Presentation on theme: "Organization of American States"— Presentation transcript:
1 Organization of American States Inter-American Development Bank (IADB) The Institutional Capacity and Finance Department Francesco LANZAFAMECultural Industries in Latin America and the Caribbean: Challenges and OpportunitiesCulture as an Engine of Economic Growth and Social Inclusion in the AmericasOrganization of American StatesWashington D.C.October 1, 2007
2 Culture and Development Determines the community’s identity and sense of belonging, enhances quality of life and self-esteem;Is the basis to develop social capital;Helps build social cohesion;Has an influence on the recognition and identification of community values, factors that are important for the establishment, preservation and practice of democracy (North, 1990).
3 IADB Instruments in Cultural Activities Loans and Technical CooperationsMIFIADB Cultural CenterInter-American Culture and Development Foundation
4 The IADB main policy areas to support the development of culture: Three main components:Cultural heritage rehabilitation, including historic centers, archeological sites and intangible heritage.Institutional strengthening and training.Cultural Industries developmentTwo examples:QuitoSalvador de Bahia
5 Quito Historical Downtown Cultural Heritage componentRehabilitation of public spaces and emblematic patrimonial buildings with the public and private sector;Social sustainability of the project trough the establishment of:mechanisms of participation for residents and users of the area;a specific housing program for the area in order to control gentrification;a program to support traditional economic activities existing in the area.Promotion of tourism trough improved security, environment, and services.
6 Quito Historical Downtown Institutional componentCreation of a public/private institution for the management of the Historic Center.Creation of incentives to promote private sector investments in the area.Creation of the “Fondo de Salvamento” for the rehabilitation and maintenance of monuments.Cultural Industries componentRehabilitate existing museums and libraries.Recuperation of the “Teatro Sucre” and the building for the new “Museo de la Ciudad.”Support SMEs related to arts and crafts and traditional products.
7 Salvador de Bahia Cultural Heritage component Institutional component Rehabilitation of public spaces and heritage buildings.Housing program to attract residents to the area.Promote tourism trough improved security, services and environmental upgrading. Institutional componentCreate incentives for private sector investments in the area.
8 Salvador de Bahia Cultural Industries component Support the establishment (in the historic center) of businesses related to traditional products. Financing of a specific project and investments to integrate culture and tourism and create a “cultural district.”
9 The IADB Portfolio and Pipeline In the last 10 years the Bank invested:US$ 630 million to rehabilitate central urban areas (46 operations [loans and technical cooperation]).US$ 102 million in cultural tourism (23 operations [loans and technical cooperation]).Currently, the Bank is planning or preparing:Operations for more than US$ 40 million to rehabilitate central urban areas.Operations for more than US$ 300 million in tourism.
10 Key research questions on Cultural Industries in LAC 1) Is it possible to develop local sustainable cultural industries in LAC?2) Can cultural industries play a dual role of economic driver of growth and of cultural patterns?3) Can public policies promote development in the sector?4) What are the successful (and less successful) practices in the sector?5) Is performance in the sector linked to private-public and/or international partnerships?
11 Cultural Industries in LAC: areas of investigation Economic component evaluatesi) economic impact;ii) available data;iii) private sector investment;iv) role of the local culture, tradition, and resources in the production of cultural goods;v) impact of international trade;vi) opportunities and market niches.Cultural component analyzesi) cultural identity and cultural heritage values;ii) structure of the sector at the country and regional levels;iii) policies, strategies, and structural similarities in terms of language and cultural closeness.Institutional component studiesi) regulation and agencies or entities in charge of policy-making;ii) government contributions through programs, grants, or loans; andiii) credit and business support services for existing and emerging firms and artists.
12 What are Cultural Industries The term cultural industries in the IDB study refers to those sectors that are directly concerned with the creation, production, and distribution of goods and services that are cultural in nature and that are usually protected by the copyright.Based on this definition, cultural industries are a set of sectors that offer:1) service outputs in the fields of entertainment, education and information (e.g., motion pictures, recorded music, print media, or museums) and2) manufactured products through which consumers construct distinctive forms of individuality, self-affirmation, and social display (e.g., fashion clothing or jewelry) (Scott, 2004).Moreover, following O’Connor (1999), the study focuses on individuals working in cultural industries with cultural occupations (for example, architects, librarians, authors, journalists, graphic designers, actors, etc.) and without cultural occupations (for example, in the editorial sector, employees in the printing industry).
14 Economic ImpactOne of the fastest growing sectors of the world economy, with forecasts placed at a 10 percent annum growth (UNCTAD, 2004)Constitute an important and growing element of contemporary economic systems:In LAC, the average contribution of this sector to GDP is around 3.5 to 4 percent (not including the cultural tourism sector)In Europe, an average of 5 to 6 percentIn the US, 7 to 8 percentContribute to creating and maintaining local cultural values
15 Contribution to GDP 1993-2005 (%) 199419951996199719981999200020012002200320042005Argentina6.6…2.322.42.472.632.853Brazil …1.641.571.51.461.36Chile220.127.116.11.18.104.22.168Colombia2.11.831.811.77Ecuador0.81.79Mexico5.45.7Peru0.40.50.6Paraguay1Uruguay2.823.13.33.052.922.973.153.363.43Venezuela… 1.41.6Source: Authors’ elaboration on country level data from Ministry of Culture of Argentina, Convenio Andres Bello, and The Competitive Intelligence Unit.Included sectors: Editorial, Audiovisual, Phonographic, Visual and Performing Arts, Multimedia, Sports.
16 Contribution to Employment CountryContribution to Employment (%)YearArgentina3.2%2004Brazil5%1998Colombia27,724 employeeVarious dataChile2.7%AverageMexico3.65%Paraguay3.3%1992Uruguay4.9%1997United States5.9%2001Source: Authors’ elaboration on OAS (2004) and Piedras (2004).
17 Some Common Features across CI Often employ high-skill, high-wage, creative workers, and can create local sustainable jobsEnvironmentally friendlyDensely interconnectedBased on local, tacit know-how (e.g., a style or a sound)Contribute to the quality of life in the places where they congregateMostly medium and small enterprises (SMEs)Some sectors tend to agglomerate in urban areasOther sectors (crafts, gastronomy, and cultural tourism) are also present in rural areas
18 Main issues in LAC (1)Need to define the role of the state and public policiesLack of reliable and internationally comparable dataLack of legal and regulatory frameworksProblems related to intellectual property rights and piracyLack of incentives for private investments and alternative sources of financingDifficult access to credit (lacking collateral and guarantees)
19 Main issues in LAC (2) Lack of coordination among : public institutionspublic and private actorsprivate actorsProblems related to distributionNeed better regional market integrationTreatment in international trade agreements and risk of being absorbed by globalization and loosing local cultural contents and identityLow managerial skills in the private sector (entrepreneurs are usually artists)
20 Possible interventions at the local, national, and regional level Improving trade and regional integration policiesRationalizing fiscal policies and credit accessStrengthening institutional and financial capacityImproving the regulatory frameworkSupporting projects related to CI, andFostering technology innovation and infrastructure
21 Organization of American States Inter-American Development Bank (IADB) The Institutional Capacity and Finance Department Francesco LANZAFAMEThank youCulture as an Engine of Economic Growth and Social Inclusion in the AmericasOrganization of American StatesWashington D.C.October 1, 2007