second category comprises other personal, cultural, and recreational services such as those associated with museums, libraries, archives, and other cultural, sporting, and recreational activities. Also included are fees for services, including provision of correspondence courses, rendered abroad by teachers or doctors.” Creative services, average annual growth rate, for exports of the reporting countries, 2003-2008EXPORT CATEGORYGROWTH RATE All creative % (23)Advertising, market research and public opinion polling % (38)Architectural, engineering and other technical % (31)Research and development % (27)Personal, cultural and recreational % (76)Audiovisual and related services % (43)Other personal, cultural and recreational % (47)Note:The calculation of annual average growth rate is based on countries that reported consistently in 2003-2008. The numbers in parentheses after percentages represent the number of countries used in the : UNCTAD calculations based on IMF Balance of Payments statisticsCreative services, average annual growth rate, for imports of the reporting countries, 2003-2008IMPORT CATEGORYGROWTH RATE All creative % (23)Advertising, market research and public opinion polling % (46)Architectural, engineering and other technical % (34)Research and development % (26)Personal, cultural and recreational % (81)Audiovisual and related services % (48)Other personal, cultural and recreational % (54)Note:The calculation of annual average growth rate is based on countries that reported consistently in 2003-2008. The numbers in parentheses after percentages represent the number of countries used in the : UNCTAD calculations based on IMF Balance of Payments statistics284CREATIVE ECONOMY REPORT 2010Statistical annex — Explanatory notes
Explanatory notes (continued)Obviously, it is not possible to arrive at conclusive comparative results on the real performance of services outputs of creative industries in internation-al trade based on incomplete figures. This is especially the case in that national statistics, when available, do not always follow precisely the interna-tionally accepted definitions and guidelines owing to particular priorities and data collection systems of different statistics for categories of services cover many more activities than what would belong to the creative economy alone, with the exception of audio-visual and related services, which can be attributed largely to creative industries. In addition, the subcategory “Other personal, cultural and recreation-al services” could also be assumed to incorporate trade closely related to creativity, bearing in mind, however, that this subcategory still includes inter-national services trade relating to sporting events (health and education are not covered).All the figures used to calculate growth rates by category of services are to be viewed with caution since they refer, of course, to the limited numberof countries that consistently reported on them (only to countries reporting a particular service regularly between 2003 and 2008). The numbers inparentheses after percentages represent the number of countries used in the convenience of presentation, titles have been shortened from “advertising, market research and public opinion services” to “advertising and relat-ed services” and from “architectural, engineering and other technical services” to “architectural and related services”. These short titles are applied toall statistics tables in chapter 5 and in the statistical annex, with the aim of facilitating readers’ decision was taken to present in this report the state-of-the-art evidence base, including the international trade flows on creative goods and services,even if the work of UNCTAD in this area is in its preliminary stage and the results that are being shared are partial and in an incomplete form owing to gapsin data availability. Our main concern was to present what is possible at present on the basis of available data; certainly, much more work is needed. In our continued efforts to compile and analyse more disaggregated and reliable data for creative services, the UNCTAD secretariat presents its “wishlist” with statistics codes in order to encourage individual countries to report better figures for trade in services related to the creative industries in thenear 3. Related industriesThe trade figures presented for related industries cover those goods produced by industries related to creative activities; that is, supporting industriesor equipment needed to produce or consume creative content. The figures provided in the annex are included for the purpose of market transparencyand as a tool for analysis of future demand. These trade figures for related industries are not included in the totals of creative list of related goods has also been reviewed and updated. After a careful comparison with the 2009 UNESCO FCS list of “equipment and support-ing materials of cultural goods” and other statistical methodologies, UNCTAD selected 170 codes in the HS 2002 list of creative industries related number of codes included in each sector is: visual arts, 49 codes; design, 35 codes; publishing, 11 codes; performing arts, 28 codes; and audio-visuals, 42 codes. The tables present the same analysis as those for creative industries (see chapter 5 for further details).As mentioned in chapter 4, the values of exports and imports of “royalties and licence fees” and “computer and information services” are introducedin this group but not included in the total for creative services. The definitions of these two services are from the fifth edition of the IMF Balance ofPayments Manual (BPM5): Royalties and license fees (Royalties):“royalties and license fees covers receipts (exports) and payments (imports) of residents and non-residentsfor (i) the authorized use of intangible non-produced, non-financial assets and proprietary rights — such as trademarks, copyrights, patents,processes, techniques, designs, manufacturing rights, franchises, etc. and (ii) the use, through licensing agreements, of produced originals orprototypes — such as manuscripts, films, etc.” Computer and information services:“computer and information services” covers computer data and news-related service transactions betweenresidents and non-residents. Included are databases, such as development, storage, and online time series; data processing — including tabula-tion, provision of processing services on a time-share or specific (hourly) basis, and management of facilities of others on a continuing basis;hardware consultancy; software implementation — including design, development, and programming of customized systems; maintenance andrepair of computers and peripheral equipment; news agency services — including provision of news, photographs, and feature articles to themedia; and direct, non-bulk subscriptions to newspapers and ECONOMY REPORT 2010285Statistical annex — Explanatory notes
Explanatory notes (continued)UNCTAD proposed “wish list” for creative services based on EBOPS codesEBOPS EBOPSCLASSIFICATIONCPC VISUAL ARTS284Photography83811Portrait photography services 83812Advertising and related photography services 83813Event photography and event videography services 83814Specialty photography services 83815Restoration and retouching services of photography 83819Other photography services 83820Photographic processing services Painting & sculptures96320Services of authors, composers, sculptors and other artists, except performing artists PERFORMING ARTS89796210Performing arts event promotion and organization services 96220Performing arts event production and presentation services 96230Performing arts facility operation services 96290Other performing arts and live entertainment services 96310Services of performing artists 288Music96111Sound recording services 96112Live recording services 28489123Reproduction services of recorded media, on a fee or contract basis 88904Musical instrument manufacturing services PUBLISHING SERVICES28489110Publishing, on a fee or contract basis89121Printing services89122Services related to printing88984410News agency services to newspapers and periodicalsAUDIOVISUAL AND RELATED SERVICES288Radio & television84631Broadcasting services96122Radio programme production services96131Audiovisual editing services96132Transfers and duplication of masters services96133Colour correction and digital restoration services96134Visual effects services96135Animation services96136Captioning, titling and subtitling services96137Sound editing and design services96139Other post-production services84632Home programme distribution services, basic programming package84633Home programme distribution services, discretionary programming package84634Home programme distribution services, pay-per-view88984420News agency services to audiovisual media288Film96121Motion picture, videotape and television programme production services286CREATIVE ECONOMY REPORT 2010Statistical annex — Explanatory notes
Explanatory notes (continued)EBOPS EBOPSCLASSIFICATIONCPC 96140Motion picture, videotape and television programme distribution services96150Motion picture projection servicesDESIGN284Interior83911Interior design services88901Furniture manufacturing servicesJewellery88902Jewellery manufacturing services88903Imitation jewellery manufacturing servicesToy88906Game and toy manufacturing servicesNEW MEDIADigital online content84311Online books84312Online newspapers and periodicals84321Musical audio downloads84322Streamed audio content84331Films and other video downloads84332Streamed video content84391Online games84392Online softwareCREATIVE SERVICES278Advertising services83611Full service advertising83612Direct marketing and direct mail services83619Other advertising services83620Purchase or sale of advertising space or time, on commission83631Sale of advertising space in print media (except on commission)83632Sale of TV/radio advertising time (except on commission)83633Sale of Internet advertising space (except on commission)83639Sale of other advertising space or time (except on commission)280Architectural services83211Architectural advisory services83212Architectural services for residential building projects83213Architectural services for non-residential building projects83214Historical restoration architectural services897Cultural and recreational services84510Library services84520Archive services96411Museum services except for historical sites and buildings96412Preservation services of historical sites and buildings96421Botanical and zoological garden services96910Amusement park and similar attraction services96930Coin-operated amusement machine servicesROYALTIES AND LICENSE FEES26673220Leasing or rental services concerning video tapes and disks73311Licensing services for the right to use computer software73312Licensing services for the right to use databases73320Licensing services for the right to use entertainment, literary or artistic originals73330Licensing services for the right to use R&D products73390Licensing services for the right to use other intellectual property productsCREATIVE ECONOMY REPORT 2010287Statistical annex — Explanatory notes
Country Profile: ArgentinaPart 1: Creative Industries Trade Performance, 2002 and 200820022008VALUE (IN MILLIONS OF $)VALUE (IN MILLIONS OF $)ARGENTINAEXPORTS IMPORTS BALANCEEXPORTS IMPORTS BALANCEAll Creative Industries3902831071,5591,50356All Creative Goods18112754295990-695All Creative Services209156521,263513751Argentina Creative Industry Trade Performance 2002–200818001600140012001000800Exports600Imports40020002002200320042005200620072008Creative goods, exports by product groups, 2002 and 2008Creative goods, imports by product groups, 2002 and 2008300(million US $)600(million US $)25050020040020082008200220021503001002005010000 Art Crafts Audio Design New Media Performing Publishing Visual Arts Art Crafts Audio Design New Media Performing Publishing Visual ArtsVisualsArtsVisualsArtsCreative services, exports by categories, 2002 and 2008Creative services, imports by categories, 2002 and 2008400600(million US $)(million US $)35050030040020082008250200220022003001502001001005000AdAdvertisingResearch andArchitectural Personal. Audiovisual Other vertisingResearch andArchitectural Personal. Audiovisual Other and relateddevelopmentaland relatedcultural and and relatedpersonal,and relateddevelopmentaland relatedcultural and and relatedpersonal, servicesservicesservicesrecreational servicescultural, and servicesservicesservicesrecreational servicescultural, and servicesrecreationalservicesrecreationalservicesservices288CREATIVE ECONOMY REPORT 2010Statistical annex — Explanatory notes — Country Profile: Argentina(in million US $)
Country Profile: Argentina (continued)Part 2: Top 10 exports partners for creative goods, 2002 and 200820022008VALUE (IN MILLIONS OF $)VALUE (IN MILLIONS OF $)RANKING COUNTRYEXPORTS IMPORTS BALANCECOUNTRYEXPORTS IMPORTS BALANCE1United States 542430United States58149-922Mexico20218Chile3343-93Chile19415Uruguay261884Brazil17143Mexico226165Uruguay12111Brazil1897-796Spain719-12Peru16797Colombia523Paraguay123108Peru504Spain1169-589Venezuela 404Colombia1010010Italy410-6Venezuela 1009Creative goods, exports by top 10 Latin American countries, 2002Mexico3797Brazil742Co313lombiaChile183Argentina181Peru124Bolivia 70(Plurinational State of)50Uruguay28El Salvador(millions US $)24Guatemala05001000150020002500300035004000Creative goods, exports by top 10 Latin American countries, 2008Mexico5167Brazil1222Colombia748Chile481Argentina295Peru263Bolivia 227(Plurinational State of)109Uruguay105El Salvador(millions US $)98Guatemala0100020003000400050006000CREATIVE ECONOMY REPORT 2010289Statistical annex — Explanatory notes — Country Profile: Argentina
Country Profile: Argentina (continued)Argentina Creative Industries Trade Performance by sectors, 2002 and 20082002VALUE SHARE (%)(IN MILLIONS OF $)OF TOTAL PRODUCTSOF WORLDPRODUCTEXPORTS IMPORTS BALANCEEXPORTS IMPORTS EXPORTS IMPORTSAll Creative (CD, Tapes) Printed Creative and related and development and related , cultural, and recreational and related personal, cultural, and recreational ECONOMY REPORT 2010Statistical annex — Explanatory notes — Country Profile: Argentina
Country Profile: Argentina (continued)2008GROWTHVALUE SHARE (%)RATE(IN MILLIONS OF $)OF TOTAL PRODUCTSOF WORLD2003-2008 (%)EXPORTS IMPORTS BALANCEEXPORTS IMPORTS EXPORTS IMPORTSEXPORTS IMPORTS Creative Media---------Recorded (CD, Tapes) Printed , Creative and related and development and related , cultural, and recreational and related -Other personal, cultural, and recreational servicesCREATIVE ECONOMY REPORT 2010291Statistical annex — Explanatory notes — Country Profile: Argentina
Country Profile: TurkeyPart 1: Creative Industries Trade Performance, 2002 and 200820022008VALUE (IN MILLIONS OF $)VALUE (IN MILLIONS OF $)TURKEYEXPORTS IMPORTS BALANCEEXPORTS IMPORTS BALANCEAll Creative Industries4,8641,3253,5396,5933,7582,835All Creative Goods2,1549131,2415,3693,5231,846All Creative Services2,7104122,2981,224235989Turkey Creative Industry Trade Performance 2002–2008ExportsImports700060005000400030002000100002002200320042005200620072008Creative goods, exports by product groups, 2002 and 2008Creative goods, imports by product groups, 2002 and 20086000(million US $)3000(million US $)500025004000200020082008200220023000150020001000100050000 Art Crafts Audio Design New Media Performing Publishing Visual Arts Art Crafts Audio Design New Media Performing Publishing Visual ArtsVisualsArtsVisualsArtsCreative services, exports, 2002–2008Creative services, imports, 2002-2008Personal, cultural, and Advertising and Architectural and Personal, cultural, and recreational servicesrelated servicesrelated servicesrecreational services2501600140020012001000150800100600400502000020022003200420052006200720082002200320042005200620072008292CREATIVE ECONOMY REPORT 2010Statistical annex — Explanatory notes — Country Profile: Turkey(million US $)(million US $)(million US $)
Country Profile: Turkey (continued)Creative goods, exports by geographical region, 2002Africa (3%)Oceania (1%)Asia (17%)America (24%)Europe (55%)Creative goods, exports by geographical region, 2008Africa (5%)Oceania (0%)Asia (30%)America (11%)Europe (54%)Part 2: Top 10 exports partners for creative goods, 2002 and 200820022008VALUE (IN MILLIONS OF $)VALUE (IN MILLIONS OF $)RANKING COUNTRYEXPORTS IMPORTS BALANCECOUNTRYEXPORTS IMPORTS BALANCE1United States40635371United Arab Emirates547724752Germany32092229Russian Federation4841223623France1546193Germany4481672824Russian Federation15050100United States396833135Italy89147-58Italy280527-2476United Kingdom843549United Kingdom16577897United Arab Emirates79772Iraq16201628Israel67265France15787719Saudi Arabia58157Romania1501713310Netherlands511536Saudi Arabia1461145CREATIVE ECONOMY REPORT 2010293Statistical annex — Explanatory notes — Country Profile: Turkey
Country Profile: Turkey (continued)Turkey Creative Industries Trade Performance by sectors, 2002 and 20082002VALUE SHARE (%)(IN MILLIONS OF $)OF TOTAL PRODUCTSOF WORLDPRODUCTEXPORTS IMPORTS BALANCEEXPORTS IMPORTS EXPORTS IMPORTSAll Creative Goods2,1549131, ,6404331, (CD, Tapes) Printed Creative Services1,3552071, and related and development services-------Architectural and related services-------Personal, cultural, and recreational services1,3552051, and related services-------Other personal, cultural, and recreational services1,3552051, ECONOMY REPORT 2010Statistical annex — Explanatory notes — Country Profile: Turkey
Country Profile: Turkey (continued)2008GROWTHVALUE SHARE (%)RATE(IN MILLIONS OF $)OF TOTAL PRODUCTSOF WORLD2003-2008 (%)EXPORTS IMPORTS BALANCEEXPORTS IMPORTS EXPORTS IMPORTSEXPORTS IMPORTS PRODUCT5,3693,5231, Creative Goods1,7154181, Crafts1, ,5432,2261,,,6755431, (CD, Tapes) Printed , Creative --Advertising and related services---------Research and development --Architectural and related services1,2241811,, cultural, and recreational services---------Audiovisual and related services1,2241811, personal, cultural, and recreational servicesCREATIVE ECONOMY REPORT 2010295Statistical annex — Explanatory notes — Country Profile: Turkey
Distribution of developing economies by geographical region and economic grouping 1. G E O G R A P H I C A L R E G I O N Africa Eastern Africa British Indian Ocean TerritoryMadagascarSomaliaBurundiMalawiUgandaComorosMauritiusUnited Republic DjiboutiMayotteof TanzaniaEritreaMozambiqueZambiaEthiopiaRwandaZimbabweKenyaSeychellesMiddle Africa AngolaChadEquatorial GuineaCameroonCongoGabonCentral African RepublicDemocratic Republic of the CongoSao Tome and PrincipeNorthern Africa AlgeriaMoroccoWestern SaharaEgyptSudan Libyan Arab JamahiriyaTunisiaSouthern Africa BotswanaNamibiaSwazilandLesothoSouth AfricaWestern Africa BeninGuineaNigeriaBurkina FasoGuinea-BissauSaint HelenaCape VerdeLiberiaSenegalCôte d’IvoireMaliSierra LeoneGambiaMauritaniaTogoGhanaNigerAmerica Caribbean IslandsGreater Caribbean Small Caribbean islandsCubaAnguillaMontserratDominican RepublicAntigua and BarbudaNetherlands AntillesHaitiArubaSaint Kitts and NevisJamaicaBahamasSaint LuciaBarbadosSaint Vincent and the GrenadinesBritish Virgin IslandsTrinidad and TobagoCayman IslandsTurks and Caicos IslandsDominicaUnited States Virgin IslandsGrenadaCentral America BelizeGuatemalaNicaraguaCosta RicaHondurasPanamaEl SalvadorMexico296CREATIVE ECONOMY REPORT 2010Statistical annex — Distribution of developing economies by geographical region and economic grouping
Distribution of developing economies by geographical region and economic grouping (continued) South America ArgentinaEcuadorSurinameBolivia (Plurinational State of)Falkland Islands (Malvinas)UruguayBrazilGuyana Venezuela ChileParaguayColombiaPeruAsia Eastern Asia Asia, not elsewhere specifiedChina, Macao Special Administrative RegionRepublic of KoreaChinaDemocratic People’s Republic of KoreaTaiwan Province of ChinaChina, Hong Kong Special MongoliaAdministrative RegionSouthern Asia AfghanistanIndia NepalBangladeshIran (Islamic Republic of)PakistanBhutanMaldives Sri LankaSoutheastern Asia Brunei DarussalamMalaysiaThailandCambodiaMyanmarTimor-LesteIndonesiaPhilippinesViet NamLao People’s Democratic RepublicSingaporeWestern Asia BahrainOccupied Palestinian TerritoryTurkeyIraqOmanUnited Arab EmiratesJordanQatarYemenKuwaitSaudi ArabiaLebanonSyrian Arab RepublicOceania American SamoaMicronesia (Federated States of)SamoaChristmas IslandsMidway Islands Solomon IslandsCocos (Keeling) IslandsNauruTokelauCook IslandsNew CaledoniaTongaFijiNiueTuvaluFrench PolynesiaNorfolk IslandVanuatuGuamNorthern Mariana IslandsWake IslandJohnston IslandPalauWallis and Futuna IslandsKiribatiPapua New GuineaMarshall IslandsPitcairnCREATIVE ECONOMY REPORT 2010297Statistical annex — Distribution of developing economies by geographical region and economic grouping
Distribution of developing economies by geographical region and economic grouping (continued) 2. E C O N O M I C G R O U P I N G Least developed countries (LDCs) (50)Year ofYear ofYear ofinclusion ininclusion ininclusion inthe groupthe groupthe groupAfrica and Haiti Angola1994Gambia1975Niger1971Benin1971Guinea1971Rwanda1971Burkina Faso 1971Guinea-Bissau1981Senegal2001Burundi 1971Haiti1971Sierra Leone1982Central African Republic 1975Lesotho1971Somalia1971Chad1971Liberia1990Sudan1971Democratic Republic of the Congo1991Madagascar1991Togo1982Djibouti1982Malawi1971Uganda1971Equatorial Guinea 1982Mali1971United Republic of Tanzania1971Eritrea1994Mauritania1986Zambia1991Ethiopia1971Mozambique1988Asia Islands Afghanistan 1971Cape Verde 1977Tuvalu1986Bangladesh 1975Comoros 1977Vanuatu1985Bhutan1971Kiribati1986Cambodia1991Maldives1971Lao People’s Democratic Republic1971Samoa1971Myanmar1987Sao Tome and Principe1982Nepal1971SolomonIslands1991Yemen1971Timor-Leste2003Small island developing States (SIDS) (29)Antigua and BarbudaMaldivesSamoaBahamasMarshall IslandsSao Tome and PrincipeBarbadosMauritiusSeychellesCape VerdeMicronesia (Federated States of) Solomon IslandsComorosNauruTimor-LesteDominicaPalauTongaFijiPapua New GuineaTrinidad and TobagoGrenadaSaint Kitts and NevisTuvaluJamaicaSaint LuciaVanuatuKiribatiSaint Vincent and the Grenadines298CREATIVE ECONOMY REPORT 2010Statistical annex — Distribution of developing economies by geographical region and economic grouping
