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1 A discussion on Cultural Industries Alessandra Quartesan The World Bank - Washington D.C. March 25, 2008
2 A discussion on Cultural Industries Alessandra Quartesan The World Bank - Washington D.C. March 25, 2008 Structure of Cultural Industries C lt li d t i Cultural Industries Sectors concerned with creation production and distribution of goods and services that are cultural in nature
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4 Cultural Industries Constitute an important and growing element of contemporary economic systems: In Europe, contribution to GDP is about 6 % 8 % in the US 4 % in LAC Contribute to creating and maintaining local cultural values Cultural Industries Contribution to GDP (%) Argentina Brazil Chile Colombia Ecuador Mexico Peru Paraguay Uruguay Venezuela USA Source: (Quartesan, et. Al., Cultural Industries in LAC: Challenges and Opportunities, IADB, 2007) on country level data from Ministry of Culture of Argentina Convenio Andres Bello and the Competitive Intelligence Unit Included sectors: Editorial, Audiovisual, Phonographic, Visual and Performing Arts, Multimedia, Sports.
5 Cultural Industries Contribution to Employment Country Contribution to Employment (%) Year Argentina 3.2% 2004 Brazil 5% 1998 Chile 2.7% Average 1990 until 1998 Mexico 3.65% 1998 Paraguay 33% 3.3% 1992 Uruguay 4.9% 1997 United States 5.9% 2001 Source: (Quartesan, et. Al., Cultural Industries in LAC: Challenges and Opportunities, IADB, 2007) on OAS (2004) and Piedras (2004). Included sectors: Editorial, Audiovisual, Phonographic, Visual and Performing Arts, Multimedia, Sports. International Trade Agreements CI are usually a delicate issue in free trade agreements Specific WTO instruments to regulate the trade of CI good and services GATS, TRIPS and TRIMS Some countries developed special policies, bilateral agreements and exemptions to regulate CI trade WTO cultural exception and UNESCO Convention on the Protection and Promotion of the Diversity of Cultural Expressions
6 Free Trade Agreements in LAC MERCOSUR - Few references to CI exist. In the Colonia Protocol agreement, the Article 2 of the Annex specifies each country's exemptions on CI NAFTA - a double standard was set DR-CAFTA - All services have been liberalized CARICOM - co-operates with UNESCO in all matters arising in the spheres of education, science and culture Some Common Features across CI Driver for local economic development Create local sustainable jobs Environmentally friendly Densely interconnected Contribute to the quality of life Mostly MSMEs Are mostly present in urban areas
7 Linkage between CI and Urban Environment CI linked to the urban environment for a number of reasons: 1. cultural industries require high density of communication and interaction 2. a high number of universities tend to be concentrated in urban areas. 3. culturalentrepreneurs need affordable places to conduct businesses, 4. cultural industries often require technological infrastructure Linkage between CI and Urban Environment Cultural Industries are an important and growing element of the Urban economy. In 2008 more than half of world s population p (3.3 billion people) p lives in urban areas (UNFPA, 2007). In the LAC, urban population reached in 2007 the 78 percent Percentage of population living in urban areas by regions 100% 89% 90% 78% 80% 70% 60% 61% 62% 66% 50% 40% 41% 39% 41% 30% 20% 10% 15% 26% 17% 24% 0% LAC Africa Asia Source: UN Population Division/DESA, 2008
8 Tourism Tourism has become one of the most important industry globally In 1998 the contribution of tourism to GDP about 8% in Mexico In Argentina in 2006 was the third largest source of income for the country In 2003 in the Caribbean, 34.1% in the Bahamas and 29.2% of contribution to the GDP in Barbados Tourism Mass tourism Is tailored to the interests of the individual consumer and not related to the unique characteristics of the destination Cultural tourism Cultural heritage and other cultural activities are one of the top reasons for traveling
9 Some successful practices in Argentina Estrategia de Marca País products that can be clearly associated with Argentina helpful in terms of identifying local authentic products link products to quality CREA (Creative Industries and Cultural Enterprises Incubator of the city of Cordoba Incubadora de Industrias Creativas y Empresas Culturales de Córdoba public private initiative to promote and support ideas in the field of cultural industries. CREA s private partners are concentrated in business activities not related to the cultural field Lack of coordination: Main issues in LAC Among public institutions Bt Between public and private actors Among private actors Need to define the role of the state Lack of legal and regulatory frameworks Problems related to intellectual lproperty rights ih and piracy Lack of reliable and internationally comparable data
10 Main issues in LAC Lack of incentives for private investments and alternative sources of financing Difficult access to credit (lacking collateral and guarantees) Problems related to distribution Low managerial ilskills Risk of being absorbed by globalization and loosing local cultural contents and identity The way forward CI have to be promoted and new policies to foster national and regional CI have to be established More coordination New public policies & adequate fiscal incentives More effective regulatory framework More piracy control Data collection & consistent economic indicators Managerial skills Improvement Cultural Tourism development More public private initiatives (e.g.: CREA) Policies for distribution Incentives for private investment and hybrid source of financing
11 A discussion on Cultural Industries Thank You Alessandra Quartesan Quartesan, Romis, Lanzafame, Cultural Industries In Latin America and the Caribbean: Challenges and Opportunities, IADB, September Link to the on line English version: Link to the on line Spanish version: The World Bank Washington D.C. March 25, 2008
12 Reference Quartesan, A., Romis, M., Lanzafame, F., Cultural Industries In Latin America and the Caribbean: Challenges and Opportunities, IADB, September Link to the on line English version: Link to the on line Spanish version:
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