MEDIUM TO HIGH MEDIUM TO HIGH CULTURE NON-MEGA CULTURE NON-MEGA

EVENTS AS EVENTS AS REGENERATION REGENERATION

STRATEGIESSTRATEGIESSamuel Cameron, Professor Samuel Cameron, Professor of Economics, University of of Economics, University of

Bradford.Bradford.

DefinitionsDefinitions

Culture – traditional ‘arts’ activity (ancient and modern high and medium)Note- the spectrum issue is problematic with the placing of comedy/humour

Regeneration – the process of bringing economic activity into decaying city neighbourhoods

Event – something special or unique which attracts attention

Non-mega – this is a sarcastic term used in this presentation in oppostion to the existence of a literature on ‘The Economics of Mega Events’. The non mega event is a small collection of activitylike a local or specialist arts festival.

Creative Industries Save The Creative Industries Save The WorldWorld

The work of Richard Florida has promoted the idea that the creative sector of the economy drives growth. It therefore follows that the promotion of growth via creativity is a viable regeneration strategy.

In the UK, DCMS and NESTA likewise enhance a governmental view of a win-win approach to investment in creative industries. Such ideas would lead us to expect that the City of Culture year would have finally solved the fundamental economic problems of Liverpool.

Leicester County CouncilLeicester County Council

Music, theatre and events Music, theatre and events

throughout the year create a throughout the year create a district of colour, contrast and district of colour, contrast and atmosphere, including the atmosphere, including the internationally-recognised internationally-recognised Huddersfield Contemporary Music Huddersfield Contemporary Music Festival, Marsden Jazz Festival, Festival, Marsden Jazz Festival, Holmfirth Art Week, and a well-Holmfirth Art Week, and a well-established Huddersfield Food and established Huddersfield Food and Drink Festival, now in its fifth year.Drink Festival, now in its fifth year.

Kirklees Tourism and Visitor Kirklees Tourism and Visitor Strategy 2004-2008Strategy 2004-2008

Why do Creative Industries Why do Creative Industries Save The World? Save The World?

Why would it work?

External magnetism effectCome to my ‘funky neighbourhood’, name capital, reputation

Spending pattern shiftsExpenditure patterns of creative incomers may be beneficial to local growth

Interior networking effectstraditional notion of industrial linkages and synergies transferred to the creative sector/class

Afterbirth externalities

EVIDENCEEVIDENCE

Florida’s core evidence is based on Florida’s core evidence is based on cross-section regressions of local cross-section regressions of local economic activity on funky economic activity on funky neighbourhood proxies such as neighbourhood proxies such as ‘gayness’/bohemian-ness.‘gayness’/bohemian-ness.

There are also a number of studies of There are also a number of studies of the impact of MTHCNME’s.the impact of MTHCNME’s.

Why do Creative Industries Why do Creative Industries Save The World?Save The World?

To the skeptical economist, Florida’s approach seems like a curious renaissance of Physiocracy and one that plays very loosely with the useof the word creativity eg including psychiatrists in the ‘creative sector’.

It thus simplifies notions of high/low/medium culture that have beset cultural economics by amalgamating all cultural activity into one lump of ‘good stuff’

BUT

Does this matter if it works?

:

CLAIMS FOR CULTURE AND ITS EVENTSCLAIMS FOR CULTURE AND ITS EVENTSGuetzkow (2002)

“The arts have been heralded as a panacea for all kinds of problems Arts-integrated school curricula supposedly improve academic performance and student discipline (Fiske 1999; Remer 1990). The arts revitalize neighborhoods and promote economic prosperity (Costello 1998; SCDCAC 2001; Stanziola 1999; Walesh 2001). Participation in the arts improves physical and psychological well-being (Baklien 2000; Ball and Keating 2002; Bygren, Konlaan and Johansson 1996; Turner and Senior 2000). The arts provide a catalyst for the creation of social capital and the attainment of important community goals (Goss 2000; Matarasso 1997; Williams 1995)”

PROBLEMSPROBLEMS

Concept measurementConcept measurement

1.1. CausalityCausality e.g Glaeser critique of e.g Glaeser critique of FloridaFlorida

2.2. Data Mining BiasData Mining Bias

3.3. Stupid questions, Unasked questions Stupid questions, Unasked questions and unloved answersand unloved answers

Specifically wrt welfare – culture eventsSpecifically wrt welfare – culture events

are assumed to be ‘win-win’are assumed to be ‘win-win’

BIG IS UGLY?BIG IS UGLY?

Analysis in the economics of mega events suggests Analysis in the economics of mega events suggests that it may be the case that ‘big is ugly’. that it may be the case that ‘big is ugly’. The apex of big in mega event terms is the Olympic The apex of big in mega event terms is the Olympic Games which has been problematic in terms of its Games which has been problematic in terms of its development effects. One cost aspect of big is the development effects. One cost aspect of big is the need for high level security.need for high level security.

We may also note that the truly mega event has We may also note that the truly mega event has not been given to regeneration areas but rather not been given to regeneration areas but rather stuffed into over already expanded citiesstuffed into over already expanded cities

Standard Welfare EconomicsStandard Welfare EconomicsOptimality problem of too many resources in big events in places that are already too big.Besides rent seeking problems the resolution of this also faces>

Indivisibility obstacles to downsizing mega events and/or redistributing them to smaller places

Credibility Infastructure

There is also the issue of whether there is a global addiciton to mega events however inefficient they may be

BUT IS SMALL BEAUTIFUL?BUT IS SMALL BEAUTIFUL?

So there is a case for small -as in lots ofSo there is a case for small -as in lots of

low scale independent dispersed low scale independent dispersed activityactivity

versus big .versus big .

An agglomeration of NME’s in a regionAn agglomeration of NME’s in a region

create bigness in the region and some create bigness in the region and some mega events are really compilations of mega events are really compilations of

small events.small events.

Case Regions: LEICESTER AND Case Regions: LEICESTER AND KIRKLEESKIRKLEES

Development strategies here have Development strategies here have been been

to encourage NMEs embedded in a to encourage NMEs embedded in a general context of the idea of the general context of the idea of the region region

being attractive and capable of being attractive and capable of tourismtourism

magnetism.magnetism.

NON EVIDENCENON EVIDENCE

There is no specific reliable evidence for There is no specific reliable evidence for gains gains

from the small is beautiful approach. from the small is beautiful approach.

Only the wishful thinking noted earlier and consultancyOnly the wishful thinking noted earlier and consultancy

based surveys of limited validity. There is also no based surveys of limited validity. There is also no attentionattention

to the competition between regions for the creative to the competition between regions for the creative

industries highspot premia. industries highspot premia.

CONCLUSIONCONCLUSION

Necessity for empirical work on the NMENecessity for empirical work on the NME

which is more conclusive than that which is more conclusive than that hitherto undertake which is generally hitherto undertake which is generally based on nebulous opinion seeking or based on nebulous opinion seeking or economic evaluations which are unable economic evaluations which are unable to separate specific impact or look at to separate specific impact or look at comparative efficiency versus other comparative efficiency versus other regeneration drivers.regeneration drivers.