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CARICOM
Dr. Hilary Brown
CARICOM SECRETARIAT
Promoting CARIFORUM Creative Industries
Project Closing Workshop
September 2011
Strategic Policy Directions
proposed by the Regional Task
Force on Cultural Industries
TRENDS
More attention to culture by CARICOM
Governments, affirming the importance of
Cultural/Creative Industries to national and
regional development
More emphasis on developing services -
allocation for services under 10th EDF
Global recession, free trade have heightened
the need to seek alternatives sources of
income
Inclusion of culture in trade agreements with
Third States (EPA, Canada)
31st COTED (Dec 2010):
Agreed that the following Services would be
granted priority status in the development of the
Regional Plan for Services –
Financial Services
Information and Communication Technology
Professional Services
Tourism Services
Education Services
Health and Wellness
Recreational, Cultural and Sporting Services
BUILDING BLOCKS
Regional Cultural Policy (1994)
National Cultural Policies – Jamaica, St. Lucia,
Dominica; advanced in Suriname, Trinidad and
Tobago and the Bahamas
UNDP, Caribbean Export, IDB, UNESCO, EU
funded studies and projects (since 1990s )
Industry consultations – 2003 - 2007
CARIFESTA Strategic Plan (2004)
CRNM commissioned Study, funded by EU
Proinvest Facility – Cultural Industries in
CARICOM: Trade and Development Challenges
(2006) (Nurse et al)
CARICOM POLICY
Regional Task Force on Cultural Industries
Mandated by COTED-COHSOD, January 2008
Launched on October 2008, in Guyana
Funded by Hub and Spokes Trade Project and UNESCO
TASK FORCE COMPOSITION
TWENTY MEMBER TASK FORCE
Representatives from Ministries of Culture, Trade
and Finance (4)
Industry representatives (7) – music, AV, publishing,
festivals, IP, visual arts
Regional organisations – OECS, Caribbean Export,
OTN/ CARICOM Secretariat (7)
Private financial sector (1)
Educational institution – UWI (1)
Co-chaired by Private and Public Sector Reps –
Adrian Augier (St. Lucia), Sydney Bartley (Jamaica)
TASK FORCE MANDATE
Core mandate: propose “approaches to providing relief from tariffs and other duties and charges on products that are inputs to the cultural industries.”
Develop a Regional Development Strategy and Action Plan Incentives regime and financing mechanism
Data for inclusion in national registries of artists
Address financing needs of the Sector
TASK FORCE MANDATE
Regional Development Strategy and Action Plan to:
Resolve classification issues related to cultural products and services
Make recommendations to address challenges in free movement of artists under the CSME
Advise on the appropriate treatment of culture in trade negotiations and agreements
TASK FORCE ACTIONS
Three TF Meetings
Two Writing Retreats (Co-Chairs)
Four Major Studies (2009-2010)
International best practice in public policy
Ireland, Sweden, Brazil, UK, Singapore (Callender)
Incentive Schemes in Member States for
Cultural Industries and Disincentives for
Growth
Antigua & Barbuda, Barbados, St Lucia, Jamaica,
St Lucia, Trinidad and Tobago (Callender)
TASK FORCE ACTIONS
Educational Policy and Facilities for
Education in the Arts and Culture in Member
States (Callender)
The Design and Impact of an Exemptions
Regime for the CARICOM Cultural Industries
Antigua & Barbuda, Barbados, St Lucia, Jamaica,
St Lucia, Trinidad and Tobago
(Silva)
TASK FORCE ACTIONS
Draft Strategy in an advanced stage of
preparation
To be presented to
COTED (Trade Ministers)
COHSOD (Culture Ministers) – November 2011
COFAP (Finance Ministers)
POLICY CONTEXT
Culture and Development
Cultural identities, signifying systems,
world view and epistemic frameworks
shape our view of development (Nurse,
2006)
Takes account of the unique historical
and cultural context of development
Allows the voice and the expressions of
the dispossessed and marginalised to be
heard in the development process
POLICY CONTEXT
Promotes cultural diversity, social
cohesion and inclusiveness
Unifying force in regionalism
Catalyst for community and nation
building
Youth development
Economic value of culture
ISSUES TO ADDRESS
Vision, Guiding Principles, Objectives,
Targets
Definitions
What strategies and approaches best serve
as catalysts for wider sector development?
Which sectors to focus on?
Cross sectoral issues and needs?
Critical success factors?
Conceptualise and promote Caribbean
brand?