Distribution of developed economies and economies in transition by geographical region 1. DEVELOPED ECONOMIESAmericaBermudaGreenlandUnited States of America,CanadaSaint Pierre and Miquelonincluding Puerto RicoAsiaIsraelJapanEuropeAndorraGibraltarPolandAustriaGreecePortugalBelgiumHoly SeeRomaniaBulgariaHungarySan MarinoCyprusIcelandSlovakiaCzech RepublicIrelandSloveniaDenmarkItalySpainEstoniaLatviaSwedenFaroes IslandsLithuaniaSwitzerland, including LiechtensteinFinland, including Åland IslandsLuxembourgUnited Kingdom of Great BritainFrance, including French Guyana, Maltaand Northern Ireland, including ChannelGuadeloupe, Martinique,Netherlands Islands and Isle of ManMonaco and RéunionNorway, including SvalbardGermanyand Jan MayenOceaniaAustraliaNew Zealand2. ECONOMIES IN TRANSITIONAsiaArmeniaKazakhstanTurkmenistanAzerbaijanKyrgyzstan UzbekistanGeorgiaTajikistanEuropeAlbaniaCroatia Serbia and MontenegroBelarusMacedonia (the former Yugoslav Republic of) UkraineBosnia and HerzegovinaMoldovaRussian FederationCREATIVE ECONOMY REPORT 2010299Statistical annex — Distribution of developed economies and economies in transition by geographical region
Distribution of economies by trade group 1. A M E R I C A Year of Year ofYear ofaccessionaccession accessionFree Trade Area of the Americas (FTAA) (34) Antigua and Barbuda1994Dominican Republic1994Paraguay1994Argentina1994Ecuador1994Peru1994Bahamas1994El Salvador1994Saint Kitts and Nevis1994Barbados1994Grenada1994Saint Lucia1994Belize1994Guatemala 1994Saint Vincent and Bolivia (Plurinational State of)1994Guyana1994the Grenadines1994Brazil1994Haiti1994Suriname1994Canada1994Honduras1994Trinidad and Tobago1994Chile1994Jamaica1994United States of America1994Colombia1994Mexico1994Uruguay1994Costa Rica1994Nicaragua1994Venezuela Dominica1994Panama1994(Bolivarian Republic of)1994Mercado Común del Sur(MERCOSUR) (4)Argentina 1994Paraguay1994Brazil1994Uruguay1994North American Free TradeAgreement ( NAFTA) (3)Canada1992United States of America1992Mexico19922. A S I AAssociation of Southeast Asian Nations (ASEAN) (10)Year of Year ofYear ofaccessionaccession accessionBrunei Darussalam 1984Lao People’s Democratic Philippines1967Cambodia1999Republic1997Singapore1967Indonesia 1967Malaysia 1967Thailand1967Myanmar1997Viet Nam1995300CREATIVE ECONOMY REPORT 2010Statistical annex — Statistical annex — Distribution of economies by trade group
Distribution of economies by trade group (continued) 3. E U R O P EEuropean Union (EU) (27)Year of Year ofYear ofaccessionaccession accessionAustria 1995Germany 1957Netherlands1957Belgium1957Greece1981Poland2004Bulgaria 2007Hungary2004Portugal1986Cyprus2004Ireland1973Romania 2007Czech Republic2004Italy1957Slovakia2004Denmark1973Latvia2004Slovenia2004Estonia2004Lithuania2004Spain1986Finland 1995Luxembourg 1957Sweden1995France1957Malta2004United Kingdom19734. I N T E R R E G I O N A L G R O U PAfrican, Caribbean and Pacific Group of States (ACP Group) (79)AngolaDominicaMaliSeychellesAntigua and BarbudaDominican RepublicMarshall IslandsSierra LeoneBahamasEquatorial GuineaMauritaniaSolomon IslandsBarbadosEritreaMauritiusSomaliaBelizeEthiopiaMicronesiaSouth AfricaBeninFiji(Federated States of)SudanBotswanaGabonMozambiqueSurinameBurkina FasoGambiaNamibiaSwazilandBurundiGhanaNauruTimor-LesteCameroonGrenadaNigerTogoCape VerdeGuineaNigeriaTongaCentral African RepublicGuinea-BissauNiueTrinidad and TobagoChadGuyanaPalauTuvaluComorosHaitiPapua New Guinea RwandaUgandaCongoJamaicaSaint Kitts and NevisUnited Republic Cook IslandsKenyaSaint Luciaof TanzaniaCôte d’IvoireKiribatiSaint Vincent and VanuatuCubaLesothothe GrenadinesZambiaDemocratic RepublicLiberiaSamoaZimbabweof the CongoMadagascarSao Tome and PrincipeDjiboutiMalawiSenegalCREATIVE ECONOMY REPORT 2010301Statistical annex — Statistical annex — Distribution of economies by trade group
TABLECREATIVE GOODS: WORLD EXPORTS AND IMPORTS, BY ECONOMIC GROUP AND COUNTRY/TERRITORY, (., in millions of $)Growthrate (1)Economic group and country/territory20022003200420052006200720082003-2008WORLD204,948233,400269,331298,549324,407370,298406, economies127,903140,884158,144171,023185,895211,515227, economies75,83591,124109,267125,321136,100156,043176, economies1,2101,3921,9202,2062,4132,7413, ECONOMIES: AMERICA27,88628,77431,55735,22138,84142,01244,,3279,57610,06710,50010,3569,6619,--United States of America18,55719,19521,48324,71328,47532,34835, ECONOMIES: ASIA4,6004,0554,6116,1225,4807,0457,,9763,4683,9895,5674,9136,4326, ECONOMIES: EUROPE94,514106,998120,701128,355140,251161,087174, UNION (EU)89,051101,459114,176121,573132,501151,876163,,6034,2124,4354,6905,1915,6456,,3876,4967,3257,3737,5628,6739, Republic1,4821,8242,1142,4373,1954,0754,,5102,8833,2023,1733,9034,3664,,0081,0831,0789761,0911,2241,,99910,55611,86512,83414,10815,64017,,21317,44219,95522,48725,57830,39334,,1325637077617949471,,7472,9222,7742,7692,7962,3002,,51717,71219,96220,47822,95426,68827,,6865,5876,3146,6877,0197,77210,,9832,5653,1703,4403,7324,7235,,0119269871,2061,,0081,1991,2791,3551,4011,,1221,,5074,8985,2365,1405,2365,9656,,8513,0253,4843,4583,8254,1664, Kingdom13,65714,90316,91718,95219,06021,66919, EUROPEAN COUNTRIES5,4635,5396,5256,7827,7509,21110,,,1415,2016,1596,3957,3648,8209, ECONOMIES: OCEANIA9031,0571,2751,3251,3231,3711,,0051,0151,0721, ECONOMIES: AFRICA7408098899811,3611,5202, ECONOMIES: EASTERN Republic of --402330316965-302CREATIVE ECONOMY REPORT 2010Statistical Annex Part 1
(., in millions of $)Growthrate (1)Economic group and 20022003200420052006200720082003-2008country/territory225,590250,160284,624317,175337,506402,452420,,170205,869230,741250,975266,902306,808317, economies36,69241,84250,49262,09065,42688,37093, economies1,7282,4483,3914,1105,1787,27410, economies76,85379,80586,73594,453100,243109,145104, ECONOMIES: AMERICA8,2149,1629,84610,94012,01513,60214,--Greenland68,62470,62176,86283,48888,20395,52589, States of America12,99513,81015,39917,09518,07319,48419, ECONOMIES: ASIA8657868728949461,1031,,12913,02514,52616,20217,12818,38118,,458107,686123,069133,393142,370170,815184, ECONOMIES: EUROPE84,19897,541111,718120,901129,456155,144166, UNION (EU)3,2073,9464,7424,9535,2796,7687,,7085,6856,4126,7696,9197,9408,,2611,6091,9872,1852,6603,1853, Republic1,8492,1882,2702,6963,0993,7894,,0891,2511,3431,4901,6911,,34013,33915,10516,14117,03520,42822,,99616,84118,37220,75720,73024,57926,,1791,7141,9962,1882,3662,8163,,0901,2741,2301,3201,5251,,3751,5211,8532,0472,3842,6822,,2987,3378,7389,52310,65712,23112,,6005,3666,0746,3396,9208,04212,,2281,3321,6341,8912,2572,9883,,3281,5471,7641,6971,8272,1002,,0341,2041,5461,,,7455,9997,2698,2008,31110,18410,,1922,6013,0563,2813,5184,0084,,46820,97923,99625,39627,68433,77430, Kingdom9,26010,14511,35112,49212,91415,67117, EUROPEAN ,6481,8752,1122,3652,5473,0923,,4058,0038,9419,90710,12212,28913,,8644,5695,5396,0336,2167,3638, ECONOMIES: OCEANIA3,1923,7474,5664,9315,1466,1037,,1021,0711,2601, Zealand1,5852,0322,7493,4684,3064,7285, ECONOMIES: ECONOMIES: EASTERN ---52736983-United Republic of --1521201720-ZimbabweCREATIVE ECONOMY REPORT 2010303Statistical Annex Part 1
(., in millions of $)Growthrate (1)Economic group and country/territory20022003200420052006200720082003-2008DEVELOPING ECONOMIES: MIDDLE AFRICA--872---Cameroon---11---Gabon--860---DEVELOPING ECONOMIES: NORTHERN AFRICA3012933043333844471, ECONOMIES: SOUTHERN ECONOMIES: WESTERN ----0---Burkina Faso2-23----Cape Verde-----0--Côte d’--14-1--DEVELOPING ECONOMIES: AMERICA5,5365,3816,0596,5847,4058,0129, ECONOMIES: ---1021426-Cuba-221031621---Dominica----000-Dominican Republic----544405481-Jamaica--45854-Montserrat--00000-Netherlands Antilles---9301915-Trinidad and Tobago--1617182017-DEVELOPING ECONOMIES: CENTRAL AMERICA3,8493,4533,5823,9834,1284,7175,---0110-Costa -8432922--Mexico3,7973,2983,4023,6723,8534,3905, ECONOMIES: SOUTH AMERICA1,6861,9022,3512,5422,6332,8402, (Plurinational State of),1591,2001,1751,2111, (Bolivarian Republic of)----5-16-DEVELOPING ECONOMIES: ASIA69,55384,923102,299117,733127,313146,484164, ECONOMIES: EASTERN ASIA59,33066,73578,49689,51297,324111,030125,,34838,56845,62055,51562,72572,99984,, Hong Kong SAR23,66724,21025,88527,23727,55231,08033,, Macao , Taiwan Province of--3,1373,0173,1773,2233,203-Korea, Republic of3,2433,8773,7653,6653,7733,5854,--DEVELOPING ECONOMIES: SOUTHERN ASIA2506,6058,83810,24711,72011,53111,------182-304CREATIVE ECONOMY REPORT 2010Statistical Annex Part 1
(., in millions of $)Growthrate (1)Economic group and 20022003200420052006200720082003-2008country/territory--197977---DEVELOPING ECONOMIES: MIDDLE AFRICA---5152---Cameroon--192826---Gabon7149431,1181,2771,3501,7542, ECONOMIES: NORTHERN ,0351,3351,7121,6751, ECONOMIES: SOUTHERN ,2511,6191,5651, ECONOMIES: WESTERN AFRICA----13---Benin10-2218----Burkina Faso---1215Cpe ôte d’-55-13--To6,1396,6837,4379,14011,52216,86216, ECONOMIES: AMERICA-1844136521,0811,0051, ECONOMIES: ---94755284-Barbados-9589106110---Cuba----565-Dominica----392416486-Dominican Republic--141166184192304-Jamaica--11111-Montserrat---50717188-Netherlands Antilles--7692112116119-Trinidad and Tobago4,3104,6514,7105,6046,3187,1057, ECONOMIES: CENTRAL -7583111130153--Honduras4,0283,9084,0614,5055,1785,6956,-149-186202245355-Panama1,8301,8482,3142,8844,1238,7526, ECONOMIES: SOUTH (Plurinational State of)5073744846478981,0171,,,----5168411,402-Venezuela (Bolivarian Republic of)28,89932,97540,07249,28649,41366,59771, ECONOMIES: ASIA22,51924,14628,31530,42133,41339,50143, ECONOMIES: EASTERN ASIA2,9413,3393,5633,9564,2925,6226,,95718,07219,82820,72622,75226,31029,, Hong Kong , Macao SAR--2,0552,2922,2202,3822,604-China, Taiwan Province of2,4072,4722,5243,0623,6334,5494,, Republic of-910182519--Mongolia4312,1602,5533,2123,5173,9183, ECONOMIES: SOUTHERN ASIA------490-AfghanistanCREATIVE ECONOMY REPORT 2010305Statistical Annex Part 1
(., in millions of $)Growthrate (1)Economic group and country/territory20022003200420052006200720082003-2008Bangladesh5660126139145180--Bhutan---8--1-India-4,4446,7467,6309,1259,9079, (Islamic Republic of)-783774812843---Maldives--00000-Nepal-80------Pakistan-1,0591,0131,4951,4341,2821, ECONOMIES: SOUTHEASTERN ASIA7,3698,39310,94311,85513,04214,78917,--35---14-Malaysia1,8511,9342,4592,7023,0223,5763,-----659580-Singapore2,6193,4543,7533,7714,2203,7875,,8993,0053,3183,7943,8734,3195,-Leste--11----Viet Nam--1,3761,5881,9272,4493,136-DEVELOPING ECONOMIES: WESTERN ASIA2,6023,1904,0216,1195,2289,13410, Palestinian ---1792715-Saudi Arabia206307471311522514--Syrian Arab Republic---56263241--Turkey2,1542,6293,2003,7563,9004,8905, Arab Emirates---1,532-2,9154,760-Yemen----662-DEVELOPING ECONOMIES: Islands---0----Fiji7119555--French Polynesia--916152026-Kiribati--------New New Guinea000-----Vanuatu-----0--TRANSITION ECONOMIES: --2561211-Georgia---4535-Kazakhstan--1226211812-Kyrgyzstan-35475--Turkmenistan--------TRANSITION ECONOMIES: EUROPE1,2001,3481,8222,0792,2622,5733, and Federation8458691,0801,2561,3801,4811, and Montenegro---98108145--Ukraine------553-SOURCE:UNCTAD secretariat calculations based on United Nations Comtrade database : (1) Annual average growth rate only available for countries that reported consistently in 2003-2008.- Data not available or not separately ECONOMY REPORT 2010Statistical Annex Part 1
(., in millions of $)Growthrate (1)Economic group and 20022003200420052006200720082003-2008country/territory229270348369265332--Bangladesh---3--6-Bhutan-1,3131,6212,0162,5482,9132,-8615325950---Iran (Islamic Republic of) Lanka3,5294,0545,7645,8326,1928,1439, ECONOMIES: SOUTHEASTERN ASIA--376---215-Cambodia6876708748489321,0221,-----590500-Philippines2,0762,5462,8153,1863,4094,4005,,0121,1311,3671,--22----Timor-Leste--828785721764870-Viet Nam2,4202,6163,4399,8206,29115,03514, ECONOMIES: WESTERN -----4048-Occupied Palestinian ---360470628636-Qatar8378961,0461,2861,3861,494--Saudi Arabia---916155--Syrian Arab Republic9131,1771,5382,0632,5473,2083,---4,977-7,4679,442-United Arab ECONOMIES: OCEANIA---3----Cook Islands507783575143--Fiji--6768676792-French Caledonia192118-----Papua New Guinea-----5--Vanuatu0263755127121, ECONOMIES: --4452415661-Azerbaijan---4488126137-Georgia--300373518738611-Kazakhstan-1213172641--Kyrgyzstan--------Turkmenistan1,7012,3912,9193,4394,2726,0038, ECONOMIES: and ,1901,5601,8571,9872,5793,8825, Federation---249315437--Serbia and Montenegro------1,170-UkraineSOURCE:UNCTAD secretariat calculations based on United Nations Comtrade database : (1) Annual average growth rate only available for countries that reported consistently in 2003-2008.- Data not available or not separately ECONOMY REPORT 2010307Statistical Annex Part 1
TABLECREATIVE GOODS: EXPORTS, BY ORIGIN PRODUCT GROUP, 2002, 2005 AND 2008Developed economiesOriginEuropeTotal United TransitionProduct groupYearWorldTotalEurope EU-27CanadaStatesJapaneconomies(Value in millions of $)ALL CREATIVE INDUSTRIES2002204,948127,90394,51489,0519,32718,5573,9761,2102005298,549171,023128,355121,57310,50024,7135,5672,2062008406,992227,103174,018163,6509,21535,0006,9883,678ARTS-CRAFTS200217,5038,2566,2065,9612381,44331345200525,74310,0287,6177,3802561,66941273200832,32311,4439,2208,9501871,531442164CARPETS20023,3352,4322,0912,0585125462520056,2973,0362,5972,55455331143920087,1763,6383,1733,120403872090CELEBRATION20023,107690527522411201120053,053876698693471272120083,8351,03882279933178113OTHER20022,2346224754502410712620052,56078560357129134131320083,1011,134908864281701511PAPERWARE2002573217170132020056630161501120200812469414112330WICKERWARE20029931671371375241320051,6152502132138272620082,53628024524462727YARN20027,7774,3132,9592,77811692529011200512,1535,0513,4903,3341171,03937913200815,5505,2854,0313,8837974640142AUDIO VISUALS2002462425215214154362320056676082492483182822200881172633933733541110FILM2002462425215214154362320056676082492483182822200881172633933733541110DESIGN2002114,69260,96749,22145,9653,1046,2801,5213622005175,02483,90367,78463,4043,1598,7943,1959172008241,972117,81698,16490,9832,77312,1503,7831,716ARCHITECTURE20022161501191102226162005244202165159223111920084373703453421111226FASHION200230,87512,92311,17210,9462541,23413367200547,64218,68516,79716,3882741,332153123200862,98426,48424,41323,7812461,546173180GLASSWARE20021,4691,2141,14598965181220051,6461,3191,2631,05384061920081,7891,3321,2761,063546430INTERIOR200238,48425,13020,99020,6512,2391,514211238200557,96433,60728,72728,2112,3442,116177542200876,78443,45238,52237,8261,7632,7432051,300JEWELLERY200221,82814,32610,9688,6242402,5361069200537,09119,05913,98010,9872284,125213178200858,12229,78321,81516,2382566,32584987TOYS200221,8207,2244,8274,6463639241,05720200530,43611,0336,8506,6073031,1592,63636200841,85416,39611,79211,7335021,4792,54093NEW MEDIA200217,36511,4226,8566,6741843,0281,20636200520,91913,1318,4198,2872823,58051173200827,75413,2488,7278,7062123,78634582RECORDED MEDIA20029,0596,8784,3644,224902,17320133200511,1418,6975,9575,8381182,240327322008121------1VIDEO GAMES20028,3064,5442,4922,450948561,004320059,7784,4342,4622,4501641,34018541200827,63213,2488,7278,7062123,78634580PERFORMING ARTS20029,6898,9477,2537,0662701,10217843200514,94613,46411,21310,9483761,49129763200826,13622,53917,50517,2323023,642940274MUSIC (CDS, TAPES)20029,6008,8617,1997,0132701,07217743200514,82613,34911,13510,8723751,45529662200826,01622,42117,42017,1493013,611939274PRINTED MUSIC2002898754530301020051191167776035102008120118858313010308CREATIVE ECONOMY REPORT 2010Statistical Annex Part 1
economiesOriginAsiaEastern, SouthernTotaland SoutheasternWesternTotalAfricaAmericaAsiaAsiaChinaAsiaOceaniaLDCsSIDSYearProduct group(Value in millions of $)75,8357405,53669,55366,95032,3482,602785612002ALL CREATIVE INDUSTRIES125,3219816,584117,733111,61455,5156,119222181162005176,2112,220164,933154,24584,80710,6872737013520089,202914308,6808,1203,56956011172002ARTS-CRAFTS15,64314250314,99713,7176,2061,28013514200520,71551567119,52817,64110,7221,88702269200887931537944293693650022002CARPETS3,22340693,1132,31160580301420053,447199683,1802,0339021,1470150320082,4163342,3792,3771,12520012002CELEBRATION2,1752732,1002,0971,221300120052,7852462,7362,7342,082301020081,6067581,5401,53454461312002OTHER1,7627691,6841,6707191413220051,9569841,8631,847995160112008252023221210002002PAPERWARE3620343034000200555121424161000200882311380980871610402002WICKERWARE1,3582551,3291,3251,1204011020052,2502872,2152,2121,995309020083,453372823,1342,9508031840432002YARN7,088652876,7366,2842,5384520207200510,2232654659,4928,7744,74171806552008350191514010002002AUDIO VISUALS571164139020002005751195552020002008350191514010002002FILM57116413902000200575119555202000200853,3624223,29249,64247,72623,5291,916664472002DESIGN90,2035794,53885,06880,57541,1674,49318163722005122,4391,1405,007116,266107,81558,8488,452268696200850014848420-0-2002ARCHITECTURE23012221131000200541104037122-00200817,88513839317,35316,8699,420484236112002FASHION28,83419446028,17927,46215,86771609414200536,32030052935,49134,62721,437863052232008243219222118841040002002GLASSWARE3081272802211675900020054272126380265200115-00200813,1151891,94610,97810,3926,41758632772002INTERIOR23,8162262,67820,91019,56513,0481,34626410200532,0326182,63528,77927,08619,5221,6930301120087,493765396,8786,1551,56872301242002JEWELLERY17,85513298016,72714,5132,5822,21416444200528,2531591,28126,78821,1293,4705,65925358200814,5761839514,16314,1445,998190052002TOYS19,3672539218,95018,7929,490158014200525,3654153624,78924,67014,20611901320085,908158265,0675,0602,37870012002NEW MEDIA7,714301177,5677,4903,95278031200514,42391,51012,90412,8658,3773900120082,14813522,0832,0788750012002RECORDED MEDIA2,41125412,3452,2973648031200512011118118-000020083,75927742,9832,9822,29110002002VIDEO GAMES5,3034755,2235,1933,91630000200514,30491,51012,78512,7468,3773900120086986187505492168130002002PERFORMING ARTS1,41983431,0681,0191354904220053,323164462,8612,8157234605020086966186503491168130002002MUSIC (CDS, TAPES)1,41573431,0651,0151354904220053,321164452,8602,8147234605020082001100-002002PRINTED MUSIC43352001110000208CREATIVE ECONOMY REPORT 2010309Statistical Annex Part 1
economiesOriginEuropeTotal United TransitionProduct groupYearWorldTotalEurope EU-27CanadaStatesJapaneconomies(Value in millions of $)PUBLISHING200229,81725,97016,54716,0415,0483,756393690200539,24233,04422,36321,6875,4404,423552982200848,26638,75327,44526,5834,8985,2938011,376BOOKS200211,4559,0496,4106,2183962,005108262200515,26611,7568,7578,4814642,27594222200819,36513,86010,2949,9694802,775104374NEWSPAPERS200212,24811,3715,7445,5944,1961,227144423200515,12813,6617,3587,1554,5341,570150690200817,55815,3699,1368,8604,1361,883160941OTHER PRINTED MATTER20026,1145,5504,3934,229456524141520058,8487,6276,2476,05244257830870200811,3449,5238,0167,75428363553660VISUAL ARTS200215,42111,9168,2157,1293302,91136431200522,00816,84510,7119,6196694,73059895200829,73022,57812,61710,8595088,55867756ANTIQUES20022,2672,1471,7651,571293228120053,4113,1842,6372,3453147013420083,2182,7632,1111,80340562151PAINTINGS20026,3106,1814,0033,2651101,97240520059,7469,0035,0504,4133943,455273200815,18913,5806,6565,4772566,4001286PHOTOGRAPHY20021,6131,4637366851402803021520052,1811,8578578031782895273620082,4482,01695287213144048719SCULPTURE20025,2312,1261,7121,6095133713920056,6702,8012,1662,05867516305320088,8764,2192,8992,707811,1554630SOURCE: UNCTAD secretariat calculations based on United Nations Comtrade database : Data extraction date: 31 May 2010.- Data not available or not separately ECONOMY REPORT 2010Statistical Annex Part 1
economiesOriginAsiaEastern, SouthernTotaland SoutheasternWesternTotalAfricaAmericaAsiaAsiaChinaAsiaOceaniaLDCsSIDSYearProduct group(Value in millions of $)3,157966172,4442,364535800542002PUBLISHING5,2171279014,1874,0171,031170262520058,1383671,1386,6326,4162,4212171132220082,145282991,8171,751409660242002BOOKS3,288574152,8162,72770388132020055,1312765354,3194,1811,3251370817200845356173224220740202002NEWSPAPERS77744227507477182902120051,2484826293890327735012200855911145403393118100112002OTHER PRINTED MATTER1,151262608658133105201320051,760443411,3751,3318184404320083,4741101643,2003,1742,169260512002VISUAL ARTS5,067951674,8054,7583,0224706220057,0971702406,6866,6423,7154414062008119122105103520102002ANTIQUES22322219919852010200545411233393365203212008123991061021740002002PAINTINGS740152070670239401120051,60323341,5461,5366710034200813543399971420002002PHOTOGRAPHY289334252248195000200541332738238162200020083,096861212,8902,8712,133190412002SCULPTURE3,815561113,6483,6112,9593704120054,627321754,4194,3893,582301512008SOURCE: UNCTAD secretariat calculations based on United Nations Comtrade database : Data extraction date: 31 May 2010.- Data not available or not separately ECONOMY REPORT 2010311Statistical Annex Part 1
