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    Week 1 (Intro)Defnition o Cultural Policy

    “Promotion or prohibition o cultural practices and values by overnments!corporations and individuals"

    Why policy or culture#

    $ Culture has a value or society%& social ' cultural values economy% realisin values in order to oster uality olie& policy necessary to steer! stimulate! oster! correct*

    $ Culture is part o a market failure (+ailure to allocate oods e,ciently)

    & Market failure% Caused by$ public goods and services: non&rival- non&e.cludable (also uasi&publicoods)- C/$ Pure public oods% very rare$ It is possible to limit access (e.cludability) 0 conestion Impure public oods$ isk o +ree ridin% 234 there can be voluntary private provision o public oods(e** voluntary 5obs)

    $ externalities: (6ctions o one individual or frm a7ect other individuals orfrms)& e.ternal social benefts o consumption* 8ocial impact* 9** 9l 8istema

    & e.ternalities rom production (spill overs)* 9conomic impact* Cost&2eneft6nalysis (C26) 9** 9uropean Capital o Culture

    Positive Externalities 2eneft upon others :ithout beinre:arded

    Negative externalities

    Imposes a cost on others :ithoutcompensation

    $ 6pple orchard 0 neihbourinbeekeeper$ estored buildin in a deraded area

    $ Chemical plant dischares chemicalsin a river$ Car :ithout pollution control device

    Quantity produced < optimal

    quantity Quantity produced > optimal

    quantity

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      Inormation asymmetries

    & 9.perience oods% ;ecessary to have inormation to consume a ood butdi,cult to obtain it (9**% Cultural oods! erit oods

    & oods and services that the overnment eels that people :ill under&consume! thereore should be subsidised or provided ree& Individual may not act in his?her o:n best interest& Paternalism consumers@ preerences&

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    $ 9ducation$ Intellectual property

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     4heoretical approaches

    $ (Cultural) economics & obtainin and deployin public unds or cultural purposes& 8pecifc approach& Welare economics (9.ternalities! >erit oods=)& 6nalysis o the reasons behind a specifc oranisational settin ? policy! e**public choice theory$ Sociology  & ;eo&institutionalist approach$ History  & 8pecifc ocus on the ormation o cultural policy in ;E$ Economic approach & Dominance o public intervention (yes?no)$ easons#& 6nalysis o institutions responsible or cultural policies

    & Di7erent oranisational schemes& elationship amon di7erent actors (politicians! bureaucrats! e.perts! citiFens!arm@s lenth bodies! ;GH@s! =)& 4ools adopted& Involvement o the private sector& ole o international oranisations (3;98CH! 93! 3;C46D! 3nited ;ations! =)

    ore involvement o the people(democratisation)$ ole o overnments as acilitators

    $ Di,cult to account or it$ Importance o the leal defnition osponsorship vs* donations$ Costs or the :hole society

    Regulation

    $

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    Cultural policies media policy ' trade policy ' industry policy ' labour marketpolicy=

     4rends in cultural policy

    $ Process o decentralisation and privatisation

    & esponsibilities rom the state to the second and third spheres$ eduction o resources& ;eed to A5ustiy@ the use o resources (social! cultural! economic e7ects)$ Globalisation (J Ino and Com 4ech (IC4))% lobal market place (capital andlabour)& ore e,cient manaement systems(collections! ticketin)

    $ Greater competition$ Illeal do:nloads$ Cultural policy becomes more and

    more an instrument o economicpolicy (creativity & economic ro:th)

    $ 6rts become more demand&driven#

     Ways o analysin cultural policy

    Cultural Social conomic$ Cultural impact ?capital (participation!

    en5oyment! success#!uality o lie indicators!innovation)*$ 8urvey

    $ 8ocial impact*$ C/>% Continent

    /aluation method(sample survey! W4P) ore.ternalities oconsumption

    $ 9conomic impact(unearned income)*

    $ Cost&2eneft 6nalysisor e.ternalities romproduction o the arts(spill overs)*

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    Week B (Way not be ully measurable in monetary terms

