Harnessing the Digital Creative Economy in Small Economies- Creating Pathways Towards Services-led Diversification
Event report
Speakers:
- Keith Nurse
- Ms Eveline Smeets
- David Strusani
- Mr Vincent Valentine
Moderators:
- Ambassador Merewalesi Falemaka
Knowledge Graph of Debate
Session report
Vincent Valentine
The creative economy is a vital contributor to the global GDP, with a value of $1.5 trillion and accounting for 3.1% of the world's GDP. It also plays a crucial role in employment, providing opportunities for around 6% of the workforce. Despite the challenges posed by the COVID-19 pandemic, the creative economy has shown resilience, particularly in digitally deliverable services, which increased by 5%. However, small economies face hurdles in their creative economy's growth due to poor internet connectivity and inadequate legislation. Recognising the potential of the creative economy globally is essential, as it is projected to grow by 40% by 2030. Efficient goods movement, specifically Mode 2 (movement of goods), is gradually surpassing Mode 1 (movement of people to collect goods), reflecting shifting trade patterns. However, there are concerns regarding the accuracy of trade volume estimations. Ireland beckons as a digital export hub, attracting major companies and boasting significant technological development. UNCTAD is committed to supporting small economies' creative economies and offers assistance through initiatives like the creative economy mapping exercise. Overall, the creative economy plays a significant role in the global economy, and with the right support and investment, it can thrive and contribute to a prosperous future.
Audience
In a recent presentation, an audience member raised several questions and sought further clarification on the modes described, the impact of the diaspora on Caribbean creative industries, and the role of Public-Private Partnerships (PPPs) in investing in creative sectors. The audience member's stance was neutral, indicating a desire for more information and discussion surrounding the key points presented.
One of the main arguments put forth was the importance of intellectual property rights in preventing industry monopolies and oligopolies. The discussion highlighted that intellectual property rights could facilitate growth within the industry by reducing barriers and competition, thereby leading to the desegregation of the sector. Additionally, it was noted that these rights provide a means of generating more revenue, emphasizing their significance in safeguarding the interests of stakeholders in the creative industry.
Dr. Nurse specifically focused on the potential of the creative economy for economic growth and development in Jamaica. Although the presentation had a positive sentiment, the audience member felt that additional details were needed regarding the practical implementation of the suggested solutions. This indicates a desire for more concrete strategies and actions to be outlined to effectively harness the economic potential of the creative economy.
The supporting facts for Ireland's creative services were not provided, leaving the audience member without further insights into the factors that contribute to Ireland's status as the second-largest exporter of creative services. This lack of information leaves an important aspect unaddressed.
Lastly, the discussion emphasized the importance of creating awareness and fostering dynamism for the potential of the creative economy. It was argued that by emphasizing the significance and opportunities presented by the creative economy, young people could be encouraged to stay in their countries rather than seeking opportunities elsewhere. The positive sentiment surrounding this argument suggests that raising awareness and showcasing the potential of the creative sector can be an effective means of retaining talent within a country.
In conclusion, the audience member's inquiries and uncertainties, coupled with the positive arguments put forth regarding intellectual property rights and the potential of the creative economy, underscore the need for further exploration and practical strategies for harnessing the economic potential of the creative industries. Additionally, the lack of information regarding Ireland's position as a major exporter of creative services warrants further investigation and discussion.
Merewalesi Falemaka
During the discussion, the speakers focused on the influence of digitisation on the creative economy, with particular emphasis on its impact on small economies and small island developing states. The advent of digitisation has acted as a multiplier for opportunities within the creative economy, addressing the issue of geographical isolation by allowing creative industries in remote areas to connect with a wider audience and market their products or services. In addition, digitisation has reduced start-up costs for these industries, providing them with a more level playing field.
However, challenges persist in the commercialisation of the creative and cultural sector. Key issues include ensuring adequate remuneration for artists and entrepreneurs, protecting intellectual property rights, addressing fragmentation, and scarcity of data. Many creative practitioners are unable to access necessary financial support because the creative industry is in its infancy stage and lacks the required mechanisms for funding.
The discussion also highlighted the significant role of culture as a driver for sustainable development. The importance of culture was recognised across various strategic frameworks in the Pacific, including the 2050 Strategy for the Blue Pacific Continent. This recognition highlights the importance of integrating culture into development initiatives, ensuring that it is not overlooked in the pursuit of sustainable growth and progress.
To further support the creative economy, the speakers proposed promoting digital trade and leveraging international platforms. The Pacific e-commerce initiative was identified as a means to improve the e-commerce system, focusing on areas such as the legal framework, ICT infrastructure and services, trade facilitation and logistics, as well as access to finance and skills. By encouraging digital trade, creative artists can establish digital businesses and reach a wider global audience, leading to increased growth and opportunities for the creative economy.
Lastly, it was mentioned that international platforms and activities play a crucial role in promoting the creative economy. The upcoming Fourth SEADS Conference in 2024 was highlighted as an initiative to build on the Samoa pathway, which recognises the significance of the creative economy in the development of small island developing states. By actively engaging with international platforms, these economies can showcase their creative industries, foster collaborations, and gain recognition on a global scale.
In conclusion, the discussion highlighted the transformative impact of digitisation on the creative economy, particularly for small economies and small island developing states. While there are challenges to overcome, such as fair remuneration and intellectual property protection, integrating culture into sustainable development strategies and promoting digital trade and international platforms can contribute to the growth and success of the creative economy in these regions.
David Strusani
The International Finance Corporation (IFC), which is part of the World Bank Group, has recently shown interest in investing in the creative industries. This decision is driven by the potential for development impact and profitable investment opportunities in this sector. The IFC has a dedicated department that focuses on disruptive technologies and has been actively investing in venture capital, early equity, and supporting start-ups in this field for approximately 15 years. Now, the IFC has expanded its focus to include the creative industries, which consist of various sectors such as audio and visual media, fashion arts, crafts, and the intersection between the creative economy and disruptive technologies.
However, private sector investment in the creative industries can face certain challenges that must be addressed to facilitate growth and scalability. Risks and barriers, especially in smaller economies, often deter private sector investment. To tackle this issue, the IFC has adopted a strategy of partnering with established providers in the sector. They have made significant investments in India, particularly in local podcast content and movie production. By leveraging these partnerships, the IFC aims to overcome the obstacles associated with private sector investment in the creative industries.
Digitalization and disruptive technologies have the potential to alleviate some of the risks and barriers associated with investing in the creative industries. Recognizing this, the IFC has established a sizable department that specifically focuses on disruptive technologies. The IFC was the first to invest in venture capital and support start-ups in emerging markets, and it is now considering expanding its reach to smaller economies in the future. By embracing digitalization and disruptive technologies, the IFC seeks to enhance investment opportunities and mitigate certain challenges faced by investors in the creative industries.
While the IFC actively engages in public-private partnerships (PPPs) for hard infrastructure projects, such as those related to transportation and energy, it currently has no plans to implement PPPs for the creative industries. The IFC's focus on PPPs remains on the development of traditional infrastructure.
Affordable and accessible internet access is crucial for fostering the growth of the creative industries. The younger generation, who are well-versed in platforms like TikTok and YouTube, have a strong potential to create content in these industries. However, limited access to affordable internet acts as a barrier. The IFC acknowledges the importance of providing affordable and available internet to unlock the creative potential of the youth and to promote the growth of the creative industries.
In conclusion, the IFC's recent investments in the creative industries are driven by the opportunities for development impact and financial returns in this sector. While private sector investment faces challenges, the IFC believes that disruptive technologies and digitalization can help overcome these barriers. Despite actively engaging in PPPs for hard infrastructure projects, the IFC currently has no plans to implement PPPs for the creative industries. Lastly, the provision of affordable and accessible internet is fundamental to nurturing the creative industries and enabling the younger generation to participate in content creation.
Keith Nurse
The digital creative economy is not only instrumental but also holds significant future value. It plays a crucial role in shaping identity and cultural confidence. Content creation from the creative industries visually aids in shaping future realities, as seen in the influence of Star Trek on current technologies. Overall, the sentiment towards the digital creative economy is positive.
However, developing countries face challenges in advancing within this sector due to the lack of dynamic trade and industrial policies. Trade policies in these countries are outdated and primarily focused on goods rather than services. There is also limited participation in data monetization by institutions in developing countries. The sentiment towards this issue is negative.
Access to data is essential for fair trade in digital industrialization. Without data access, fair trading in culture becomes impossible in the era of digital industrialization. Although big countries like India and South Korea have successfully implemented data localization, most developing countries are unaware of this tactic. The sentiment towards this argument is neutral.
Copyright arrangements and structures are seen as unfair to artists and content creators, especially those from developing countries and certain genres. The income generated in the digital creative economy is often captured by platforms instead of artists. Furthermore, certain genres and music from small countries often go unnoticed in data collection, resulting in a lack of royalties. The sentiment towards this issue is negative.
The diaspora plays a crucial role in small economies, serving as an extension of the home market and contributing to the success of industries like Nollywood in Nigeria and Jamaican industries. The sentiment towards the diaspora's impact on small economies is positive.
Linking trade policy with industrial and innovation policies is necessary for development. In the Caribbean, the focus on trade policies without direct links to various sectors and expertise to promote them is considered a negative approach.
Various financing mechanisms are already in operation in developing country regions, as highlighted by the ACP study on Africa, the Caribbean, and the Pacific. The sentiment towards this is positive.
