The Aakhya Weekly #102 | Culture Taking the Centre Stage: The Rise of Creative Economies
In Focus: The Creative Economy and its Role in Sustainable Development
by Swapneel Thakur
As world leaders arrived in India to adopt the G20 Declaration in 2023, a key phrase that caught the attention of many was a thematic commitment – “Culture as a Transformative Driver of SDGs”. Under the call, leaders affirmed its role as an engine for inclusive growth and a driver to achieve SDG 2030. In fact, in many of the featured commitments, leaders recognised the value of cultural industries while also calling for the need to prepare the next generation for jobs and employment in creative sectors.
This can push many to question how culture can become a driver to achieving sustainable development goals, featuring distinct achievement trackers such as health, employment and standards of living? What do we mean by creative sectors? Why will there be a distinct rise in its employment opportunities? Several questions of this nature are now part of a growing body of literature advocating for creative economies.
An Economy of Creative Practice
From music to movies, human creativity now transcends borders, with advances in technology and accessibility connecting people globally. For instance, K-pop, which originated in South Korea, has gained a huge international audience, with dedicated fans from the United States to Brazil. Similarly, Bollywood films have expanded their popularity beyond India to places like the United Kingdom and Canada. These cultural achievements, once unique to specific regions, have become commercial products integrated into the lives of people around the world. This fusion of culture, marketable products, and global transactions is what defines the creative economy today.
Defined as a dynamic cycle of generating, producing, and disseminating goods and services that generate income through trade and intellectual property rights, the creative economy encompasses a wide range of sectors. This includes arts, culture, design, media, and technology. It contributes nearly 3% and 21% of total merchandise and service exports, respectively, while representing 6.2% of all jobs. As an emerging form of political economy, experts highlight its role in contributing to a country’s economic growth and acting as a catalyst for social and cultural development. This offers a viable option for developing countries in Africa and Asia to diversify their economic capabilities.
History and Origins
The concept of ‘Creative Economy’ traces back to 1994 when Australian Prime Minister Paul Keating introduced the 'Creative Nation' initiative. This initiative highlighted the importance of Australia's cultural creativity, economic contributions, and the role of technology in developing successful cultural policies. Building on this foundation, former British Prime Minister Tony Blair took a significant step by establishing a multisectoral task force to examine the impact of creative industries on the national economy, covering sectors ranging from advertising to the arts, fields which often require creative perspectives.
However, it was not until 2001 that the term ‘Creative Economy’ was coined by British economist John Howkins in his influential book– The Creative Economy: How People Make Money from Ideas. Howkins emphasised the economic significance of human creativity, arguing that while creativity itself is not inherently an economic activity, it becomes one when linked to tradable products, ranging from artisanal crafts to intellectual property rights.
Experts View Creativity as Ever-evolving
Experts argue that the shift from an industrial economy to a globalised, technology-driven environment has transformed production dynamics. In the late 20th century, businesses focused on physical capital, but globalisation and liberal trading standards have pushed them to compete for consumer attention and profits in a free-market economy. This transition marked the rise of creative economies, thriving on knowledge, creativity, and cultural uniqueness.
The expertise to produce distinctive tradable goods, such as crafting blocks for Sanganer textiles printing in Rajasthan, often does not necessitate formal education. Instead, it relies on craft-based skills acquired through informal apprenticeship networks. These informal, highly skilled occupations significantly outnumber formal, knowledge-based professions in India.
The evolution of products and services through these occupations within the economic and cultural value chain varies each time, influenced by factors like creativity, learning, and skill. This diversity ensures that many of these tradable products are unique, enhancing their appeal and global market demand. This adaptability also makes these occupations resilient against mechanisation and automation, prompting increased interest in their domain. Moreover, the interconnected nature of this chain creates employment opportunities across various industries and sectors, thereby stimulating overall economic development.
Contribution to Social Framework and Development Agendas
Although not explicitly outlined in specific development goals, the creative sector showcases a unique dynamic driven largely by the contributions of women and young individuals. Approximately 23% of those employed in creative sectors are aged 15 to 29, with women occupying 45% of these roles. Moreover, its accelerated growth in developing countries can be attributed to unprecedented urbanisation, which has sparked a burgeoning social framework centred around culture, innovation, ethnic diversity, community governance, and the development of new productive and cognitive capacities. This dynamic is exemplified through initiatives like UNESCO's Creative Cities and the World Cultural Forum, which continue to flourish.
