1. Policies to Strengthen the Economic Potential of Cultural Industries RAMESH CHAITOO Head, Services Trade Unit, CRNM rchaitoo@crnm.org 4th Inter-American Meeting of Ministers of Culture and Highest Appropriate Authorities November 19-21, 2008 Barbados

2. Creative/Cultural Industries "Creative industries" include the recording industry; music and theatre production; the motion picture industry; music/magazine publishing; book, journal and newspaper publishing; the computer software industry; photography; commercial art; and the radio, television and cable broadcasting industries. (UNCTAD)

3. Global Market for Cultural Goods & Services Price Waterhouse Coopers estimated global market value of creative industries at US$1.3 trillion in 2005 (from $831 billion in 2000): - North America - 43.5% (USA- $523 bill; Canada - $23 bill) - Europe, Mid East, Africa - $450 bill - Asia - $229 bill - LAC - $32 bill Globally, creative industries forecast to grow by 10 % annually over next decade.

4. Contribution of cultural products & services Trade in core cultural goods increased from US$38 billion to $60 billion over 1994-2002 (UNESCO). 2008 report estimates cultural industries a/c for 7 % of global GDP. United Kingdom - in 2004 - 8% of gross value added, employed 1.8 million people, accounted for £11.6 billion in exports or 4% of all goods & services exported by UK. USA - 2003 - 6% of GDP; employing 4.7 million people; exports of copy-right based industries amounted to $89 billion according to IIPA report Statistics Canada - the value of cultural services trade exports increased by 81%, from $1.45 billion in 1996 to over $2.63 billion in 2002.

5. Motion Picture Industry 2006 - US Box Office receipts - $9.5 bn (607 films); 2001 - $8.41 bn 2006 - global box office sales 25.8 bn; 2001 - $16.96 bn Average cost for a MPA film was $103 mn.

6. Developing countries Despite rich, diverse creativity and talent developing countries are marginal players in commercialization of and trade in cultural products and services. Artists are discovered in developing world and branded and marketed in OECD - Rihanna model

7. Challenges Disconnect between the South where an incredible pool of talent and cultural expression exists and control over the marketing & distribution infrastructure for cultural products and services Relatively poor countries have very creative people (music & entertainment) - Cuba, Haiti, Jamaica But concentration in global music industry Concentration in global film and media How to ensure that benefits accrue to societies from which artists emerge?

8. Globalization & convergence means less firms in Cultural Industries Time Warner AOL; Universal Vivendi Sony BMG merger approved by European Commission But challenged by IMPALA (independents) in European Court of Justice; ECJ ruled that too much concentration in the music distribution industry would be not in the publics interest. To some extent Internet is helping revolutionize distribution & allowing space for small players

9. Cultural Industries in Caribbean The CI sector makes a valuable contribution to the Caribbean economy but goes largely undocumented. Culture ministries are poorly funded and they do not see themselves as economic sectors Consequently, the sector has suffered from neglect in government economic policy formulation throughout the region. Other sectors - dance, drama, sculpture, etc. are underdeveloped

10. Necessary Policy Responses by Developing Countries 1. Cultural policy framework to Recognize & Promote cultural industries as an economic sector 2. Incentives - tax and other to support CI 3. Ensure they get efficient platforms - ICT 4. Govts need to invest in infrastructure 5. Reduce input costs to cultural industries - tariffs 6. Ensure cultural service suppliers get proper market access in developed countries 7. Export, not only protect cultural expressions

11. Media, Communications & Culture Support for local artists Improve access of cultural industries to existing media. Align trade policy with telecoms and broadcast media policy. Source funding for audio-visual production. Encourage co-production and collaborations in media productions.

12. Media & Cultural Output Access to media is vital to business development in the sector. Consumers buy what they see, hear and read in the media. Regional content in the print, radio and audiovisual media is low relative to the quantum of cultural content produced across Caribbean. The goal should be to make local & regional content more accessible to media houses to expand contribution of cultural industries to Caribbean identity formation. Protection of Intellectual property issues

13. Linkages are key For creative industries to grow we need efficient other services Trade negotiations may help in some respects - liberalization leads to cheaper telecoms and broadband (Internet is new platform for distributing cultural products and services) Easier temporary entry of artists and cultural practitioners ICT is critical - but most developing countries have inadequate infrastructure and wrong policies

14. CARICOM Objectives re Cultural Goods & Services Create and facilitate opportunities for Caribbean business in creative industries (performing and lyrical arts, music & entertainment sectors, publishing, A-V, etc.) to contribute to investment, employment generation and wealth creation; Market access in OECD & other countries is very important for investment and growth