The report's major findings point towards a need for informed
policy that recognizes the scope and diversity of the creative
economy. Such policy would support the development of comprehensive
and reliable data on the various dimensions of the creative
economy, balanced with the enforcement of intellectual property
rights to ensure that the interests of artists and creators from
developing countries are protected.
Market Overview
The global market for traded goods and services of the creative
industries has enjoyed an unpre-cedented dynamism in recent years.
Their global export value reached US$ 424.4 billion in 2005,
accounting for 3.4 per cent of world trade as compared with US$
227.4 million in 1996 according to the United Nations Conference on
Trade and Development (UNCTAD). Over the period from 2000 to 2005,
the creative industries' share of global markets grew at an annual
rate of 8.7 per cent, a trend that is likely to continue, given the
positive prospects for global demand. Exports of creative services
increased by 8.8 per cent annually, rising from US$ 38.2 billion in
1996 to US$ 89 billion in 2005.
While developed countries have dominated both export and import
flows, developing countries year after year have increased their
share in world markets for creative products, and their exports
have risen faster than those from developed countries. Exports of
creative goods from developing econ-omies accounted for 29 per cent
of world exports of such goods in 1996 and reached 41 per cent in
2005, with China alone accounting for 19 per cent.
The dynamism of developing countries' exports of crea-tive
products is new. The increase in China's exports over the ten years
was remarkable - from US$ 18.4 billion in 1996 to US$ 61.3 billion
in 2005. During this period, exports of creative goods from
developing countries increased 143 per cent, nearly tripling from
US$ 55.7 billion to US$ 136.2 billion. Asian economies accounted
for more than three-quarters of total exports of creative goods,
while in Latin America and the Caribbean, exports doubled from
approximately US$ 3.5 billion to US$ 8.6 billion. The level of
exports from this region, however, remained comparatively low given
the potential of its creative industries. Africa contributed
marginally (less than 1 per cent) to world exports even though
exports increased from US$ 973 million to US$ 1.8 billion during
the period.
Major factors of the creative economy worldwide
The major drivers responsible for the extraordinary growth in
the creative industries worldwide can be found in technology,
growing consumer markets and better linkages to the tourism
sector.
Technology. The convergence of multimedia and
telecommunication technologies has led to an integration of the
means by which creative content is produced, distributed and
consumed and has, in turn, fostered new forms of artistic and
creative expression. At the same time, the deregulation of
previously state-owned enterprises has paved the way for growth in
private sector investment. Digital technology has brought about
enormous growth in the range of media through which creative
content is conveyed to consumers, such as video-on-demand, music
podcasting, streaming, computers and the provision of television
services via cable, satellite and the Internet.
Growth in demand. New communications
technologies (digital, mobile and Internet) have seen a new
generation of consumers who are not only expanding their range of
cultural experiences, but also adding to it, creating the emergence
of consumers as creators. Technology advances have also led to the
cost of these items coming down.
Tourism. Worldwide growth in tourism has helped
fuel the growth in sales of creative goods and services to the
tourist market. The cultural sector also contributes to the sector
through the demand for visits to cultural heritage sites, museums,
galleries, festivals, music and dance performances.
Making a positive impact
Creative industries provide a catalyst for positive change in
developing countries across social and cultural dimensions in
addition to direct economic impact. In this way, the sector plays
an important role in all aspects of national development. The
positive impact of creative industries on communities in developing
countries includes:
Economic aspects. International trade is a key
component of the creative economy. UNCTAD reports this growth at
8.7 per cent per annum on average in the latest data available
(2000-2005).
Social aspects. A major social impact of the
creative industries is their contribution to employment. Typically
they account for 2 to 8 per cent of the workforce in the economy,
depending on the scope of the sector defined.
Cultural aspects. From a cultural perspective,
the value of the creative industries in promoting cultural
diversity has become more pronounced as the process of
globalization continues.
Sustainable development aspects. Creative
industries contribute to sustainable development in the sense of
"cultural sustainability" that maintains all types of cultural
assets, from minority languages to artworks, artefacts and heritage
sites. Creative industries are also environmentally friendly as the
primary input is services (creativity) rather than natural
resources.