TABLECREATIVE GOODS: IMPORTS, BY ORIGIN PRODUCT GROUP, 2002, 2005 AND 2008Developed economiesOriginEuropeTotal United TransitionProduct groupYearWorldTotalEurope EU-27CanadaStatesJapaneconomies(Value in millions of $)ALL CREATIVE INDUSTRIES2002225,590187,17093,45884,1988,21468,62412,1291,7282005317,175250,975133,393120,90110,94083,48816,2024,1102008420,783317,058184,353166,75014,73689,97118,51210,003ARTS-CRAFTS200220,34115,3367,2426,8907176,109903147200526,08519,2809,5749,1428737,3351,043329200829,27220,83611,45110,9081,0016,7401,087795CARPETS20024,3923,9722,3232,1891971,0852694120055,9375,1673,0202,8602521,41036610320086,8765,7633,5343,3503231,315417269CELEBRATION20024,6813,9431,0731,0162182,561452120055,7015,0581,5751,5062583,099515020086,1155,4001,9201,8303163,03241115OTHER20022,8172,133778714821,1201201120053,2712,5621,064974991,2161392120083,5162,7441,3861,2581061,06213560PAPERWARE20021199367662717020051211007978131702008162122909094181WICKERWARE20021,3721,24246544831430302420051,7641,62170868362530297920081,8101,6418338016043128330YARN20026,9603,9522,5382,4561889061507020059,2914,7713,1283,0412011,076173145200810,7935,1663,6873,580186897192320AUDIO VISUALS20024113261019491861422005647528133122535819420086994831221067330934FILM20024113261019491861422005647528133122535819420086994831221067330934DESIGN2002129,232106,38848,86043,6723,33343,0748,8059392005190,986150,81073,86467,0464,90756,10112,1902,3422008248,358185,810104,46993,9566,83655,82613,3486,172ARCHITECTURE200217375625829216200517168484319933200820561544815138FASHION200235,69126,86812,62311,8687069,1533,816262200549,34236,83518,45117,3991,01811,6214,859455200865,32848,00926,94725,4201,44512,7505,5801,618GLASSWARE20021,2111,03255244751358451120051,3701,10464353440330642020081,4641,078730584392087046INTERIOR200242,52537,66618,61316,9731,31214,7562,150522200563,86055,31028,84426,4842,06620,3762,6531,300200879,63265,92138,93435,7102,82319,4252,8093,323JEWELLERY200219,48716,6697,7905,5313416,9141,2687200533,08523,63011,4978,7645089,2851,724182200846,53529,00116,86011,9339238,4611,769259TOYS200230,14524,0789,2208,79592111,8851,524122200543,15833,86414,38213,8231,27314,4812,881352200855,19441,73920,94320,2601,60614,9783,119889NEW MEDIA200217,68114,5197,5477,2011,2414,463655132200521,52215,6319,0328,7581,3813,560926278200836,36126,87813,98013,6971,5618,9701,549420RECORDED MEDIA20027,5485,6033,8963,74360440639752200510,5196,7454,8484,7145924603631402008951------67VIDEO GAMES200210,1338,9163,6513,4586384,05725780200511,0038,8864,1834,0447893,100563138200835,41026,87813,98013,6971,5618,9701,549352PERFORMING ARTS200211,1349,6517,3596,3815921,00038861200516,45613,85010,9649,8827421,244492159200828,02222,24116,84715,3741,7711,772928458MUSIC (CDS, TAPES)200211,0419,5717,3096,33758199238261200516,34913,75310,9039,8277291,233486158200827,90422,13716,77915,3151,7591,759922458PRINTED MUSIC20029381504411860200510797625613117020081181046859121460312CREATIVE ECONOMY REPORT 2010Statistical Annex Part 1
economiesOriginAsiaEastern, SouthernTotaland SoutheasternWesternTotalAfricaAmericaAsiaAsiaChinaAsiaOceaniaLDCsSIDSYearProduct group(Value in millions of $)36,6921,5856,13928,89926,4792,9412,420703441692002ALL CREATIVE INDUSTRIES62,0903,4689,14049,28639,4653,9569,820197807662200593,7215,69316,00771,83456,8826,07814,9531871,57984520084,8582189033,7153,2495144662223522002ARTS-CRAFTS6,4774301,2574,7723,84469692917895920057,6417521,6215,2574,28889596993695820083781597265102211630332002CARPETS66745121500171313291612200584473168602206303961141520087176101609600391112002CELEBRATION593121504284093192282005599222882872593272410200867412576045805240212002OTHER68821845795221057447200571238119551481970447200826711885100302002PAPERWARE21411692702120053917121111100102008126410112103890102002WICKERWARE13411201027472714120051391337887171714220082,9381746362,1071,8554722522114462002YARN4,3753368813,1482,6596434909733120055,3075881,0083,7093,2608454492342242008833116762151012002AUDIO VISUALS1154129779219101200518162015513525200012008833116762151012002FILM115412977921910120051816201551352520001200821,9056732,75818,44717,0591,1651,38827222752002DESIGN37,8341,4804,49431,75124,4441,5327,307109409371200556,3762,8157,18046,27434,0822,58912,1921074674192008831378756931012002ARCHITECTURE7023655818601020051061897935400020088,5612928647,3956,9245034719175182002FASHION12,0525591,08610,3889,1795701,2091926149200515,7018991,83612,94911,1521,1061,79717117502008169738124885360002002GLASSWARE2461431201103797023200534034472591122314709320084,3372438593,2292,709356520540222002INTERIOR7,2506181,6964,8863,3065041,57950129176200510,3881,2342,4246,6724,2317332,4415828626020082,811382802,4842,27166213101272002JEWELLERY9,273925428,6154,6471623,968243120200517,27517986416,2218,9773077,24411167920085,945927145,1364,9911661452662002TOYS8,9421941,1367,5977,149271447151423200512,5654672,00110,0779,51741555920392720083,0312055572,2682,169465991832002NEW MEDIA5,6124998224,2853,8992143857933720059,0642292,4716,3556,2043281529111420081,8931813141,3971,318410801822002RECORDED MEDIA3,6344174162,7972,49916529849121200588410953720716-435320081,1382424387085155190112002VIDEO GAMES1,979824061,4881,4004988321620058,1801202,4185,6365,488328148661120081,421673231,030958465721132002PERFORMING ARTS2,4472032881,9381,7861,052152187620055,3224351,1643,7073,4071,63630016202020081,409673221,019948465721132002MUSIC (CDS, TAPES)2,4382032861,9311,7791,052152187620055,3094341,1623,6963,3971,636299162020200812011111000002002PRINTED MUSIC10127700000200514121110010002008CREATIVE ECONOMY REPORT 2010313Statistical Annex Part 1
economiesOriginEuropeTotal United TransitionProduct groupYearWorldTotalEurope EU-27CanadaStatesJapaneconomies(Value in millions of $)PUBLISHING200229,63325,16614,80713,3541,9866,572886399200540,29531,90019,88617,8102,5757,324829870200849,10736,35124,40821,8193,0456,7327251,841BOOKS200211,3109,0785,2174,6941,0172,090330127200515,53611,7527,1006,3421,2172,523315298200820,61614,6699,4388,4601,4372,718302765NEWSPAPERS200212,80811,2166,1565,7146713,517466223200516,94713,4727,8967,2971,0053,621380449200818,81213,7559,0878,3241,1302,757259777OTHER PRINTED MATTER20025,5154,8713,4332,946298965904920057,8126,6754,8904,1723531,18113412320089,6787,9265,8835,0364781,256164300VISUAL ARTS200217,15815,7847,5436,6043367,22048048200521,18418,9769,9398,1404577,566703129200828,96424,46013,07710,8895169,601867282ANTIQUES20022,9522,8281,3071,173351,40452120053,7413,5251,7401,566311,61789120084,1983,7011,9131,613551,6323236PAINTINGS20027,3157,1663,5062,955543,414156520058,8228,3754,5313,2911673,38719615200813,87211,8446,0564,8451395,13539912PHOTOGRAPHY20021,5021,203567496117439501420052,1871,465702624119513975420082,5401,6898186651475819483SCULPTURE20025,3894,5872,1631,9801301,9622222720056,4345,6122,9662,6591402,0503215920088,3547,2264,2913,7651752,253343151SOURCE: UNCTAD secretariat calculations based on United Nations Comtrade database : Data extraction date: 31 May 2010.- Data not available or not separately ECONOMY REPORT 2010Statistical Annex Part 1
economiesOriginAsiaEastern, SouthernTotaland SoutheasternWesternTotalAfricaAmericaAsiaAsiaChinaAsiaOceaniaLDCsSIDSYearProduct group(Value in millions of $)4,0683671,4112,2741,9453013291688332002PUBLISHING7,5267752,0344,6783,80541787339200171200510,9151,3043,2296,3455,2995361,0463828531320082,1042227411,1301,03697941255212002BOOKS3,4865239971,9441,7201042232212412220055,1827851,7172,6612,3511233102016824620081,36810842583264214719032892002NEWSPAPERS3,0271866752,1521,61019254113593820054,2803851,0842,7962,18615061014745420085953724631226757451632002OTHER PRINTED MATTER1,014663615834751211084171120051,4531344288887622631264441320081,327521761,0981,03729601232002VISUAL ARTS2,079762341,7641,60943155681620054,2221523223,7403,46668274842621200812347112109330002002ANTIQUES2157620219251001120054611221428379144901120081457131251131120002002PAINTINGS432233836934812121220052,01664351,9121,8325815412420082848542232181350112002PHOTOGRAPHY668124661060113903320057671559693681201205420087743310263859712411122002SCULPTURE764331445844692411533102005978612067075752913238122008SOURCE: UNCTAD secretariat calculations based on United Nations Comtrade database : Data extraction date: 31 May 2010.- Data not available or not separately ECONOMY REPORT 2010315Statistical Annex Part 1
TABLECREATIVE GOODS: EXPORTS AND IMPORTS, TRADE GROUP, 2002-2008EXPORTS (., in millions of $)Trade group2002200320042005200620072008AFRICASADC425481533558819688732AMERICAFTAA33,41934,13137,50541,77146,18650,00253,231MERCOSUR9731,1461,4741,5601,5711,6091,593NAFTA31,68132,07034,95138,88542,68446,39949,382ASIAASEAN7,3698,39310,94211,85413,04214,78917,379ASEAN plus China, Japan and Republic of Korea46,93654,30664,31676,60184,45297,805113,445EUROPEEU-2789,051101,459114,176121,573132,501151,876163,650INTERNATIONALACP4465527207051,5981,5161,571LDCs85175208218221328370SIDS6191108116148119135SOURCE: UNCTAD secretariat calculations based on United Nations Comtrade database data. Data extraction date: 31 May GOODS: EXPORTS, BY TRADE GROUP, AS % TOTAL EXPORTS OF CREATIVE GOODS, 2002-2008EXPORTS (%)Trade plus China, Japan and Republic of : UNCTAD secretariat calculations based on United Nations Comtrade database data. Data extraction date: 31 May ECONOMY REPORT 2010Statistical Annex Part 1
TABLECREATIVE GOODS: EXPORTS AND IMPORTS, BY TRADE GROUP, (., in millions of $)2002200320042005200620072008Trade groupAFRICA7589241,2931,6562,0902,0382209SADCAMERICA82,97786,37094,056103,390111,558125,917120,625FTAA6757029941,3041,7352,1013,197MERCOSUR80,86683,69190,76998,933105,396114,822111,245NAFTAASIA3,5294,0545,7635,8316,1928,1439,769ASEAN21,00622,89026,37529,05131,24436,69639,161ASEAN plus China, Japan and Republic of KoreaEUROPE84,19897,541111,718120,901129,456155,144166,750EU-27INTERNATIONAL9361,3642,1372,8594,0404,0794,553ACP3445221,0608078311,0971,579LDCs169321570662694722845SIDSSOURCE: UNCTAD secretariat calculations based on United Nations Comtrade database extraction date: 31 May CREATIVE GOODS: IMPORTS, BY TRADE GROUP,AS % OF TOTAL IMPORTS OF CREATIVE GOODS, (%)2002200320042005200620072008Trade plus China, Japan and Republic of : UNCTAD secretariat calculations based on United Nations Comtrade database data. Data extraction date: 31 May ECONOMY REPORT 2010317Statistical Annex Part 1
318CREATIVE ECONOMY REPORT 2010
TABLE(1)EXPORTS OF ALL CREATIVE SERVICES, BY COUNTRY/TERRITORY, (in millions of $)Economic group andcountry/territory2002200320042005200620072008TOTAL REPORTING COUNTRIES62,22772,30886,03199,235147,736164,158185,087DEVELOPED ECONOMIES52,45761,32073,18581,998125,218138,045153,414Australia1,1401,3561,3671,6561,9802,4813,038Austria1371772192365,226274301Belgium3,7895,2245,6096,0756,4824,5507,167Bermuda----173331Bulgaria576674106204265336Canada5,8226,8888,1519,2719,39310,27810,550Cyprus5057101122166226172Czech Republic3252213608429801,5301,994Estonia16795102131185257Faroes11-----Finland510784826924241912France1,5241,8642,2982,1581,7431,9632,240Germany9,17614,85619,41023,64626,21231,00536,116Greece3435481,253433425537583Hungary5278451,6621,8571,7882,4352,160Iceland5491612912Ireland1,4831,2284428242971,6071,777Italy4,2844,5115,0855,4346,4717,4846,328Japan3151407297140156155Latvia6179108142160219284Lithuania557767699095110Luxembourg161162189239331626902Malta4573174384596698780Netherlands4,30361877190225,78428,96831,052New Zealand240282393287279346460Norway1,1511,2721,3672,2013,3213,3274,427Poland3123506691,0491,5242,0493,282Portugal4834786176749051,2371,499Romania2172643784015597581,235Slovakia120162121218312516397Slovenia13018930532436038479Spain3,5534,3895,3865,7637,4769,65110,533Sweden3,1903,8614,1264,5015,0726,2966,923Switzerland4445324United Kingdom2,4103,0863,9284,0823,9323,7594,220United States of America6,5347,1377,5496,95812,82314,42213,598DEVELOPING ECONOMIES7,8608,1859,36312,77117,13318,83521,182Angola11356913Argentina2092733695727869551,263Bangladesh13211919227258Barbados11-001-Benin001111-Bolivia1111112Botswana10599172225Brazil1,7541,6642,1712,9623,4034,6596,331Cambodia1111222Cameroon2111718131423Cape Verde0000020Chile396858697884111China1,6872,4058901,2101,5822,2292,620China, Hong Kong SAR112137290270280272265Colombia6183117143228209344Congo21911----Costa Rica4323233Côte d’Ivoire455556-Ecuador32343639414447Egypt698482102147163195El Salvador1111111Ethiopia7542228Fiji4022323French Polynesia168544918Guatemala2922634Guinea0----15Guinea-Bissau-0-----Guyana--66777Honduras-0000012India--1,1083,3455,4455,5914,894Indonesia--4757745577Iraq-----1-Jamaica9202930312939Kenya0000122Korea, Republic of185761282681,2481,6431,838Lebanon0--0---Madagascar1482---CREATIVE ECONOMY REPORT 2010319Statistical Annex Part 2
(in millions of $)Economic group andcountry/territory2002200320042005200620072008Malaysia1,5661,8351,6701,562863832872Mali001111-Mauritius5542246Mexico40029335837338330887Mongolia-010---Morocco------93Mozambique288011343648Myanmar00-----Namibia-020113Netherlands Antilles155589-New Caledonia12215156Niger00-011-Occupied Palestinian territory13150--Pakistan253538751216689Panama---261--Papua New Guinea--00---Paraguay15141619181920Peru------4Philippines797207893440Republic of Moldova222581118Rwanda----10-Samoa--0124-Senegal026335-Sierra Leone--00000Singapore127154185180203239268Solomon Islands01112--South Africa3860881141039099Sudan-0--050Swaziland-222234-Syrian Arab Republic--62859230-Togo000000-Tonga010111-Tunisia35104336Turkey1,3557811,4181,0799989711,224United Republic of Tanzania11010110Uruguay0010200Venezuela (Bolivarian Republic of)40364245495177ECONOMIES IN TRANSITION1,9102,8033,4834,4675,3857,27910,491Albania258185814172Armenia2266789Azerbaijan-233458Belarus10103137599151Bosnia and Herzegovina----445Croatia247334413441498595841Georgia002361112Kazakhstan3128406081118210Kyrgyzstan371010155075Montenegro------18Russian Federation1,5072,1832,6283,3844,0155,1916,994Serbia------584Tajikistan1011141The former Yugoslav Republic of Macedonia103446455687116Ukraine961982954586369661,396SOURCE:IMF Balance of Payments Statistics and UNCTAD calculations based on IMF Balance of Payments :(1) “All creative services” is composed of the following categories of services: “advertising, market research and public opinion polling services”; “architectural, engineering and other technical services”; “research and development services”; and “personal, cultural and recreational services”. “Audiovisual and related services” and “other personal, cultural and recreational services” are sub-items of “personal, cultural and recreational services”.(2) The figures in this table cannot be used for international comparisons or ranking because most countries do not report all categories of creative services and the reported categories vary with countries. Therefore, the figures present only the aggregation of reported categories by country.- Data not available or not separately ECONOMY REPORT 2010Statistical Annex Part 2
TABLE(1)IMPORTS OF ALL CREATIVE SERVICES, BY COUNTRY/TERRITORY, (in millions of $)Economic group andcountry/territory2002200320042005200620072008TOTAL REPORTING COUNTRIES72,33476,06682,77492,609122,714154,387168,669DEVELOPED ECONOMIES59,07862,34969,61177,143100,104124,777134,043Australia9461,1251,3611,4601,4952,1023,144Austria2984676937282,927845929Belgium3,5574,3934,8965,1655,3296,1368,317Bermuda----101817Bulgaria99172151223343439596Canada3,9294,7495,1275,2005,7826,3206,440Cyprus5476135134160196212Czech Republic5654824688419251,1471,177Estonia14148516982121Faroes11-----Finland2,2032,8743,0133,742274,74282France2,0812,3442,6242,8212,6873,1563,671Germany16,19117,34619,53822,03125,25325,87228,416Greece308338552415509634836Hungary4918451,9112,1711,8262,2292,433Iceland12111213141710Ireland5,1525,6633,9924,8554,70715,24716,764Italy3,8084,4445,4496,1555,6697,2286,636Japan1,1909461,0811,1151,2991,3181,215Latvia44387085111161208Lithuania26284144616989Luxembourg309418477333428617820Malta6852111211288248Netherlands5,20774688094918,47519,99221,713New Zealand199256301212322205217Norway5516648321,3381,6511,7432,136Poland7828319171,1101,3561,7832,253Portugal5246127898231,1181,2691,602Romania263327350385399447785Slovakia156331112399449541655Slovenia19425631440446299578Spain3,6124,5275,5935,6356,4878,0148,115Sweden4,9155,2985,7085,6366,3628,2689,591Switzerland679095878594106United Kingdom1,1981,3961,6191,5151,5771,9072,033United States of America1372064099591,5201,5521,878DEVELOPING ECONOMIES9,48410,4878,51310,17516,57421,10723,447Angola151128456599121Argentina156172242280335440513Bangladesh29374069887975Barbados-01001-Benin000002-Bolivia24568910Botswana26374421203639Brazil1,2771,4351,6782,1582,3893,2514,089Cambodia3344555Cameroon14429106Cape Verde2333268Chile44474853554247China3,1213,9778748691,0761,4912,195China, Hong Kong SAR686852525667140Colombia254253359386498667714Congo534----Costa Rica41363227516958Côte d’Ivoire222333-Ecuador869298106116126137Egypt14151522392980El Salvador2233434Ethiopia18282827141742Fiji4455856French Polynesia8710109611Guatemala7533987Guinea101--111Guinea-Bissau-------Guyana--55566Honduras94566810India--1,1942,0133,4435,5725,434Indonesia--184166124107126Iraq---15111827-Jamaica54473036383333Kenya4211211Korea, Republic of2832613764774,4975,2216,257Lebanon0--0--0Madagascar0501915---CREATIVE ECONOMY REPORT 2010321Statistical Annex Part 2
(in millions of $)Economic group andcountry/territory2002200320042005200620072008Malaysia2,7902,9221,8991,8551,4311,9961,177Mali001415166-Mauritius10142131343940Mexico260221225275326259227Mongolia-0-02--Morocco------28Mozambique6546018848247Myanmar06337--Namibia24206246453144Netherlands Antilles132222-New Caledonia681138415672Niger010060-Occupied Palestinian territory383616181869-Pakistan71552351386891Panama---254--Papua New Guinea--00---Paraguay5731011Peru------16Philippines17151595453939Republic of Moldova84910469Rwanda----732Samoa--0100-Senegal033133-Sierra Leone1120112Singapore265241268279261278312Solomon Islands00000--South Africa335891010Sudan-0---54Swaziland8338272449-Syrian Arab Republic--27213220-Togo0-0000-Tonga000001-Tunisia546610711Turkey207117186107140158235United Republic of Tanzania-100022Uruguay181071091010Venezuela (Bolivarian Republic of)147135266296385461886ECONOMIES IN TRANSITION3,7733,2304,6515,2916,0368,50311,179Albania783010711711982Armenia567891014Azerbaijan-5556812Belarus68396116105123Bosnia and Herzegovina----445Croatia296379488537615645737Georgia122211337Kazakhstan4587091,3541,6161,3261,7721,856Kyrgyzstan25825413347Montenegro------34Russian Federation2,0571,7522,2322,4443,2964,9086,840Serbia------367Tajikistan101201064The former Yugoslav Republic of Macedonia155262736391114Ukraine926303424413542689906SOURCE:IMF Balance of Payments Statistics and UNCTAD calculations based on IMF Balance of Payments :(1) “All creative services” is composed of the following categories of services: “advertising, market research” and “public opinion polling services”; “architectural, engineering and other technical services”; “researchand development services”; and “personal, cultural and recreational services”. “Audiovisual and related services” and “other personal, cultural and recreational services” are sub-items of “personal, cultural andrecreational services”. (2) The figures in this table cannot be used for international comparisons or ranking because most countries do not report all categories of creative services and the reported categories vary with countries. Therefore, the figures present only the aggregation of reported categories by country.- Data not available or not separately ECONOMY REPORT 2010Statistical Annex Part 2
TABLEEXPORTS OF ADVERTISING AND RELATED SERVICES, BY ECONOMIC GROUP AND COUNTRY/TERRITORY, (in millions of $)Annualaveragegrowth rateEconomic group andcountry/territory20022003200420052006200720082003-2008TOTAL REPORTING COUNTRIES8,91411,23714,66817,11020,80624,48727,999-DEVELOPED ECONOMIES7,5939,49011,94813,48415,71717,72519,----776---Belgium1,8992,6172,4702,5512,6051,8262, --------Finland73128169162----France--------Germany1,3521,6173,2063,5483,9455,2575,--182215263367443-Iceland--------Ireland244199---261173-Italy1,0361,0731,3401,3621,3771,5791,--------Malta--346818-Netherlands--------New ,-22467079-Slovenia6199183192203-258-Spain1,4071,8812,1062,1082,4933,2082,--------United Kingdom--------United States of America--------DEVELOPING ECONOMIES5696951,2251,7612,8833,7074, Faso--------Cambodia--------Cameroon--------Cape Verde0000000-Chile--------China3734868491,0761,4451,9122,, Hong Kong SAR--------China, Macao --------Costa ôte d’ -----00-Guinea-Bissau-0------Guyana--66777-Honduras--------India--103279545759572-Indonesia--------rqJamaica--00000-Keny-----Korea, Republic of----342366339-Lebanon--------CREATIVE ECONOMY REPORT 2010323Statistical Annex Part 2
(in millions of $)Annualaveragegrowth rateEconomic group andcountry/territory20022003200420052006200720082003-2008Madagascar1000----Malaysia--------Mali000100--Mauritius--------Mexico--------Mongolia--------rMozambique10-7----Myanmar--------Namibia--------New Caledonia--------Niger00-010--Occupied Palestinian --------Papua New Guinea--------Paraguay--------ePhilippines----8---Republic of ----00--Samoa--------Senegal026333--Sierra Leone--00000-Singapore--------Solomon Islands--------South Africa--------Sudan--------Swaziland-00000--Syrian Arab Republic--------Togo000000--Tunisia--------rkeyUnited Republic of Tanzania--------Uruguay--------Venezuela (Bolivarian Republic of)--------ECONOMIES IN TRANSITION7521,0521,4951,8642,2053,0554,---0124-Belarus--56-5173-Bosnia and --------Russian Federation6368561,2201,5671,7952,3362,------239-Tajikistan--------The former Yugoslav Republic of :IMF Balance of Payments Statistics and UNCTAD calculations based on IMF Balance of Payments :Annual average growth rate only available for countries that reported consistently from 2003-2008.- Data not available or not separately ECONOMY REPORT 2010Statistical Annex Part 2
TABLEIMPORTS OF ADVERTISING AND RELATED SERVICES, BY ECONOMIC GROUP AND COUNTRY/TERRITORY, (in millions of $)averagegrowth rateEconomic group andcountry/territory20022003200420052006200720082003-2008TOTAL REPORTING COUNTRIES14,13515,48915,32318,05521,95437,22440,364-DEVELOPED ECONOMIES12,41013,92912,96415,47716,10029,13630,----1,019---Belgium1,7872,3942,0912,1742,1363,0003, --------Finland662-5211,340-1,874--France--------Germany3,4873,6624,4014,9475,2475,9807,--121151197251323-Iceland--------Ireland2,2642,855---8,91810,217-Italy1,0081,1741,4421,5751,5271,8891,--------Malta--3574159217183-Netherlands--------New -516573130-Slovenia92125164191214-388-Spain1,0741,2691,4811,9042,0802,3812,,1551,2781,2561,3252,1272,--------United Kingdom--------United States of America--------DEVELOPING ECONOMIES6336711,2751,4814,5206,3977, Faso--------Cambodia--------Cameroon--------Cape --------China3944586987159551,3371,, Hong Kong SAR--------China, Macao --------Costa ôte d’Ivoire212222--Ecuador--------gypEl --00-Guinea-Bissau--------Guyana--55566-Honduras--------India--3344738091,9601, ECONOMY REPORT 2010325Statistical Annex Part 2
(in millions of $)Annualaveragegrowth rateEconomic group andcountry/territory20022003200420052006200720082003-2008Kenya--------Korea, Republic of----2,3832,6613,812-Lebanon--------Madagascar0000----Malaysia--------Mali000001--Mauritius--------Mexico--------Mongolia--------Morocco--------Mozambique01-11----Myanmar--------Namibia--------New Caledonia--------Niger000000--Occupied Palestinian ----2---Papua New ----19---Republic of --------Senegal033123--Sierra --------Solomon Islands--------South Africa--------Sudan--------Swaziland701310--Syrian Arab Republic--------Togo0-0000--Tunisia--------Turkey2-1019233346-United Republic of Tanzania--------Uruguay--------Venezuela (Bolivarian Republic of) IN TRANSITION1,0918881,0841,0981,3341,6912,---0116-Belarus--21-1319-Bosnia and --------Russian Federation8005916537961,0081,2491,------95-Tajikistan--------The former Yugoslav Republic of :IMF Balance of Payments Statistics and UNCTAD calculations based on IMF Balance of Payments :Annual average growth rate only available for countries that reported consistently from 2003-2008.- Data not available or not separately ECONOMY REPORT 2010Statistical Annex Part 2
TABLEEXPORTS OF ARCHITECTURAL AND RELATED SERVICES, BY ECONOMIC GROUP AND COUNTRY/TERRITORY, (in millions of $)Annualaveragegrowth rateEconomic group andcountry/territory20022003200420052006200720082003-2008TOTAL REPORTING COUNTRIES18,74619,95425,11633,03067,57473,58185,157-DEVELOPED ECONOMIES16,34117,12420,79025,77357,11762,72772,096-Australia4465275337569541,2741,----2,403---Belgium8071,0151,1451,2861,4803321,--------Bulgaria--14379988150-Canada2,5962,8033,3984,0643,7194,2814, --------Finland237307349408----France--------Germany3,0796,9798,92711,32812,64614,24017,--------Hungary--85141157273297-Iceland--------Ireland536263---637606-Italy1,5501,7651,9092,3182,8633,3472,--------Malta--715192424-Netherlands3,765---25,06728,29730,307-New Zealand576674---128-Norway7488278751,3592,1422,2463,,-569676175-Slovenia3751667575-85-Spain9621,1041,5471,6812,6723,6774,,0138961,2441,3001,3841,9401,--------United Kingdom--------United States of America--------DEVELOPING ECONOMIES1,7411,6843,0855,6598,4098,1488,,5861,5092,0142,7413,0344,2165, Faso--------Cambodia--------Cameroon--------Cape Verde0-------Chile--------China--------China, Hong Kong SAR--------China, Macao --------Costa Rica--------Côte d'Ivoire000000--Ecuador--------gypEl -11112-French Polynesia--------Guatemala--------Guinea------2-Guinea-Bissau--------Guyana--------Honduras--------India--8412,6203,9233,1362,017-Indonesia--------rqJamaica--------KenyKorea, Republic of----250323425-Lebanon--------CREATIVE ECONOMY REPORT 2010327Statistical Annex Part 2
(in millions of $)Annualaveragegrowth rateEconomic group andcountry/ Caledonia--------Niger----00--Occupied Palestinian ---261---Papua New ----744---Republic of Moldova-----03-Rwanda----1---Samoa--------Senegal--------Sierra Leone--------Singapore--------Solomon Islands--------South Africa--------Sudan--------Swaziland-018123--Syrian Arab Republic--------Togo-----0--Tunisia--------rkeyUnited Republic of Tanzania--------Uruguay--------Venezuela (Bolivarian Republic of) IN TRANSITION6641,1461,2411,5992,0482,7074,334-Albania-0-00142-Armenia--------Azerbaijan--------Belarus--1618-2643-Bosnia and --------Russian Federation4919049061,1481,5722,0783, former Yugoslav Republic of :IMF Balance of Payments Statistics and UNCTAD calculations based on IMF Balance of Payments :Annual average growth rate only available for countries that reported consistently from 2003-2008.- Data not available or not separately ECONOMY REPORT 2010Statistical Annex Part 2
TABLEIMPORTS OF ARCHITECTURAL AND RELATED SERVICES, BY ECONOMIC GROUP AND COUNTRY/TERRITORY, (in millions of $)Annualaveragegrowth rateEconomic group andcountry/territory20022003200420052006200720082003-2008TOTAL REPORTING COUNTRIES21,29117,30321,46025,07648,71556,05963,275-DEVELOPED ECONOMIES18,10613,84715,97618,30239,25343,52447,879-Australia2632973514113719131,----832---Belgium7477531,0151,2071,4441,2531,----387-Bulgaria--120180288350523-Canada1,3711,8081,8571,9182,2612,6452, --------Finland6587115168-198--France--------Germany5,0645,8286,6187,7349,2199,82410,--------Hungary--111155251289355-Iceland--------Ireland94119---342326-Italy1,4191,6871,8282,3151,7852,3262,--------Malta--726375444-Netherlands4,590---17,74519,28620,985-New ,-241252299357-Slovenia43535110460-74-Spain6811,0661,6231,4461,8372,4022,,--------United Kingdom--------United States of America--------DEVELOPING ECONOMIES1,4351,6072,6063,6586,0487,3148,,0361,1821,5971,7112,4092, Faso--------Cambodia--------Cameroon--------Cape --------China--------China, Hong Kong SAR--------China, Macao --------Costa Rica0-10100-Côte d'Ivoire--------Ecuador--------gypEl Polynesia--------Guatemala--------Guinea0----010-Guinea-Bissau--------Guyana--------Honduras--------India--7611,3452,3703,0993,456-Indonesia--------rqJamaica--------KenyKorea, Republic of----528588486-Lebanon--------CREATIVE ECONOMY REPORT 2010329Statistical Annex Part 2
(in millions of $)Annualaveragegrowth rateEconomic group andcountry/ Caledonia--------Niger--------Occupied Palestinian ---251---Papua New Guinea--------Paraguay022-----Peru--------Philippines----510---Republic of Moldova----003-Rwanda----1---Sm-Senegal--------Sierra Leone-12--00-Singapore--------Solomon Islands--------South Africa--------dSwaziland1236222348--Syrian Arab Republic--------Togo--------Tunisia--------Turkey----11148-United Republic of Tanzania--------Uruguay--------Venezuela (Bolivarian Republic of) IN TRANSITION1,7491,8492,8773,1163,4145,2226,931-Albania-0-01028-Armenia--------Azerbaijan--------Belarus--2743-6875-Bosnia and ,3351,5811,2891,7271,--------Russian Federation9368721,1681,0951,6122,8034, former Yugoslav Republic of :IMF Balance of Payments Statistics and UNCTAD calculations based on IMF Balance of Payments :Annual average growth rate only available for countries that reported consistently from 2003-2008.- Data not available or not separately ECONOMY REPORT 2010Statistical Annex Part 2
TABLEEXPORTS OF RESEARCH AND DEVELOPMENT SERVICES BY ECONOMIC GROUP AND COUNTRY/TERRITORY, (in millions of $)Annualaveragegrowth rateEconomic group andcountry/territory20022003200420052006200720082003-2008TOTAL REPORTING COUNTRIES12,63916,27016,90319,55224,34726,93431,111-DEVELOPED ECONOMIES10,90713,88916,18218,31222,37923,97227,----1,797---Belgium7951,2241,5401,7201,8391,9072,,6052,3342,5372,6362,8693,0983, --------Finland188319292341----France--------Germany4,2115,2536,3017,5958,67910,36212,,0919961,2851,--------Malta--331953-Netherlands--------New -18213944-Slovenia1719272945-108-Spain5125907679021,0681,1691,,6312,1912,1122,2672,6773,1273,--------United Kingdom--------United States of America--------DEVELOPING ECONOMIES1,3511,9592145141,2882,1172,---38127176315-Burkina Faso--------Cambodia--------Cameroon--------Cape Verde--------Chile--------China1,2851,885------China, Hong Kong SAR--------China, Macao SAR--------Colombia--------Congo--------Costa Rica---0----Côte d'Ivoire--------Ecuador--------gypEl --0--0--French Polynesia--------Guatemala--------Guinea--------Guinea-Bissau--------Guyana--------Honduras--------India--1183356701,1871,598-Indonesia--------rqJamaica--------KenyKorea, Republic of----288506547-Lebanon--------CREATIVE ECONOMY REPORT 2010331Statistical Annex Part 2
(in millions of $)Economic group andcountry/territory20022003200420052006200720082003-2008Madagascar-0------Malaysia--------Mali-01-00--Mauritius--------Mexico--------Mongolia--------Morocco--------Mozambique236-2----Myanmar--------Namibia--------New Caledonia--------Niger0---01--Occupied Palestinian territory--------Pakistan--229146-mPapua New Guinea--------Paraguay--------Peru--------Philippines----101219-Republic of Moldova--------wadSmSenegal--------Sierra Leone--------Singapore--------Solomon Islands--------South Africa--------dSwaziland-13100--Syrian Arab Republic--------Togo---000--Tunisia--------rkeyUnited Republic of Tanzania--------Uruguay--------Venezuela (Bolivarian Republic of)--------ECONOMIES IN TRANSITION3814225077256798461,106-Albania------6-Armenia--------Azerbaijan----001-Belarus88810-1425-Bosnia and --------Montenegro--------Russian ------48-Tajikistan--------The former Yugoslav Republic of :IMF Balance of Payments Statistics and UNCTAD calculations based on IMF Balance of Payments :Annual average growth rate only available for countries that reported consistently from 2003-2008.- Data not available or not separately ECONOMY REPORT 2010Statistical Annex Part 2
TABLEIMPORTS OF RESEARCH AND DEVELOPMENT SERVICES BY ECONOMIC GROUP AND COUNTRY/TERRITORY, (in millions of $)Annualaveragegrowth rateEconomic group andcountry/territory20022003200420052006200720082003-2008TOTAL REPORTING COUNTRIES16,89420,66620,33522,23322,28129,06829,989-DEVELOPED ECONOMIES13,54616,98620,02121,77120,82427,26327,----326---Belgium6428041,2971,3141,2511,3172,,0591,0831,1091,1451, --------Finland1,4162,7622,3492,211-2,594--France--------Germany5,3684,9025,3335,8656,0667,2897,--631720517714841-Iceland--------Ireland2,7202,6023,9924,7504,7075,9876,--------Malta--43333-Netherlands--------New ,3943,4203,5313,6334,3125,2736,--------United Kingdom--------United States of America--------DEVELOPING ECONOMIES2,6533,4801011611,1381,4501,---731711-Burkina Faso--------Cambodia--------Cameroon--------Cape Verde----0---Chile--------China2,6313,450------China, Hong Kong SAR--------China, Macao SAR--------Colombia--------Congo--------Costa Rica---0----Côte d'Ivoire--------Ecuador--------gypEl Salvador--------Ethiopia00-0000-Fiji00-0----French Polynesia--------Guatemala--------Guinea--------Guinea-Bissau--------Guyana--------Honduras--------India--3890160344510-Indonesia--------rqJamaica--00----Keny--Korea, Republic of----9151,0431,068-Lebanon--------CREATIVE ECONOMY REPORT 2010333Statistical Annex Part 2
(in millions of $)Annualaveragegrowth rateEconomic group andcountry/territory20022003200420052006200720082003-2008Madagascar-0-0----Malaysia--------Mali--------Mauritius--------Mexico--------Mongolia--------Morocco--------Mozambique07-3----Myanmar--------Namibia--------New Caledonia--------Niger--------Occupied Palestinian territory--------Pakistan--212213-mPapua New Guinea--------Paraguay--------Peru--------Philippines----81713-Republic of Moldova--------wadSmSenegal----00--Sierra Leone----100-Singapore--------Solomon Islands--------South Africa--------dSwaziland-01200--Syrian Arab Republic--------Togo--------Tunisia--------rkeyUnited Republic of Tanzania--------Uruguay--------Venezuela (Bolivarian Republic of)55768---ECONOMIES IN TRANSITION695201213301319355538-Albania------10-Armenia--------Azerbaijan----010-Belarus3335-35-Bosnia and --------Montenegro--------Russian ------58-Tajikistan--------The former Yugoslav Republic of :IMF Balance of Payments Statistics and UNCTAD calculations based on IMF Balance of Payments :Annual average growth rate only available for countries that reported consistently from 2003-2008.- Data not available or not separately ECONOMY REPORT 2010Statistical Annex Part 2
TABLEEXPORTS OF PERSONAL, CULTURAL AND RECREATIONAL SERVICES BY ECONOMIC GROUP AND COUNTRY/TERRITORY, -2008EXPORTS (in millions of $)Annualaveragegrowth rateEconomic group andcountry/territory20022003200420052006200720082003-2008TOTAL REPORTING COUNTRIES21,92724,84329,33929,53835,00139,14640,821-DEVELOPED ECONOMIES17,61620,81724,26324,43030,00433,62134,,2711,4141,8382,0702,2872,2482, ,5241,8642,2982,1581,7431,9632,,0079781,1759421,1471,,1671,2721,0661,-413----Italy7207207457599451,1681, ,0731,2431,5981, Kingdom2,4103,0863,9284,0823,9323,7594, States of America6,5347,1377,5496,95812,82314,42213, ECONOMIES4,1973,8434,8354,8314,5444,8545, , Hong Kong , Macao -----Costa ôte d' , Republic --0----CREATIVE ECONOMY REPORT 2010335Statistical Annex Part 2
(in millions of $)Annualaveragegrowth rateEconomic group andcountry/territory20022003200420052006200720082003-2008Madagascar00------Malaysia1,5661,8351,6701,------Namibia--------New -0--0---Occupied Palestinian --------Papua New of ----00--Samoa--0124--Senegal00-001--Sierra Islands01112---South ---50Swaziland-00000--Syrian Arab ,3557811,4181,0799989711, Republic of (Bolivarian Republic of) IN TRANSITION1141832402784536701, and ------18-Russian ------160-Tajikistan--------The former Yugoslav Republic of :IMF Balance of Payments Statistics and UNCTAD calculations based on IMF Balance of Payments :Annual average growth rate only available for countries that reported consistently from 2003-2008.- Data not available or not separately ECONOMY REPORT 2010Statistical Annex Part 2
TABLEIMPORTS OF PERSONAL, CULTURAL AND RECREATIONAL SERVICES BY ECONOMIC GROUP AND COUNTRY/TERRITORY, -2008IMPORTS (in millions of $)Annualaveragegrowth rateEconomic group andcountry/territory20022003200420052006200720082003-2008TOTAL REPORTING COUNTRIES20,01522,60525,65427,24229,76132,03435,041-DEVELOPED ECONOMIES15,01517,58620,65021,59323,92624,85427,665-Australia5316257817748519341,,5981,7201,8441,8382,0662,1952, ,0812,3442,6242,8212,6873,1563,,2732,9553,1853,4854,7222,7802,,0481,-105----Italy9331,0341,5051,6391,6432,1022,,1909461,0811,1151,2991,3181, ,4911,6991,9051,7481,9162,4162, Kingdom1,1981,3961,6191,5151,5771,9072, States of America1372064099591,5201,5521, ECONOMIES4,7614,7274,5284,8734,8655,9445, , Hong Kong , Macao -----Costa ôte d' , Republic --0--0-CREATIVE ECONOMY REPORT 2010337Statistical Annex Part 2
(in millions of $)Annualaveragegrowth rateEconomic group andcountry/territory20022003200420052006200720082003-2008Madagascar00------Malaysia2,7902,9221,8991,8551,4311,9961,---Namibia--------New -060--Occupied Palestinian territory383616181869--Pakistan--283---m---Papua New of ----400-Samoa--0100--Senegal00001---Sierra Islands00000---South -0---54-Swaziland-000----Syrian Arab Republic of (Bolivarian Republic of) IN TRANSITION2382924767769691,2361, and ------34-Russian ------90-Tajikistan--------The former Yugoslav Republic of :IMF Balance of Payments Statistics and UNCTAD calculations based on IMF Balance of Payments :Annual average growth rate only available for countries that reported consistently from 2003-2008.- Data not available or not separately ECONOMY REPORT 2010Statistical Annex Part 2
TABLEEXPORTS OF AUDIOVISUAL AND RELATED SERVICES BY ECONOMIC GROUP AND COUNTRY/TERRITORY, (in millions of $)Annualaveragegrowth rateEconomic group andcountry/territory20022003200420052006200720082003-2008TOTAL REPORTING COUNTRIES13,68116,26319,35819,31824,77226,68626,426-DEVELOPED ECONOMIES12,97715,61318,55718,24423,49825,16324,--------Bulgaria--108133629-Canada1,1381,2591,6611,8802,0732,0212, --------Finland62657-12--France1,0231,2881,6391,4249631,0181,,0079781,1759421,1471,,1431,2351,0351,--------Malta--01761240-Netherlands179--597480396498-New ---Switzerland--------United Kingdom1,5652,0892,8572,8612,6652,3032, States of America6,5347,1377,5496,95812,82314,42213, ECONOMIES6695786949331,0561,2341, Faso--------Cambodia--------Cameroon--------Cape , Hong Kong SAR--------China, Macao --------Costa ôte d'-El ----Guinea-----12-Guinea-Bissau--------Guyana--------Honduras--------India--------Indonesia--------rqJamaica--------KenyKorea, Republic --------CREATIVE ECONOMY REPORT 2010339Statistical Annex Part 2
(in millions of $)Annualaveragegrowth rateEconomic group andcountry/--------Morocco------90-Mozambique--------Myanmar--------Namibia--------New -0------Occupied Palestinian territory--------Pakistan-1------Panama--------Papua New of ----00--Sm--Senegal00-0-1--Sierra Leone--------Singapore--------Solomon Islands--------South Africa--------dSwaziland-0-000--Syrian Arab Republic--------Togo--------0Tunisia--------rkeyUnited Republic of Tanzania--------Uruguay--------Venezuela (Bolivarian Republic of) IN --------Belarus--21----Bosnia and --------Montenegro--------Russian ------18-Tajikistan--------The former Yugoslav Republic of --------SOURCE:IMF Balance of Payments Statistics and UNCTAD calculations based on IMF Balance of Payments :Annual average growth rate only available for countries that reported consistently from 2003-2008.- Data not available or not separately ECONOMY REPORT 2010Statistical Annex Part 2
TABLEIMPORTS OF AUDIOVISUAL AND RELATED SERVICES BY ECONOMIC GROUP AND COUNTRY/TERRITORY, (in millions of $)Annualaveragegrowth rateEconomic group andcountry/territory20022003200420052006200720082003-2008TOTAL REPORTING COUNTRIES12,28413,62516,06617,92519,98519,96721,932-DEVELOPED ECONOMIES11,16512,52314,59116,21817,96317,50119,160-Australia4284956115917047981,--------Bulgaria--99111410-Canada1,4801,5831,6881,6681,8832,0012, ,6181,7681,8041,8401,5931,7692,,2732,9553,1853,4854,7222,7802,,0101,--------Ireland7487------Italy5856951,0841,2691,1791,4701,,--766606562538-New ,0981,2311,2721,1411,1501,3831,---Switzerland--------United Kingdom9848511,2381,1461,1771,6531, States of America1372064099591,5201,5521, ECONOMIES9549111,1841,2741,4741,7001, Faso--------Cambodia--------Cameroon--------Cape , Hong Kong SAR--------China, Macao --------Costa Rica--------Côte d'------El -545-Guinea001--1--Guinea-Bissau--------Guyana--------Honduras--------India--------Indonesia--------rqJamaica2-21466-Keny------Korea, Republic --------CREATIVE ECONOMY REPORT 2010341Statistical Annex Part 2
(in millions of $)Annualaveragegrowth rateEconomic group andcountry/--------Morocco------27-Mozambique--------Myanmar--------Namibia--------New ------Occupied Palestinian territory--------Pakistan--282---Panama--------Papua New of ----400-Sm---Senegal00001---Sierra Leone--------Singapore--------Solomon Islands--------South Africa--------dSwaziland-000----Syrian Arab Republic--------Togo--------0Tunisia--------rkeyUnited Republic of Tanzania--------Uruguay--------Venezuela (Bolivarian Republic of) IN --------Belarus--47----Bosnia and --------Montenegro--------Russian ------48-Tajikistan--------The former Yugoslav Republic of --------SOURCE:IMF Balance of Payments Statistics and UNCTAD calculations based on IMF Balance of Payments :Annual average growth rate only available for countries that reported consistently from 2003-2008.- Data not available or not separately ECONOMY REPORT 2010Statistical Annex Part 2
TABLEEXPORTS OF OTHER PERSONAL, CULTURAL AND RECREATIONAL SERVICES BY ECONOMIC GROUP AND 2002-2008EXPORTS (in millions of $)Annualaveragegrowth rateEconomic group andcountry/territory20022003200420052006200720082003-2008TOTAL REPORTING COUNTRIES7,5047,0267,8728,4108,87310,08911,306-DEVELOPED ECONOMIES4,2204,0864,2945,1035,9777,0017, --------Finland64115-7--France5015766597347809461,--306237275247-New ,---Switzerland--------United Kingdom8459971,0711,2211,2671,4561, States of America--------DEVELOPING ECONOMIES3,2092,8333,4563,1872,7362,8663, --------Cape Verde0000-20-Chile--------China--------China, Hong Kong SAR--------China, Macao -----Costa Rica---0000-Côte d' Salvador0-0-----Ethiopia--------Fiji0-------French , Republic --0----CREATIVE ECONOMY REPORT 2010343Statistical Annex Part 2
(in millions of $)Annualaveragegrowth rateEconomic group andcountry/territory20022003200420052006200720082003-2008Madagascar0-------Malaysia1,5661,8351,6701,------Namibia--------New --------Occupied Palestinian territory13150---Pakistan--0-111-Panama--------Papua New Guinea--00----Paraguay--------Peru------4-Philippines1--13713-Republic of Moldova--------wad0Samoa--0124--Senegal-0-001--Sierra Leone--------Singapore--------Solomon Islands01112---South Africa--------da0050Swaziland-00000--Syrian Arab ,3557811,4181,0799989711, Republic of (Bolivarian Republic of)11-1111-ECONOMIES IN and --------Russian ------143-Tajikistan--------The former Yugoslav Republic of --------SOURCE:IMF Balance of Payments Statistics and UNCTAD calculations based on IMF Balance of Payments :Annual average growth rate only available for countries that reported consistently from 2003-2008.- Data not available or not separately ECONOMY REPORT 2010Statistical Annex Part 2
TABLEIMPORTS OF OTHER PERSONAL, CULTURAL AND RECREATIONAL SERVICES BY ECONOMIC GROUP AND 2002-2008IMPORTS (in millions of $)Annualaveragegrowth rateEconomic group andcountry/territory20022003200420052006200720082003-2008TOTAL REPORTING COUNTRIES6,5606,7826,7657,3418,5269,5569,997-DEVELOPED ECONOMIES3,0963,2583,8444,0675,3965,5816, ,0941,3871,--183125145189-New ,0331,---Switzerland--------United States of America--------DEVELOPING ECONOMIES3,4113,4412,7833,0412,8713,7293, --------Cape --------China--------China, Hong Kong SAR--------China, Macao -----Costa ôte d' , Republic --0--0-CREATIVE ECONOMY REPORT 2010345Statistical Annex Part 2
(in millions of $)Annualaveragegrowth rateEconomic group andcountry/territory20022003200420052006200720082003-2008Madagascar00------Malaysia2,7902,9221,8991,8551,4311,9961,---Namibia--------New --------Occupied Palestinian territory383616181869--Pakistan----1---m-Papua New of Moldova--------wadSamoa--0100--Senegal--------Sierra Leone--------Singapore--------Solomon Islands00000---South Africa--------Sudan-0---54-Swaziland-000----Syrian Arab Republic of (Bolivarian Republic of) IN and --------Russian ------42-Tajikistan--------The former Yugoslav Republic of --------SOURCE:IMF Balance of Payments Statistics and UNCTAD calculations based on IMF Balance of Payments :Annual average growth rate only available for countries that reported consistently from 2003-2008.- Data not available or not separately ECONOMY REPORT 2010Statistical Annex Part 2
CREATIVE ECONOMY REPORT 2010347Statistical Annex Part 2
TABLERELATED GOODS: WORLD EXPORTS AND IMPORTS, BY ECONOMIC GROUP AND COUNTRY/TERRITORY, (., in millions of $)Growth rate (1)Economic group andcountry/territory20022003200420052006200720082003-2008WORLD375,845442,610558,225637,446709,923711,244727, economies239,820255,276299,762329,491370,069324,115324, economies134,982185,605256,206305,502336,889384,238399, economies1,0431,7292,2572,4532,9652,8913, economies: America35,84637,22644,09248,81953,35557,62263,,4063,9244,9135,6926,4386,5477,--United States of America32,43933,30239,17943,12646,91651,07556, economies: Asia46,03147,67152,96351,60950,89149,28951,,84712,08714,73016,79116,96618,75720,,18535,58438,23334,81833,92530,53230, economies: Europe153,974165,281197,032223,071257,356206,248195, Union (EU)150,487161,571192,327217,568251,922201,049189,,0662,4912,9873,6303,4043,7363,,40219,32022,65424,90123,48525,36922, Republic2,6122,9433,8664,4006,2149,00211,,0082,4642,5103,7812,8682,4842,,3498,6568,33010,93511,20011,78411,,88611,09913,58913,14316,8669,2259,,60430,58541,49144,05244,36339,36333,,7826,26710,0978,8249,98612,98514,,4038,2729,57412,37212,34511,6318,,2359,07010,80111,34912,08211,86011,,70719,82924,03724,13225,26328,26723,,2472,,1331,4221,7721,6951,8172,0932,,,0661,3581,5431,,2125,2865,6625,7615,9626,0236,,3964,9776,4706,7656,2093,4113, Kingdom29,68926,62225,41737,75265,37319,03718, European countries3,4873,7104,7055,5035,4345,1996,,0463,2274,1344,8944,8064,5845, economies: Oceania3,9695,0985,6755,9928,46810,95713,,8714,9795,5305,8328,29710,79013, economies: Africa1,9623,9336,1167,6348,3848,2969, economies: Eastern Republic of --3020915413014-Developing economies: Middle Africa--111---Cameroon---10---Gabon--111---Developing economies: Northern ECONOMY REPORT 2010Statistical Annex Part 3