    • 8ub&set o creative oods and services (advertisin! sot:are=)

    /alue and valuation

    • /alue :orth! to an individual or a roup! o a

    ood?service?activity?e.perience! :ith an implied possibility o a rankin o value accordin to iven criteria

    • /aluation estimatin! ascribin! modiyin! a,rmin! denyin value

    • /aloriFation value is imparted to some ob5ect as a result o deliberative

    action ? e.ternal event& (9.*)

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    $ Increased uantity aainst market ailure & provision o socially optimaluantity$ Increased uality support to taret a specifc enre or specifc ualityreuirements

     4hrosby@s Concentric Circles

    Policy Process

    $ Identifcation o products and activities$ Identifcation o ob5ectives$ 6llocation o responsibilities$ Policy coordination$ Choice o policy instruments$ Implementation o policy measures$ >onitorin and evaluation o the e7ects o the policy

    Policy tools

    $ +iscal policy& overnment e.penditure ? raise public revenue thru ta.ation& direct (subsidies! rants)& indirect (ta. concessions! vouchers! donors! /64 etc*)

    $ eulatory policy% intellectual property la:! cultural rihts (moral riht or artistto e.ercise their :ork methods! e.tend reedom o speech)! media policy (minreuirement or certain types o prorammes)! heritae policy

    $ Industry policy% creative clusters! business start&ups! cultural tourism stratey

    $ Eabour market policy% pension arranements or artists! minimum :aeleislation! vocational trainin and skills development

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    $ 4rade policy% e.port promotion (“Where culture leads! trade ollo:s")! importcontrol

     4rackin 9con* Hutcomes

    /ariables to be monitored%• Hbservable levels o output

    • >easures o output value

    • Eevel o e.ports?imports o cultural product

    • ates o ro:th

    • Price levels or cultural oods and services

    • Income levels o creative :orkers

     4rackin Cultural Hutcomes

    • unicipalities

    8takeholders

    $ Cultural :orkers% artists! support sta7 (back&o,ce)! teachers=$ Commercial frms% architecture$ ;ot&or&proft frms% mainly artistic ob5ectives

    $ Public cultural institutions$ 9ducation and trainin institutions$ Government aencies and ministries$ International oranisations% 3;! 3;C46D! 3;98CH! 93! World 2ank! =$ Consumers and consumer oranisations% omnivores and univores

    What do public and private sectors decide about#$ Industry development$ Eabour$ 4rade$ 9ducation$ 3rban ? reional development$ 9nvironment$ Inormation technoloy and media

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    $ Eeal a7airs% intellectual property$ 8ocial :elare% social cohesion! cultural pluralism

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    International Eevel

    Public Private& 3;98CH& 9uropean 3nion& World 2ank

    & ;GH@ s& 4rusts& +oundations

    "nited #ations ducational Scienti$c and Cultural %rganisation &"#SC%'

    $ Eeal instruments to enable states to protect more e7ectively all orms oculture$ 9laborates leal instruments in the orm o declarations! recommendations orconventions adopted by 3;98CHs member states9.amples%$ Protection o the World Cultural and ;atural @8 E9;G4< 2HDI98 (9** ;E! 3U! ;ordic countries)

    Decentralisation

    $ Po:er is deleated to lo:er levels o overnment$ Dependin on the institutional oranisation%& >inistry can still play a coordination unction (e** Italy to:ards 8icily- +rance)& ;o >inistry (e** Germany 0 Ender! 6ustria! ederal systems in eneral)

    $ Eocal levels o overnment can play an important role even :hen there is nodevolution (9** 3U% Eocal authorities “bi spenders")

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    (rms) *engt+ ,odies 

    $ 4he overnment fnances culture Aat arm@s lenth@ throuh the interventiono di7erent institutions and bodies that act to flter overnment inVuence$ /arious institutions! unded by the state! have (supposedly) a certain deree oindependence :hen decidin ho: to use resources or cultural scopes$ Idea% prevent political intererence$ 6rm@s lenth bodies% not necessarily subordinate to cultural ministers ordepartments- they can :ork in partnership :ith them