Effective infrastructure is crucial for consistent success in the global market. Without institutional mechanisms, small entrepreneurs face difficulties breaking into the market, resulting in one-hit wonders. Therefore, the creation of startups, growth facilitation, clusters, incubators, accelerators, and market integration programs are necessary to scale up these firms globally. The sentiment towards this argument is positive.
Many policy makers and politicians in developing countries lack an understanding of the value of data capture. Outdated concepts of an economy and ignorance of the importance of data capture hinder progress in utilizing data effectively. The sentiment towards this issue is negative.
The lack of training in new technologies, such as blockchain and AI, in most developing countries creates a skills gap for the rapidly transforming global economy. This gap is expected to have a significant impact in the coming years. The sentiment towards this issue is negative.
Strategic investment in future important industries is essential for the development of developing countries. Singapore's strategic investment in biotechnology, sending individuals for PhDs annually, has resulted in their biotech export earnings being in the top 10. In contrast, most developing countries lack strategic approaches in investing in education. The sentiment towards strategic investment in important industries is positive.
The main issue hindering progress in the digital creative economy is not the lack of funds but rather the lack of strategy and political will to sustain it. The examination of a country with a scholarship program of 200 scholarships annually, without a clear strategy tied to the country's future, demonstrates the importance of a coordinated and sustained effort. Previous efforts often go back to zero when there is a change in government in developing countries. The sentiment towards this issue is negative.
In conclusion, the digital creative economy holds significant future value and contributes to identity and cultural confidence. However, many challenges hinder the advancement of developing countries in this sector, such as the lack of dynamic trade and industrial policies, unfair copyright arrangements, limited access to data, and the skills gap in new technologies. The role of the diaspora is crucial in small economies, and trade policies should be linked to industrial and innovation policies. Various financing mechanisms are already in play, and effective infrastructure is necessary for success in the global market. The understanding and utilization of data, as well as strategic investment in important industries, are areas that need improvement. The main issue hindering progress is the lack of strategy and political will.
Eveline Smeets
Disruptive technologies, such as digitalisation, have been instrumental in unlocking the financial potential of the creative industries in emerging markets. This has resulted in increased investment and job creation within these sectors. The International Finance Corporation (IFC) has recognised this trend and has begun investing in creative industries in developing countries, leveraging digitalisation. The IFC's support aims to provide access to finance and raise awareness for creative industries in emerging markets.
Investment in the creative industries has proven to be highly advantageous, as it stimulates more job creation and generates a higher employment effect compared to other sectors in the economy. Additionally, the creative industries have the ability to address various economic, social, and market-related challenges in emerging markets. These industries are known for their labour-intensive nature, creating both direct and indirect job opportunities. Furthermore, creative products contribute to social cognitive benefits, such as improved innovative capacity, health, and well-being. Moreover, the creative industries play a significant role in industrial innovation and tourism in countries.
However, piracy poses a significant barrier to the formalisation and commercial growth of the creative industries. Evidence from countries like Nigeria and India demonstrates that piracy leads to reduced revenues and reinvestment capabilities for filmmakers, resulting in a decrease in the size and quantity of movies produced. This highlights the need for stricter enforcement of intellectual property rights and anti-piracy measures to protect the creative industries and encourage their growth.
For small island economies, addressing challenges such as internet connectivity and small market size is crucial. It is essential to enhance submarine cables and satellites, export promotion agencies, and various digital, financial, and geographical linkages to overcome these challenges. Moreover, alternative financing mechanisms and fiscal policies are necessary to enhance local production, especially in small island economies. These mechanisms and policies help overcome the challenges posed by small market size and economies of scale.
In conclusion, disruptive technologies have played a vital role in unlocking the financial potential of the creative industries in emerging markets. The creative industries have the ability to address economic, social, and market-related challenges, and investment and support from organisations like the IFC are crucial in harnessing their potential. However, piracy remains a significant barrier to the formalisation and commercial growth of these industries. Furthermore, addressing challenges such as internet connectivity and small market size is essential for the development of small island economies. By implementing alternative financing mechanisms and fiscal policies, these economies can enhance local production and overcome the hurdles they face.
Speakers
A
Audience
Speech speed
148 words per minute
Speech length
1159 words
Speech time
470 secs
DS
David Strusani
Speech speed
166 words per minute
Speech length
1332 words
Speech time
482 secs
ES
Eveline Smeets
Speech speed
161 words per minute
Speech length
1924 words
Speech time
716 secs
KN
Keith Nurse
Speech speed
153 words per minute
Speech length
4480 words
Speech time
1759 secs
MF
Merewalesi Falemaka
Speech speed
127 words per minute
Speech length
1855 words
Speech time
876 secs
VV
Vincent Valentine
Speech speed
135 words per minute
Speech length
2541 words
Speech time
1129 secs
Related event