(., in millions of $)Growth rate (1)Economic group and20022003200420052006200720082003-2008country/territory399,738464,050574,898650,448700,896717,956738,,406349,354421,776454,449486,522479,397482, economies84,002111,394148,359188,327202,224222,417235, economies2,3303,3024,7647,67212,15016,14119, economies115,702122,488141,694152,745162,893167,722169, economies: America9,90610,51412,10313,36114,91115,85216,--Greenland105,788111,965129,581139,374147,974151,863152, States of America28,25131,14035,46536,77736,56735,78137, economies: Asia8,6149,12810,95111,54811,06912,28311,,63722,01224,51425,22925,49823,49825,,112187,321234,217253,675272,056259,476257, economies: Europe154,988178,310223,254241,816260,455246,924244, Union (EU)3,3154,2594,9685,6205,0005,1285,,80819,71523,11025,61723,12725,29525,,4132,8203,4813,1624,2775,7176, Republic3,7603,6684,4635,7745,2594,5174,,7492,0802,5773,7423,8353,8795,,61218,04822,52023,62427,14024,10325,,61031,25841,05847,16249,98543,61541,,2861,6321,9941,9662,2403,2603,,2643,1804,0803,9753,9945,4805,,2704,2254,3945,0545,3994,8284,,70011,80115,87216,09115,82915,16414,,49019,99226,35525,78826,77828,66625,,6032,9413,4864,1414,7196,0748,,6802,0332,5382,3772,4402,7072,,2221,6301,8472,3132,,2391,6992,1322,,3198,73611,16012,72513,32213,79312,,8714,8536,2496,7496,9976,5886,,65332,59539,38841,21852,12438,89636, Kingdom8,1249,01110,96411,85911,60212,55313, European ,7432,1142,7862,8033,0083,3463,,1396,5957,7998,8038,3408,91610,,3428,40510,39911,25315,00616,41918, economies: Oceania5,5547,3649,1179,78213,60414,84717,,0411,2821,4721,4021,5711, Zealand3,3454,3926,1997,87410,24510,12612, economies: Africa3054176059881,3321,4081, economies: Eastern ---79214188137-United Republic of --5634544631-Zimbabwe--2190105---Developing economies: Middle Africa---5660---Cameroon--213545---Gabon9061,1631,5001,7291,6582,0443, economies: Northern ECONOMY REPORT 2010349Statistical Annex Part 3
TABLERELATED GOODS: WORLD EXPORTS AND IMPORTS, BY ECONOMIC GROUP AND COUNTRY/TERRITORY, (., in millions of $)Growth rate (1)Economic group andcountry/ economies: Southern Africa1,6753,5915,6415,6776,1205,8446, Africa1,2533,4164,9304,9265,1655,0765, economies: Western Africa117539671,2081,5141,----0---Burkina Faso1-43----Cape Verde-----0--Côte d'---8631,1411,4731, Leone--------Togo--00-0--Developing economies: America18,18017,70721,09822,80124,35323,33424, economies: ---162243-Cuba-9194714---Dominica----000-Dominican Republic----221319-Jamaica--31131-Montserrat--00000-Netherlands Antilles---2535-Trinidad and Tobago--31414199-Developing economies: Central America15,26114,76318,05617,54118,23417,87318,---0000-Costa -126715--Mexico15,24014,69017,91017,29218,08317,71118, economies: South America2,9192,9353,0165,1796,0385,4155, (Plurinational State of),5452,5892,6114,7065,4654,7354, (Bolivarian Republic of)----8-12-Developing economies: Asia114,817163,937228,855274,935304,036352,497365, economies: Eastern Asia77,835111,569167,038196,409228,504258,094274,,82360,96693,913125,947159,025186,201196,, Hong Kong SAR19,01021,67524,45727,96330,28131,68136,, Macao , Taiwan Province of--13,03010,29610,1909,2069,645-Korea, Republic of22,90628,78835,52131,97328,88630,91031,--Developing economies: Southern Asia3179,4779,83813,27111,92915,00316,------1-Bangladesh0222760--Bhutan---9--0-India-9,1989,49112,77411,30014,42716, (Islamic Republic of) economies: Southeastern Asia35,97141,97450,77456,83461,76970,26263, ECONOMY REPORT 2010Statistical Annex Part 3
(., in millions of $)Growth rate (1)Economic group and20022003200420052006200720082003-2008country/territory------871-Egypt3674235987157139331,,1122,7063,8474,6625,1115,0914, economies: Southern ,0842,6663,7714,5975,0284,9764, Africa221052254052,0391,5832, economies: Western Africa----1---B11-3231----Burkina Faso2027Cpe ôte d'Ivoire---125155237425-Ghana11--761229-Guinea--2517283043-Mali--914151618-Niger----1,6221,0102,--------Sierra Leone672T13,49915,20620,03023,40731,31631,60435, economies: America-1535076111,1909851, economies: ---94838267-Barbados-126170127132---Cuba----896-Dominica----493513553-Dominican Republic--191146166172173-Jamaica--11111-Montserrat---34433958-Netherlands Antilles--114118215118131-Trinidad and Tobago9,26110,03512,22613,01315,64815,80116, economies: Central -92133153205255--Honduras8,8779,06611,08511,60913,89713,69214,-103-166208275370-Panama4,2385,0187,2989,78314,47914,81817, economies: South America2576791,7112,2552,7172,9003, (Plurinational State of)1,2941,2121,6502,0162,6962,6633,,2251,5481,9642,0922,,1531,8752,1081,9862,---682525-Guyana-1012043248589991,----2,2772,7113,373-Venezuela (Bolivarian Republic of)67,12491,699121,973156,900160,515180,544188, economies: Asia44,73153,33970,03480,89190,99392,942100, economies: Eastern Asia12,68319,17921,95126,59832,16233,47836,,56327,16931,99936,73540,11841,08544,, Hong Kong , Macao SAR--7,7827,9477,8698,0058,230-China, Taiwan Province of6,3096,7487,9709,22510,4459,94410,, Republic of-1413252830--Mongolia42312,54417,86326,05924,85127,82426, economies: Southern Asia------1-Aft142197318630870704--Bangladesh---8--10-Bhutan-11,01515,92322,23020,77024,59225,-5796651,044364---Iran (Islamic Republic of)-39------Nepal-3465231,6362,2021, LankaDeveloping economies: 18,18820,67527,39331,84634,55135,95736, AsiaCREATIVE ECONOMY REPORT 2010351Statistical Annex Part 3
TABLERELATED GOODS: WORLD EXPORTS AND IMPORTS, BY ECONOMIC GROUP AND COUNTRY/TERRITORY, (., in millions of $)Growth rate (1)Economic group andcountry/territory20022003200420052006200720082003-2008Cambodia--1---2-Malaysia11,21312,93716,46118,89321,23819,98915,-----8,5257,510-Singapore19,83522,52525,85627,31227,09724,12021,,9236,5138,06810,00112,41116,02717,-Leste--21----Viet Nam--3866271,0231,6001,096-Developing economies: Western Asia6949161,2058,4211,8349,13811, Palestinian ---55137-Saudi Arabia24304492155166--Syrian Arab Republic---122421--Turkey5817961,0081,2391,3681,4731, Arab Emirates---6,882-6,8369,471-Ym-Developing economies: Islands---1--1-Fiji101134--French Polynesia--116129112107109-Kiribati--------New New Guinea222719-----Vanuatu-----0--Transition economies: --00223-Georgia---365171103-Kazakhstan--4768220180341-Kyrgyzstan-247288116--Turkmenistan--------Transition economies: Europe1,0391,1331,6452,0382,3892,4202, and Federation9039701,4561,8132,1442,0981, and Montenegro---202850--Ukraine------432-352CREATIVE ECONOMY REPORT 2010Statistical Annex Part 3
(., in millions of $)Growth rate (1)Economic group and20022003200420052006200720082003-2008country/territory--43---56-Cambodia3,5033,3685,3655,9926,3476,6947,-----1,1551,103-Philippines9,97112,29215,49817,84219,33017,89616,,7155,0145,1976,9117,3047,7198,--22----Timor-Leste--1,2881,0991,5702,4943,309-Viet Nam3,7815,1426,68218,10410,11923,82124, economies: Western -----6062-Occupied Palestinian ---275371508793-Qatar1,1231,3161,6212,7823,2213,767--Saudi Arabia---12810885--Syrian Arab Republic2,0933,1854,1074,2284,6705,2264,---9,609-11,41117,113-United Arab economies: Oceania---2----Cook Islands162224333729--Fiji--5659585468-French Caledonia183024-----Papua New Guinea--4Vt03817139571,2761,6171, economies: --71111162152130-Azerbaijan---75154241308-Georgia--300354471736540-Kazakhstan-1925339279--Kyrgyzstan--------Turkmenistan2,2742,8283,9256,56010,71514,27517, economies: and Herzegovina5036446968249441,0121,,6391,8712,8544,9278,69211,82813, Federation---320416661--Serbia and Montenegro---UkSOURCE: UNCTAD secretariat calculations based on United Nations Comtrade database extraction date: 31 May : (1) Annual average growth rate only available for countries that reported consistently in 2003-2008.- Data not available or not separately ECONOMY REPORT 2010353Statistical Annex Part 3
TABLERELATED INDUSTRIES: EXPORTS, BY ORIGIN AND , 2002, 2005 AND 2008Developed economies (1)OriginEuropeUnited TransitionProduct groupYearWorldTotalTotalEU-27CanadaStatesJapanEconomies(in millions of $)All Related Industries2002375,845239,820153,974150,4873,40632,43935,1851,0432005637,446329,491223,071217,5685,69243,12634,8182,4532008727,116324,272195,730189,4357,28456,18330,8623,256Audiovisuals2002140,93286,72056,82856,3671,55110,11017,566862005254,000129,20892,31290,8732,71313,26419,938962008249,428100,02062,84261,9483,29715,54217,115470E-Broadcasting2002116,17873,61950,42050,0331,2927,03814,259622005219,055115,83485,74784,3812,4759,91516,803762008211,96283,33954,12153,4152,98411,28314,013439Film20026405522402322717197020059077153493444722483220081,09675145344836233101Sound Production200224,11512,5496,1686,1022332,9013,21024200534,03812,6596,2166,1481923,1253,05318200836,37015,9298,2688,0852764,0263,09229Design200265,79353,50832,65631,0113265,7201,1688912005116,77474,13340,70438,3967519,8231,7862,2222008169,521103,05649,37545,7321,35416,7693,2472,513Architecture200210,8768,7898,2358,2071263158189200516,74011,54610,85610,83516243256159200825,40414,54813,55613,53017971453373Fashion2002296179146145820112005484263225223827222008724414344342144752Interior200259250532932536110141200576862438437647149152200889362141140315150112Jewellery200254,02944,03623,94622,3341565,2741,072800200598,78261,70129,23926,9625349,2151,7132,0602008142,49987,47335,06431,4571,14615,8573,1782,136New Media2002133,28771,48247,73347,44066312,19910,709372005221,21391,27967,54967,2241,46215,1416,696922008263,30286,49861,17860,7531,79818,9304,185196Computer Equipment2002133,28771,48247,73347,44066312,19910,709372005221,21391,27967,54967,2241,46215,1416,696922008263,30286,49861,17860,7531,79818,9304,185196Performing Arts20023,6972,5971,3651,295102483632520055,3123,4791,9211,847159710672520086,8434,3402,4282,34316588584614Celebration2002455434338294404532200569063843739484101122200890479353949281130379Musical Instruments20023,2422,1631,0261,00062438629320054,6212,8411,4851,45376610660320085,9403,5481,8891,851847558095Publishing200210,0259,1947,2036,4305678664799200515,48813,88911,27710,0915141,1108029200814,90313,34610,9209,81654998079218Books200242373030051020056951454513202008876152520420Other Printed Matter20029,9839,1577,1736,4005678604789200515,42013,83911,23210,0465141,1088009200814,81613,28510,8689,76354997679017Visual Arts200222,11216,3198,1907,9451973,0624,63115200524,65917,5029,3089,137923,0774,92428200823,12017,0128,9868,8421223,0784,67645Paintings20021,9859687467332712662620052,8221,3381,0651,04727176561020083,4121,6671,3321,314372096819Photography200220,12615,3507,4447,2121702,9364,5689200521,83616,1648,2428,091652,9024,86718200819,70715,3457,6547,529852,8684,60826354CREATIVE ECONOMY REPORT 2010Statistical Annex Part 3
economies (2)OriginAsiaEastern, SouthernWesternand SoutheasternTotalAfricaAmericaChinaAsiaOceaniaLDCsSIDSYearProduct groupTotalAsia(in millions of $)134,9821,96218,180114,817114,12335,82369423129732002All Related Industries305,5027,63422,801274,935266,514125,9478,4211323893552005399,5889,12924,486365,862354,254196,23111,608111562146200854,1261837,62746,31546,22813,7778713112002Audiovisuals124,69654911,245112,901109,28048,1083,6211212952005148,93849414,640133,803131,42668,0172,37708890200842,4981456,68435,66835,59310,4477512102002E-Broadcasting103,14549610,01392,63589,11937,7253,5161122942005128,18441513,352114,417112,16759,1932,25008488200887218483510002002Film19011517417132300020053433253153057710010200811,5413694210,56410,5533,324110012002Sound Production21,361521,21720,09319,99010,350103091200520,411761,26419,07218,9548,747117041200811,3941,7031,3318,3387,8011,60753821125582002Design40,4186,9432,20531,14026,8063,8864,33513036252200563,9518,3943,39252,05643,4739,3318,5831094624720081,998516811,2657995974660002002Architecture5,035641,3843,5862,4651,9101,122013200510,4842831,7378,4646,8736,2791,59101420081163101031024510002002Fashion22031220519987501020053075212822731428-0020088743806913110002002Interior1431413710655310002005270312662241624200020089,1931,6466366,8906,8319525921124582002Jewellery35,0216,87480527,21224,0351,8343,17713036049200552,8908,1031,63343,04436,1022,7486,94210946144200861,767248,27653,46753,44918,486180012002New Media129,842548,176121,612121,28970,3943220222005176,6081055,651170,852170,379114,523472152200861,767248,27653,46753,44918,486180012002Computer Equipment129,842548,176121,612121,28970,3943220222005176,6081055,651170,852170,379114,52347215220081,0966661,0241,01952050002002Performing Arts1,82741041,7191,7039661601120052,48881102,3702,3261,59244031200820051513820-02002Celebration50174339204000200510231287704617-1020081,0765621,0091,00551240002002Musical Instruments1,7774971,6761,6649461201120052,3865982,2832,2561,546270212008821817064362889140002002Publishing1,590271541,4101,3723333700220051,539611401,3381,29033649001200850055200002002Books1800181761-00200525002525131--02008816817063862488140002002Other Printed Matter1,572271531,3921,3563273600220051,514611401,3131,2653224800120085,779397115,0294,9981,344320022002Visual Arts7,128579186,1536,0642,2608902420056,063675535,4425,3592,4328303520081,011724076475939750022002Paintings1,474152111,2481,2357771300320051,727192011,5071,4921,0601500420084,767314714,2654,239947260002002Photography5,654427074,9054,8291,4837601120054,336493523,9353,8671,372670312008SOURCE: UNCTAD secretariat calculations based on United Nations Comtrade database : (1) Developed economies, including Bulgaria and Romania.(2) Excluding Bulgaria and Romania, which are included in the European Union (EU-27).CREATIVE ECONOMY REPORT 2010355Statistical Annex Part 3
TABLERELATED INDUSTRIES: IMPORTS, BY ORIGIN AND , 2002, 2005 AND 2008Developed economies (1)OriginEuropeUnited TransitionProduct groupYearWorldTotalTotalEU-27CanadaStatesJapanEconomies(in millions of $)All Related Industries2002399,738313,406163,112154,9889,906105,78819,6372,3302005650,448454,449253,675241,81613,361139,37425,2297,6722008738,569482,958257,956244,22016,805152,21125,52619,692Audiovisuals2002136,363100,12451,68049,5773,53838,0484,0501,0972005243,573164,69396,93593,2144,73052,9455,2964,0832008269,455171,99992,27188,4906,44860,8747,0149,750E-Broadcasting2002109,36280,50342,18740,4802,69131,1052,2789632005212,517146,60887,47884,1123,91747,2273,7533,8132008229,834148,86478,61775,4085,00555,2655,3639,190Film2002669455230215311621852005946596313290431961992008958593386355401181726Sound Production200226,33219,1669,2638,8828176,7801,754130200530,11117,4899,1458,8127705,5221,523262200838,66422,54313,26712,7271,4035,4911,633534Design200269,22556,87728,69226,39453516,7182,4242492005124,08177,27838,46634,96783323,1623,0021,0712008164,04596,20746,88641,7501,40826,8233,3522,831Architecture200211,0329,5204,8054,5072143,261824202200517,82614,2447,1656,6913265,309948620200822,89216,4999,7189,1064544,7079591,564Fashion2002313258147137955413200549038121920413796172008758590359338261206921Interior200243732223723033374172005569349262256353544320087304133383302226575Jewellery200257,44246,77723,50221,52027813,3661,554272005105,19862,30430,82127,81646017,7391,9894022008139,66678,70536,47131,97790621,9692,3191,172New Media2002158,320130,98767,41264,4194,61844,49911,7446772005236,768181,28198,15894,3416,29056,27815,5921,9092008258,605183,60597,99694,0167,63758,14313,8585,833Computer Equipment2002158,320130,98767,41264,4194,61844,49911,7446772005236,768181,28198,15894,3416,29056,27815,5921,9092008258,605183,60597,99694,0167,63758,14313,8585,833Performing Arts20024,3453,6321,4211,3191521,5733832120055,9724,8832,1672,0242431,8484625420087,5375,8562,9882,8022941,786548175Celebration2002392296132121313021420056244432172022617412182008844560229215302093739Musical Instruments20023,9543,3361,2901,1981491,4433621720055,3494,4401,9501,8222171,6744513620086,6935,2962,7602,5872641,577511137Publishing20029,5567,1945,1264,8902801,293229140200514,53810,8547,9437,6293541,737318324200815,11810,6398,0977,7983271,501195730Books200237262019130020055836292813012008834136341201Other Printed Matter20029,5197,1685,1064,8712781,290229140200514,48010,8187,9147,6013521,734318324200815,03510,5988,0617,7633261,499195729Visual Arts200221,92914,5928,7818,3897833,657806146200525,51615,46110,0069,6419113,404559230200823,80914,6529,7189,3646923,084560372Paintings20022,3251,945825768112858971820053,1332,5611,2181,1451589991143320083,9003,0921,5351,4561921,13013977Photography200219,60412,6477,9567,6206712,799709129200522,38312,9008,7888,4967532,406445197200819,90911,5608,1837,9085001,954421295356CREATIVE ECONOMY REPORT 2010Statistical Annex Part 3
economies (2)OriginAsiaEastern, SouthernWesternand SoutheasternTotalAfricaAmericaChinaAsiaOceaniaLDCsSIDSYearProduct groupTotalAsia(in millions of $)84,0023,34513,49967,12463,34212,6833,781342801292002All Related Industries188,3277,87423,407156,900138,79626,59818,1041471,2628622005235,91812,37735,070188,330163,46836,81724,8621401,158765200835,1421,5335,86927,72426,0924,4081,63117149442002Audiovisuals74,7973,92811,32759,48251,0486,6958,43460820544200587,7066,49218,79962,36954,6088,8347,76046531351200827,8971,3734,33622,17620,8343,5721,34112137342002E-Broadcasting62,0963,6649,67048,71340,7534,5957,96049785511200571,7816,01316,45849,27242,0555,7967,21738471311200820984515613016260112002Film34111102228187144102220053392871240199324004420087,0371521,4885,3925,128820264512102002Sound Production12,3602531,55510,54110,1082,087433113431200515,5864512,27012,85712,3543,00650385736200812,09866049510,9409,8581,2101,082324522002Design45,7321,4531,08043,17737,1412,4006,03622105149200565,0082,0211,80961,15748,4024,14712,7552124619920081,31014926189855932339323212002Architecture2,9613925951,9561,0763787919999220054,8298861,2742,6531,618751,035172301462008522113936530002002Fashion10262174658903120051481530102821420021200898626665520110102002Interior17719331241023222111200524230291831584625011200810,6375031979,9379,2071,15372900302002Jewellery42,4921,03643141,02235,8982,3235,1252354200559,7891,09047658,21946,5444,01211,67541350200826,6568135,11320,72720,0955,327632355142002New Media53,5781,8738,56443,09140,41915,3902,67150239121200569,1662,96511,62754,51251,16021,3133,35162294158200826,6568135,11320,72720,0955,327632355142002Computer Equipment53,5781,8738,56443,09140,41915,3902,67150239121200569,1662,96511,62754,51251,16021,3133,35162294158200869115162514487108271122002Performing Arts1,035362297686831518425620051,506683621,0739122381612782008913385044360002002Celebration16335610373233001020052451266166894077111200860012123464443105211122002Musical Instruments873331736656101285524620051,261552979078231988426720082,2221125301,5771,43549414131552002Publishing3,3602657962,2941,9725803225401520053,7493601,1372,2481,944516305436172008111198410002002Books222119154400020054283312914200020082,2111115291,5681,42849114131452002Other Printed Matter3,3382637952,2751,9575763185401520053,7073521,1342,2171,9145023034351720087,1912131,3295,6435,3751,135268735132002Visual Arts9,8253191,4108,0897,5321,3805568522720058,7844721,3376,9716,4421,7695305443220083632293247210163711222002Paintings53959147331255257527720057311252253782982880211920086,8291911,2365,3955,1641,118231623112002Photography9,2862601,2637,7587,2771,3564815452020058,0543461,1116,5936,1441,741450333232008SOURCE: UNCTAD secretariat calculations based on United Nations Comtrade database : (1) Developed economies, including Bulgaria and Romania.(2) Excluding Bulgaria and Romania, which are included in the European Union (EU-27).CREATIVE ECONOMY REPORT 2010357Statistical Annex Part 3
TABLEEXPORTS OF ROYALTIES AND LICENSE FEES, BY ECONOMIC(1) AND COUNTRY/TERRITORY, 2002-2008EXPORTS (in millions of $)Economic group andcountry/territory2002200320042005200620072008TOTAL REPORTING ECONOMIESROYALTIES AND LICENSE FEES82,96693,419115,541131,513142,259167,018182,091DEVELOPED ECONOMIESROYALTIES AND LICENSE FEES80,70090,405111,273126,875137,534161,732175,177AustraliaRoyalties and license fees324430517552621691703Franchises and similar rights-------Other royalties and license fees-------AustriaRoyalties and license fees243347372391540742905Franchises and similar rights-------Other royalties and license fees-------BelgiumRoyalties and license fees6498821,0211,3601,5441,6791,188Franchises and similar rights-------Other royalties and license fees-------BermudaRoyalties and license fees----000Franchises and similar rights----0-0Other royalties and license fees----000BulgariaRoyalties and license fees4575111111Franchises and similar rights--00102Other royalties and license fees457510119CanadaRoyalties and license fees2,4962,8103,0082,7653,1743,5053,432Franchises and similar rights-------Other royalties and license fees-------CyprusRoyalties and license fees43151815162112Franchises and similar rights0011576Other royalties and license fees4215171411156Czech RepublicRoyalties and license fees45503839313555Franchises and similar rights-120000Other royalties and license fees-503639313555EstoniaRoyalties and license fees554571127Franchises and similar rights-001434Other royalties and license fees-5453723FaroesRoyalties and license fees00-----Franchises and similar rights-------Other royalties and license fees-------FinlandRoyalties and license fees5605018391,2061,0701,2811,488Franchises and similar rights-------Other royalties and license fees-------FranceRoyalties and license fees3,3354,0745,1696,2176,2308,84110,269Franchises and similar rights-------Other royalties and license fees-------GermanyRoyalties and license fees3,8754,5085,5327,1416,9608,12910,020Franchises and similar rights3,0063,2123,8295,3634,6665,5746,638Other royalties and license fees8681,2961,7031,8332,7393,0943,382GreeceRoyalties and license fees13183260675244Franchises and similar rights-------Other royalties and license fees-------HungaryRoyalties and license fees349313540837550920864Franchises and similar rights--396977103125Other royalties and license fees--501768473817739IcelandRoyalties and license fees0-2-000Franchises and similar rights-------Other royalties and license fees-------IrelandRoyalties and license fees2822113527731,0281,1851,321Franchises and similar rights-------Other royalties and license fees-------358CREATIVE ECONOMY REPORT 2010Statistical Annex Part 3
