the creative economy – a concept and strategy for the future justin o’connor monash university
TRANSCRIPT
The Creative Economy – a Concept and Strategy for the Future
Justin O’ConnorMonash University
Creative industries
1998: New Labour – Department of Culture, Media and Sport
Two Strands Come Together
Cultural Industries
Majority of cultural goods produced and consumed outside publicly funded culture
How does is a democratic cultural policy deal with this?
Cultural Industries
• Background: rise in wealth, education and leisure time – new aspirations.
• Demanded new tools, including economic• Also deliver economic benefits.
Growing policy lobby (often cities): art and culture no longer ‘poor relation’ and should be
brought centre stage.
Cultural Industries
• A number of different cultural and economic values at play
• Also interdependencies (economic value depended on cultural value);
• Not susceptible to standard economic analysis.
• For some this meant a new kind of cultural economy.
Knowledge Economy/ Information Society
Complex History
1) Evolutionary Series
• Linear progression – agriculture – manufacture – services – information.
• ‘Post-industrial’ theorists and the new managerial class in the 1970s.
• De-industrialisation– (re-location of manufacture elsewhere): western economies sought high-value added services.
2) Cultural Capacity
Wider claims about knowledge workers:
Manuel Castells: educated population able to to ‘process knowledge and manipulate symbols’; ‘Cultural capacity’ of workforces
3) Creative Destruction
• 1980s: Not incremental advances of an educated managerial class: ‘disruptive innovation’
• Schumpeter: “creative destruction”.• Political transformations of the 1980s; • Computing and converged telecommunications
revolutions; • Innovation from ‘left of field’ or ‘outside the
box’.
Entrepreneurs
• Entrepreneur: marginally respectable middleman to a maverick, rebel, iconoclast.
• Californian Ideology (Ayn Rand);
• Fusion of the entrepreneur and the artist, • Key word is ‘creativity’.
Creativity
• Endless discussions of what creativity is;
• Clearly a modernist, even Avant-guard idea of artistic creativity;
• Dynamic, restless, rule-breaking process which brings ‘the shock of the new’.
Creative Capacity
The wider cultural capacity of advanced producer services is opened out to a wider ‘creativity’ of populations, drawing in much
wider currents of popular culture and practices, and beyond formal educational capacity to
emotions, empathy, energy, senses etc.
Creative Industries
New Labour brought these strands together in complex ways.
Some specifically UK centric, but with clear resonances elsewhere (its success surprised the
DCMS).
‘those industries which have their origin in individual creativity, skill and talent and which have a potential for wealth and job creation through the generation and exploitation of intellectual property’ (Department of Culture, Media and Sports, 1998)
Creative Industries
• Definition: wealth creation through talent and IP.
• Talent the input, IP the output.
• Creativity the capacity to be developed.
Problems
Standard list of the arts and cultural industries.
Stand-out: software - launched an endless debate as to the boundaries of this sector.
1) Definitions and Boundaries
Some of this is academic and technical
In essence the argument is that ‘creativity’ is far too broad a term to specify a sector, or an input,
or a capacity, at least not for the purposes of practical policy.
2) Reducing Culture to Commerce?
• Many saw the creative industries as reducing culture to economic impact.
• Many reasons to support this.
• The recent UNDP/UNESCO Creative Economy Report made this point clearly.
2) New Perspectives and Voices?
Creative industries opened up new perspectives, brought in new voices, highlighted wide-spread economic, technological AND cultural changes
New Perspectives and Voices
• the internet, • Globalization,• proliferation of new starts, • democratic claim for contemporary cultures
against the older art elites, • a hybridization of economic and cultural
motives.
New Perspectives and Voices
That is: many of the currents that had gone into cultural industries, now in a new global
landscape.
3) Simplification
Under-estimated the complexity of the sector and simplified the policy tools required to deal
with it.
Complex mix of skills and practices
Can not be described as talented start-ups looking for IP.
Whole range of activities – creative skills, administrative/ managerial/ legal; material
supplies and logistical support.
Ecosystems
These kind of skills & know-how exist in complex ecosystems in which commercial and not-for-profit, very large and micro, state-funded and
self-employed, the institutional and the ‘pop-up’ co-exist.
Remuneration
Complexity of actors and their remunerations:
• Not all seeking IP, some are waged, some self-employed, some grant funded, some free labour;
• Motivation – they are not all doing it for ‘economic’ reasons (i.e. rational maximization of profit).
Simplistic (fast) Policy
This has direct implications for policy tools, which have been so often reduced to simplistic
interventions – ‘creative class’, for example.
Simplistic (fast) Policy
Despite the rhetoric governments have been reluctant to put in the resources to develop the
sector
Seen as a quick and cheap option – IP protection, a creative cluster…
Vague statements about creativity and culture.
Creative Economy and Development
New element: impact on the developmental agenda of the creative industries.
Culture and Development
• Post-1945 development paradigm: singular path in which developing countries move from traditional to modern societies.
• Challenged by the anti-colonial movement: global game was rigged in favour of developed countries.
• Anthropological argument for the equal validity and continued relevance of ‘traditional’ cultures.
