Caribbean Economic Development
TCI's Finest
Unit10.pdf
ECON3501
CARIBBEAN ECONOMIC
DEVELOPMENT
CREATIVE INDUSTRY
RESOURCE MATERIALS
Levitt, Kari; Witter, Michael (1996). The Critical Tradition of Caribbean Political
Economy: The Legacy of George Beckford. Kingston. Ian Randle Publishers
Beckford; George (2000) Persistent Poverty; Underdevelopment in the Plantation
Economies of the Third World. UWI Press.
Todaro Michael & Smith Stephen; C. (2011) 11th Ed. Economic Development. Pearson
Education & Addison-Wesley
Bhagwati Jagdish (2004). In Defence of Globalization, Oxford University Press
Blackman; Courtney. (2005). The Practice of Economic Management: Caribbean
Perspective Kingston: Ian Randle Publishers
United Nations- UNDP, Human Development Report. World Bank-World
Development Report 2
CREATIVE INDUSTRIES
Broadly speaking, the term ‘creative industries’ refers
to a range of economic activities that are concerned
with the generation and commercialization of
creativity, ideas, knowledge and information.
The term ‘creative industries’ describes businesses
with creativity at their heart.
For example design, music, publishing, architecture, film
and video, crafts, visual arts, fashion, TV and radio,
advertising, literature, computer games and the
performing arts. 3
CREATIVE INDUSTRIES
There are thirteen sub-sectors under the term
‘creative industries’.
These include: advertising; architecture; the art and
antiques market; crafts; design; designer fashion; film
and video; interactive leisure software; music; the
performing arts; publishing; software and computer
games; and television and radio.
4
CONFUSION BETWEEN CREATIVE AND
CULTURAL INDUSTRIES
“In its broadest sense it is used to refer to all the industries that
generate copyright, patents and trademarks. In other contexts it
is used to refer only to such industries that produce content or
cultural industries.” (Hawkins, 1991)
Possibly the most accepted definition at an international level is
that of the Department of Culture, Media and Sport (DCMS) in
the UK.
According to the Department, creative industries are those that:
“Have their origin in creativity, individual skills and talent and
have the potential to create wealth and employment through the
generation and exploitation of intellectual property.” 5
CULTURAL INDUSTRIES
The term ‘cultural industries’ is also used by some
agencies, though this term relates to a more specific
range of industries and can be regarded as a subset of
the creative industries.
The cultural industries are defined by UNESCO as
‘industries that combine the creation, production and
commercialization of contents which are intangible and
cultural in nature
these contents are typically protected by copyright
and they can take the form of a good or a service.’ 6
CREATIVE ECONOMY
7
This is an evolving concept based on creative assets embracing
economic, cultural, social and technological aspects.
It has linkages at macro and micro levels within the overall
economy, hence it is important to a country’s economic
development.
Creative industries can foster economic growth, job creation,
export earnings while promoting social inclusion, cultural
diversity and human development.
It is a feasible policy option to diversify economies and improve
trade and development gains in developing countries.
CREATIVE INDUSTRIES
Creativity and design are at the forefront of a rapidly changing world.
Creativity has never been more valued by individuals, society and
employers. Creative workers play an important role in driving economic,
social and cultural development.
The lines between creative fields are increasingly blurred. Visual artists use
interactive and moving images, performers use digital media in site-specific
works, and collaborative teams create sophisticated productions that
captivate our senses.
Technology provides new possibilities for artists - in the creation of their
works, as new outlets for their creativity, and as a means of promoting and
distributing their work. Cutting-edge use of digital technologies produces
networked performances and cultural experiences. 8
MAJOR DRIVERS OF CREATIVE INDUSTRIES
The major drivers responsible for the extraordinary growth in the creative industries worldwide can be found in
Technology
Economics
Demand
Tourism
The technological transformations in communications brought about by the digital revolution and the economic environment within which this revolution has taken place have combined to create the conditions for this growth 9
MAJOR DRIVERS OF CREATIVE INDUSTRIES:
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 media and telecommunication industries and the privatization of previously State-owned enterprises in these spheres have opened the way for massive growth in private-sector investment, with consequent effects on output and employment across the board.