ISSUES TO ADDRESS
Mapping – diversity, tools, business models
Institution building
Innovation and value chain approach
International best practice in public policy
How to make funding more directly available
to and managed by the industry
Paradigm shift in thinking at all levels: Culture
is our business
OBJECTIVES
Growing the Creative Economy: building
more competitive creative industries
Positioning the Region as a cultural mecca
and preferred investment location
Job and wealth creation
Contributing to sustainable national and
regional development
Identity, diversity, inclusion
SECTORS
Music
Audio Visuals (incl. Digital Media &
Animation)
Publishing
Visual Arts
Festivals
Fashion
Performing Arts
Craft
CROSS CUTTING ISSUES
Investment and Financing
Intellectual Property Management
Industry Associations
Business Support Services
Trade and Export Facilitation
Marketing and Distribution
Human Resource Development – training etc.
R&D and Data Collection
Cultural Districts
Policy, Legislation and Incentives
Intersectoral Linkages
CULTURAL EXEMPTIONS REGIME
Consultations in five CARICOM States (Antigua &
Barbuda, Barbados, St Lucia, Jamaica, St Lucia,
Trinidad and Tobago)
Sample captured States more dependent on revenue
from import duties; those with high charges on
cultural inputs; those with some incentives in place
Meeting with Ministries of Finance, Trade & Culture;
Customs
Analysis based on 126 cultural inputs (“Task Force
List”)
The Study :( a) examined current regimes in MS; (b)
proposes a CARICOM-wide exemptions regime; (c)
estimated the fiscal impact on Member States
CURRENT INCENTIVE REGIMES
No MS has a comprehensive exemptions
regime, backed by appropriate legislation
Where regime exists: (a) only covers a few
areas (e.g. film + music); (b) few links to wider
national initiatives on culture; (c) wide
variations in statutory backing; (d) low
utilization rate (33 in TT; 19 in ANB; 20 in JAM)
In many instances the Tariffs and ODCs serve
as a disincentives to growth
CURRENT REGIMES
Inconsistency and differences across MS in
application of the tariff and ODCs
Digital video camera for high end film
production
Duties, ODCs range 61.5% in St. Lucia ; 45% Antigua ;
38.8% Jamaica ; 35% TT; 36% Barbados; 35%
Grenada
Electronic amplifier for sound production
65% in Grenada; 61.5% Barbados; 55% in Antigua;
51.5% in St. Lucia; 48.8% in Jamaica
PROPOSED REGIME
Regime applies to:
Music (live and recorded)
Publishing and printing (book, newspaper,
magazine)
Audio-visual / media (broadcast, news, film, video)
Performing Arts (dance, theatre)
Visual Arts
Festivals and carnivals
Glamour/fashion industry
PROPOSED REGIME
Elements:
A CARICOM Registry of bona fide artists and
cultural entrepreneurs administered at national
level with mutual regional recognition
A CET- level list of cultural inputs eligible for
exemptions, going beyond tools of trade
Adequate financial incentive by exemption from
internal taxes, import duties and ODCs
Enactment of appropriate legislation
Ensuring freedom of movement throughout
CARICOM
Ease of use for the cultural sector
Flexible and adaptable – pilot, regular review
PROPOSED REGIME
Defining the beneficiaries
Stronger role for Ministry of Culture and
industry associations
Discussed at 32nd Meeting of Council for
Trade and Economic Development in May
2011, and
Meeting of the Customs Committee of
COTED in Sept 2011
National consultations ongoing
FISCAL IMPACT
Methodology involved assigning scenarios, based on
likelihood of use in the cultural sector
Assumed differing percentages (1%, 2%, 5%) of
total imports as used by cultural sector
Tariff lines (24) clearly for sole use of cultural sector
(e.g. instruments) – model removed all tariffs/ODCs
Tariff lines (122) largely used by other
sectors/consumers (e.g. paints, audio-visual) –
Impact of trade agreements (e.g. EPA) taken into
account
Varying accuracy based on availability of
disaggregated tax information
FISCAL IMPACT
Results
Depending on scenario, annual loss by a single MS is
between US$115,000 (ANB) and $2 million (JAM)
Overall impact CARICOM: 1.7M (1%); 3.4M (2%); 8.6M
(5%)
Due to data constraints, estimates should be treated
with caution
The Hon. Rex Nettleford, OM, OCC
“Inward Stretch Outward Reach: A Voice From the Caribbean”
“…that it is only by reaching deep into ourselves – that inward stretch - and coming to terms with who we are, and drawing on our inner strength, and our innate talents and abilities, that we will be able to make the “outward reach” beyond the confines our region and our many vulnerabilities, to gain maximum global impact and bring prosperity to our people. This is what our cultural industries represent to us.” H. E. Edwin Carrington, SG