(in millions of $)Economic group andcountry/territory2002200320042005200620072008ItalyRoyalties and license fees5395257691,1301,1161,050864Franchises and similar rights100114244460261227209Other royalties and license fees439410525669854823654JapanRoyalties and license fees10,42212,27115,70117,65520,09623,22925,701Franchises and similar rights-------Other royalties and license fees-------LatviaRoyalties and license fees34810111313Franchises and similar rights--21112Other royalties and license fees--69101112LithuaniaRoyalties and license fees0112101Franchises and similar rights--00-0-Other royalties and license fees-102101LuxembourgRoyalties and license fees116128200298395395336Franchises and similar rights-------Other royalties and license fees-------MaltaRoyalties and license fees11348144162171Franchises and similar rights-------Other royalties and license fees11348144162171NetherlandsRoyalties and license fees1,9632,9304,2053,8663,4814,3224,870Franchises and similar rights-------Other royalties and license fees-------New ZealandRoyalties and license fees7910810593123141178Franchises and similar rights-------Other royalties and license fees-------NorwayRoyalties and license fees171195242414674700642Franchises and similar rights-------Other royalties and license fees171195242414674700642PolandRoyalties and license fees3428306238103204Franchises and similar rights-------Other royalties and license fees-------PortugalRoyalties and license fees23292746718564Franchises and similar rights0002111Other royalties and license fees23292745708463RomaniaRoyalties and license fees338483541240Franchises and similar rights-------Other royalties and license fees3------SlovakiaRoyalties and license fees3850607590149164Franchises and similar rights---0010Other royalties and license fees---7590148164SloveniaRoyalties and license fees8111216171941Franchises and similar rights-----02Other royalties and license fees-----1839SpainRoyalties and license fees370528500565923537801Franchises and similar rights-------Other royalties and license fees-------SwedenRoyalties and license fees1,5162,3363,4543,4803,9924,7525,043Franchises and similar rights-----301455Other royalties and license fees-----4,3034,588SwitzerlandRoyalties and license fees-------Franchises and similar rights-------Other royalties and license fees-------United KingdomRoyalties and license fees8,68110,10011,78313,30213,75415,10813,904Franchises and similar rights-------Other royalties and license fees-------CREATIVE ECONOMY REPORT 2010359Statistical Annex Part 3
TABLEEXPORTS OF ROYALTIES AND LICENSE FEES, BY ECONOMIC(1) AND COUNTRY/TERRITORY, 2002-2008CONTINUEDEXPORTS (in millions of $)Economic group andcountry/territory2002200320042005200620072008United States Royalties and license fees44,50846,98856,71564,39570,72783,82491,600Franchises and similar rights-------Other royalties and license fees-------DEVELOPING ECONOMIESROYALTIES AND LICENSE FEES2,0092,7753,9304,2644,3174,7636,250AngolaRoyalties and license fees-----1212Franchises and similar rights-------Other royalties and license fees-----1212ArgentinaRoyalties and license fees3351615171106108Franchises and similar rights-------Other royalties and license fees-------BangladeshRoyalties and license fees0000000Franchises and similar rights-------Other royalties and license fees---0000BarbadosRoyalties and license fees112240-Franchises and similar rights-------Other royalties and license fees112240-BeninRoyalties and license fees00--0--Franchises and similar rights-------Other royalties and license fees-------BoliviaRoyalties and license fees2222222Franchises and similar rights-------Other royalties and license fees-------BotswanaRoyalties and license fees0350001Franchises and similar rights-------Other royalties and license fees-350001BrazilRoyalties and license fees100108114102150319465Franchises and similar rights-------Other royalties and license fees-------Burkina FasoRoyalties and license fees-------Franchises and similar rights-------Other royalties and license fees-------CambodiaRoyalties and license fees-000001Franchises and similar rights-------Other royalties and license fees-------CameroonRoyalties and license fees0000000Franchises and similar rights-------Other royalties and license fees-------Cape VerdeRoyalties and license fees10---0-Franchises and similar rights-------Other royalties and license fees-------ChileRoyalties and license fees41454854556164Franchises and similar rights-------Other royalties and license fees-------ChinaRoyalties and license fees133107236157205343571Franchises and similar rights-------Other royalties and license fees-------China, Hong Kong SARRoyalties and license fees229341218245259358380Franchises and similar rights-------Other royalties and license fees-------China, Macao SARRoyalties and license fees-------Franchises and similar rights-------Other royalties and license fees-------360CREATIVE ECONOMY REPORT 2010Statistical Annex Part 3
(in millions of $)Economic group andcountry/territory2002200320042005200620072008ColombiaRoyalties and license fees46810111730Franchises and similar rights-------Other royalties and license fees46810111730CongoRoyalties and license fees-------Franchises and similar rights-------Other royalties and license fees-------Costa RicaRoyalties and license fees2010--1Franchises and similar rights-------Other royalties and license fees---0---Côte d'IvoireRoyalties and license fees--0-0--Franchises and similar rights-------Other royalties and license fees--0-0--EcuadorRoyalties and license fees-------Franchises and similar rights-------Other royalties and license fees-------EgyptRoyalties and license fees38121100136138122-Franchises and similar rights-------Other royalties and license fees-------El SalvadorRoyalties and license fees2002101Franchises and similar rights-------Other royalties and license fees-------EthiopiaRoyalties and license fees--00000Franchises and similar rights-------Other royalties and license fees-----00FijiRoyalties and license fees410000-Franchises and similar rights-------Other royalties and license fees410000-French PolynesiaRoyalties and license fees0111000Franchises and similar rights-------Other royalties and license fees0111000GuatemalaRoyalties and license fees--2581112Franchises and similar rights--2581112Other royalties and license fees-------GuineaRoyalties and license fees00---00Franchises and similar rights-------Other royalties and license fees-----0-Guinea-BissauRoyalties and license fees-------Franchises and similar rights-------Other royalties and license fees-------GuyanaRoyalties and license fees34323435374143Franchises and similar rights-------Other royalties and license fees--3435374143HondurasRoyalties and license fees21-----Franchises and similar rights-------Other royalties and license fees-------IndiaRoyalties and license fees20245320661163148Franchises and similar rights-------Other royalties and license fees20245320661163148IndonesiaRoyalties and license fees--221263133127Franchises and similar rights-------Other royalties and license fees-------IraqRoyalties and license fees-----0-Franchises and similar rights-------Other royalties and license fees-----0-CREATIVE ECONOMY REPORT 2010361Statistical Annex Part 3
TABLEEXPORTS OF ROYALTIES AND LICENSE FEES, BY ECONOMIC(1) AND COUNTRY/TERRITORY, 2002-2008CONTINUEDEXPORTS (in millions of $)Economic group andcountry/territory2002200320042005200620072008JamaicaRoyalties and license fees6121013121517Franchises and similar rights6121013121516Other royalties and license fees----0-0KenyaRoyalties and license fees10121718102333Franchises and similar rights-------Other royalties and license fees-------Korea, Republic ofRoyalties and license fees8351,3111,8611,9082,0461,7352,382Franchises and similar rights----315281301Other royalties and license fees----1,7301,4542,080LebanonRoyalties and license fees-------Franchises and similar rights-------Other royalties and license fees-------MadagascarRoyalties and license fees0102---Franchises and similar rights-00----Other royalties and license fees-102---MalaysiaRoyalties and license fees122042272637199Franchises and similar rights-------Other royalties and license fees-2042272637199MaliRoyalties and license fees0-0000-Franchises and similar rights-------Other royalties and license fees--0000-MauritiusRoyalties and license fees--00000Franchises and similar rights-------Other royalties and license fees-------MexicoRoyalties and license fees48849270171120440Franchises and similar rights-------Other royalties and license fees-------MongoliaRoyalties and license fees-------Franchises and similar rights-------Other royalties and license fees-------MoroccoRoyalties and license fees11261613340Franchises and similar rights------0Other royalties and license fees-261613340MozambiqueRoyalties and license fees01512100Franchises and similar rights-------Other royalties and license fees01512100MyanmarRoyalties and license fees-------Franchises and similar rights-------Other royalties and license fees-------NamibiaRoyalties and license fees4------Franchises and similar rights-------Other royalties and license fees4------New CaledoniaRoyalties and license fees0000101Franchises and similar rights-------Other royalties and license fees0000101NigerRoyalties and license fees---0-0-Franchises and similar rights-------Other royalties and license fees-------Occupied Palestinian territoryRoyalties and license fees-00000-Franchises and similar rights-------Other royalties and license fees-------PakistanRoyalties and license fees681015533738Franchises and similar rights-------Other royalties and license fees--1015533738362CREATIVE ECONOMY REPORT 2010Statistical Annex Part 3
(in millions of $)Economic group andcountry/territory2002200320042005200620072008PanamaRoyalties and license fees-------Franchises and similar rights-------Other royalties and license fees-------Papua New GuineaRoyalties and license fees-------Franchises and similar rights-------Other royalties and license fees-------ParaguayRoyalties and license fees187193208219255287282Franchises and similar rights-------Other royalties and license fees187193208219255287282PeruRoyalties and license fees1102323Franchises and similar rights-------Other royalties and license fees1102323PhilippinesRoyalties and license fees1412665-Franchises and similar rights-412665-Other royalties and license fees-------Republic of MoldovaRoyalties and license fees1122264Franchises and similar rights-------Other royalties and license fees1122264RwandaRoyalties and license fees----0-62Franchises and similar rights-------Other royalties and license fees-------SamoaRoyalties and license fees-------Franchises and similar rights-------Other royalties and license fees-------SenegalRoyalties and license fees0--001-Franchises and similar rights-------Other royalties and license fees-------Sierra LeoneRoyalties and license fees-01----Franchises and similar rights-------Other royalties and license fees-------SingaporeRoyalties and license fees204196495623639822839Franchises and similar rights-------Other royalties and license fees-------Solomon IslandsRoyalties and license fees000-0--Franchises and similar rights-------Other royalties and license fees-------South AfricaRoyalties and license fees19273745465354Franchises and similar rights-------Other royalties and license fees-------SudanRoyalties and license fees-------Franchises and similar rights-------Other royalties and license fees-------SwazilandRoyalties and license fees000000-Franchises and similar rights-------Other royalties and license fees-------Syrian Arab RepublicRoyalties and license fees-------Franchises and similar rights-------Other royalties and license fees-------TogoRoyalties and license fees---00--Franchises and similar rights-------Other royalties and license fees-------TongaRoyalties and license fees-------Franchises and similar rights-------Other royalties and license fees-------CREATIVE ECONOMY REPORT 2010363Statistical Annex Part 3
TABLEEXPORTS OF ROYALTIES AND LICENSE FEES, BY ECONOMIC(1) AND COUNTRY/TERRITORY, 2002-2008CONTINUEDEXPORTS (in millions of $)Economic group andcountry/territory2002200320042005200620072008TunisiaRoyalties and license fees16181826262932Franchises and similar rights-------Other royalties and license fees16181826262932TurkeyRoyalties and license fees-------Franchises and similar rights-------Other royalties and license fees-------United Republic of TanzaniaRoyalties and license fees----00-Franchises and similar rights-------Other royalties and license fees----00-UruguayRoyalties and license fees0-00-00Franchises and similar rights-------Other royalties and license fees0-00-00Venezuela (Bolivarian Republic of)Royalties and license fees-------Franchises and similar rights-------Other royalties and license fees-------TRANSITION ECONOMIESROYALTIES AND LICENSE FEES258239338374408522665AlbaniaRoyalties and license fees-51511839Franchises and similar rights-4--1539Other royalties and license fees-2151020ArmeniaRoyalties and license fees-------Franchises and similar rights-------Other royalties and license fees-------AzerbaijanRoyalties and license fees---0000Franchises and similar rights-------Other royalties and license fees----000BelarusRoyalties and license fees1123636Franchises and similar rights-------Other royalties and license fees-------Bosnia and HerzegovinaRoyalties and license fees----445Franchises and similar rights-------Other royalties and license fees-------CroatiaRoyalties and license fees85354173474044Franchises and similar rights-------Other royalties and license fees-------GeorgiaRoyalties and license fees668913116Franchises and similar rights-------Other royalties and license fees668913116KazakhstanRoyalties and license fees-000---Franchises and similar rights-------Other royalties and license fees-000---KyrgyzstanRoyalties and license fees1112223Franchises and similar rights-------Other royalties and license fees1112223MontenegroRoyalties and license fees------2Franchises and similar rights-------Other royalties and license fees-------Russian FederationRoyalties and license fees159174227260299396453Franchises and similar rights-------Other royalties and license fees-------SerbiaRoyalties and license fees------27Franchises and similar rights------1Other royalties and license fees------27364CREATIVE ECONOMY REPORT 2010Statistical Annex Part 3
(in millions of $)Economic group andcountry/territory2002200320042005200620072008TajikistanRoyalties and license fees0111111Franchises and similar rights-------Other royalties and license fees-------The former Yugoslav Republic of MacedoniaRoyalties and license fees3233356Franchises and similar rights-------Other royalties and license fees-------UkraineRoyalties and license fees4144022325372Franchises and similar rights-------Other royalties and license fees-------SOURCE: IMF Balance of Payments Statistics and UNCTAD calculations based on IMF Balance of Payments : (1) Since it is not possible to disaggregate the overall royalty figures by identifying and listing only the data relevantfor the creative industries, the data for royalties are, therefore, not included in the total of creative services.- Data not available or not separately ECONOMY REPORT 2010365Statistical Annex Part 3
TABLEIMPORTS OF ROYALTIES AND LICENSE FEES, BY ECONOMIC(1) AND COUNTRY/TERRITORY, 2002-2008IMPORTS(in millions of $)Economic group andcountry/territory2002200320042005200620072008TOTAL REPORTING ECONOMIESROYALTIES AND LICENSE FEES90,545105,535126,851137,321141,976164,567185,198DEVELOPED ECONOMIESROYALTIES AND LICENSE FEES72,97283,81499,315105,878107,994125,329139,138AustraliaRoyalties and license fees1,1851,5031,7432,0052,1902,8083,026Franchises and similar rights-------Other royalties and license fees-------AustriaRoyalties and license fees1,0571,1181,2491,3341,3281,4811,598Franchises and similar rights-------Other royalties and license fees-------BelgiumRoyalties and license fees7419841,0361,0501,0751,9981,935Franchises and similar rights-------Other royalties and license fees-------BermudaRoyalties and license fees----559Franchises and similar rights----014Other royalties and license fees----445BulgariaRoyalties and license fees23243181697895Franchises and similar rights--3981513Other royalties and license fees23242772626383CanadaRoyalties and license fees4,4875,6226,5746,9026,9778,2138,766Franchises and similar rights-------Other royalties and license fees-------CyprusRoyalties and license fees15395345605648Franchises and similar rights62639107314Other royalties and license fees9121434545234Czech RepublicRoyalties and license fees119176174484528653726Franchises and similar rights-3931276655Other royalties and license fees-173165453501587672EstoniaRoyalties and license fees14141825294050Franchises and similar rights--13476Other royalties and license fees-141722263444FaroesRoyalties and license fees33-----Franchises and similar rights-------Other royalties and license fees-------FinlandRoyalties and license fees6056168001,1231,2991,4412,036Franchises and similar rights-------Other royalties and license fees-------FranceRoyalties and license fees1,8952,4263,0583,0943,3114,7314,916Franchises and similar rights-------Other royalties and license fees-------GermanyRoyalties and license fees5,3105,3345,8507,4457,84310,94911,958Franchises and similar rights2,6993,1193,4895,1265,0356,3417,743Other royalties and license fees2,6122,2162,3552,3192,8094,7644,837GreeceRoyalties and license fees287335466442406600713Franchises and similar rights-------Other royalties and license fees-------HungaryRoyalties and license fees4174641,0541,1081,1691,7522,007Franchises and similar rights--86105107117114Other royalties and license fees--9681,0031,0621,6361,893IcelandRoyalties and license fees1224454Franchises and similar rights-------Other royalties and license fees-------IrelandRoyalties and license fees11,00116,07718,84719,22320,81524,01830,082Franchises and similar rights-------Other royalties and license fees-------366CREATIVE ECONOMY REPORT 2010Statistical Annex Part 3
(in millions of $)Economic group andcountry/territory2002200320042005200620072008ItalyRoyalties and license fees1,2721,6981,7521,9411,8401,6801,811Franchises and similar rights382479754841750687905Other royalties and license fees8911,2199981,1001,090993906JapanRoyalties and license fees11,02111,00313,64414,65415,50016,67818,312Franchises and similar rights-------Other royalties and license fees-------LatviaRoyalties and license fees7101414204036Franchises and similar rights--12266Other royalties and license fees--1313183430LithuaniaRoyalties and license fees11181821242234Franchises and similar rights--22456Other royalties and license fees-181618201729LuxembourgRoyalties and license fees99109147137162401543Franchises and similar rights-------Other royalties and license fees-------MaltaRoyalties and license fees13151854344144Franchises and similar rights-------Other royalties and license fees13151854344144NetherlandsRoyalties and license fees2,6123,3603,3393,6922,8793,6623,529Franchises and similar rights-------Other royalties and license fees-------New ZealandRoyalties and license fees362466529554497585573Franchises and similar rights-------Other royalties and license fees-------NorwayRoyalties and license fees329394442469498622712Franchises and similar rights-------Other royalties and license fees329394442469498622712PolandRoyalties and license fees5577458831,0371,3131,5751,770Franchises and similar rights-------Other royalties and license fees-------PortugalRoyalties and license fees313305352339391450492Franchises and similar rights8121315161724Other royalties and license fees306293340324375433468RomaniaRoyalties and license fees8580108173236248346Franchises and similar rights-------Other royalties and license fees85------SlovakiaRoyalties and license fees63919994107124182Franchises and similar rights---0021Other royalties and license fees---94106122181SloveniaRoyalties and license fees7890123113154169250Franchises and similar rights-----28Other royalties and license fees-----167242SpainRoyalties and license fees1,8142,5203,0372,6362,5173,6203,336Franchises and similar rights-------Other royalties and license fees-------SwedenRoyalties and license fees8921,2771,4161,5131,6731,8091,968Franchises and similar rights-------Other royalties and license fees-------SwitzerlandRoyalties and license fees-------Franchises and similar rights-------Other royalties and license fees-------United KingdomRoyalties and license fees6,9307,8619,1749,4639,52010,12110,615Franchises and similar rights-------Other royalties and license fees-------CREATIVE ECONOMY REPORT 2010367Statistical Annex Part 3
