The role of creative industries for poverty reduction. Christer Gustafsson, Ph.D.
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1 The role of creative industries for poverty reduction Christer Gustafsson, Ph.D. Director Regional Museums of Halland and Heritage Halland (SE) Secretary ICOMOS International Scientific Committee on Economics of Conservation The World Bank, Washington D.C. 2-3 May, 2011 Aim of this chapter The aim of this chapter is to discuss: - the new challenging situation to link strategies for conservation of urban heritage to territorial innovative systems aiming at sustainable development - cooperation with the emerging culture and creative industries 1
2 Łódź Poland Łódź Poland 2
3 Łódź Poland Łódź Poland Investment 250 million euro 3
4 Łódź Poland Łódz Polen Investment of 250 millions 4
5 Łódź Poland Łódź Poland 5
6 Łódź Poland Scenes of the American film director David Lynch's 2006 film Inland Empire were shot in Łódź. Łódź Poland 6
7 Łódz Polen Investment of 250 millions A Trading Zone for Sustainable Development 7
8 The Halland Model Working places with no displacement effects Long-term - Reduced unemployment Historic environment sector Labour market sector Funding - Experience from major projects networks - Higher quality in conservation A Trading Zone for Sustainable Development Increased volume of construction - Trainee posts - Contribution to private sector Historic environment sector Construction industry Employment and apprenticeship - Capability - Knowledge 8
9 A Trading Zone for Sustainable Development Training - Financing - Networks Labour market sector The construction industry Impact on the whole trade and industry - Vocational certificate - Future employment The Halland Model - Save the jobs - Save the craftsmanship - Save the buildings - New activities on the improved premises - infrastructure 9
10 The Halland Model Train unemployed construction workers in traditional building techniques. Practice in conservation projects. A Trading Zone for Sustainable Development Sustainable development Labour market policy Cultural heritage Culture economy Trading Zone Project planning Conservation New activities on improved premises Environment protection etc. Turism etc. 10
11 A Trading Zone for Sustainable Development Facts Halland (Sweden) = One third of all construction workers trained in traditional techniques 235 new permanent jobs 100 historic buildings conserved 80 Million US $ in a period of ten years A Trading Zone for Sustainable Development 11
12 Łódź the Promised Land inhabitants Appr people unemployed % ,5 % Łódź Poland 12
13 Łódz Polen Investment of 250 millions Łódz Polen Investment of 250 millions 13
14 Łódź Poland Łódź Poland 14
15 Nowe The New Centrum Center Łodzi of Lodz In February, 2007, the authorities of Lodz decided to entrust the creation of the concept of the city centre redevelopment to ROB KRIER, the famous Luxembourgian architect and urban planner. Encouraged by (World Art Foundation), founded by Andrzej Walczak, one of the owners of Grupa Atlas, David Lynch, a film director, and Marek Żydowicz, the director of the Camerimage festival, Rob Krier undertook to transform the derelict areas in the vicinity of the Łódź Fabryczna station and the EC1 heat and power plant into a place teeming with life the new cultural city centre. Krier has designed an urban development concept for the 30-hectare area in the city centre within the premises limited by Kilińskiego, Targowa, Narutowicza and Tuwima streets. The urban concept - stage 1 Railway Station Festival Congress Centre Special Art Zone Special Cultural Zone Kobro Market EC-1 West Streets of Four Cultures EC-1 South - East EC-1 East 15
16 Łódź Poland Special Art Zone 16
17 EC 1 East Territorial Economic Development Driving forces for long-term economic growth - Innovation -Entrepreneurship p - Knowledge economy - Welfare and health - Regional and territorial cohesion - Sustainability -Creation of jobs - Attraction of talents - Inclusive growth and cohesion 17
18 Territorial Economic Development The creativity-based attraction model of Richard Florida, which emphasizes the role of quality of life and of technological infrastructure in the creation of a critical mass for the emergence of a knowledgeorientated economy (3T: Technology, talent, tolerance). The competitiveness-based urban renovation model of Michael Porter, which is focused on the transition from an investment-based industrial orientation toward a self-sustaining innovation-based economy. The capability-based model of Amartya Sen, which underlines the central role of general social involvement in capability-building activities as a prerequisite for viable economic development. Territorial economic development The system-wide cultural district theory by Pier Luigi Sacco demonstrates how culture plays a dual role in regional development processes: -as a dii driving factor on the side of added-value ddd production capacities through hchanneling culture, cultural l heritage and creative industries, - offering a social platform for innovation and spreading the cognitive knowledge and relational skills necessary for the construction of a complete paradigm of knowledge economy. 18
19 Cultural and creative industries The cultural sector - Non-industrial sectors producing non-reproducible goods and services aimed at being "consumed" on the spot (a concert, an art fair, an exhibition). These are the arts field (visual arts including paintings, sculpture, craft, photography; the arts and antique markets; performing arts including opera, orchestra, theatre, dance, circus; and heritage including museums, heritage sites, archaeological sites, libraries and archives). - Industrial sectors producing cultural products aimed at mass reproduction, mass-dissemination and exports (for example, a book, a film, a sound recording). These are cultural industries including film and video, video-games, broadcasting, music, book and press publishing. The creative sector In the creative sector, culture becomes a creative input in the production of non-cultural goods. It includes activities such as design (fashion design, interior design, and product design), architecture, and advertising. Creativity is understood in the study as the use of cultural resources as an intermediate consumption in the production process of non-cultural sectors, and thereby as a source of innovation. (KEA, 2006). Cultural and creative industries EU 30 (KEA, 2006) Annual turn-over Car manufacturing industry Chemical industries ICT manufacturers Culture and creative industries 273 Billion Euro 271 Billion Euro 541 Billion Euro 654 Billion Euro 19