    Private Intervention

    ;on&proft (Mrd sphere) 2usiness (Bnd sphere)$ 4rusts! oundations! associations

    $ +ocus on oundation

    $ Companies

    Di7erent orms and di7erent treatments%$ Donations& 8upport :ithout returns$ Patronae ? >aecenatism& 8upport :ith some return (sometimes)$ /oluntary :ork$ 8ponsorship& Commercial sponsorship% Company@s ob5ective is to derive a direct beneft (

    enhanced sales or imae)& 8ponsorship% 8upport :ith returns (the sponsor receives somethin in return!directly or indirectly)

    ;*2* ole o the public sector as acilitator

    Eeal systems& 8hit to:ards decentralisation& 8hit to:ards an increasin involvement o the private sector

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    Week M (

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     4a.Incentives

    $ ;on&Proft Hrs

    $ 6rtists$ Charitable Donations$ Gits and 2euests

    1eductio

    ns

    $ Indirect 4a.es (/64)

    $ Income 4a.

    Private support$ 8ponsorship% commercial areement 0 uid pro uo% the sponsor etssomethin in return! directly or indirectly$ Philanthropy (donation)% support :ithout returns$ Patronae% support :ith some return (sometimes)

    ;*2* Public sector as a acilitator% reulation and ta. incentives can stimulate theprivate sector@s participation (cro:din in or cro:din out)*

    Indirect e.penditure$ Increase the amount o resources available$ >ore involvement o the (potential) consumers (Ademocratisation@)& ole o overnments as acilitators$ Di,cult to account or$ Importance o the leal defnition o sponsorship vs* donations$ 4hey are costs or the :hole society

    $ isk o paternalism (public choice)$ isk o cro:din&out%Donors reduce their donations i public support increases H overnmentsreduce undin as cultural oranisations et enouh private unds$ isk o cro:din&in%Donations o especially to publicly unded oranisations & uality ensured

    Capital ta.ation and national heritae$ Preserve and protect national heritae or the beneft o the public$ 2uildins! land! :orks o art and other ob5ects that ualiy under the schemeare e.empt rom Inheritance 4a. and Capital Gains 4a. providin that certainconditions are met

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    R/"*(!%R0 .(S"RS

    eulation

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    $ 2alance 2et:een%$ 9.cellence and 6ccess$ Ouality and Ouantity$ 9,ciency and 9uity$ 9con and Cultural /alue

     4ask of6rt

    Policy

    $ Droit de suite (resale o :ork o art)$ >oral riht$ Chanes due to technoloy ? diital reproduction (piracy)$ International areements (WIPH) (World Intellectual Property Hr)$ Importance or developin countries

    Collectin societies$ 4oo e.pensive or individual artists to administer rihts themselves$ Costs or users$ rihts holders :ill 5oin a collecting society as members and instruct it tolicense their rihts$ PH8%& Increased e,ciency& Distribution o barainin strenth& 8implifcation or users$ CH;8

    & Increase o costs& 6dministration costs

    Direct ? indirect support to artists968H;8%$ Income level lo:er than other sectors$ /ariability o artists@ earnin$ Importance o non&pecuniary motives (intrinsic motivation)

     4HHE8%$ Commission o :orks$ 8ocial :elare! unemployment benefts$ 8upport or the realisation o ne: :ork$ 8upport to education and trainin$ 4a. incentives

    >onitorin and evaluation$ Control o economic! cultural and social e7ects o policies$ 6re the ob5ectives (oin to be) attained#$

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    $ isk% too much ocus on e.trinsic values$ 9conomic! social and cultural impact$ ;electin intrinsic values o the cultural sector[;*2* need or data as it is di,cult to use uality to 5ustiy public fnancin! toolor advocacy\

    $ 4hrosby B1% “(=) need to ocus on both the transcendental purposes oculture as its capacity to contribute to community lie! improve tolerance!enhance understandin! stimulate creative thinkin! provide income andemployments ="*