TABLEIMPORTS OF ROYALTIES AND LICENSE FEES, BY ECONOMIC(1) AND COUNTRY/TERRITORY, 2002-2008CONTINUEDIMPORTS(in millions of $)Economic group andcountry/territory2002200320042005200620072008United States Royalties and license fees19,35319,03323,26624,61223,51924,65626,615Franchises and similar rights-------Other royalties and license fees-------DEVELOPING ECONOMIESROYALTIES AND LICENSE FEES16,96120,53225,96929,15931,22935,45840,008AngolaRoyalties and license fees--23110Franchises and similar rights-------Other royalties and license fees--23110ArgentinaRoyalties and license fees3514035216518061,0421,291Franchises and similar rights-------Other royalties and license fees-------BangladeshRoyalties and license fees34535819Franchises and similar rights-------Other royalties and license fees---35819BarbadosRoyalties and license fees252520293426-Franchises and similar rights-------Other royalties and license fees252520293426-BeninRoyalties and license fees122222-Franchises and similar rights-------Other royalties and license fees-------BoliviaRoyalties and license fees681011141618Franchises and similar rights-------Other royalties and license fees-------BotswanaRoyalties and license fees812111271113Franchises and similar rights-------Other royalties and license fees-12111271113BrazilRoyalties and license fees1,2291,2281,1971,4041,6642,2592,697Franchises and similar rights-------Other royalties and license fees-------Burkina FasoRoyalties and license fees-------Franchises and similar rights-------Other royalties and license fees-------CambodiaRoyalties and license fees56677106Franchises and similar rights-------Other royalties and license fees-------CameroonRoyalties and license fees12285617Franchises and similar rights-------Other royalties and license fees-------Cape VerdeRoyalties and license fees0000010Franchises and similar rights-------Other royalties and license fees-------ChileRoyalties and license fees251257307348384448513Franchises and similar rights-------Other royalties and license fees-------ChinaRoyalties and license fees3,1143,5484,4975,3216,6348,19210,320Franchises and similar rights-------Other royalties and license fees-------China, Hong Kong SARRoyalties and license fees6968641,1111,2891,3571,5041,610Franchises and similar rights-------Other royalties and license fees-------China, Macao SARRoyalties and license fees2235645102Franchises and similar rights-------Other royalties and license fees-------368CREATIVE ECONOMY REPORT 2010Statistical Annex Part 3
(in millions of $)Economic group andcountry/territory2002200320042005200620072008ColombiaRoyalties and license fees867682118127188263Franchises and similar rights-------Other royalties and license fees867682118127188263CongoRoyalties and license fees-------Franchises and similar rights-------Other royalties and license fees-------Costa RicaRoyalties and license fees51645157875362Franchises and similar rights-------Other royalties and license fees---578753-Côte d'IvoireRoyalties and license fees61122101022-Franchises and similar rights-------Other royalties and license fees--22101022-EcuadorRoyalties and license fees44434343444547Franchises and similar rights-------Other royalties and license fees444343434445-EgyptRoyalties and license fees171165108182159241322Franchises and similar rights-------Other royalties and license fees-------El SalvadorRoyalties and license fees20221830272434Franchises and similar rights-------Other royalties and license fees-------EthiopiaRoyalties and license fees0001122Franchises and similar rights-------Other royalties and license fees-----22FijiRoyalties and license fees1111122Franchises and similar rights-------Other royalties and license fees1111122French PolynesiaRoyalties and license fees2221212Franchises and similar rights-------Other royalties and license fees2221212GuatemalaRoyalties and license fees--4049607262Franchises and similar rights--4049607262Other royalties and license fees-------GuineaRoyalties and license fees110--00Franchises and similar rights-------Other royalties and license fees-----0-Guinea-BissauRoyalties and license fees0-0----Franchises and similar rights-------Other royalties and license fees0-0----GuyanaRoyalties and license fees22181919202123Franchises and similar rights-------Other royalties and license fees--1919202123HondurasRoyalties and license fees15191921272818Franchises and similar rights-------Other royalties and license fees-------IndiaRoyalties and license fees3455506116728461,1601,578Franchises and similar rights-------Other royalties and license fees3455506116728461,1601,578IndonesiaRoyalties and license fees--9909618721,0851,328Franchises and similar rights-------Other royalties and license fees-------IraqRoyalties and license fees---29-204-Franchises and similar rights-------Other royalties and license fees---29-204-CREATIVE ECONOMY REPORT 2010369Statistical Annex Part 3
TABLEIMPORTS OF ROYALTIES AND LICENSE FEES, BY ECONOMIC(1) AND COUNTRY/TERRITORY, 2002-2008CONTINUEDIMPORTS(in millions of $)Economic group andcountry/territory2002200320042005200620072008JamaicaRoyalties and license fees3211911114848Franchises and similar rights321191114747Other royalties and license fees--0-1011KenyaRoyalties and license fees42395037202428Franchises and similar rights-------Other royalties and license fees-------Korea, Republic ofRoyalties and license fees3,0023,5704,4464,5614,6505,1345,656Franchises and similar rights----8019621,001Other royalties and license fees----3,8504,1724,655LebanonRoyalties and license fees--0----Franchises and similar rights-------Other royalties and license fees-------MadagascarRoyalties and license fees237239---Franchises and similar rights-064---Other royalties and license fees-6175---MalaysiaRoyalties and license fees6287828961,3709541,1801,268Franchises and similar rights-------Other royalties and license fees-7828961,3709541,1801,268MaliRoyalties and license fees111111-Franchises and similar rights-------Other royalties and license fees--1111-MauritiusRoyalties and license fees2245466Franchises and similar rights-------Other royalties and license fees-------MexicoRoyalties and license fees720608805111503--Franchises and similar rights-------Other royalties and license fees-------MongoliaRoyalties and license fees-------Franchises and similar rights-------Other royalties and license fees-------MoroccoRoyalties and license fees41293745493615Franchises and similar rights------1Other royalties and license fees-293745493614MozambiqueRoyalties and license fees0135222Franchises and similar rights-------Other royalties and license fees0135222MyanmarRoyalties and license fees-------Franchises and similar rights-------Other royalties and license fees-------NamibiaRoyalties and license fees24323215Franchises and similar rights-------Other royalties and license fees24323215New CaledoniaRoyalties and license fees2332235Franchises and similar rights-------Other royalties and license fees2332235NigerRoyalties and license fees100100-Franchises and similar rights-------Other royalties and license fees-------Occupied Palestinian territoryRoyalties and license fees202321-Franchises and similar rights-------Other royalties and license fees-------PakistanRoyalties and license fees183686109106107117Franchises and similar rights-------Other royalties and license fees--86109106107117370CREATIVE ECONOMY REPORT 2010Statistical Annex Part 3
(in millions of $)Economic group andcountry/territory2002200320042005200620072008PanamaRoyalties and license fees47424645435638Franchises and similar rights-------Other royalties and license fees-------Papua New GuineaRoyalties and license fees-------Franchises and similar rights-------Other royalties and license fees-------ParaguayRoyalties and license fees5522312Franchises and similar rights---1211Other royalties and license fees5521211PeruRoyalties and license fees717478828690140Franchises and similar rights-------Other royalties and license fees717478828690140PhilippinesRoyalties and license fees236278273265349385382Franchises and similar rights236278273265349385382Other royalties and license fees-------Republic of MoldovaRoyalties and license fees13324715Franchises and similar rights-------Other royalties and license fees13324715RwandaRoyalties and license fees0---1--Franchises and similar rights-------Other royalties and license fees-------SamoaRoyalties and license fees--00-0-Franchises and similar rights-------Other royalties and license fees-------SenegalRoyalties and license fees317758-Franchises and similar rights-------Other royalties and license fees-------Sierra LeoneRoyalties and license fees-000121Franchises and similar rights-------Other royalties and license fees-------SingaporeRoyalties and license fees4,7936,6357,9189,3128,9968,9549,148Franchises and similar rights-------Other royalties and license fees-------Solomon IslandsRoyalties and license fees00001--Franchises and similar rights-------Other royalties and license fees-------South AfricaRoyalties and license fees4476178911,0711,2821,5961,676Franchises and similar rights-------Other royalties and license fees-------SudanRoyalties and license fees------0Franchises and similar rights-------Other royalties and license fees------0SwazilandRoyalties and license fees547176105106121-Franchises and similar rights-------Other royalties and license fees-------Syrian Arab RepublicRoyalties and license fees-1010122025-Franchises and similar rights-------Other royalties and license fees-10101220--TogoRoyalties and license fees012375-Franchises and similar rights-------Other royalties and license fees-------TongaRoyalties and license fees-------Franchises and similar rights-------Other royalties and license fees-------CREATIVE ECONOMY REPORT 2010371Statistical Annex Part 3
TABLEIMPORTS OF ROYALTIES AND LICENSE FEES, BY ECONOMIC(1)GROUP AND COUNTRY/TERRITORY, (in millions of $)Economic group andcountry/territory2002200320042005200620072008TunisiaRoyalties and license fees6688111012Franchises and similar rights-------Other royalties and license fees6688111012TurkeyRoyalties and license fees107167362439531647729Franchises and similar rights-------Other royalties and license fees107167362439531647729United Republic of TanzaniaRoyalties and license fees0110150Franchises and similar rights-------Other royalties and license fees0110150UruguayRoyalties and license fees71447788Franchises and similar rights-------Other royalties and license fees71447788Venezuela (Bolivarian Republic of)Royalties and license fees211183219239257276349Franchises and similar rights-------Other royalties and license fees-------TRANSITION ECONOMIESROYALTIES AND LICENSE FEES6121,1891,5662,2832,7533,7806,052AlbaniaRoyalties and license fees-85471212Franchises and similar rights-6--588Other royalties and license fees-354244ArmeniaRoyalties and license fees-------Franchises and similar rights-------Other royalties and license fees-------AzerbaijanRoyalties and license fees20-0155Franchises and similar rights----000Other royalties and license fees----155BelarusRoyalties and license fees36920515379Franchises and similar rights-------Other royalties and license fees-------Bosnia and HerzegovinaRoyalties and license fees----81011Franchises and similar rights-------Other royalties and license fees-------CroatiaRoyalties and license fees77131146193175214257Franchises and similar rights-------Other royalties and license fees-------GeorgiaRoyalties and license fees111165558Franchises and similar rights-------Other royalties and license fees111165558KazakhstanRoyalties and license fees20202631486887Franchises and similar rights-------Other royalties and license fees20202631486887KyrgyzstanRoyalties and license fees3436191215Franchises and similar rights-------Other royalties and license fees3436191215MontenegroRoyalties and license fees------11Franchises and similar rights-------Other royalties and license fees-------Russian FederationRoyalties and license fees3747111,0941,5932,0022,8064,595Franchises and similar rights-------Other royalties and license fees-------SerbiaRoyalties and license fees------192Franchises and similar rights------14Other royalties and license fees------178372CREATIVE ECONOMY REPORT 2010Statistical Annex Part 3
(in millions of $)Economic group andcountry/territory2002200320042005200620072008TajikistanRoyalties and license fees1000010Franchises and similar rights-------Other royalties and license fees-------The former Yugoslav Republic of MacedoniaRoyalties and license fees10791091925Franchises and similar rights-------Other royalties and license fees-------UkraineRoyalties and license fees110292268421428577754Franchises and similar rights-------Other royalties and license fees-------SOURCE: IMF Balance of Payments Statistics and UNCTAD calculations based on IMF Balance of Payments : (1) Since it is not possible to disaggregate the overall royalty figures by identifying and listing only the data relevantfor the creative industries, the data for royalties are, therefore, not included in the total of creative services.- Data not available or not separately ECONOMY REPORT 2010373Statistical Annex Part 3
TABLEEXPORTS OF COMPUTER AND INFORMATION SERVICES, BY(1) GROUP AND COUNTRY/TERRITORY, 2002-2008EXPORTS (in millions of $)Economic group andcountry/territory2002200320042005200620072008TOTAL REPORTING ECONOMIESCOMPUTER AND INFORMATION53,94470,77490,653102,405125,975159,407195,490DEVELOPED ECONOMIESCOMPUTER AND INFORMATION42,78155,82770,04575,38388,730110,460130,042AustraliaComputer and information6407699398861,0601,2901,418Computer- - - - - - - Information-------AustriaComputer and information4206578991,2341,5031,8332,155Computer- - - - - - - Information-------BelgiumComputer and information1,7742,1322,4412,5812,8692,9823,734Computer1,6952,0662,3752,5262,7332,7703,494Information78666655136212240BermudaComputer and information- - - - 584852Computer----574852Information- - - - 10- BulgariaComputer and information715283356124187Computer- - 262951117171Information715335716CanadaComputer and information2,2662,7963,0143,6004,2964,5974,642Computer- - - - - - - Information-------CyprusComputer and information10492250229202275235Computer10186244219192260223Information36610101512Czech RepublicComputer and information144771415878858031,344Computer139711335848817961,331Information56834713EstoniaComputer and information2431395492140174Computer- 27334783120155Information-467102019FaroesComputer and information00- - - - - Computer- - -----Information--- - - - - FinlandComputer and information5035667551,5111,4751,8468,190Computer4895567161,487- 1,8428,180Information15103924-410FranceComputer and information1,1931,2641,4911,7061,9691,9031,529Computer- - - - - - - Information-------GermanyComputer and information5,5316,6978,0888,3869,98912,71615,306Computer5,5316,6978,0888,3869,98912,71615,306Information- - - - - - - GreeceComputer and information80135199173203236352Computer70119176152183217328Information10162321201924HungaryComputer and information2002443383825118421,132Computer- - 3303604888131,058Information--822242974IcelandComputer and information35445669899285Computer- - - - - - - Information-------IrelandComputer and information10,44714,23818,77419,58621,04029,82534,162Computer10,44714,238- 19,36220,86029,530- Information- - -225179296-374CREATIVE ECONOMY REPORT 2010Statistical Annex Part 3
(in millions of $)Economic group andcountry/territory2002200320042005200620072008ItalyComputer and information3885015896369289141,141Computer3534565566057728731,108Information354532301564133JapanComputer and information1,1401,0761,0431,126966966946Computer- - - - - - - Information-------LatviaComputer and information253343547399139Computer233139506691128Information21457812LithuaniaComputer and information19293128182440Computer14193027172339Information5911111LuxembourgComputer and information3081,1992,2832,3232,2871,3981,309Computer- - - - - - - Information-------MaltaComputer and information451545495153Computer451545493547Information- - - - - - - NetherlandsComputer and information1,4222,8843,7023,7234,9696,4196,684Computer- - - - - - - Information-------New ZealandComputer and information118129168193191218227Computer- - - - - - - Information-------NorwayComputer and information3013735668991,3761,1261,953Computer3013735668991,3761,1261,953Information- - - - - - - PolandComputer and information99134195196407663938Computer72106173179380621874Information27282217274264PortugalComputer and information76108142149213321393Computer73101137136206313374Information475137819RomaniaComputer and information78108143332474620880Computer78108143326469616872Information- - - 6548SlovakiaComputer and information7184116116170210303Computer- 84- 114168209301Information-- -2322SloveniaComputer and information808898112123149196Computer- - - - - - 177Information------19SpainComputer and information2,4902,9132,9643,6063,9605,3586,119Computer6227226118499121,0591,608Information1,8682,1912,3522,7563,0484,2994,511SwedenComputer and information1,4721,9932,5372,6883,5856,5267,841Computer1,3401,8572,4462,5963,4626,3927,545Information1321369191122- 295SwitzerlandComputer and information- - - - - - - Computer-------Information- - - - - - - United KingdomComputer and information5,9298,15911,25810,82212,56414,20713,583Computer- - - - - - - Information-------CREATIVE ECONOMY REPORT 2010375Statistical Annex Part 3
TABLEEXPORTS OF COMPUTER AND INFORMATION SERVICES, BY(1)ECONOMIC GROUP AND COUNTRY/TERRITORY, (in millions of $)Economic group andcountry/territory2002200320042005200620072008United States Computer and information5,3936,2536,7007,31910,07911,63812,599Computer2,9883,3343,4543,5545,7346,8878,044Information2,4052,9193,2463,7654,3444,7504,555DEVELOPING ECONOMIESCOMPUTER AND INFORMATION10,93114,65720,21126,40136,31847,35662,895AngolaComputer and information- - - - - - - Computer-------Information- - - - - - - ArgentinaComputer and information127166193238378655897Computer127166193235374651893Information- - 13443BangladeshComputer and information351019311630Computer351019311630Information0000000BarbadosComputer and information181820232111- Computer- - - 16- 1-Information---7-10- BeninComputer and information- - 0011- Computer--0011-Information- - - - - - - BoliviaComputer and information0000001Computer0000000Information- - - - - 00BotswanaComputer and information2101161Computer- 101161Information-- - - - - - BrazilComputer and information36295388102161189Computer3323468098151181Information46784108Burkina FasoComputer and information- - - - - - - Computer-------Information- - - - - - - CambodiaComputer and information- - 00- 21Computer--00-21Information- - - - - - - CameroonComputer and information0210001Computer- - - - - - - Information-------Cape VerdeComputer and information0000000Computer000- - - - Information- - - ----ChileComputer and information63817174788296Computer- - - - - - - Information-------ChinaComputer and information6381,1021,6371,8402,9584,3456,252Computer- - - - - - - Information-------China, Hong Kong SARComputer and information208245245265358277681Computer- - - - - - - Information-------China, Macao SARComputer and information- - - - - - - Computer-------Information- - - - - - - 376CREATIVE ECONOMY REPORT 2010Statistical Annex Part 3
(in millions of $)Economic group andcountry/territory2002200320042005200620072008ColombiaComputer and information6161721353047Computer4141516292437Information2225669CongoComputer and information- - - - - - - Computer-------Information- - - - - - - Costa RicaComputer and information153167200255418500694Computer153167200254417499693Information0000000Côte d'IvoireComputer and information324555- Computer- - 4555-Information--- - - - - EcuadorComputer and information- - - - - - - Computer-------Information- - - - - - - EgyptComputer and information272333255288219Computer- - - - - - - Information-------El SalvadorComputer and information000- 1- 1Computer000-1-1Information- - - - - - - EthiopiaComputer and information1000012Computer0- 00000Information0000001FijiComputer and information0023242Computer0023242Information- - - - - - - French PolynesiaComputer and information- - - - - - - Computer-------Information- - - - - - - GuatemalaComputer and information72210131111Computer- - 210131111Information72- - - - - GuineaComputer and information0- - - - - 0Computer0------ Information- - - - - - -Guinea-BissauComputer and information- - - - - - - Computer-------Information- - - - - - - GuyanaComputer and information4445555Computer4445555Information- - - - - - - HondurasComputer and information- 000100Computer-- - - - - - Information- ------IndiaComputer and information8,88911,87616,34421,87529,08837,49149,379Computer8,86111,78216,20421,71128,78737,03248,626Information2994140164301459753IndonesiaComputer and information- - 138147118141178Computer--- - - - - Information- - -----IraqComputer and information- - - 1- 10- Computer---- -10-Information- - - 1- - - CREATIVE ECONOMY REPORT 2010377Statistical Annex Part 3
TABLEEXPORTS OF COMPUTER AND INFORMATION SERVICES, BY(1) GROUP AND COUNTRY/TERRITORY, 2002-2008CONTINUEDEXPORTS (in millions of $)Economic group andcountry/territory2002200320042005200620072008JamaicaComputer and information34363334292729Computer34363234282729Information- - 11101KenyaComputer and information1001111Computer- - - - - - - Information1001111Korea, Republic ofComputer and information20302557248340304Computer- - - - 182192155Information----67149149LebanonComputer and information000000- Computer- - - - - - -Information000000- MadagascarComputer and information- 110- - - Computer-110---Information- 000- - - MalaysiaComputer and information1822163484355747881,025Computer1822163484355747881,025Information- - - - - - - MaliComputer and information0- 0- - - - Computer- -- ----Information-- 0- - - - MauritiusComputer and information691217242016Computer- - - - - - - Information-------MexicoComputer and information- - - - - - - Computer-------Information- - - - - - - MongoliaComputer and information12110- - Computer- 2110--Information-- - - - - - MoroccoComputer and information- - - - - - 156Computer------147Information- - - - - - 9MozambiqueComputer and information0012343Computer- - - - 112Information0012221MyanmarComputer and information- - - - - - - Computer-------Information- - - - - - - NamibiaComputer and information- 000110Computer-000110Information- - - - - - - New CaledoniaComputer and information1000001Computer1000001Information- - - - - - - NigerComputer and information00000- - Computer- - - - - --Information------ - Occupied Palestinian territoryComputer and information110010- Computer- - - - - - -Information------- PakistanComputer and information2134385987126187Computer2126385987126183Information- 8- - - - 4378CREATIVE ECONOMY REPORT 2010Statistical Annex Part 3