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, computer games and the provision of television services via cable, satellite and the Internet.
Overall, the number of distribution channels and platforms has continued to grow, generating an increasing demand for creative content. It is the task of the creative industries, wherever they are located, to supply this content in a way that is culturally expressive and economically profitable.
10
MAJOR DRIVERS OF CREATIVE INDUSTRIES:
ECONOMICS
Underlying these developments has been a more general
trend in economic policy-making towards a broadening of
the concept of “innovation” from one concerned only with
science and technology into a more wide-reaching
appreciation of the role of creativity in the economy.
Opening up the idea of creativity as a driving force in the
knowledge economy pushes the creative industries into the
spotlight as a primary source of the skilled workforce that
can produce creative ideas and make innovation happen
across a wide range of activities
from business entrepreneurship to imaginative new social
programmes.
11
MAJOR DRIVERS OF CREATIVE INDUSTRIES:
ECONOMICS
Growth in Demand
This has also been a significant driver of the growth of the creative economy.
Several factors lie behind this demand push.
Rising real incomes in industrialized countries – this have tended to increase the demand for income-elastic products, including creative goods and services. Moreover, the real prices of some of these products and particularly the prices of the means for their enabled consumption have fallen as technology advances, leading to further upward pressure on demand.
The changing patterns of cultural consumption – new generations of consumers are using the Internet, mobile telephony, digital media, etc., in ways that not only expand their range of cultural experiences but also transform them from passive recipients of cultural messages into active co-creators of cultural content. The sense of empowerment brought about by these developments and the process of redefining cultural identities are likely to continue as significant influences on the growth of the creative industries in the future.
12
MAJOR DRIVERS OF CREATIVE INDUSTRIES:
ECONOMICS
Growth in Tourism
This has helped to fuel the growth of those creative industries selling
creative goods and cultural services into the tourist market.
The cultural sector contributes to tourism through the demand for visits
to cultural heritage sites, museums and galleries, festivals and so on as
well as tourists’ interest in attending music, dance, theatre and opera
performances in most cities and towns.
More generally, the cultural ambience and traditions of different
locations can be an attraction for tourists, especially for those classified
as “cultural tourists” whose demand is more discriminating and culturally
aware than that of the so-called “mass tourist” 13
MAJOR DRIVERS OF CREATIVE INDUSTRIES:
ECONOMICS
In recent years, however, there has been a shift in the approach to
cultural tourism.
UNESCO is urging governments to better balance tourism with
protection, fearful that some of the most beautiful and important cultural
and natural sites are being harmed by throngs of visitors.
International organizations such as the United Nations World Tourism
Organization (UNWTO) and United Nations Conference on Trade and
Development (UNCTAD) have therefore been actively promoting a shift
in the attitude of governments towards the formulation of tourism
policy, focusing on the concept that tourism policy should be both
culturally and environmentally friendly and benefit local people. 14
THE MULTIPLE DIMENSIONS OF THE CREATIVE
ECONOMY
The creative economy is not monolithic (huge), but it has a multitude of dimensions
and it contributes to economic, social and cultural development in a number of ways.
Economic Contribution - international trade is a key component of the creative
economy. According to UNCTAD, world trade in creative-industry products
increased sharply in recent years. Much of the trade in audiovisual products occurs in
the form of rights transactions as the means for buying and selling creative
content. The functioning of intellectual property markets both nationally and
internationally depends on the existence of effective copyright regimes in the
countries involved, allowing efficient collection and equitable distribution of copyright
payments.
