Creative Economy: A Feasible Development Option

VI. The creative economy cuts across the arts, businessand connectivity, driving innovation and new business models.The digital era unlocked marketing and distributionchannels for music, digital animation, films, news, advertising,etc., thereby expanding the economic benefits of the creativeeconomy. The mobile revolution is changing the lives ofmillions of people in the developing world. In 2009 over 4billion mobile phones were in use, 75 per cent of them in theSouth. In 2008 more than one-fifth of the world’s populationused the Internet, and the number of users in the South grewfive times faster than in the North. However, developingcountries are lagging in terms of broadband connectivity. Forthe creative industries, this is a constraint because many applicationsto stimulate creative production and e-business do notrun without sufficient bandwidth. Therefore, national andregional investment efforts should be guided, in collaborationwith international agencies, towards better infrastructure forbroadband in the South.VII. The creative economy is both fragmented andsociety-inclusive. It functions through interlocking and flexiblenetworks of production and service systems spanningthe entire value chain. Today it is strongly influenced by thegrowing role of social networks. These new tools, such asblogs, forums and wikis, facilitate connectivity and collaborationamong creative people, products and places. Pragmaticpolicymaking requires a better understanding of who thestakeholders are in the creative economy, how they relate toone another and how the creative sector relates to other sectorsof the economy. Policies and initiatives should be specificrather than generic, and preferably not top-down or bottom-upbut allowing for ownership and for partnershipsinvolving stakeholders from the public and private sector,artists and civil society. Schemes that are more inclusive andflexible will facilitate effective and innovative measures torevitalize the creative economy.VIII. Policies for the creative economy have to respondnot only to economic needs but also to special demandsfrom local communities related to education, cultural identity,social inequalities and environmental concerns. Anincreasing number of municipalities all over the world areusing the concept of creative cities to formulate urban developmentstrategies for reinvigorating growth with a focus onculture and creative activities. The main principles can beadapted for rural areas and disadvantaged communities as atool to generate jobs, particularly for youth, empower creativewomen and promote social inclusion in line with theachievement of the Millennium Development Goals.Municipalities are therefore acting faster and more astutelythan the spheres of federal government, which can be moreconstrained by power issues and bureaucracy. Ideally, targetplans of action for the creative economy should be shaped atall levels, from the community to the municipality to thenational level, independent of order. It is important, however,to reconcile cultural and social objectives with instrumentsof trade, technology and tourism.IX. In the aftermath of the crisis, the firmness of themarket for creative products is a sign that many people in theworld are eager for culture, social events, entertainment andleisure. They are devoting a higher share of their income tomemorable life experiences that are associated with status,style, brands and differentiation; this phenomenon, a symbolof the way of life in much of contemporary society, isrooted in the creative economy. Evidence suggests that evenduring the global recession people continued to go to cinemasand museums, listen to music, watch videos and TVshows, play video games, etc. Even in times of crisis, creativeproducts continue to thrive as an integral part of our lives.This explains why some creative sectors appear more resilientto economic downturns and can contribute to a moresustainable and inclusive economic recovery.X. Each country is different, each market is special andeach creative product has its specific touch and splendour.Nonetheless, every country might be able to identify keycreative industries that have not yet been exploited to their fullpotential so as to reap developmental benefits. There is noone-size-fits-all prescription; each country should formulate afeasible strategy to foster its creative economy, based on its ownstrengths, weakness and realities. The time for action is now.10.2.1 Definitions and conceptsDefinitions of the “creative economy” may vary, but itis generally agreed that at the heart of the creative economylie the creative industries. There is no single agreed definitionof the “creative economy” or the “creative industries”although clearly, they embrace the concept of “creativity” asan essential characteristic. Today, creativity is often referred toas a primary resource in the knowledge-based economy, leadingto innovation and technological changes, and conferringcompetitive advantage on businesses and national economies.The transformation of creative ideas gives rise to bothtangible products and intangible services, which are collectivelyreferred to as “creative goods and services”. In theanalysis of this report, “cultural goods and services” consti-CREATIVE ECONOMY REPORT 201010Lessons learned and policy options255