Transcript Global Trade in Services:

Policies to Strengthen the Economic
Potential of Cultural Industries
RAMESH CHAITOO
Head, Services Trade Unit, CRNM
[email protected]
4th Inter-American Meeting of Ministers of Culture and
Highest Appropriate Authorities
November 19-21, 2008
Barbados
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)
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.
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.
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.
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
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?
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 public’s interest.
To some extent Internet is helping “revolutionize”
distribution & allowing space for small players
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
Necessary Policy Responses by
Developing Countries
1. Cultural policy framework to Recognize &
2.
3.
4.
5.
6.
7.
Promote cultural industries as an economic
sector
Incentives - tax and other to support CI
Ensure they get efficient platforms - ICT
Govts need to invest in infrastructure
Reduce input costs to cultural industries - tariffs
Ensure cultural service suppliers get proper
market access in developed countries
Export, not only protect cultural expressions
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.
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
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
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