    >onitorin and evaluation

    Conceptual shit$ 9uropean 6rts Inde.$ 9uropean Cultural /itality Inde. (9CIN)& vitality% development and sustainability& broader concept o culture oin beyond arts sectors

    & broader eoraphical scope beyond 93 boundaries& Apillars@ or Aideal@ indicators% participation! fnancin! overnance! culturale.pressions

    Week (W

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    conservationists$ euirements or sustainable tourism tht relies on tourism as primary income(>aintainin heritae sites)%& 9conomic 8ustainability% stable and predictable uture net econ benefts! market' non market e7ects

    & 9coloical 8ustainability% natural and cultural capital& Cultural 8ustainability% maintanence o cultural capital stocks! cultural diversity!balance o cultural ecosystems

    Cultural tourists$ !ourists% those :ho spend the niht in the heritae city$ Day trippers% come 5ust rom the day rom the place o residence$ -alse excursionists% choose alternatives and cheaper places :here to stay$ Indirect excursionists% have chosen another destination and visit theheritae place or the day

    .ass tourism #ic+e mar2et

    $ Potential economic e7ects (revenue)234$ Costs (Conestion and physicaldamae)$ 6dverse cultural conseuences(Vood o visitors)$ 4hreshold carryin capacity (ma. noo visitors per day to lo:er risk odamae)! control$ Instruments% admission numberspricin measures! reulatory controls!and inormation?marketin?educationcampains*

    $ >ore attention to the places$ Eess pressure234$ 8till possible adverse impact$ Indienous tourism% respect localculture! not disrupt community@scultural liestyle$ Commodifcation o the e.perience$ Competition amon destination(inter&island comp)$ 3neual distribution o revenues

    Cultural tourism policy

    $ >arketin campain% promote industry both at home and abroad-$ eulation% ;umber control! Fonin! openin time$ Pricin measures% 4o limit access$ evenue raisin measures% Hccupancy ta.es! arrival?departure ta.es$ 9.penditure measures% assistance to tourist&related small businesses (arts

    roups! oranisations)$ Inormation provision% city uides$ 9ducation campain% raise a:areness o positive and neative aspects otourism development

    (rts ducation &C+p 33'

    $ Connection education&culture$ (8chultF and 2ecker) ;otion o human capital& Physical capital (buildins! machines=)& 9ducation investment in this capital asset (human skills) that :ill enerateoutput or the economy

    $ (8ocial?9con) Increased productivity o an individual rom ne: ideas &

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    $ (Indv) Cost&beneft analysis& Initial investment capital cost& Payo7 discounted net value o increase o lie time savins$ Private ] social beneft & Public investment in education& 8tron edu system &

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    Week S (8ocioloy o Cultural Policies)4istorical 5ormation o5 cultural policies &Institutional (rrangement'

     4he neo&institutionalist perspective in socioloy (1QTs?1QQs)

    $ e5ectin o the basic assumption o neoclassical

    economics% Homo Economicus?Goal ationality (that individuals aim toma.imiFe utility o their behaviour by makin the most rational choices insituations o scarcity) ^ “bounded rationality"

    $ +ocusin on the role o institutions in structurin human behaviour

    $ Institutions% “:ebs o interrelated rules and norms that overnsocial relationships" ^ e** marriae

    $ 3nderstandin and e.plainin ho: and :hy institutions arise

    $ Uey&concepts%

    $ Institutional Isomorphism% tendency to resemble each other!mimickin each other@s strateies or structures & institutionsbecome similar

    $ Path dependency% historical track o a iven institution constitutesthe occurrences (such as the policy ob5ectives=) o an institution inthe present & investiate its historical ormation over time*4istory matters6

    ;eo&institutionalism applied to cultural policy (4oepler ] _immer! BB)

    $

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    B) 8candinavian +amily (;ordics)

    $ 4he Corporatist 6pproach to Cultural Policy%

    $ Corporatism the socio&political oraniFation o a society by ma5orinterest roups

    $

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    $ Puritanical belies (6rt is unnecessary lu.ury)

