Culture, Creativity and Local Development

OECD & Region Trentino Roveretto, November 28th, 2005 Xavier Greffe, Université Paris I -Sorbonne

The contributions of culture have been slow to win recognition, but old attitudes have gradually changed.

- Culture began to be appreciated for the jobs it creates and the tourism returns it earns. - Products and services that combined a cultural dimension with their utilitarian aspect (styling, fashion, architecture, arts and crafts) are recognised as sources of value-added and gradually ranked under the heading of creative industries. - International trade patterns highlighted the growing importance of intellectual Property Rights.

-

In the United Kingdom, cultural jobs are estimated at 4.5% of total employment - In the United States, that proportion was estimated at 2.4%

-

In Japan the sector of creative industries provided over 1,9 millions jobs: 3.1% of aggregate employment, in 2001

-

In France, while jobs related to exploiting cultural heritage accounted for 0.4% of the working population, the number of jobs involving the transformation of heritage resources into creative resources stood at nearly 2.5

% (Direct Jobs: 43.880; Conservation & Maintenance :41.714; Indirect jobs in cultural and non cultural industries: 260.830;Cultural tourism :176.800)

-

An initial study of the European Union estimated that 2% of the working population was engaged in cultural activities; A second study raised that proportion to 7% by rolling the traditional concept of culture into that of “digital culture”

The most traditional approach: culture as a lever of attraction The new perspective: culture as a lever for creativity of new products The conditions for benefiting from culture

1. The "attraction paradigm"

The most visible contribution of culture to local development lies in its ability to attract tourists and the consequent positive effects on spending, incomes and employment. The economic potential of culture for the territory is similar to an export potential, except that in this case it is not services that are exported but consumers who are brought in.

Some illustrations:

Festival dei due Mondi : 350 seasonal Jobs Avignon Festival : 1000 seasonal jobs + 100 permanent jobs Bilbao Cultural Quarter : 1,000 Jobs U.S. Main Street program : 13,000 Jobs London Theaters: 41,000 Jobs Paris Museums : 80.000 Jobs

Conditions for realizing the development potential of cultural activities:

Their permanence all along the year The degree of participation by local people in addition to tourists, The territory's capacity to produce all the goods and services demanded on these occasions. The effects of a cultural activity will be greater for territories of larger size and population density.

The interdependence of the cultural activities, taking advantage in this way of "crowding-in” effects The prevention of the life cycle of the monuments

An illustration: The Festivals

The results are mixed and often disappointing Achieving a lasting effect from the festivals Piggybacking a temporary event onto permanent activities Establishing recurrent markets ‘Arles

2. The "dissemination paradigm"

It lies in the power to create new cultural goods and services that will be sold beyond the territory and thus bring in new revenues.

Cultural products are thus products were the aesthetic value is prized for its own sake, without interfering with the utilitarian function.

Their production is very relevant: The knowledge economy gives intangible factors a determining role in the design and production of new goods.

The global economy increases opportunities for diversity by offering broader markets for specific products.

The idiosyncratic nature of cultural products

A cultural product reflects specific conditions of production, and it changes its nature depending on the factors of production, tangible and intangible, and on their combinations (L.A., Murano, Limoges).

The specific place helps to determine the essence of goods made there, and that essence will change from one place to another.

Beyond the tangible factors of production often substitutable and mobile, there are intangible factors rooted in the territory, beginning with its specific human and social capital.

The need for territorial clustering of cultural products: Cultural products and their production function have to be permanently redefined For constantly renewing goods and services, proximity becomes an asset : producers can engage in non-monetary (or monetary) trading for updating their knowledge and their know-how.

workers have interest in staying close to the major buyers, because they may have to switch organisations quickly.

A statistical proof of the relevance of the cultural district

The statistical basis 3,800 new cultural enterprises (1998-2003) Arts; Live Arts; Books; Audiovisual; Arts crafts; The main indicator : variation of the rate of survival The scope: the region The result The competition effect : M 1 The synergy effect : M 3 : – 0,36 (P = 0,000) : + 0,82 (P = 0,000)

A synergy between attraction an dissemination: The cultural fabric of the cities Culture-based urban renewal Culture as an end in itself in urban strategies Culture as a dimension of urban strategy (Athens, Birmingham) Cultural Quarters ( Netherland, Pennsylvania ) Art Cities ( Bruges, Krakow, Venice) A dual economic challenge The varying geometry of economic spin-offs Art cities in developing countries: unbridled tourism versus prudent conservation From art city to fantasy city ?

Enabling factors

The sociological components Educating and teaching for the arts The land-use dimension Coping with technological innovations Protecting intellectual property rights International openness The transmission of know-how Business succession Governance issues

Education and training may contribute to build up cultural capital, either :

through formal training in facilities that are often in competition or disappearing. The emergence or rebirth of cultural districts has often been linked to the introduction of a new training approach that combines general arts training with applied arts training, starting typically with the latter; or - informally. These skills are also acquired on-the-job, and they disappear with the job. Today, these systems are under threat. The demand for general knowledge often drives students to other places, and the financial instability of artistic production facilities makes it difficult for them to take on young trainees

Workable distribution networks:

- The conventional formulas such as exhibitions or competitions are inadequate and are inaccessible to most artists and artisans. .

- Some large department store chains are today pushing cultural products through standard commercial channels.

But here these products are used as promotional come-ons, they have to be delivered in mass quantities.

- Another approach is to put exhibition halls in cultural product firms, at least for products where this is feasible.

- Will Internet sales turn out to be the miracle solution?

Avoiding tragedies of IPR

Avoiding a new tragedy of commons Can some minimal form of protection be given to the geographic origin of cultural products, in the way agricultural products benefit from designations of origin ?

Some countries have introduced labels that allow creators to achieve greater visibility, at least, and to make use of existing mechanisms in their country. The label, then, serves to draw attention to these situations and helps to sustain the specific art.

Aviding a tragedy of privatization: There is today the threat that intellectual property rights will be extended well beyond their appropriate application.

At the local level this poses some paradoxes: the originators of a musical or decorative theme may suddenly find that their own "work" has been protected by someone else, and that they now have to pay to use it.

Local public policies for culture

Managing the real estate Education and training to build up cultural capital Workable distribution networks Avoiding another "tragedy of the commons" or/and “private appropriation Local policies for promoting creativity

Governments can contribute:

- by ensuring that ministries and departments understand and accept their responsibility for such objectives : E.g.:land-use legislation must allow craft enterprises to continue operating under reasonable conditions in traditional districts, etc.

- by fostering an environment conducive to the local contributions of culture: e.g.: supporting a system of artistic training; recognising, classifying and protecting heritage resources; combating forgeries, etc.; - by offering a decentralised decision-making framework.