Social Contribution – a major social impact of the creative industries is their
contribution to employment. The creative industry, though both knowledge intensive
and labor intensive, is very important in policy terms due to its job-creation potential
and countries can look to the establishment/improvement of creative industries as an
effective way to boost employment. 15
THE MULTIPLE DIMENSIONS OF THE CREATIVE
ECONOMY
Social Inclusion - at the grass-roots level, the creative economy includes cultural
activities that can be important in linking social groups in communities and
contributing to social cohesion. Communities that are plagued by social tensions and
conflicts of various sorts can often be brought together through shared participation
in cultural rituals.
Initiatives such as community arts programmes build social capital by boosting the
ability and motivation of people to become engaged in community life and inculcating
skills that can be usefully employed in local creative industries. Furthermore, creative
activity can be shown to be important for individual health and psychological well-
being.
Other dimensions of social inclusion include:
Promoting gender balance
Redeployment of generally marginalized talented workers
The provision of necessary artistic and cultural inputs into the education system 16
THE MULTIPLE DIMENSIONS OF THE CREATIVE
ECONOMY
Cultural Contribution - whether the term “culture” is interpreted in an
anthropological sense to mean the shared values and traditions that identify a
community or a nation and bind it together or whether it takes a more
functional sense to mean the practice of the arts, the creative economy as a
purveyor of creative goods and services clearly has profound cultural
implications.
From a policy perspective, the generation of cultural value alongside economic
value from the operation of the creative industries is relevant because it serves
the cultural objectives of society, which stand alongside the economic objectives
of a government and are reflected in the broad-ranging reach of its cultural
policy.
Diversity is a cultural dimension of the creative industries that has become more
prominent in recent years. As processes of globalization continue, the value of
cultural diversity has been more sharply defined and the role of the creative
industries in promoting it has been more clearly understood. 17
THE MULTIPLE DIMENSIONS OF THE CREATIVE
ECONOMY
Sustainable Development Contribution - It is becoming increasingly
recognized that the concept of “sustainability” has a larger scope beyond
simply its application to the environment. The tangible and intangible cultural
capital of a community, a nation or a region of the world is something that
must be preserved for future generations just as natural resources and
ecosystems need to be safeguarded to ensure continuation of human life on
the planet.
Cultural sustainability implies a development process that maintains all types of
cultural assets, from minority languages and traditional rituals to artworks,
artifacts and heritage buildings and sites. It is the creative industries that
provide the services and the investments necessary for culturally sustainable
development paths to be followed.
Furthermore, creative industries are environmentally friendly since the
primary input for creative activities is creativity rather than natural and the
production of creative products is usually less dependent on heavy industrial
infrastructure.
18
WHAT CAN CULTURE AND CREATIVITY ADD
TO THE REGION?
Creative activity → helps employers/region to attract & retain talent
Creative people → regenerate urban neighbor hoods
→ define region’s ‘brand’
→ create ‘buzz’
Creative workers → enhance creativity, innovativeness throughout economy
Cultural industries → investment, jobs, income, exports
19
WHAT CAN CREATIVE INDUSTRIES ADD TO
THE REGION?
20
The
Export
Perspective
Inward
investment and
local Capacity
Expanding export
of ‘creative
products and
services’
Expanding export
of creativity based
‘traditional
industries’
Attracting
tourists and
visitors
Attracting foreign
investment and
venture capital
Building Brands
Attracting
knowledge workers
and new citizens
Creative
Industry
Growth
Dynamics
C re
a tiv
e in
d u
stry a
n d
In te
rn a tio
n a l c
o m
p e titiv
e n
e ss
THE IMPORTANCE OF CULTURAL
INDUSTRIES
CARICOM Governments, have increasingly been recognizing the important
contribution of cultural and creative industries to the economies of the
region, and have recognized that with the creation of an enabling
environment with the necessary policy, legislative and institutional support,
the cultural and creative industries could realize exponential growth, create
jobs and wealth in the region and positively engage especially young people.
