Creative Economy: A Feasible Development Option

India remains the world largest film producer, releasingabout 1,100 films annually in more than 25 local languages,mainly for the domestic market. Film revenues thereincreased 12 per cent in 2008 due to the growth in multiplexscreens. 28 China currently produces about 400 films annuallybut funding remains a bottleneck. 2008 marked the sixthconsecutive year in which box office grew by more than 20per cent. With more screens, more sophisticated marketingby local distributors and strict distribution regulations,Chinese films has 60 per cent market share at the nationallevel. Co-productions involving mainland China and HongKong are also growing. 29 Another important film producerin developing Asia is the Republic of Korea, which produced113 films in 2008 in response to both growing interest inKorean movies overseas and government policies thatsupport film animation.Latin America is experiencing a revival of film production,particularly in Argentina, Brazil and Mexico, butdomestic films continue struggle for screen space. Domesticfilms rarely chart in the top 10, and their market share lagsat the national and international levels. Nevertheless, encouragedby policy incentives, Argentina produced 85 films,Brazil 82 and Mexico 70 films in 2008, and more digitalscreens are gradually becoming operational in the region. 30Greater regional integration through MERCOSUR, particularlyaround cultural policies in the region, is having a positiveeffect on the film industry. Independent production anddistribution figures prominently in MERCOSUR’s effortsto consolidate cultural, social and economic integration inLatin America. 31The Caribbean has become a more popular locationfor shooting American and European movies, creating supportingjobs, injecting foreign currency and helping to revitalizelocal economies. In the long run, however, this mayinhibit productions by local film-makers, who have littleaccess to financing and modern infrastructure and are unableto compete at home with foreign producers. Jamaica, forexample, signed a treaty for film co-production with theUnited Kingdom in 2007. 32 In principle it is a win-winsituation, with British film producers benefiting from taxbreaks, funding and support, and the free movement of productionequipment, and Jamaicans gaining opportunities forprofessional and technical training, possibilities for shootingand editing facilities, better understanding of distributionchannels, and tax revenues from foreign film investment.However, a recent study 33 suggests that such treaties canundermine local film industries, in part by tying up resourcesin foreign productions. Co-production treaties thereforeshould not be seen as a substitute for comprehensive nationalpolicies to enhance local creative industries.The struggle to preserve African roots, identities andlanguages are well captured in the relatively small but qualitativelyrich iconography of African films. 34 At present, thefilm industry on the continent follows two distinct models.One, led by South Africa and Egypt, is structured along conventionalfilm industry lines. Indeed, Egypt is the centre offilm-making for the entire Arab world. It produces about 40films a year and had an 85 per cent market share in itsdomestic market in 2008. The other model comes fromNigeria. Called Nollywood, it is a low-budget, high-volumeindustry supported by video sales. It is a creative response tosatisfy the cultural needs of modern Africa (see box 9.4 inchapter 9). Nigeria produces more than 1,000 films annually,which are distributed on DVD, VHS and TV across allAfrica. Ghana and Kenya are following the Nigerian modelfor their local productions, while Morocco is producingabout 10 films per year and intends to become a centre forinternational and national productions by 2017. 35The Middle East is becoming a major player in thefilm industry. According to Screen Digest, the region’s boxoffice revenues from the film industry increased 13 per centin 2008, with the strongest growth seen in the United ArabEmirates, mainly due to the growth of multiplex cinemas. In2008 Abu Dhabi launched a multimedia park with a filmproduction and post-production facilities, and the DubaiInternational Film Festival introduced a film market focusingon Arabic, Asian and African films. Dubai-based GulfFilm is the leading distributor and exhibitor in the region.5International trade in creative goods and services: Global trends and features27 European Audiovisual Observatory (2009).28 Sources: Screen Digest, Screenindia.29 Sources: CMM Intelligence, Screen Digest and Screen International.30 Sources: Fundación del Nuevo Cine Latinoamericano, ANCIN and Screen International.31 Maleiros (2007).32 UNCTAD (2007). Creative Economy e-News.33 Price and Martin (2009).34 Dos Santos-Duisenberg (2007)35 Sources: European Audiovisual Observatory, African Film and TV Yearbook and Directory, Egypt Film.CREATIVE ECONOMY REPORT 2010151