Furthermore, the creative economy contributes to achieving several Sustainable Development Goals (SDGs). For instance, it promotes decent work and economic growth (SDG 8) by creating job opportunities across diverse demographics and sectors. It also fosters innovation (SDG 9) through its emphasis on creativity and new forms of cultural expression. Additionally, the sector contributes to building sustainable communities (SDG 11) by nurturing cultural diversity and community engagement, essential for social cohesion and inclusive urban development. Thus, while not explicitly targeted, the creative economy plays a crucial role in advancing multiple SDGs through its unique contributions and impact on socio-economic development globally.
Way Ahead
As the creative economy gains prominence on the global stage, it faces several challenges. One prominent issue pertains to the diversity of creative practices across different countries and regions. This complicates efforts to establish unified indicators for measuring its contribution to broader development goals. Each nation's unique cultural landscape and economic priorities shape its approach to nurturing creative industries. From supporting emerging artists to safeguarding traditional crafts, countries deal with threats from globalisation and commercialization pressures.
Moreover, the commercialization of creative fields raises ethical questions about equity and recognition within the sector. Economic success and market dominance often overshadow the contributions of lesser-known practitioners and cultural associates, potentially undermining efforts towards inclusive growth and cultural diversity. Achieving a balanced approach that acknowledges and values cultural plurality within the creative economy remains a critical concern, as policymakers strive to create equitable opportunities across the board.
Looking ahead, the post-2030 agenda is likely to witness continued debates on integrating creative economy metrics into global development frameworks. As countries navigate the complexities of defining and mapping their creative sectors, collaborative initiatives such as UNESCO's Creative Cities Network provide models for nurturing sustainable cultural ecosystems. These efforts foster cross-cultural dialogue, encourage innovation, and facilitate artistic exchange, thereby reinforcing the creative economy's role as a driver of social progress and economic resilience in an interconnected world.
Top Stories of the Week
Union Cabinet Approves Viability Gap Funding for Offshore Wind Energy Projects
The Union Cabinet has approved a Viability Gap Funding (VGF) scheme for offshore wind energy projects, allocating ₹7,453 crore. This includes ₹6,853 crore for installing 1 GW of offshore wind energy projects—500 MW each off the coasts of Gujarat and Tamil Nadu—and ₹600 crore for upgrading two ports. The successful commissioning of these projects is expected to produce approximately 3.72 billion units of renewable electricity annually, reducing CO2 emissions by 2.98 million tons over 25 years.
Offshore wind farms, situated in bodies of water, offer advantages over onshore wind and solar projects, including stronger and more consistent winds, improved reliability, reduced storage requirements, and greater employment potential. India, with its extensive 7,600 km coastline, holds significant offshore wind energy potential. As part of its goal to achieve 500 GW of renewable capacity by 2030 and net zero emissions by 2070, India introduced the National Offshore Wind Energy Policy in 2015, aiming to develop 30 GW of offshore wind capacity by 2030. Estimates by the National Institute of Wind Energy (NIWE) indicate India's offshore wind potential is 301 GW at a hub height of 100 meters and 695.5 GW at 120 meters. The VGF program aligns with this policy, aiming to harness India’s vast offshore wind resources by reducing the cost of power from these projects, making them economically viable for power distribution companies.
Krishi Sakhi: Empowering Rural Women
On June 18, 2024, PM Narendra Modi granted certificates to over 30,000 self-help groups as Krishi Sakhis in Varanasi. Recognizing the vital contributions of women in agriculture and aiming to enhance rural women's skills, the Ministry of Agriculture and Farmers’ Welfare and the Ministry of Rural Development signed an MoU on August 30, 2023. This established the ambitious Krishi Sakhi Convergence Program (KSCP).
Under the Lakhpati Didi program, which aims to create 3 crore Lakhpati Didis, the KSCP seeks to transform rural India by empowering women as Krishi Sakhis through training and certification as para-extension workers. Selected for their roles as trusted community resource persons and experienced farmers, these women ensure they are welcomed and respected in farming communities. Krishi Sakhis have already been trained on various extension services for 56 days. They are now undergoing refresher training with a special focus on Natural Farming and Soil Health Cards through DAY-NRLM agencies in coordination with MANAGE.
To date, 34,000 out of 70,000 Krishi Sakhis have been certified as para-extension workers. The program has been launched in 12 states: Gujarat, Tamil Nadu, Uttar Pradesh, Madhya Pradesh, Chhattisgarh, Karnataka, Maharashtra, Rajasthan, Odisha, Jharkhand, Andhra Pradesh, and Meghalaya. The government is preparing a 100-day plan for the agriculture sector, underscoring its commitment to farmer welfare and the overall development of the agricultural landscape in India. The KSCP represents a significant stride towards enhancing the skills of rural women and fostering sustainable agricultural practices across the nation.
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