Creative Economy: A Feasible Development Option

1Concept and context of the creative economy■■■■sector, the regulation (or deregulation) of telephone services,the Internet, broadband, satellite communications, etc.,all have important implications for the creative industries.culture: the core functions of the creative arts are frequentlysupported by governments in pursuit of both economicand cultural objectives.tourism: in a number of countries, there is a close associationbetween the creative industries — particularly theperforming and visual arts and the provision of heritageservices — and the contribution of tourism to the economicviability of towns, cities and regions.social affairs: policies dealing with poverty alleviation, socialtensions among minorities, youth and gender issues can betackled through the creative economy.education: vocational training for the workforce of the creativeindustries is a matter of increasing interest as theindustries expand and evolve. The more general aspects ofarts in education are also relevant, as discussed earlier.1.4.2 Need for dialoguewith multiple stakeholdersIn addition to the cross-cutting nature of political andadministrative responsibilities, there is also a similar multiplicityof levels of involvement if one looks at the varioussectors of the economy with which the creative industries areengaged. Individuals and organizations involved in culturalactivities and active in the creative economy operate in thefollowing areas:■■■■the public sector (public cultural institutions such asmuseums, galleries, public service broadcasting organizations,etc.);the for-profit private sector (a wide range of commercialoperations in all fields of culture and creative productionand distribution);the non-profit sector (theatre and dance companies, festivals,orchestras and other music ensembles, craft cooperatives,etc., some of which may receive government financial incentives);andcivil society (advocacy non-governmental organizations(NGOs), foundations, academia, artistic and creator’sprofessional associations, sectoral organizations, etc.).1.4.3 Need for institutional mechanismsThe multidimensionality and cross-cutting nature ofthe creative industries mean that there is an inevitable tendencyfor policy strategies to become fragmented. If thisleads to the application of piecemeal measures, there may bea danger that the policy strategies are contradictory in theirimpact. It is clear that an integrated approach towardsenhancing the creative industries and hence the creativeeconomy is needed in policymaking. This approach requireseffective institutional mechanisms for coordination of policiesacross the various agencies with responsibilities in thisarea. This topic is further analysed in chapter 8.1.5 The creative economy in the developed worldThere is no doubt that, whether viewed from a globalor a national perspective, the creative economy — howeverit is defined — is growing, and growing rapidly. Data for thebroadest conceptualization of the creative economy showthat in OECD countries it has been growing at an annualrate more than twice that of the service industries overalland more than four times that of manufacturing. 49 For thecreative sector more narrowly defined, statistics on outputgrowth in a number of countries over the past 5, 10 or 15years show a similar pattern.In many advanced economies, the creative economy isnow recognized as a leading sector in generating economicgrowth, employment and trade. In Europe, the creative economygenerated a turnover of €654 billion in 2003, increasing12 per cent faster than the overall economy, as shown intable 1.5. 50 Employment in the European cultural sectorgenerally grows faster than elsewhere in the economy. Atpresent, it is estimated that the cultural and creative industriescontribute to around 2.6 per cent of the total GDP ofthe European Union, providing quality jobs to around 549 Howkins (2001:xvi).50 KEA (2006).28 CREATIVE ECONOMY REPORT 2010