Creative Economy: A Feasible Development Option

8.3 The policy processThe process of formulating and implementing publicpolicies often entails the following sequence:■■■Specification of objectives. This first step is critical in specifyingclearly which outcomes policy is designed to achieve.Generally, multiple objectives are involved, and the necessityof some trade-off between them might be anticipated.For example, the standard goals of macroeconomicpolicy may require that some balance be sought betweenlevels of growth, inflation, unemployment, external balance,etc. In some cases, however, synergy between objectivesmay be possible. With regard to the creative economy,for instance, a linking of the goals of economic andcultural development can readily be imagined wherebygrowth in cultural production can yield both economicand cultural benefits.Choice of instruments. The guiding principle in the allocationof policy instruments to tasks is the so-called assignmentproblem, whereby the most effective and efficient policymeasure or package of measures is aligned with the objectiveor objectives that they are expected to achieve. Thestandard array of policy instruments available for use insupporting the creative economy includes: fiscal measures(subsidies, tax concessions, investment allowances, businessstart-ups); regulation (copyright, local content quotas,planning laws, regulations on foreign direct investments);trade-related measures (import quotas, etc.); education andtraining (direct or subsidized provisions of services); provisionof information and market development services;international cooperation (cultural exchange, culturaldiplomacy); and social security and welfare policy (includingmeasures to protect cultural diversity). The usefulnessof particular instruments is discussed in more detail laterin this chapter.Implementation, monitoring and evaluation. The implementationof cultural policy requires appropriate measures to gatherthe data necessary for monitoring whether or not therequired objectives are being achieved, what the benefitsand costs of intervention have been, and whether therehave been any untoward or unexpected side-effects, eitherpositive or negative. The process of monitoring and evaluationis normally seen as part of a feedback loop wherebythe assessment of the effectiveness of policy measures canbe used to inform the further development and refinementof policy formulation and implementation.The above sequence of the policy process is relevantgenerally to the dynamics of government action in regard tothe creative economies of developed and developing countriesalike. Some further considerations to be borne in mind, particularlyin the developing-country context, are the following:■■■■There is a need in the developing world to create a frameworkof objectives, shared values and measurable outcomes;define the roles and responsibilities of all role players; andconsolidate the role of government as a facilitator and coordinatorof the creative sector and its development.Much of the policy implemented in the developing worldhas used models from developed countries in its design.The current challenge is to ensure that policy embracesvalues relevant to the developing countries themselves,incorporating indigenous knowledge systems and localexperiences into the policy, institutional and programmingenvironment.A critical challenge for policy in the arts, culture and heritagesectors of developing countries is the lack of articulationbetween cultural policy and other priorities, and the degreeto which a concern for culture and cultural diversity isembedded in development agendas.One of the most significant challenges to the creative sectorin developing countries is the implementation of goodgovernance principles across the sector as well as theimprovement of the relationships between producers,distributors, creative workers, employers and retailers.8Policy strategies for the creative industriesCREATIVE ECONOMY REPORT 2010213