Creative Economy, Covid 19 and paradigm shift in Sri Lankan economy
The economic consequences of the corona pandemic are unpredictable. As per economynext The rupee has come under pressure in recent days, and trading in the spot market has been low amid global volatility and liquidity injections from the central bank. Experts were in the opinion that the effect would last for months. So the time has come to think of “Paradigm Shift” in the Sri Lankan economy. Covid 19 has sent us a message which we need to read with insight.
In Sri Lanka we are still concentrating on traditional exports like tea, rubber, coconut with garments and something ‘out of the box’ is required to compete in the world market – even if it will utilize the resources in full capacity. This article focuses on how the concept of ‘ creative economy’ can be used as a new strategy for the country in order to achieve sustainable economic development.
What is Creative Economy?
The concept of ‘creative economy’ is a new development for Western countries as well as in world trade. It is better to discuss the creative economy with Nollywood. Emergence of ‘Nollywood’ is remarkable and it came into the world picture within 20 years. According to PwC.com “The Nigerian Film Industry (Nollywood) is globally recognized as the second largest film producer in the world. The industry is a significant part of the Arts, Entertainment and Recreation Sector wh i c h contributed 2.3% (NGN239biliion) to Nigeria’s Gross Domestic Product (GDP) in 2016. It is one of the priority sectors identified in the Economic Recovery and Growth Plan of the Federal Government of Nigeria with a planned $1billion in export revenue by 2020”.
We have to study the success story of ‘Nollywood’ to see whether we can apply that to our Ranminithanna Film Village which also with more potentials. . University undergrads In Sri Lanka can do a study on ‘Nollywood’ and see the Key Successive Factors ( KSF) and uniqueness in the film industry. We can then see how we can apply these models (with some modifications) in the Sri Lankan context with Ranminithenna.
It is worthwhile to understand the meaning and implications of creative economy (sometimes referred to as creative industry). According to John Howkins, the author of ‘The Creative Economy: How People Make Money from Ideas,’ creative industry refers to a range of economic activities which are concerned with the generation or exploitation of knowledge and information. Howkins divides the creative economy in fifteen sectors, which are: 1) Advertising; 2) Archictecture; 3) Art; 4) Crafts; 5) Design; 6) Fashion; 7) Film; 8) Music; 9) Performing Arts; 10) Publishing; 11) Research and Development; 12) Software; 13) Toys and Games; 14) TV and Radio; 15) Video Games
According to Landry & Bianchini (1995), “The industries of the twentyfirst century will depend increasingly on the generation of knowledge through creativity and innovation.” Human capital can be considered important and KSA factors – namely, knowledge, skills and attitude – as prime factors that will govern the world economy at this moment.As the United Nations Conference on Trade and Development (UNCAD) “significant 3% contribution to global gross domestic product (GDP) makes the creative economy as a powerful emerging economic sector that is being strengthened by a surge in digitalization and services.”
So the effect of the creative economy for any country cannot be underestimated. Refer the following extracts from UNCAD which is really important for Sri Lanka as we have our own valued traditional culture which is not properly utilized.
What we have to understand is the importance of moving away from the traditional markets such as manufacturing and see the creative industries as a key strategy in a new knowledge economy ( A b e y s e ke r a , 2 0 1 1 ) . Policymakers and intellectuals should understand the importance of this. Covid19 has created us an opportunity to “stop and see” (reflection) our policies in the long run. This pandemic demands us to revisit and read our traditions of Sigiriya, Anuradhapura, and Polonnaruwa! We should have a paradigm shift in the Sri Lankan economy.
( The writer is Professor in Management Studies at Open University of Sri Lanka You can reach Professor Abeysekera on nalinabeysekera@gmail.com.)
“According to Andy Pratt, professor of cultural economy at City, University of London, three main areas are worthy of attention, particularly for developing countries
1. Emerging trade asymmetries, deepened by digital platforms
2. The nature of work in the cultural and creative industries
3. Environmental issues and sustainability
There is no equal access in trade in the CCIs. The global South is running to catch up, to find a place in many of the (established creative) networks,” Mr. Pratt said, adding that colonial trade networks persist and focus on extractive value.He pointed to the trend of developing country artists moving to places such as Europe and the United States, resulting in valueadd being captured there, rather than in their home countries.
Jeannette Snowball, professor of economics at Rhodes University in South Africa and chief researcher at the South African Cultural Observatory, believes that cultural trade is the nexus between creativity and globalization.“A more equal distribution of creativity can provide a way for emerging markets, or developing countries, to benefit from both creativity and culture and globalization,” she said.
For example, the cultural economy is a source of innovation in products and processes, which can then spill over into other industries and increase their competitiveness and productivity, she said. She cited a study on nine South American countries that showed that a rise in creative exports such as design, media and graphic arts increased exports in noncreative sectors in subsequent years.
However, she cautioned that the informality of the sector and firms in developing countries affects their ability to benefit from cultural trade.
“Better legislation can make the IP trade between the developed and developing world fairer but it’s difficult to enforce. Realistic, evidence-based policy, built on their specific experience of the cultural economy, is needed for this to happen.”
Source : https://unctad.org/en/ pages/newsdetails. aspx?OriginalVersionID=2230