1. 1 Edna dos Santos-Duisenberg (edna.dos.santos@unctad.org)‏ Chief, Creative Economy and Industries Programme Second International Cultural Industries Forum, Beijing,October 2008

2. 2 Context and Objective First UN multi-agency report on this new topic UNCTAD, UNDP, UNESCO, WIPO and ITC Conceptual, institutional and policy framework Analytical tools for informed policy-making Shared vision based on comparative analysis The English full version can be downloaded by internet at http://unctad.org/creative-economy http://unctad.org/creative-economy A non-official translation into Chinese, kindly prepared by organizers, will be available during this Forum

3. 3 Setting the scene Cultural assets and human creativity inexhaustible resources with both cultural and economic value Globalization re-shaping patterns of world cultural consumption in a world dominated by images, sounds, texts and symbols Connectivity influencing society life-style and the way creative products are created, reproduced and commercialized Shift towards a more holistic approach to development interface between economics, culture and technology

4. 4 Creative Economy Report - 2008 Chapter I: Concept and context of the creative economy Chapter II: The development dimension Chapter III: Analysing the creative economy Chapter IV: Towards evidence-based assessment of the creative economy Chapter V: International trade in creative goods and services Chapter VI: The role of intellectual property in the creative economy Chapter VII: Technology, connectivity and the creative economy Chapter VIII: Policy strategies for the creative industries Chapter IX: The international policy framework for creative industries Chapter X: Lessons learned and policy options Statistical Annex : World trade of creative goods and services, 1996-2005

5. 5 Chapter I: Creative Economy -Concepts and definitions : cultural industries, cultural economics, creative industries, creative economy, creative cities, creative clusters, creative class, etc -Major drivers : technology, demand and tourism -Multiple dimensions: economic, social and cultural - Multi-disciplinary nature: need for concerted inter- ministerial policies and dialogue with all stakeholders - The creative economy: a leading sector generating economic growth, employment and trade

6. 6 Creative Economy An evolving concept based on creative assets potentially generating socio-economic growth Embraces economic, cultural and social aspects interacting with technology and tourism objectives Can foster income generation, job creation and export earnings, while promoting social inclusion cultural diversity and human development Is a feasible policy option to promote trade and development gains (UNCTAD)

7. 7 Creative Economy Is a set of knowledge-based economic activities with cross-cutting linkages to the overall economy Creative Industries Are tangible goods and intangible services with creative content, economic value and market objectives

8. 8 UNCTAD Classification

9. 9 Chapter II: The Development Dimension -UN Millennium Development Goals and poverty reduction -Development linkages: beyond economics - cultural, social and sustainable development -Traditional knowledge, arts and the creative economy -Obstacles to expansion of the creative economy: capital, entrepreneurship, infrastructure, institutional mechanisms -Shaping a model for enhancing the creative economy : UNCTAD’s creative nexus (C-ITET) model -The creative economy in the developing world :Africa’s share in global trade of creative goods and services is less than 1%

10. 10 The Development Dimension

11. 11 The Creative Nexus

12. 12 Chapter III: Analysing the creative economy -Need for systematic analysis, sound methods, reliable statistics and qualitative indicators -Organizational structure: predominance of SMEs and few large TNCs working internationally -Economic analysis: value-chain analysis, IPRs, inter-industry and locational analysis, contract theory -Important role : public and quasi-public institutions and individual artists and creative producers - Distribution and competition issues

13. 13 Chapter IV: Towards an evidence-based assessment of the creative economy -Reliable benchmark: international baseline using trade data -Operational model: universal comparative analysis to all countries -Practical measures: further research, minimal additional costs -Assessment tools: economic evaluation is partial, not exhaustive -Problematic : valuation of culture, technological changes and boundaries between arts/culture and industry -Creative products : relative low value as materials, but real value in intellectual property (CD case) -Trade in creative industries is relatively invisible, shadows of IPRs

14. 14 Chapter V: International trade in creative goods & services - Global trends ● World trade of creative products annual growth rate of 8.7% during 2000-2005, and reached US$ 424,4 billion in 2005 ● Creative goods totalled US$ 335,5 billion in 2005, 47% higher than in 2000, as shown in the table Developed countries dominated trade but exports have risen faster in developing countries, thanks to China New opportunities for developing countries to leapfrog in high growth sectors of the world economy

15. 15 Creative economy: leading growth and employment in advanced countries In Europe EU-25, the creative economy has grown 12% faster than the overall economy during 1999-2003. (EC-KEA)‏ UK: In 1997-2004, as value added 5% growth compared with 3% for the rest of the economy. Employment grew twice faster (DCMS) EU led world exports, US$ 145 billion in 2005 Italy, ranked first in exports of creative goods due to competitive position in design products Exports earnings 42% higher in developed countries in 2000-2005. Same countries among top 10 exporters during the period

16. 16 Creative goods: Top 20 exporters worldwide, 1996 and 2005 Source : UNCTAD

17. 17 China’s exports of all creative products US$ 61.3 billion in 2005 Source : UNCTAD

18. 18 China Exports selected creative goods -1 Source : UNCTAD billion US$

19. 19 China Exports selected creative goods-2 Source : UNCTAD billion US$

20. 20 China Exports selected creative goods-3 Source : UNCTAD billion US$

21. 21 Source : UNCTAD Creative industries goods share in world exports - 2005

22. 22 Creative industries exports structure by economic groups in 2005 (trends - creative goods) Source : UNCTAD Developed economies Developing economies Economies in transition China Other developing economies

23. 23 Source : UNCTAD Creative industries exports structure by economic groups in 2005 (trends - creative services)

24. 24 Creative goods and services A new dynamic sector in world trade UNCTAD figures show that world exports of : Design Art crafts -US$ 119.7 billion in 1996 - US$ 14.7 billion in 1996 -US$ 218.1 billion in 2005 - US$ 23.2 billion in 2005

25. 25 In developing countries a nuanced situation Despite the abundance of creative talents, most developing countries are not yet fully benefiting of the potential of their creative economies In Asia-Pacific and Middle-East the creative economy is growing fast with competitive products In Latin America and the Caribbean relatively small, despite improvements Africa very fragmented creative industries requiring financing and business support

26. 26 Chapter VI: Intellectual Property Rights and the creative economy - Intellectual property: sensitive area with different approaches -Copyrights: source of wealth, incentive and reward for creative works -IPRs contribution to the creative economy: GDP/ employment -Traditional cultural expressions and public domain issues -Copyright and new technologies: the “internet treaties” -Possible policy options

27. 27 Chapter VII: Connectivity and the creative industries -ICTs impact : changes in marketing & distribution and stimulus for creative content -Digitization: 1/3 developing countries penetration rate of internet less than 5% -Convergence : new business models, markets structures and governance -Impact across the production chain: from conception to access to markets /audience -Looking into the future

28. 28 Chapter VIII: Policy strategies for the creative industries - The role of public policies : government as facilitator -The policy process : objectives, tools, implementation -Policy directions : strategic multi-disciplinary actions -Target measures for enhancing creative capacities -Tailoring policy action at the national level

29. 29 Policy directions -Provision of infrastructure -Provision of finance & investment -Creation of institutional mechanisms -Development of export markets -Protection of creator’s rights -Establishment of creative clusters -Tools for effective data-collection measures

30. 30 Chapter IX: The international policy framework Highly influenced by the UN MDG’s- poverty reduction - UNCTAD : Introduced the creative economy on the economic and development agenda: Mandates to promote trade and development gains based on three pillars : (i) consensus-building, (ii) policy- oriented analysis and (iii) technical cooperation -UNDP : Engaging developing countries in the creative economy for development, promoting South-South cooperation - ITC : Creating business opportunities for creative industries from developing countries. Focus on crafts, visual arts and fashion

31. 31 Ongoing multilateral processes UNESCO Cultural diversity perspective: - implementation of the “Convention on the Protection and Promotion of the Diversity of Cultural Expressions” - recognizes the sovereign right of States to elaborate cultural policies and promotes international cooperation WIPO Development Agenda: - closer integration of the development dimension into policy-making in the field of intellectual property protection - intergovernmental committee submit 45 agreed proposals

32. 32 Multilateral Trade Negotiations -WTO Doha Round launched in 2001 remains inconclusive. Several issues relevant for trade policy of creative/cultural goods and services GATS : market access in cultural services including audiovisuals and the built-in flexibilities. Modes of supply and the mobility of artists/creators to offer services in world markets TRIPs: trade of copyrightable and non-copyrightable items such as those originating from traditional knowledge and folklore, technology transfer etc TRIMS, competition policies, trade efficiency and Special &Differential treatment for developing countries Other legal provisions such as free trade and regional trade agreements, economic partnerships, customs unions

33. 33 Chapter X: Lessons learned Lessons Learned : -Creative economy calls for multi-disciplinary and concerted policy response -World exports of creative goods and services grew by 8.7 % annually during 2000-2005 with faster growth in developing countries -ICTs and IPRs are major drivers of the growth of the creative economy worldwide -Technology offers opportunities for SMEs: new distribution channels for creative content, innovative business models -The creative economy strengthens the links between creativity, culture, technology and economic development

34. 34 Major findings - An evolving concept : no common definition of the creative economy, nor a unique classification of the creative industries - There is no one-fits-all recipe but flexible and strategies choices to be made by national governments - Creative industries offers new venues for developing countries to leapfrog into high-growth areas of the world economy - Need to reconcile national policy-making for the creative economy with on-going multilateral processes

35. 35 Policy options -Role of governments: to articulate a conducive climate and infrastructure to stimulate creative capacities, such as creative clusters -Role of creative entrepreneurs: to promote creative entrepreneurship to reinforce skills and linkages between arts, creation and business -Role of civil society: forging strategic alliances to facilitate interactions with all stakeholders.

36. 36 Key messages - Creative industries is among the most dynamic sector in world trade. Developing countries have great potential to expand exports as a source of economic growth and development -Policy strategies to support the development of the creative industries require inter-ministerial policy actions - Policy measures should reinforce the “creative nexus” between investment, technology, entrepreneurship and trade - Lack of reliable data affect policy-making. Need for better methodologies for gathering data worldwide -IP should provide a stimulus to creators and is crucial for enhancing the creative sector for development.

37. 37 The Way Ahead -Redefining priorities: Developing countries have impressive trade deficits as regards creative products. Need o enhance creative capacities -The role of international cooperation: UN system can assist governments to better understand the dynamics of the creative economy, for national and international policy-making - The “Creative Economy Report” advanced the research and policy agendas. Starting point of a “work in progress”

38. 38 Thank you for your attention Reproduction authorized with source acknowledgement UNCTAD (E. dos Santos) Copy of quotation or reprint to be sent to the UNCTAD/UNDP Secretariat