Cultural and creative industries are among the most dynamic sectors in
world trade. In 2008, the eruption of the world financial and economic crisis
provoked a drop in global demand and a contraction of 12 percent in
international trade. The data, which covers the period 2002 to 2015,
shows the creative economy’s contribution to world trade. Over this
period, the value of the global market for creative goods doubled from
$208 billion in 2002 to $509 billion in 2015. 21
THE IMPORTANCE OF CULTURAL
INDUSTRIES
22
The further development of these industries in CARICOM is expected to
make a contribution to the achievement of goals related to poverty
reduction, diversification of the tourism product through the promotion of
cultural and festival tourism, and the positive engagement of the youth in
the region.
Additionally, as the community takes steps to deepen its integration, culture
can play a major role in promoting a strong regional identity and sense of
community, especially among young persons.
The development of Cultural Industries can also assist Member States in
building their resilience while adjusting to fast and immense changes in the
global economy.
Cultural industries are sustainable and renewable, as they are based on the
creativity and ingenuity of the people of the Region.
THE IMPORTANCE OF CULTURAL
INDUSTRIES
Progress has been made at the regional level, to develop a comprehensive policy
framework to guide the continued development of this sector.
The cultural and creative industries sector was also identified by Heads of
Government at their Special Retreat in Guyana in May 2011, as one of the
priority areas for job creation and growth.
The establishment of the Regional Task Force on Cultural Industries was
mandated by Ministers of Trade and Culture, Council for Trade and Economic
Development (COTED) and the Council for Human and Social Development
(COHSOD) (COTED-COHSOD) in January 2008 in Guyana.
The remit of the Task Force was to develop a comprehensive Regional
Development Strategy and Action Plan for the cultural industries in the Region,
with a core mandate to propose “approaches to providing relief from tariffs and
other duties and charges on products that are inputs to the cultural industries”.
Recommendations were to be made also with respect to incentives, financing the
sector, registration, classification and free movement.
23
INTELLECTUAL PROPERTY RIGHTS
Intellectual property rights are like any other property right. They allow creators, or
owners, of patents, trademarks or copyrighted works to benefit from their own
work or investment in a creation.
The importance of intellectual property was first recognized in the Paris
Convention for the Protection of Industrial Property (1883) and the Berne
Convention for the Protection of Literary and Artistic Works (1886). Both treaties
are administered by the World Intellectual Property Organization (WIPO).
Why promote and protect intellectual property?
There are several compelling reasons. First, the progress and well-being of humanity
rest on its capacity to create and invent new works in the areas of technology and
culture. Second, the legal protection of new creations encourages the commitment
of additional resources for further innovation. Third, the promotion and protection
of intellectual property spurs economic growth, creates new jobs and industries,
and enhances the quality and enjoyment of life. 24
PATENT
A patent is an exclusive right granted for an invention – a product or process that
provides a new way of doing something, or that offers a new technical solution to a
problem.
A patent provides patent owners with protection for their inventions. Protection is
granted for a limited period, generally 20 years.
What kind of protection do patents offer?
Patent protection means an invention cannot be commercially made, used,
distributed or sold without the patent owner’s consent. Patent rights are usually
enforced in courts that, in most systems, hold the authority to stop patent
infringement.
Conversely, a court can also declare a patent invalid upon a successful challenge by
a third party. 25
TRADEMARK
A trademark is a distinctive sign that identifies certain goods or services produced or provided by an individual or a company. Its origin dates back to ancient times when craftsmen reproduced their signatures, or “marks”, on their artistic works or products of a functional or practical nature.
Over the years, these marks have evolved into today’s system of trademark registration and protection. The system helps consumers to identify and purchase a product or service based on whether its specific characteristics and quality – as indicated by its unique trademark – meet their needs
What do trademarks do?
Trademark protection ensures that the owners of marks have the exclusive right to use them to identify goods or services, or to authorize others to use them in return for payment. The period of protection varies, but a trademark can be renewed indefinitely upon payment of the corresponding fees.
