Creative Economy, COVID-19 and Paradigm Shift in Sri Lankan Economy
The economic consequences of the corona pandemic are unpredictable. As per a recent media report, the rupee has come under pressure in recent days. Trading in the spot market has been low amid global volatility and liquidity injections from the Central Bank. Experts believed that the effect would last for months. “So the time has come to think of “Paradigm Shift” in the Sri Lankan economy. COVID-19 has sent us a message, which we need to read with insight,” states Prof Nalin Abeysekera, Professor in Management Studies at the Open University of Sri Lanka.
In Sri Lanka, we are still concentrating on traditional exports like tea, rubber, coconut with garments, and something ‘out of the box’ is required to compete globally – even if it will utilize the resources in total capacity. This article focuses on how the concept of ‘Creative Economy’ can be used as a new strategy for the country to achieve sustainable economic development.
What is Creative Economy?
The concept of ‘Creative Economy’ is a new development for Western countries and in world trade. It is better to discuss the creative economy with Nollywood. The emergence of ‘Nollywood’ is remarkable, and it came into the world picture within 20 years. According to PwC.co, “The Nigerian Film Industry (Nollywood) is globally recognized as the second largest film producer in the world. The industry is a significant part of the Arts, Entertainment, and Recreation Sector, which contributed 2.3 percent (NGN 239 billion) to Nigeria’s Gross Domestic Product (GDP) in 2016. It is one of the priority sectors identified in the Economic Recovery and Growth Plan of the Federal Government of Nigeria with a planned USD one billion in export revenue by 2020”.
Prof Nalin Abeysekera, Professor in Management Studies at Open University of Sri Lanka.
We have to study the success story of ‘Nollywood’ to see whether we can apply that to our Ranminithanna Film Village, which also has more potential. University undergraduates in Sri Lanka can study ‘Nollywood’ and see the Successive Key Factors (KSF) and uniqueness in the film industry. We can then see how to apply these models (with some modifications) in the Sri Lankan context with Ranminithenna.
It is worthwhile to understand the meaning and implications of the creative economy (sometimes referred to as the creative industry). According to John Howkins, the author of ‘The Creative Economy: How People Make Money from Ideas,’ creative industry refers to a range of economic activities concerned with generating or exploiting knowledge and information. Howkins divides the creative economy into 15 sectors, which are: 1) Advertising 2) Architecture 3) Art 4) Crafts 5) Design 6) Fashion 7) Film 8) Music 9) Performing Arts 10) Publishing 11) Research and Development 12) Software 13) Toys and Games 14) TV and Radio 15) Video Games.
“According to Andy Pratt, Professor of Cultural Economy at City, University of London, three main areas are worthy of attention, particularly for developing countries:
- Emerging trade asymmetries, deepened by digital platforms
- The nature of work in the cultural and creative industries
- Environmental issues and sustainability
There is no equal access to trade in the CCIs. The global South is running to catch up, to find a place in many of the (established creative) networks,” Pratt said, adding that colonial trade networks persist and focus on extractive value. He pointed to the trend of developing country artists moving to places such as Europe and the United States, resulting in value add being captured there, rather than in their home countries.
Jeannette Snowball, Professor of Economics at Rhodes University in South Africa and Chief Researcher at the South African Cultural Observatory, believes that cultural trade is the nexus between creativity and globalization. “An equal distribution of creativity can provide a way for emerging markets, or developing countries, to benefit from both creativity and culture and globalization,” she said.
For example, the cultural economy is a source of innovation in products and processes, which can spill over into other industries and increase competitiveness and productivity. She cited a study on nine South American countries that showed a rise in creative exports such as design, media, and graphic arts increased exports in noncreative sectors in subsequent years.
However, she cautioned that the informality of the sector and firms in developing countries affects their ability to benefit from cultural trade.
“Better legislation can make the IP trade between the developed and developing world fairer, but it’s difficult to enforce. Realistic, evidence-based policy, built on their specific experience of the cultural economy, is needed for this to happen.”
Source : https://unctad.org/en/pages/newsdetails.aspx?OriginalVersionID=2230
According to Landry & Bianchini (1995), “The industries of the 21st century will depend increasingly on the generation of knowledge through creativity and innovation.” Human capital can be considered essential and KSA factors – namely, knowledge, skills, and attitude – as prime factors that will govern the world economy at this moment. As the United Nations Conference on Trade and Development (UNCTAD), “Significant three percent contribution to global gross domestic product (GDP) makes the creative economy a powerful emerging economic sector that is being strengthened by a surge in digitalization and services.” So the effect of the creative economy for any country cannot be underestimated. Refer to the following extracts from UNCTAD, which is essential for Sri Lanka as we have our own valued traditional culture, which is not properly utilized.
We must understand the importance of moving away from traditional markets such as manufacturing and seeing the creative industries as a key strategy in a new knowledge economy (Abeysekera,2011). Policymakers and intellectuals should understand the importance of this. COVID-19 has created an opportunity to “stop and see” (reflection) our policies in the long run. This pandemic demands us to revisit and read our traditions of Sigiriya, Anuradhapura, and Polonnaruwa! We should have a paradigm shift in the Sri Lankan economy.
A classic recent example is highlighted in this media headline, “Sri Lankan singing sensation Yohani of ‘Manike Mage Hithe’ song fame in Hyderabad”- Indian Media
First time in Sri Lanka we can see that a Sri Lankan singer performing in India and as we know the Indian music industry is one of the largest in the world, Youhani has created history in Sri Lanka. This is important as these days we do not have many celebrations as a nation.
Yohani Diloka De Silva, the musician will be on the list of most memorable females in Sri Lanka along with names such as Sirimavo Bandaranaike (world’s first female Prime Minister) Susanthika Jayasinghe (Olympic Silver medallist) and Jacqueline Fernandez (actress).
There is a strategic window that has been opened for Sri Lankans in the creative economy. We need to exploit this with opportunities that have been created in both local and global markets.
What is this creative economy and how can we link the music industry into this? It is worthwhile to understand the meaning and implications of creative economy (sometimes referred to as creative industry).
Source of information for the article: UNCTAD: How the creative economy can help power development. Prof Nalin Abeysekera, Professor in Management Studies at Open University of Sri Lanka.
