‘Creative economy’ can cultivate meaningful work
Its significant three per cent contribution to global gross domestic product (GDP) makes the creative economy a powerful emerging economic sector that is being strengthened by a surge in digitalisation and services, according to the United Nations Conference on Trade and Development (UNCTAD).
Its contribution is likely to grow, say those monitoring the creative economy, if certain key trends can be addressed.
“The creative economy and its industries are strategic sectors that if nurtured can boost competitiveness, productivity, sustainable growth, employment and exports potential,” UNCTAD’s International Trade and Commodities Director, Pamela Coke-Hamilton said.
Moreover, the UNCTAD explained “creativity is not a panacea for economic diversification. The many challenges the cultural and creative industries (CCIs) face are a microcosm of the swath of global challenges today”.
“The climate crisis, limits to growth, intellectual property (IP) and copyright, digitalisation and ecommerce platforms, the future of work, terms of trade, and access to distribution networks all require careful examination.”
According to Andy Pratt, professor of cultural economy at City, University of London, three main areas are worthy of attention, particularly for developing countries: Emerging trade asymmetries, deepened by digital platforms; The nature of work in the cultural and creative industries; and environmental issues and sustainability.
“There is no equal access in trade in the CCIs. The global South is running to catch up, to find a place in many of the (established creative) networks,” Pratt said, adding that colonial trade networks persist and focus on extractive value.
He pointed to the trend of developing country artists moving to places such as Europe and the United States, resulting in value-add being captured there, rather than in their home countries.
“In the creative economy extraction is increasing in the value-added elements, such as recording and copyright, that then do not recirculate in developing economies.”
This is further complicated by the rise in digital platforms, Pratt added, an argument echoed in UNCTAD’s latest Creative Economy Outlook report.
“Digitalization hasn’t opened things up for everybody, but it has offered first mover advantage to companies that are able to control distribution. This is a challenge for many in the creative economy who earn their living through digital rights,” he said.