Culture and Development
• Both challenged the implicit hierarchy whereby the art and civilisation of the West represented a higher form of spiritual achievement.
• An anthropological focus on everyday, embedded culture – ‘culture as a way of life’ – began to actively inform the challenge to the ‘development as modernization’ thesis.
Culture and Development
Traditional culture was no longer the obstacle to be overcome on the way to modernization,
It was a source of rootedness and connection, meanings and values, inspiration and energy that could be a resource for development.
Culture and Development
World Commission on Culture and Development, (UN and UNESCO in 1993). 1995
report Our Creative Diversity: “Development divorced from its human or cultural context is
growth without a soul’.
Culture and Development
Culture can be ‘harnessed for positive social and economic transformation through [its] influence
on aspirations, the co-ordination of collective action, and the ways in which power and agency
work within a society’.
Culture and Development
• But culture is an end as well as a means. • Amartya Sen: Development is an entitlement
to a dignified way of life, and culture is absolutely central to this.
• 1998 World Culture Report : ‘Culture is not embedded in development but development embedded in culture’.
Creative Industries
• New dynamic into the cultural political scene.
• Culture (and creativity) promoted not as a supplement to, or modification of, GDP-led economic growth but as a deepening of it.
Creative Industries
Culture, in the form of the creative industries, became available to local development
strategies as a range of potentially profitable products and services, both ‘traditional’ and
‘modern’.
Creative Industries
Growing importance of IP rights within the large cultural corporations suggested a close affinity,
of the creative industries with the wider mobilization of capacities required for a
‘knowledge economy’
Impact of CIs
• Narrative of cultural and economic ‘win-win’.
• Focus on contemporary and emergent kinds of cultural production, appealing to youth, new technologies and cultural practices outside the elitist hierarchies of ‘high art’ and heritage - democratization.
Impact of CIs
‘Creativity’: an anthropological resource of culture in a new way; no longer locked up in the
arts, an everyday creativity linked to the entrepreneurial energy of independent creative
businesses would galvanize local economies.
But Problems
• Defining the sector: many lumping high-tech or business consultancy into the creative industries.
• Or separating the digital from the traditional,• Or the commercial from the cultural, • Or the high-growth from the ‘lifestyle’.
• Search for quick win, fast growth
Challenge
Understanding the complexity of the sector and the tools required.
Not an Industry like any other
• Not firms but projects; • Networks not chains; • Relational or tacit knowledge deeply
embedded in place; • Complex scaling where very local and small
can have global contacts.
Not just an Industry like any other
• Value and values. • Economic value derived from cultural value.
Cannot just focus on the former without understanding the latter.
• Understanding how the complex ecosystem produces the specific kind of value that gets to generate income.
Uneven Playing Field
• Echo more general complaints about global trade.
• Ecosystems cannot be generated overnight –include huge amounts of sunk capital – in cultural infrastructure and institutions, in knowledge and relations that cannot be built over night (cf. China).
• Global nodes are “sticky”. London, New York etc.
Uneven Playing Field
Built-in inequalities between North and South – we all know this in the world of IP and it is getting worse. So too in creative industries.
Exaggerated Claims
• UNCTAD report: developing countries accounted for 50% - but take China out and this is 20%. Taken BRICS out and it drops further.
• Idea of a ubiquitous creativity available to all is incorrect.
• The rolling out of models of a commercially driven start-up economy trading globally through the access to the internet, as if Lagos or KL were to become the next LA, London or Seoul are illusions.
But a Real Potential
This is not to say that the creative economy is an illusion. It will be essential to development….
We just have to think carefully about what we mean by development.
Creative Economy
• A creative economy policy is not, in the end, distinct from the older ‘culture and development’ agenda.
• Sen and Nussbaum: capacity building. This includes education, commitment to freedom/ dignity and personal advancement
• It includes measures of human well-being beyond GDP – hence the Human Development Index.
• All essential to any creative economy – the broad capacity of the population.
Creative Economy
Needs to view the economic is a different light:
• Not the ‘Washington consensus’ of export driven growth
• Nor under-development as a lack of resources to be found elsewhere.
Creative Economy
Any creative economy strategy has to build on local resources and be about livelihoods in the
local economy. This demands a recognition of the diversity of
economic activity outside what textbooks say is ‘real’ activity –anything not done for wages or as
part of a formal economic transaction.
Creative Economy
Development theorists highlight unwaged, domestic, communal, gift, voluntary, self-
employed activities as a way of showing the vast amounts of activity taking place in areas which
economists write off as ‘poor’. This is exactly the kind of economy which has
always marked out the cultural or creative sector.
Creative Economy
• Creative economy should not be approached as the first wave of the new post-industrial order, the high-value sector which will allow countries to catch-up (yet again) with the developed west.
• Should be seen as part of a different capacity building agenda, one that can connect with new approaches to development and ways of valuing traditional, domestic, agricultural, subsistence, voluntary and cultural economies alongside that which is formally recognized.
Creative Economy
One this huge mid-shift has taken place then we can begin to specific what a creative economy policy looks like.
Those challenges around networks, projects, multiple-values, tacit skills – are these not similar to other ways in which dominant development narratives have been challenged?
Thank you