    $ 8tron republican tradition o limited overnment (take care onecessary inrastructure not aenda settin)

    ecurrin trends and patterns

    $ 6rt and culture as part o the policy arena durin olden area o the:elare state (post&:ar period)

    $ 6rt and culture as a ne: policy arena durin heydays o socialdemocracy (mid&1Q`s & late 1QRs)

    $ >erit ood&arument as one o the most important rationales orundin the (production and consumption o the) arts% ocus onuality! availability and euality

    $ Paradim shit rom the social&democratic doctrine in the 1Q`s and1QRs to:ards a more liberal doctrine osterin the idea o public&

    private partnership (1QTs&present)$ 8troner embeddedness o cultural institutions in their local

    communities (community pro5ects museums)

    $ InstrumentaliFation o arts and culture% art as a means to an(economic and social) end

    $ 8tron ocus on arts education% osterin cultural capital

    ;eo&institutionalism in ;E

    $ Warna Hosterbaan&>artinius & Schoonheid# $el%i&n# 'aliteit (1QQ)

    $ EeitimiFation parado.%& Eack o collective support or the arts (in the ;etherlands) is both anarument%& (+or CP) market ailure& (6ainst CP) no su,cient demand or collective support! or the arts in thefrst place

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    &

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    $ Government has to assure everyone can increase cultural capital despite:here they live

    $ 9ver since early 1QTs! ocus on%

    $ Cultural entrepreneurship

    $ 6rts education

    $ InstrumentaliFation and marketiFation o cultural policy

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    ;o

    Direction

    Directors

    '

    Direction

    M 2oard

    >odels

     4rustees

    '

    Directors

    'Directi

    on

    Week `% Culture overnance as a part o cultural policy ] 9conomic

    analysis o ? to:ards cultural policies

    Why Culture Governance#

    $ Culture :orks :ith (mi.ed) public and private fnancin*$ Hranisations are responsible or risk manaement- fnancers reuiresupervision and accountin*$ Governments! audience! sponsors! membership oranisations and otherstakeholders reuire e7ectivity and e,ciency o the oranisation & 4384amon stakeholders and public support*$ Governance Code Cultuur (;E) is an instrument or ood manaement!administration and supervision in the cultural sector* Q principles build anormative rame or cultural overnance% recommendations or practice*$ 6PPE H 9NPE6I;

    Culture overnance in practice

    $ Governmental and public unds reuire accountin or the application o theCode publically & 4384*$ Good overnance and supervision is characterised by%& clearness about the overnance model and its responsibilities-& actin :ith interity and transparency! takin the stakeholders@ interest intoaccount-& e.pertise and e7ective in overnance! manaement and supervision-& e7ective realisation o mission and oals as :ell as e,cient use o (public)resources*

    Q principles o ood culture overnance

     4he 2oard is%$ esponsible or complyin the Governance Code Culture*$ >akes a :ell&rounded choice or a overnance model*

    $ esponsible or the oranisation* Clear about the tasks! po:ers and :ays o:orkin! internally and e.ternally*

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    $ Decides careully about the leal position and payment o the board andcommunicates as open as possible about this*$ 4rustees lays do:n its tasks! responsibilities and :ay o :orkin! and actsconseuently*

    $ esponsible or its composition- it uarantees its e.pertise! diversity andindependency*$ >akes clear on orehand :hich e7orts are e.pected rom the trustees and:hich possible payment they :ill et or their e7orts*$ 6void all :ays o conVict o interest* 4he board o trustees supervises this*$ esponsible or fnancial policy and risk manaement by sound internalprocedures and e.ternal control*

