Can Cultural Industries save countries from Economic Decline?

The notion that one can monetize culture and sell it as a good to willing consumers may come across as bizarre or even obscene to some. Yet, the tourism industry stands as a living testament to how culture can be leveraged to generate revenue, fame, and recognition. The tourism industry generated a whopping $7.7 trillion in 2022. Tourism is just one manifestation of the economic power of culture.

Cultural and Creative Industries (often used interchangeably) refer to "those that combine the creation, production, and commercialization of creative content that are intangible and cultural in nature." These industries include a wide variety of sub-sectors such as architecture, archives, libraries and museums, artistic crafts, audiovisual media (including film, television, video games, and multimedia), tangible and intangible cultural heritage, design (including fashion design), festivals, music, literature, performing arts (including theatre and dance), books and publishing, radio, and visual arts.

The term was first used in a report submitted to the Australian Government, stressing the economic importance of cultural activities and arts, their contribution to the economy, and their role in promoting innovation and attracting tourism. In 1998, the British Department for Culture, Media, and Sport defined cultural industries as those industries originating from individual creativity, skill, and talent, with the potential for wealth and job creation through the generation and exploitation of intellectual property. While some argued that creativity is universal to all professions and walks of life and that a single industry could not be identified as the sole source of creative outputs, the concept has nevertheless gained strong traction over the years. An analysis in 2001 revealed that the creative sector was generating jobs at twice the underlying rate of the UK economy as a whole.

Since then, there has been a growing recognition of the importance of cultural and creative industries for the economic growth of countries. In an era of globalization and mass movement of goods and services, many countries have utilized their culture as a tool to attract revenue and investment opportunities, whether through iconic historic, natural, and cultural sites or the promotion of local traditions, cuisines, and festivals.

Britain, in particular, has successfully exploited its cultural soft power to promote its cultural and creative industries. This includes traditions, memorabilia, and icons associated with the British Royal Family, museums, art galleries, exhibitions, parks and gardens, historic and modern architectural icons, and popular cultural, theatrical, and cinematic products such as Harry Potter, Doctor Who, Sherlock Holmes, Downton Abbey, and Matilda the Musical. The UK is also a world leader in publishing, topping the list as the largest exporter of books, made famous by the likes of Harper Collins and Penguin, contributing nearly ￡7 billion to the British economy. It is estimated that creative industries generated ￡126 billion in gross value to the British economy and employed 2.4 million people in 2022. Over the decades, Britain’s share of manufacturing has steeply declined from 32% in 1973 to 8.39% in 2022. Britain's decline as a global power has coincided with a venture into the services sector, most notably banking, hospitality, and retail. Yet, Britain continues to harness its cultural and creative industries to enhance its economy and global influence. While some may debate the sustainability of this arrangement, it has nevertheless turned out to be economically fruitful for the country.

Globally, creative industries can contribute to generating jobs, innovation, and productivity, as well as enhancing the quality of life in an area and stimulating new ideas and thinking within communities. Besides this, they also have immense cultural and political value. They can foster a sense of shared identity, culture, and cohesion amongst communities. They can also become a great source of political influence. Since 2001, Thailand’s government has made a concerted effort to raise the profile of its nation’s cuisine through certifications, grants, visa schemes, and training programs. These efforts were part of a series of strategies that helped grow tourism in the country. Between 2001 and 2019, visitors to Thailand increased from about 10 million to 39.8 million. In 2019, before the Covid-19 pandemic began, Thailand was the eighth most visited country in the world. As the demand for and interest in Thai cuisine has grown, cultural and creative industries can also champion important values on the global stage, such as climate change mitigation and environmental conservation, by virtue of the voices of artists, designers, and playwrights.

The greatest opportunity that cultural and creative industries offer to countries is the potential to benefit sustainably from human and cultural capital. For many developed economies suffering from the impact of deindustrialization, particularly in the Western World, the cultural and creative economy has the potential to generate income, jobs, and exports while simultaneously promoting social inclusion, cultural diversity, and human development. In particular, the rapid growth of automation and the use of artificial intelligence and robotics, which heralds the so-called “Fourth Industrial Revolution,” is certain to have a major impact on employment globally. Researchers at Oxford University estimate that up to 47% of jobs in the US could be replaced by machines in the next 20 years, while their figure for the UK is 35%. However, a 2015 study found that the creative sector was somewhat immune to this threat, with 86% of ‘highly creative’ jobs in the US, and 87% in the UK, having no or low risk of being displaced by automation.

On a deeper level, the case for developing the cultural and creative economy stems from the importance of culture for its own sake. At a time of rapid globalization, economic and political uncertainty, and moral strife, culture can serve as a pillar of support for communities worldwide. The safeguarding and promotion of culture is an end in itself and contributes directly to many of the Sustainable Development Goals (SDGs), including safe and sustainable cities, decent work and economic growth, reduced inequalities, environmental protection, gender equality, and peaceful and inclusive societies. Cultural heritage can animate public life, solidify intergroup solidarity, and boost the local economy. At its heart, culture is a resource contained within us and is a product of our collective human consciousness. Protecting and harnessing it is not just integral to our development as individuals, but also to our progress as a civilization.