Obstacles to the expansion of the creative economy
Despite the creative industries becoming a major driver of
economic growth in emerging economies, a large majority of
developing countries are not yet able to harness creative
capacities for development gains. The challenges they face range
from understanding the value chain of production and distribution
of creative goods to capturing reliable data, the lack of knowledge
of effective modes of governance of this trade and the challenges
of marrying opportunity through technology with the protection of
intellectual property.
Policy towards the creative economy
The United Nations' report highlights that policies to encourage
the development of creative industries in developing countries must
recognize the cross-cutting and multidisciplinary nature of the
creative economy, with its widespread economic, social and cultural
linkages and ramifications. These linkages span a number of
different sectors in the overall economy ranging from arts and
culture to tourism, international trade, technology and
communications. Policy needs to reflect linkages between
investment, technology, entrepreneurship and trade.
Evidence-based policy-making is hampered at present by a lack of
comprehensive and reliable data on the various dimensions of the
creative economy. Progress can be made in assessing production and
trade in creative products in developing countries using existing
statistical sources. Further progress, however, requires the
development of new models for gathering qualitative and
quantitative data concerning the creative industries and how they
function within the economy as well as improvement in the quality
of current data-collection processes.
Efforts to enforce intellectual property rights regimes should
ensure that the interests of artists and creators from developing
countries are duly taken into account. Intellectual property should
provide a stimulus to creators and entrepreneurs in the form of a
tradable economic asset that is instrumental to enhancing the
potential of the creative sector for development.
Policy recommendations
The cross-cutting nature of the creative economy means that
policy development for these industries must be formulated on a
coordinated inter-ministerial basis. The range of instruments that
policy-makers can use to develop strategies for creative industries
in developing countries is wide. The need is mainly for
infrastructure development, competition law and intellectual
property regimes in addition to traditional debates about intrinsic
value. In more specific terms, policy initiatives may be undertaken
in:
- Mapping of inventories of cultural assets and
creative industries
- Development and financing (e.g., microfinance) of
small and medium-sized businesses
- Copyright legislation and enforcement
- Support for artists and the arts, both direct (via
fiscal means) and indirect (through encouragement of private sector
support)
- Conservation of tangible and intangible cultural
heritage
- Expansion of digital capacity and know-how.
These need to be married with other more general policy
development work including:
- Market (both domestic and export) development
- Tourism promotion
- Education, training and skills development
- Industry assistance
(e.g., via investment incentives, tax concessions, etc.)
It is widely known that the appropriate development paradigm is
one based on sustainable development measured in economic,
cultural, social and environmental terms. Through its
multidimensional potential, the creative industries sector
represents a special opportunity for developing countries. This
potential will only be fully realized through well-informed policy
development, coupled with a highly energized businesses working
closely with the creative communities within each country.
The Creative Economy Report 2008 is
the first study to present the United Nations perspective on the
topic. Bringing together contributions from UNCTAD, the UN
Development Programme, the UN Educational, Scientific and Cultural
Organization, the World Intellectual Property Organization and ITC,
the report provides empirical evidence that the creative industries
are among the most dynamic sectors emerging in world trade. The
report presents the latest data available on the industry and
addresses the opportunities and challenges that lie ahead.
A full copy of the Creative Economy Report 2008 is available at
http://www.unctad.org/en/docs/ditc20082cer_en.pdf
Definition of the creative industries
The creative industries are at the heart of the creative
economy. Although there is no definitive definition of the sector,
UNCTAD stipulates the creative industries:
are the cycles of creation, production and distribution of goods
and services that use creativity and intellectual property as
primary input
constitute a set of knowledge-based activities focused on but
not limited to arts, potentially generating revenues from trade and
intellectual property rights
comprise tangible products and intangible intellectual or
artistic services with creative content, economic value and market
objectives
are at the crossroads of artisans, services and industrial
sectors
constitute a new dynamic sector in world trade.
Text: Adapted by Trade Forum Editorial Team