Emerging Engines for Latin American Economies? The Potential of Cultural and Creative Industries

By Robert Albro
Associate Research Professor, CLALS

Filming in Chile / Photo credit: Patt V / Foter / CC BY-NC-SA

Filming in Chile / Photo credit: Patt V / Foter / CC BY-NC-SA

In global terms Latin America’s economy is expected to grow at a relatively brisk 4% in 2013. In the medium-term, however, the picture is not as rosy, since this growth is largely sustained by the export of natural resources and raw materials, the demand for which is expected to slow. If Latin America hopes to continue to enjoy economic growth and stability, other sectors will need to emerge. One strong candidate is cultural and creative industries, a sector that includes all copyrightable entertainment, education, information, and other cultural goods and services, like film, T.V., music, or video games, but also tourism and local heritage products. One of the world’s fastest growing sectors, it has quadrupled its share of world trade since 1995. In 2012 it represented an estimated $2.2 trillion, or 11% of the global total. Cultural and creative industries are also seen as largely immune to the ups and downs of the business cycle. At the height of the recession in 2008, global trade declined by 12%, while trade in creative goods increased by 14%.

Signs that the creative industries are taking off in Latin America are widespread. As the 2010 Creative Economy Report noted, regional governments are now actively promoting policies for this sector, including to incentivize tourism, create new cultural infrastructure, and increase intellectual property protection. South America’s MERCOSUR Cultural, a regional network of over 400 institutions, is centralizing country-based cultural data. Latin America’s film industry is resurgent, with more than 600 million gate receipts last year, and in 2011 Mexico’s television content distribution business alone topped an estimated $251 billion. As a burgeoning tech start-up hotspot, Chile has also become an important video game incubator. Buenos Aires’s design industry is a global player with double digit growth that accounts for 3% of Argentina’s total economy. Designated a UNESCO “creative city” in 2012, Bogotá is now the focus of major government investment as a center of music innovation. Meanwhile, in Brazil the new Creative Rio Program has been launched to enhance that city’s creative economy.

If there is cause for optimism, significant barriers remain. Cities rather than countries are the critical units of scale, as cultural platforms and global nodes in an emerging information economy. But the persistent lack of citizen security across Latin America’s cities is likely to undermine the sustainable development of this sector. The creative industries are also highly unevenly distributed throughout Latin America. Audiovisual production, for example, is limited to Argentina, Mexico, Brazil, Colombia, and Venezuela. Cultural goods and services, too, can become vehicles for regional concerns about the threats posed by globalization, leading to trade frictions. Most importantly, a thorough assessment of the organization and diversity of the region’s cultural and creative industries has yet to be done, debilitating future strategic decision-making. Assessment of this sector is undermined by inadequate or incomplete metrics. But even with metrics in hand, how to make best sense of these in ways that account for the exceptional status of cultural goods as key sources of collective identity, community well-being and quality of life remains a real challenge, one which CLALS is currently partnering with the Inter-American Development Bank to address.

Leave a comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: