Creative Economy: A Feasible Development Option

8Policy strategies for the creative industriesschedule and the prolific release of albums.Given the prevalence of SMEs in the creative economyof developing countries, it is not surprising that financingavenues such as microfinance will feature prominently in anypublic/private investment strategy. Successful microfinanceprogrammes operate in a number of countries, such asGrameen Bank in Bangladesh and Banco Sol, which was establishedin Bolivia in 1992 and operates in Latin America and theCaribbean. For the most part, these organizations providefinance for small businesses in agriculture, retail, etc. and haveto date little to do with the creative sector, perhaps because creativeproducers are unaware of the availability of such funds.The potential for microfinance as a source particularlyof start-up capital for SMEs in the creative sectors of developingcountries would appear to be strong. As argued byCunningham et al. (2007:80), microcredit is attractive as asource of investment funds for creative businesses because:■■■■■it is a proven and effective model;it provides amounts suitable both as start-up and workingcapital;it has the potential to develop small-scale enterprises to apoint where they become more attractive to investors andeligible for other forms of credit;the model is flexible and adaptable to specific local conditions;andit offers a way of overcoming some of the problems ofcommercial financing such as risk management and theintangible nature of creative assets.8.6.4 Public cultural institutionsGovernments in most countries play an important rolein the creative economy by their ownership and operation ofpublic cultural institutions such as art galleries, museums andheritage sites. They are also often owners of significant tangiblecultural heritage such as historic public buildings andcollections of nationally significant artworks, artefacts, etc.These cultural responsibilities of government should be seenas integral to the creative economy, especially because of therole of these institutions and activities in encouragingtourism, promoting social cohesion and fostering the beneficialaspects of cultural diversity. As such, their capital andcurrent expenditure needs should be seen not as inessentialluxury items in government outlays but as an essential contributionto the vitality of the creative industries.8.6.5 Corporate sectorThe existence of large-scale enterprises in theeconomies of developing countries arises as a result both ofthe growth and amalgamation of domestically owned companiesand the establishment of offshoots of transnational corporations.Such large corporations can be found in the creativesectors especially of the more advanced countries in thedeveloping world. Since they are essentially commercial operationsmotivated by the prospect of financial gain rather thanby any “pure” cultural objectives, they are likely to be treatedby governments in the same way that businesses in any othersector of the economy are treated. Nevertheless, governmentsmay see some particular attraction in facilitating the growthof specifically creative businesses in order to “surf the wave”of growth that the creative economy appears to offer.8.7 Tailoring policy action at the national levelAs this report has demonstrated, the creative industriesare a potential source of real development gains for countriesin the developing world. But such gains cannot be achieved ina vacuum. They require carefully formulated policy strategiesthat recognize the complexities of the interaction betweeneconomic, cultural, technological and social dimensions ofthe development process and that are implemented on a multidisciplinarybasis. It must be acknowledged that all countriesare different and that there will not be a standard or uniformpackage of policy measures that will fit every circumstance.Nevertheless, this chapter pointed to some overall featuresof policy strategies that are likely to be applicable inmost developing-country situations. These are:■the need to strengthen the infrastructure that supports thecreative economy;228 CREATIVE ECONOMY REPORT 2010