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Transcript of Inter-American Development Bank (IADB) The Institutional Capacity and Finance Department Francesco...
Inter-American Development Bank (IADB) The Institutional Capacity and Finance Department
Francesco LANZAFAME
Cultural Industries in Latin America and the Caribbean: Challenges and Opportunities
Culture as an Engine of Economic Growth and Social Inclusion in the Americas
Organization of American StatesWashington D.C.October 1, 2007
Culture:• 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).
Culture and Development
IADB Instruments in Cultural Activities
• Loans and Technical Cooperations• MIF• IADB Cultural Center• Inter-American Culture and Development
Foundation
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 development
Two examples:• Quito• Salvador de Bahia
Quito Historical Downtown
Cultural Heritage component• Rehabilitation 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.
Quito Historical Downtown
Institutional component • Creation 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 component• Rehabilitate 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.
Salvador de Bahia
Cultural Heritage 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 component • Create incentives for private sector
investments in the area.
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.”
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.
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?
Key research questions on Cultural Industries in LAC
Economic component evaluates i) 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; and iii) credit and business support services for existing and emerging firms and artists.
Cultural Industries in LAC: areas of investigation
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) and
2) manufactured products through which consumers construct distinctive forms of individuality, self-affirmation, and social display (e.g., fashion clothing or jewelry) (Scott, 2004).
What are Cultural Industries
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).
Structure of Cultural Industries
B ooks
Printing Industry
Publishing Industry
Journals
M agazines
Newspapers
Litera ture
Libraries
Advertising Industry
Design
E d ito r ial
C inem atographic Industry
T elevision Industry
Photographic Industry
Hom e Video
Advertising Industry
A u d io v isu a l
Discographic Industry
R adio
Opera
C oncerts and Perform ances
Orchestras
P h o n o g r a p h ic
C o n v en tio n alC u ltur a l In d ustr ies S ec to rs
C oncerts and Perform ances
T heatre
Orchestras
Dance
Opera
C rafts
Design
Fashon
Architec ture
M useum s and Galleries
V isu a l a n d P e r fo r m in g A r ts
Architec ture
M useum s and Galleries
Gastronomy
T ypical Prouducts
E co-tourism
C oncerts and Perform ances
C rafts
C u ltu r a l T o u r ism S p o r t
O th erC u ltur a l In d ustr eis S ec to rs
Advertising Industry
Software
Video Gam es
M edia Supports Industry
Design
M u lt im e d ia
N e wC u ltur a l In d ustr ies S ec to rs
C u ltu ra l In d u stries
• One 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 percent• In the US, 7 to 8 percent
• Contribute to creating and maintaining local cultural values
Economic Impact
Contribution to GDP 1993-2005 (%)
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
Argentina
6.6 … … … … … … 2.32 2.4 2.47 2.63 2.85 3
Brazil … … … … … … … 1.64 1.57 1.5 1.57 1.46 1.36
Chile 2.3 2.5 2.7 2.2 2 2.8 … 2 1.8 1.9 1.9 1.8 …
Colombia … … 2.3 2.1 2.1 2 2 1.83 1.83 1.81 1.77 … …
Ecuador … … … … … 0.8 … … 1.79 … … … …
Mexico 5.4 … … … … 5.7 … … … … … … …
Peru … … … … … … … 0.4 0.4 0.5 0.6 0.6 0.6
Paraguay … … 1 1 1 1 1 … … … … … …
Uruguay … … … 2.82 3.1 3.3 … 3.05 2.92 2.97 3.15 3.36 3.43
Venezuela
… … … … … 2.3 … 1.4 1.4 1.4 1.6 … …
Source: 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.
Contribution to Employment
CountryContribution to Employment (%)
Year
Argentina 3.2% 2004
Brazil 5% 1998
Colombia 27,724 employee Various data 1999-2002
Chile 2.7% Average 1990-1998
Mexico 3.65% 1998
Paraguay 3.3% 1992
Uruguay 4.9% 1997
United States 5.9% 2001
Source: Authors’ elaboration on OAS (2004) and Piedras (2004).
Some Common Features across CI
• Often employ high-skill, high-wage, creative workers, and can create local sustainable jobs
• Environmentally friendly
• Densely interconnected
• Based on local, tacit know-how (e.g., a style or a sound)
• Contribute to the quality of life in the places where they congregate
• Mostly medium and small enterprises (SMEs)
• Some sectors tend to agglomerate in urban areas
• Other sectors (crafts, gastronomy, and cultural tourism) are also present in rural areas
Main issues in LAC (1)
• Need to define the role of the state and public policies
• Lack of reliable and internationally comparable data
• Lack of legal and regulatory frameworks• Problems related to intellectual property rights and
piracy• Lack of incentives for private investments and
alternative sources of financing• Difficult access to credit (lacking collateral and
guarantees)
Main issues in LAC (2)
• Lack of coordination among :– public institutions– public and private actors– private actors
• Problems related to distribution• Need better regional market integration• Treatment in international trade agreements
and risk of being absorbed by globalization and loosing local cultural contents and identity
• Low managerial skills in the private sector (entrepreneurs are usually artists)
Possible interventions at the local, national, and regional level
• Improving trade and regional integration policies
• Rationalizing fiscal policies and credit access
• Strengthening institutional and financial capacity
• Improving the regulatory framework• Supporting projects related to CI, and • Fostering technology innovation and
infrastructure
Inter-American Development Bank (IADB) The Institutional Capacity and Finance Department
Francesco LANZAFAME
Thank you
Culture as an Engine of Economic Growth and Social Inclusion in the Americas
Organization of American StatesWashington D.C.October 1, 2007