(in millions of $)Economic group andcountry/territory2002200320042005200620072008PanamaComputer and information- - 1412141824Computer--1412141824Information- - - - - - - Papua New GuineaComputer and information- 001- - - Computer-- - - ---Information- ---- - - ParaguayComputer and information0000230Computer- - - - 22- Information0000010PeruComputer and information- - - - - - 18Computer------- Information- - - - - - 18PhilippinesComputer and information3728338995305400Computer3728338995305400Information- - - - - - - Republic of MoldovaComputer and information113481426Computer11113820Information0023566RwandaComputer and information- - - - - - - Computer-------Information- - - - - - - SamoaComputer and information- - 0020- Computer--- - - - -Information- - ----- SenegalComputer and information000134- Computer- - - - - - -Information------- Sierra LeoneComputer and information- - - - - - - Computer-------Information- - - - - - - SingaporeComputer and information3534014855141,2151,3761,573Computer- - - - - - - Information-------Solomon IslandsComputer and information00000- - Computer- - - - - --Information------ - South AfricaComputer and information456689109129223203Computer- - - - - - - Information-------SudanComputer and information0- - - 011Computer0---011Information- - - - - - - SwazilandComputer and information110000- Computer- - - - - - -Information------- Syrian Arab RepublicComputer and information- 5050605055- Computer-5050605055-Information- - - - - - - TogoComputer and information0110- - - Computer- - - - ---Information----- - - TongaComputer and information- - - - - 0- Computer-----0-Information- - - - - - - CREATIVE ECONOMY REPORT 2010379Statistical Annex Part 3
TABLEEXPORTS OF COMPUTER AND INFORMATION SERVICES, BY(1)ECONOMIC GROUP AND COUNTRY/TERRITORY, (in millions of $)Economic group andcountry/territory2002200320042005200620072008TunisiaComputer and information18191819242735Computer18191819242735Information- - - - - - - TurkeyComputer and information- - - - 121513Computer----- - - Information- - - - 121513United Republic of TanzaniaComputer and information1000034Computer1000034Information- - - - - - - UruguayComputer and information14127283122154180Computer14127283122154180Information- - - - - - - Venezuela (Bolivarian Republic of)Computer and information7668899Computer- - - - - - - Information-------TRANSITION ECONOMIESCOMPUTER AND INFORMATION2312903976229271,5902,553AlbaniaComputer and information11131319Computer11021218Information- 001012ArmeniaComputer and information10111822334450Computer10111822314147Information- - - - 223AzerbaijanComputer and information- - - 0348Computer---- 122Information- - - -226BelarusComputer and information121718264997155Computer111615254895152Information2222223Bosnia and HerzegovinaComputer and information- - - - - - - Computer-------Information- - - - - - - CroatiaComputer and information4662658584116152Computer- - - - - - - Information-------GeorgiaComputer and information- - 00124Computer--- - 011Information- - 00012KazakhstanComputer and information0111128Computer0001111Information0000117KyrgyzstanComputer and information1111111Computer1111111Information- - - - - - - MontenegroComputer and information- - - - - - 4Computer------- Information- - - - - - -Russian FederationComputer and information1501752564226321,0971,644Computer1091352093755761,0121,549Information41404747568594SerbiaComputer and information- - - - - - 141Computer------141Information- - - - - - - 380CREATIVE ECONOMY REPORT 2010Statistical Annex Part 3
(in millions of $)Economic group andcountry/territory2002200320042005200620072008TajikistanComputer and information0000000Computer0000000Information- - - - - - - The former Yugoslav Republic of MacedoniaComputer and information25917243350Computer- - - - - - - Information-------UkraineComputer and information1017304497191316Computer- - - - - - - Information-------SOURCE: IMF Balance of Payments Statistics and UNCTAD calculations based on IMF Balance of Payments : (1) Since it is not possible to disaggregate the overall computer and information services by identifying andlisting only the data relevant for the creative industries, the data for computer and information services are,therefore, not included in the total of creative services.- Data not available or not separately ECONOMY REPORT 2010381Statistical Annex Part 3
TABLEIMPORTS OF COMPUTER AND INFORMATION SERVICES, BY(1)ECONOMIC GROUP AND COUNTRY/TERRITORY, (in millions of $)Economic group andcountry/territory2002200320042005200620072008TOTAL REPORTING ECONOMIESCOMPUTER AND INFORMATION30,29735,01141,25048,28767,33081,49691,721DEVELOPED ECONOMIESCOMPUTER AND INFORMATION25,01429,81034,57739,62456,42167,49974,785AustraliaComputer and information5436967828029351,2421,313Computer- - - - - - - Information-------AustriaComputer and information5066678579491,0801,4511,741Computer- - - - - - - Information-------BelgiumComputer and information1,3951,6062,0031,8671,9852,2062,648Computer1,3601,5681,9561,8121,9262,0982,581Information3538475559107118BermudaComputer and information- - - - 312844Computer----272440Information- - - - 444BulgariaComputer and information14182340547467Computer- - 1933456351Information141847101116CanadaComputer and information1,3041,6361,7051,8022,0332,5022,196Computer- - - - - - - Information-------CyprusComputer and information10373335343844Computer8192528252837Information218869117Czech RepublicComputer and information122150220457538759905Computer114138207446521736837Information8111211172473EstoniaComputer and information15212933477197Computer- 182328416186Information-45561011FaroesComputer and information45- - - - - Computer- - -----Information--- - - - - FinlandComputer and information3724827351,1571,1261,5011,909Computer3424606971,1251,1101,4791,882Information30223931152326FranceComputer and information1,2031,2391,4441,7901,9882,2902,116Computer- - - - - - - Information-------GermanyComputer and information6,1817,2748,1398,5949,23111,78113,541Computer6,0557,2748,1398,5949,24311,86013,675Information126- - - - - - GreeceComputer and information185188224222254383469Computer150146177168186285388Information35414753689881HungaryComputer and information171267392494563693784Computer- - 376452516639721Information--1642485483IcelandComputer and information314812172321Computer- - - - - - - Information-------IrelandComputer and information5533713804376679071,009Computer553371- 379610724- Information- - -5956184-382CREATIVE ECONOMY REPORT 2010Statistical Annex Part 3
(in millions of $)Economic group andcountry/territory2002200320042005200620072008ItalyComputer and information1,0651,0551,2321,5341,7231,7862,021Computer1,0241,0161,1871,4731,6591,7091,947Information41394461647773JapanComputer and information2,1482,1092,1882,4323,1233,6073,972Computer- - - - - - - Information-------LatviaComputer and information172328516388101Computer14201938425965Information33913212937LithuaniaComputer and information11162023232739Computer8101614192128Information46494611LuxembourgComputer and information283366582678670757776Computer- - - - - - - Information-------MaltaComputer and information341630527191Computer341630527191Information- - - - - - - NetherlandsComputer and information1,5862,3523,1073,6974,4485,4705,733Computer- - - - - - - Information-------New ZealandComputer and information122134197248276305339Computer- - - - - - - Information-------NorwayComputer and information6015075731,0061,2681,6781,780Computer6015075731,0061,2681,6781,780Information- - - - - - - PolandComputer and information272351420421585874982Computer216300384390520780891Information56513631659491PortugalComputer and information188226208246328402505Computer167188178218288351443Information21383028405163RomaniaComputer and information274583351422463738Computer274583342414454722Information- - - 98916SlovakiaComputer and information81123172181200238331Computer- 123- 162174209282Information-- -20262949SloveniaComputer and information81101120125144186179Computer- - - - - - 143Information------36SpainComputer and information1,5771,6721,6902,0212,1132,6332,848Computer9371,0801,1661,3351,3061,5741,895Information6405925236868081,060953SwedenComputer and information8671,1791,4151,5172,2572,8243,035Computer7001,0681,2881,3812,1222,8243,035Information167111128135135- - SwitzerlandComputer and information- - - - - - - Computer-------Information- - - - - - - United KingdomComputer and information1,9912,9393,4074,0224,7095,3356,274Computer- - - - - - - Information-------CREATIVE ECONOMY REPORT 2010383Statistical Annex Part 3
TABLEIMPORTS OF COMPUTER AND INFORMATION SERVICES, BY(1) GROUP AND COUNTRY/TERRITORY, 2002-2008CONTINUEDIMPORTS(in millions of $)Economic group andcountry/territory2002200320042005200620072008United States Computer and information1,5151,9392,1472,34913,43414,80616,139Computer1,3011,7321,8612,00012,84714,05215,214Information214207287349587754925DEVELOPING ECONOMIESCOMPUTER AND INFORMATION4,5494,5216,0787,8069,84012,48314,481AngolaComputer and information12818122327Computer12818122327Information- - - - - - - ArgentinaComputer and information131139160195226310372Computer128136156191214297355Information2454121417BangladeshComputer and information1124345Computer0014234Information1110011BarbadosComputer and information6778611- Computer- - - 6- 3-Information---2-8- BeninComputer and information212344- Computer212344- Information- - - - - - -BoliviaComputer and information581011131617Computer478912109Information1122258BotswanaComputer and information46794710Computer- 6794710Information-- - - - - - BrazilComputer and information1,1551,0631,2811,7132,0052,2732,787Computer1,0861,0141,2361,6571,9472,2052,701Information69494556586886Burkina FasoComputer and information- - - - - - - Computer-------Information- - - - - - - CambodiaComputer and information- 110012Computer-110012Information- - - - - - - CameroonComputer and information02293229Computer- - - - - - - Information-------Cape VerdeComputer and information2345495Computer234- - - - Information- - - ----ChileComputer and information41757471735871Computer- - - - - - - Information-------ChinaComputer and information1,1331,0361,2531,6231,7392,2083,165Computer- - - - - - - Information-------China, Hong Kong SARComputer and information225282395427371423512Computer- - - - - - - Information-------China, Macao SARComputer and information16172425334642Computer- - - - - - - Information-------384CREATIVE ECONOMY REPORT 2010Statistical Annex Part 3
(in millions of $)Economic group andcountry/territory2002200320042005200620072008ColombiaComputer and information29726611914372118Computer2265581101325991Information7799111327CongoComputer and information- - - - - - - Computer-------Information- - - - - - - Costa RicaComputer and information1510161114156Computer1410161113156Information1000000Côte d'IvoireComputer and information7118667- Computer- - 8667-Information--- - - - - EcuadorComputer and information- - - - - - - Computer-------Information- - - - - - - EgyptComputer and information14272427303679Computer- - - - - - - Information-------El SalvadorComputer and information9363475Computer9363475Information- - - - - - - EthiopiaComputer and information1234454Computer0011110Information1223344FijiComputer and information45111281716Computer45111281716Information- - - - - - - French PolynesiaComputer and information0021000Computer0021000Information- - - - - - - GuatemalaComputer and information413211108Computer- - 3211108Information41- - - - - GuineaComputer and information100- - 07Computer10- --0- Information- - -- - - -Guinea-BissauComputer and information100- - - - Computer100----Information- - - - - - - GuyanaComputer and information3334445Computer3334445Information- - - - - - - HondurasComputer and information223512154Computer- - - - - - - Information-------IndiaComputer and information9056869321,2661,9573,4733,419Computer7004917221,0491,7993,0953,087Information206194210217158378332IndonesiaComputer and information- - 468561595679713Computer--- - - - - Information- - -----IraqComputer and information- - - 20517765- Computer---17311-Information- - - 18914665- CREATIVE ECONOMY REPORT 2010385Statistical Annex Part 3
TABLEIMPORTS OF COMPUTER AND INFORMATION SERVICES, BY(1) GROUP AND COUNTRY/TERRITORY, 2002-2008CONTINUEDIMPORTS (in millions of $)Economic group andcountry/territory2002200320042005200620072008JamaicaComputer and information12207517242424Computer12207517232222Information- - 00122KenyaComputer and information1212222Computer- - - - - - - Information1212222Korea, Republic ofComputer and information124134157183598544571Computer- - - - 311243278Information----287301293LebanonComputer and information0000010Computer- - - - - - - Information0000010MadagascarComputer and information- 231- - - Computer-000---Information- 131- - - MalaysiaComputer and information172197325379531644896Computer172197325379531644896Information- - - - - - - MaliComputer and information126864- Computer- - - - - - -Information--6864- MauritiusComputer and information8886876Computer- - - - - - - Information-------MexicoComputer and information- - - - - - - Computer-------Information- - - - - - - MongoliaComputer and information01120- - Computer- 1120--Information-- - - - - - MoroccoComputer and information- - - - - - 35Computer------25Information- - - - - - 10MozambiqueComputer and information0014676Computer- - - - 611Information0014156MyanmarComputer and information- - - - - - - Computer-------Information- - - - - - - NamibiaComputer and information9121513211619Computer9121513211619Information- - - - - - - New CaledoniaComputer and information76544726Computer76544726Information- - - - - - - NigerComputer and information467791- Computer- - - - - - -Information------- Occupied Palestinian territoryComputer and information011211- Computer- - - - - - -Information------- PakistanComputer and information- 6183465122113Computer-4143061113103Information- 2444910386CREATIVE ECONOMY REPORT 2010Statistical Annex Part 3
(in millions of $)Economic group andcountry/territory2002200320042005200620072008PanamaComputer and information- - - - - - - Computer-------Information- - - - - - - Papua New GuineaComputer and information- 101412- - - Computer-- - - ---Information- ---- - - ParaguayComputer and information1112222Computer1111011Information- 001111PeruComputer and information- - - - - - 167Computer------- Information- - - - - - 167PhilippinesComputer and information80464962676280Computer80464962676280Information- - - - - - - Republic of MoldovaComputer and information1236461616Computer32223119Information8142347RwandaComputer and information- - - - 001Computer----- 0- Information- - - - 0- 1SamoaComputer and information- - 1122- Computer--- - - - -Information- - ----- SenegalComputer and information37771019- Computer- - - - - - -Information------- Sierra LeoneComputer and information0101112Computer0001111Information- 10- 000SingaporeComputer and information272330315386650670766Computer- - - - - - - Information-------Solomon IslandsComputer and information11212- - Computer- - - - - --Information------ - South AfricaComputer and information445984114127171194Computer- - - - - - - Information-------SudanComputer and information1135424Computer1135424Information- - - - - - - SwazilandComputer and information111223- Computer- - - - - - -Information------- Syrian Arab RepublicComputer and information- 11010010095110- Computer-11010010095110-Information- - - - - - - TogoComputer and information211014- Computer- - - - - - -Information------- TongaComputer and information- - - - - 0- Computer-----0-Information- - - - - - - CREATIVE ECONOMY REPORT 2010387Statistical Annex Part 3
TABLEIMPORTS OF COMPUTER AND INFORMATION SERVICES, BY(1) GROUP AND COUNTRY/TERRITORY, 2002-2008CONTINUEDIMPORTS (in millions of $)Economic group andcountry/territory2002200320042005200620072008TunisiaComputer and information771010182220Computer771010182220Information- - - - - - - TurkeyComputer and information- - - - 152632Computer----- - - Information- - - - 152632United Republic of TanzaniaComputer and information4135355Computer4135355Information- - - - - - - UruguayComputer and information3244455Computer3244455Information- - - - - - - Venezuela (Bolivarian Republic of)Computer and information655869859418479Computer- - - - - - - Information-------TRANSITION ECONOMIESCOMPUTER AND INFORMATION7336815958571,0691,5132,455AlbaniaComputer and information122331523Computer111221122Information- 101151ArmeniaComputer and information1112347Computer1112234Information- - - - 113AzerbaijanComputer and information- - - 07812Computer---- 127Information- - - -665BelarusComputer and information1071413212035Computer4469171729Information6384436Bosnia and HerzegovinaComputer and information- - - - 445Computer----445Information- - - - - - - CroatiaComputer and information92108125148179216268Computer- - - - - - - Information-------GeorgiaComputer and information11111211Computer0000016Information0001115KazakhstanComputer and information15212953587787Computer12151733416366Information361320171523KyrgyzstanComputer and information23322415Computer23322415Information- - - - - - - MontenegroComputer and information- - - - - - 22Computer------- Information- - - - - - -Russian FederationComputer and information5284583204826139561,424Computer4974132473794767541,204Information314572103137202220SerbiaComputer andinformation- - - - - - 209Computer------209Information- - - - - - - 388CREATIVE ECONOMY REPORT 2010Statistical Annex Part 3
(in millions of $)Economic group andcountry/territory2002200320042005200620072008TajikistanComputer and information0011143Computer0011143Information- - - - - - - The former Yugoslav Republic of MacedoniaComputer and information9132124404263Computer- - - - - - - Information-------UkraineComputer and information756779128137160272Computer- - - - - - - Information-------SOURCE: IMF Balance of Payments Statistics and UNCTAD calculations based on IMF Balance of Payments : (1) Since it is not possible to disaggregate the overall computer and information services by identifying andlisting only the data relevant for the creative industries, the data for computer and information services are,therefore, not included in the total of creative services.- Data not available or not separately ECONOMY REPORT 2010389Statistical Annex Part 3
390CREATIVE ECONOMY REPORT 2010
CREATIVE ECONOMY REPORT 2010391
392CREATIVE ECONOMY REPORT 2010
Creative Economy Report 2010This Creative Economy Report 2010: Creative Economy – A Feasible Development Optionis the second policy-orientedreport to present the United Nations perspective on this innovative topic. It builds on the first Report butgoes further by deepening the analysis, bringing fresh approaches and identifying trends, strengths andweaknesses as well as challenges and opportunities to be addressed. It provides information on recent devel-opments at the country level and reviews the market situation for all creative industries: arts and crafts, audio-visuals, books, design, the film industry, music, new media, printed media, visual arts and creative , the Report examines economic, cultural, social, technological and environmental developments thattook place at the global level over the last two years, in particular the consequences of the financial crisis. The creative economy throughout this decade became well-inserted into the international economic anddevelopment agenda, calling for new insights and policy responses. Adequately nurtured, creativity fuelsculture, infuses a human-centred development and constitutes the key ingredient for job creation, innova-tion and trade while contributing to social inclusion, cultural diversity and environmental Report recalls that appropriate institutional and regulatory frameworks for the optimal functioningof the “creative nexus” to attract investors, technology, innovation and creative business are prerequisitesfor enhancing the creative economy. In 2008, the eruption of the world financial and economic crisis provoked a drop in global demand anda contraction of 12 per cent in international trade. Nevertheless, world exports of creative goods and servicescontinued to grow, reaching $592 billion in 2008 — more than double their 2002 level, indicating anannual growth rate of 14 per cent over six consecutive years. This confirms that the creative industries holdgreat potential for developing countries that seek to diversify their economies and leapfrog into one of themost dynamic sectors of the world economy. Moreover, the global market has been receiving a boost fromthe increase in South-South trade; opportunities occur where demand is growing. The South’s exports ofcreative goods to the world reached $176 billion in 2008, accounting for 43 per cent of total creativeindustries trade. In the aftermath of the crisis, the firmness of the market for creative products is a signthat many people in the world are eager for culture, social events, entertainment and creative economy relies on ideas, knowledge, skills and ability to seize new opportunities. The spreadof the digital revolution, especially in mobile phones, combined with the growing impact of social networks, is unlocking marketing and distribution channels for music, digital animation, films, news,advertising, etc., thereby expanding the economic benefits of the creative economy. The new lifestyle ofcontemporary society is increasingly associated with status, style, brands and differentiation, which arerooted in the creative economy. The Report also stresses that the creative economy and the green econo-my are mutually supportive. Sensitive areas, including the controversial debates about the protection or thesharing of knowledge and information, are also examined; the Report urges governments to revisit the current intellectual property rights regimes. In summary, the Creative Economy Report 2010underscores 10 key messages calling for a new developmentpath to reorient policies towards more equitable, sustainable and inclusive growth strategies. There is noone-size-fits-all prescription; each country should formulate a strategy to foster its creative economy, basedon its own strengths, weaknesses and realities. The Report provides evidence that the creative economy isa feasible development option. The time for action is now.
