Creative Economy: A Feasible Development Option

ecome a source of revenues as they support the formal andtraded economy. Artists either migrate between the formaland informal economy, voluntary and employed, or they holdtwo or more jobs. While the non-cultural job may providemore income, the cultural one may be more important tothem. Analyses of artists in Australia have identified thiscomplex pattern, which has not been replicated in the developingworld, but available evidence suggests that it mightbecome more pronounced.4.4.4 Copyright and intellectual propertyrights issuesThe WIPO secretariat has been developing a newmethodology and data sets for measuring the impact of copyright-basedcreative industries on national economies in termsof employment and contribution to GDP. Surveys and studieshave been carried out in a growing number of countries(see chapter 6). The WIPO methodology is based on industrialtaxonomies (International Standard IndustrialClassification, or ISIC) and thus is limited in scope. Its maindrawback is being expensive, as it relies on a well-developedand sophisticated collection and analysis infrastructure, whichrarely is available in developing countries. Moreover, it restson the acceptance and implementation of the WTO rules onintellectual property, and in this sense, the WIPO modelserves more as a regulatory and monitoring tool. To a certainextent, this objective limits its applicability in developingcountries that lack the institutional, financial and humanresources for managing and implementing an IPR regime.It is important to emphasize that the data on trade ofcreative services and the WIPO data are essentially measuringdifferent things; both should be read as an indication of a scaleof magnitude and trends rather than as definitive figures.However, the creative economy is important for developed anddeveloping countries, and extra efforts need to be made todevelop a universal measurement system. A pre-condition forthis system should be to offer real figures to be used for worldwidecomparative analysis. It is essential that such a system befeasible and affordable to all South countries, including theleast developed countries, as a reliable evidence-base prerequisitefor sound policymaking and multilateral decisions.4.4.5 Public investmentMuch cultural activity is funded by public resources or managedby not-for-profit agencies. Conventional market indicatorsare not so good at describing this activity. Moreover,there are many different reporting conventions for publicand not-for-profit bodies such that data are not systematicallyclassified and collated. The few attempts at simply collatingpublic spending on arts and culture are helpful butpotentially misleading. As Schuster notes in his critique, 5simply knowing how much money is available in any givenyear does not tell how effective the spending is or what theoutcome is. A more subtle analysis that is indicative of Stateinstitutions and their modes of operation is required to discernsuch an outcome.4Towards an evidence-based assessment of the creative economy4.5 Implementation of a Culture Satellite AccountThe Culture Satellite Account (CSA) is a coherent andsystematic accounting framework that presents economic informationon culture and offers a base for public and private decision-making,policy design and evaluation, and general purposesof the economics of culture. The CSA is a satellite accountto the System of National Accounts (SNA), which was createdin 1993 by the United Nations in collaboration with suchinstitutions as the International Monetary Fund, theOrganisation for Economic Co-operation and Development,the Statistical Office of the European Communities and theWorld Bank. It is currently adopted by most countries. Thislink between the CSA and the SNA is justified by the characteristicsof the system: (a) it consists of an exhaustive accountingframework, useful for the economic measurement of thevast majority of cultural products and activities; (b) it is efficientand credible, as its concepts have been approved and successfullyapplied to many countries at lower costs once theyrefer to one methodological set; and (c) it avoids the use ofconcepts and definitions presenting incompatibilities acrosscountries or sectors.5 Schuster (1985 1987) and Arts Council of England (1998).CREATIVE ECONOMY REPORT 2010101