Trademark protection is legally enforced by courts that, in most systems, have the authority to stop trademark infringement. 26
COPYRIGHT
Copyright laws grant authors, artists and other creators protection for their
literary and artistic creations, generally referred to as “works”. A closely associated
field is “related rights” or rights related to copyright that encompass rights similar
or identical to those of copyright, although sometimes more limited and of shorter
duration.
The beneficiaries of related rights are: performers (such as actors and musicians) in
their performances; producers of phonograms (for example, compact discs) in their
sound recordings; and broadcasting organizations in their radio and television
programs.
Works covered by copyright include, but are not limited to: novels, poems, plays,
reference works, newspapers, advertisements, computer programs, databases, films,
musical compositions, choreography, paintings, drawings, photographs, sculpture,
architecture, maps and technical drawings. 27
COPYRIGHTS
What rights do copyright and related rights provide?
The creators of works protected by copyright, and their heirs
and successors (generally referred to as “right holders”), have
certain basic rights under copyright law.
They hold the exclusive right to use or authorize others to
use the work on agreed terms.
The right holder(s) of a work can authorize or prohibit: its
reproduction in all forms, including print form and sound
recording; its public performance and communication to the
public; its broadcasting; its translation into other languages; and
its adaptation, such as from a novel to a screenplay for a film. 28
LINKAGE INDUSTRIES
This refers to industries that are connected because they depend on each
other to obtain or to sell materials.
Forward Linkage
If the final product or finished products of one industry is used in another
industry as its raw material then a forward linkage occurs. For example,
sugar produced from a sugar factory is used by a bakery to make pastries.
A backward linkage – this occurs when the demands of an industry
leads to the establishment of other industries to produce for the needs of
this industry.
For example, the establishment of several multinational fast food
restaurants in the Caribbean has led to new businesses being established
to supply these restaurants with raw materials (vegetables, ground
provisions, meats and paper based products).
29
FUNDING FOR CREATIVE INDUSTRIES
Despite the importance of creative industries, it has
proven difficult for Caribbean countries to provide
funding.
One of the main reason is due to the level of debt
that exist within the Caribbean.
Caribbean countries have limited savings and often
times limited investment in creative industries.
There are other source of funding that may be
available to some countries. 30
FUNDING FOR CREATIVE INDUSTRIES
Loans are often provided by Small & Medium- sized Enterprises
(SMEs) and other financial institutions.
There are also soft loans available.
A loan with no interest or a below-market rate of interest,
or loans made by multinational development banks (such as
the Asian Development Fund), affiliates of the World
Bank and government agencies to developing countries that
would be unable to borrow at the market rate.
Soft loans are loans that have lenient terms, such as
extended grace periods in which only interest or service
charges are due, and interest holidays. 31
FUNDING FOR CREATIVE INDUSTRIES
The Caribbean Development Bank (CDB) has also established funding for
creative industries.
The CDB has announced that it will provide the initial capitalization for a
multi-donor fund to improve the competitiveness of the cultural and
creative industries sector in its Borrowing Member Countries (BMCs). The
Bank is making an initial contribution of USD2.6 million to the
establishment of the Cultural and Creative Industries Innovation Fund
(CIIF) as a pilot intervention, and it will also administer the Fund.
The CIIF will support the development of the creative industries sector, and
encourage innovation, job creation and improved enterprise sustainability by
providing grants and technical assistance to governments, business support
organizations and academia that support the creative industries sector. It
will also provide funding to creative and cultural entrepreneurs and micro,
small and medium enterprises (MSMEs) in CDB’s BMCs.
32
FUNDING FOR CREATIVE INDUSTRIES
Funding may also be obtained through joint ventures.
A joint venture is a business arrangement in which two or
more parties agree to pool their resources for the purpose of
accomplishing a specific task.
This task can be a new project or any other business
activity.
In a joint venture, each of the participants is responsible for
profits, losses and costs associated with it. However, the
venture is its own entity, separate and apart from the
participants' other business interests. 33