    9conomic approach o cultural policy

    $ Dominance o public intervention (yes?no)& easons#

    $ 6nalysis o institutions responsible or cultural policies& Di7erent oranisational schemes& elationship amon di7erent actors (politicians! bureaucrats! e.perts! citiFens!arm@s lenth bodies! ;GH@s=)& 4ools adopted& Involvement o the private sector& ole o international oranisations(3;98CH! 93! 3;C46D! 3nited ;ations! =)etc*$ 8ound cultural policy is based on reliable data on& volume and value o the cultural output& levels o employment& cultural consumption and participation& public and private undin=**$ Goals o cultural statistics%& present or past policy% comparin! monitorin! evaluatin- AH+@& uture policy% underpin policy ormation* A4HW6D8@$ 8tatistics are 89CH;D6 8H3C98

     4ypes o cultural statistics

    $ 4hree sources o cultural stats%& Government

    & Independent 2odies% Cultural observatories! uni& International Hrs% 3;98CH Institute o 8tats

    $ Cultural industries%& Problems% Defnition% cultural# Creative# +or policy or other interests% can be e.tracted rom econ :ide stats& ross value o production! contribution to GDP?G;P! value added! prices! tradeand employment

    $ International trade in cultural oods and services

    & Classifcation systems :orkable product classifcation system

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    harmonised system 9.tended 2alance o Payment 8ervices (92HP8)

    $ Cultural employment& labour orce stats or the cultural sector

    & cultural or non cultural# proessional (contribute most) and amateur- multiple 5ob&holdin& labour orce censusProblems% based on main 5ob at time o census does not distinuish proessional and amateur& special purpose surveys more detail than eneral data surveys problems% costly! depends on useulness! cannot establish overall siFe oartistic population

    $ Cultural consumption% demand! e.penditure (household e.penditure surveys)!attendance? participation?involvement

    $ 6sset valuation% stock o cultural capital and Vo: o services& >icro% value o cultural capital held! museum collections! balance sheet& >acro% nation@s physical capital stocks! historic sites! tanible and intanibleheritae

    $ Cultural undin& ;ational and sub national (states! municipalities) undin& Problems%

    di7 places use di7 classifcation systems ail to account or indirect measures (ta. concessions) ail to account or direct private support $ Cultural indicators& used to make sense o! monitor! evaluate some aspect o culture& ully rounded in theory

    $ Cultural diversity& “creativity inde."

    $ 8atellite a?c o culture& accountin data or particular feld (more detailed than usual nationalaccountin)

    8tatistics on cultural domains

    $ +rame:ork or desinin o:n classifcation system8i. domains%$ Cultural and natural heritae$ Perormance and celebration$ /isual arts and crats

    $ 2ooks and press$ 6udio &visual and interactive media

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    $ Desin and creative services6nd t:o e.tras%$ tourism! recreation

     4ransverse domains%$ intanible cultural heritae$ education and trainin$ archivin and preservation$ euipment and support materials

    $ provides coherent basis or development o national cultural stats

    ;on&use values

    $ Hptional value$ 9.istence value$ 2euest value

    $ Prestie value$ 6esthetic value$ Identity value& Possible to identiy them! but ho: to assess ? evaluate them#& ethod (or public oods)& 9stimates the value o individuals attribute to non&tradable oods (no marketmechanism)

    & 8urvey W4P ? W46 ? W44 or ualitative and uantitative increments? decreasesin non&market oods& Goal% estimate the demand curve and the consumer@s surplus(') % discoverin non&use values(&) % credibility and reliability o responses$ Cost&2eneft 6nalysis (or non&public or Alesspublic oods@)$

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     Week R% Chanes in cultural policies! Culture in economic

    developmentID#!I!0 

    ecent sources o chanes in cultural policy

    1* Globalisation% :orld&:ide and uick inormation! internationalisationB* General economisation since 1QTs%& the arts@ importance or economy (economic impact studies#)- Ameasurin thearts@M* 4rends in public sector manaement% more e,ciency and accountability in thepublic&service delivery! e** adio ] 4/

    $ Way o assessin the artistic activity in the creation o public value & undincriteria

    Globalisation & international economy o culture

    $ 4rade o cultural products$ Eabour movements (artists)$ Cultural e.chanes (tourin companies! circulation o :orks o arts)$ 4rade o intellectual property rihts (4/! diitisation! movies)$ Cultural diplomacy$ Cultural tourism