20 Cultural and creative industries (Global) Annual turn-over Culture and creative industries 1,3 Trillion US$ 7 % Global GDP Growing on an annual rate twice that of service sector and four times that of manufacturing sector in OECD countries. (UWR, 2009) Economic contribution of culture 3 Cultural and creative industries Brazil s creative sector 6.7% of GDP (1998) Guatemala creative industries grew at a rate of 7.3% annually and employed 7,14% of the labour force (UNCTAD, 2008) Mali s culture sector accounts for 5.8% of employment and 2.4% of GDP (IBF, 2007) Colombia craft production 400 Million US$ (UWR, 2009) Morocco's crafts production 19% of GDP (UWR, 2009) Thailand s craft-workers are estimated to be 2 million with almost half working full-time (UWR, 2009) 20
21 Culture a vehicle for economic development Creative industries Cultural tourism - 40 % of global tourism revenue (UNWTO, 2007) - 10 % EU GDP (UWR; 2009) Traditional livelihood - Local knowledge and generate employment Opportunities for economic growth through micro-enterprises - Low capital investments Cultural infrastructure and institutions - Tate Modern is estimated to bring in revenues of over 100 Million to London every year Smart specialisation strategies Placing greater emphasis on innovation and having an innovation-driven development strategy in place that focuses on each region s strength and competitive advantage. Based on evidence and strategic intelligence about a region s assets and the capability to learn what specializations can be developed in relation to those of other regions, in the globalization society Mindful of the region s history and territorial characteristics and broader geographical context. Regions should decide to invest in areas best suited to developing their competitive advantage and identity where clusters should be nurtured. Regional economies should be differentiated to avoid waste of resources and duplication creation of more diversity among regions. Regional Policy contributing ti to smart growth in Europe 2020 (European Commission) i 21
22 The cross-sector dynamics 3 Cultural and creative industries theoretical framework - The relation between culture and industrial production - the crucial role of the design product in the market behavior (Postrel). - The increasing interest in culture as a catalyst and as an activator of the local development processes (e.g. the Greater London Council). - The scope of culture-led renovation processes for the urban and regional areas has developed subsequently both at the theoretical and at the policy level, fed by the evidence of the culture's positive effect on the economic (Landry, Rullani) and social (Matarasso, Everingham) aspects and on the built environment (Bianchini and Parkinson, Graham, Hutton). - The international debate about the role of culture, and of cultural and creative industries in particular, in the development processes of the post-industrial economies (Howkins, Hartley). 22
23 1 Poverty Reduction and Sustainable Development The global society of today is facing three major challenges: climate change; global lbleconomic competition; and poverty/social exclusion. Poverty reduction agenda for developing countries (the World bank) Presentation of the comprehensive concept of sustainable development: economic, social and environmental. 3 Cultural and creative industries theoretical framework Creativity and creative communities may be the remaining enduring resources in the developing world (Jodhpur Consensus, 2005) 23
24 Delineation of the cultural and creative sector (KEA, 2006) Quantifiable socio-economic impact of the cultural and creative sector (EU30) (KEA, 2006). 24
25 4 Sustainable Integrated Conservation The role for culture and built cultural heritage as a development strategy against poverty (UN World Commission 1995) Discussion about contemporary theory of conservation - understanding why, and for whom, things are conserved (Muñoz Viñas). - contemporary theory of conservation as based on negotiation, on equilibrium, on discussion and on consensus. - the values of cultural heritage analyzed and described as values in trade and conservation should leave the expert-only zone to enter the trading zone, where the objective is to trade to reach an agreement between affected people. (see e.g. Sörlin, Gustafsson). Integrated conservation: a well developed theoretical scholarly-professional discourse and multi-disciplinary-oriented platform, especially intangible multi-factor quality dimensions. Parallels observed between natural and cultural capital, which implies that the concept sustainable development can be applied to culture and cultural heritage (Appleyard, Throsby, Engelbrektsson and Rosvall, Della Torre, Fusco Girard). Sustainable Integrated Conservation (e.g. Gustafsson and Rosvall). 4 Sustainable Integrated Conservation City regeneration productivity and growth poverty reduction -Density -Agglomeration -City management, urban planning -Upgrading slums -Forming city systems city clusters -Attracting people -Job creation/new employment opportunities -On-the-job training for unskilled workers 25
26 4 Sustainable Integrated Conservation Supporting city economies -Cities engines to economic growth -Increasing competitiveness -Develop cultural heritage assets to sustainable tourism -Brownfield regeneration and urban revitalization 26
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