Creative Economy: A Feasible Development Option

■economy that call for country-specific and sector-specificrather than generic policies;the lack of institutional and regulatory frameworks as abasis for a conducive climate to support the strengtheningof the creative industries, such as fiscal policies, intellectualproperty rights regime, investment promotion, domesticand export-led schemes, etc.;■■the need for an institutional mechanism such as a“Creative Economy Committee” to facilitate cross-cuttingpolicies and consultations with key stakeholders; andthe fact that the developed world has enormous “firstmover”advantages in the field of creative industries, makingit more difficult for developing countries to competein global markets for these products.10.2 Major findings10Lessons learned and policy optionsTEN KEY MESSAGESThis policy-oriented report examines a number ofissues, but would like to draw the attention of governmentsto its 10 key messages:I. In 2008, the eruption of the world financial andeconomic crisis provoked a drop in global demand and acontraction of 12 per cent in international trade. However,world exports of creative goods and services continued togrow, reaching $592 billion in 2008 — more than doubletheir 2002 level, indicating an annual growth rate of 14 percent over six consecutive years. This is a confirmation thatthe creative industries hold great potential for developingcountries that seek to diversify their economies and leapfroginto one of the most dynamic sectors of the world economy.II. The world economy has been receiving a boostfrom the increase in South-South trade. The South’s exportsof creative goods to the world reached $176 billion in 2008,accounting for 43 per cent of total creative industries tradewith an annual growth rate of 13.5 per cent during the2002-2008 period. This indicates a robust dynamism anddeveloping countries’ fast-growing market share in worldmarkets for creative industries. South-South trade of creativegoods amounted to nearly $60 billion, an astonishinggrowth rate of 20 per cent over the period. The trend is alsoconfirmed in the case of creative services, whose share ofSouth-South trade grew to $21 billion in 2008 from $7.8billion in 2002. In the light of this positive evolution, developingcountries are highly encouraged to include creativegoods in their list of products and to conclude negotiationsunder the Global System of Trade Preferences in order togive even more impetus to the expansion of South-Southtrade in this promising area.III. A right mix of public policies and strategic choicesare essential for harnessing the socio-economic potentialof the creative economy for development gains. For developingcountries, the starting point is to enhance creative capacitiesand identify creative sectors with greater potentialthrough articulated cross-cutting policies. Efforts should beoriented towards the functioning of a “creative nexus” ableto attract investors, build creative entrepreneurial capacities,offer better access and infrastructure to modern ICT technologiesin order to benefit from global digital convergence,and optimize the trade potential of their creative products inboth domestic and international markets. A positive spillovereffect will certainly be reflected in higher levels of employmentgeneration, increased opportunities for strengtheninginnovation capabilities and a high quality of cultural andsocial life in those countries.IV. Policy strategies to foster the development of thecreative economy must recognize its multidisciplinary nature— its economic, social, cultural, technological and environmentallinkages. Key elements in any package to shape along-term strategy for the creative economy should involveconcerted inter-ministerial actions to ensure that nationalinstitutions, a regulatory framework and financing mechanismsare in place to support the strengthening of thecreative and related industries.V. A major challenge for shaping policies for the creativeeconomy is related to intellectual property rights: how to measurethe value of intellectual property, how to redistribute profitsand how to regulate these activities. The evolution of multimediacreated an open market for the distribution and sharing ofdigitized creative content, and the debate about the protectionor sharing of IPRs became highly complex, involving governments,artists, creators and business. The time has come for governmentsto review the limitations of current IPR regimes andadapt them to new realities by ensuring a competitive environmentin the context of multilateral discourse.254 CREATIVE ECONOMY REPORT 2010