    !R(D ISS"S

    ACultural e.ception@

    $ International market ailure$ ConVict bet:een economic and cultural values :hile makin decisions& Producers% opposition to limitations& Importin countries% orein local cultural industries& 8creen Ouotas (+rance)& GeneraliFe all 4rade and 8ervices (W4H)$ treat cultural oods di7erently$ ethics! ideoloy! economy! culture

    $ ;ot 5ust commercial! but symbolicmessaes in cultural products

    $ ;ational identity$ Cultural diversity$ 3nair competition rm dumpin ocheap imports$ Inant industry protection

    $ >arket distortion ' 9con ine,ciency$ ent seekin

    $ 6ainst reedom o choice$ Cultural diversity (4oo open)$ Cover ideoloical ideas (6nti6merican! 6nti Islam)

    Cultural trade

    $ Cultural diversity and trade$ Convention on the Protection and Promotion o the Diversity o Cultural9.pression (3;98CH BS)

    $ Protection (takin care o somethin rearded as valuable) vs* protectionism(automatic resort to trade restrictions to shield domestic rom orein)

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    $ 8aeuardin vulnerable cultural e.pressions$ What#% Items?e.periences?processes leadin to a service$ 4hreats% & ;99D H+ 86+9G36DI;G

    $ >ovement o culturally sinifcant arteacts (public interest)%

    & public interest is e.ported& limit e.port o Anational treasures@& repatriation o cultural ob5ects & +H 4

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    $ Eack o rules and institutions$ econition o the importance o arts ] culture or community lie! identity!development$ ole o overnments ' 3;98CH ' 3;C46D to support this sector$ 9conomic ro:th central or development (GDP)

    & 8hit&development human centered process& ;e: indicators% nutritional levels! literacy levels! educational access! =& Development is human capability e.pansion (6martya 8en! 1QQ)& ole o cultural industries$ 3;98CH@s “ho:"%& culture contributes to poverty reduction and economic ro:th!& = enlares people@s choices!& *** o7ers a sustainable means o achievin other key development oals '>illennium Development Goals$ 3;98CH Indicator 8uite ocuses on three key a.es%& Culture% part o econ sector

    & Culture% set o resources & development& Culture% social cohesion n peace

    97ect o cultural industries

    $ 2rins cultural and economic development$ Industries based on creativity! traditional kno:lede! and cultural practices(stories! dances! poetry! symbols! imaes etc*)$ 4ransormed into oods and services Cultural values ' 9conomic potential

    8ustainable Development

    $ “>eets present needs :ithout intererin :ith the uture@s oal o meetin o:nuture needs"$ Cultural diversity rich asset$ Protection! promotion and maintenance o diversity essential$ 2eneft or present and uture enerations$ ;eed to interate culture in development policies$ +oster protection and promotion o diversity o cultural e.pression$ Interenerational euity% protect and enhance cultural capital$ Intraenerational euity% access or all$ Importance o diversity% social! cultural! economic development$ Precautionary principle% risk o irreversible loss

    $ Interconnectedness% holistic approach% economic! social! cultural andenvironmental systems$ ;eed to 5ustiy e.penditures or culture (9conomisation! ;otion o public value)

    Creative economy

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    Culture?6rts

    Creativity

    Innovation

    9con2enefts

    $ Combination o policy measures$ Involvement o di7erent institutions$ Culture part o a broader economic development aenda

    $ Policy delivers and distinct cultural ] economic benefts$ 6ttention to the needs o cultural oranisations! artists and cultural heritae$ Eon term investment in inrastructure%& physical% cultural production! distribution and consumption& institutional% public instruments and aencies& leal% copyriht& fnancial% provisions$ Eon&term capacity buildin :ithin communities% devolution

    CCI ] Gro:th

    9con Cultural

    $ Demand$ 8upply$ 9mployment$ 4ranser o kno:lede

    $ Per capita production?consumptiono cultural oods$ 6ccumulation o cultural assets$ 9.pansion o cultural value