RP urged to develop export markets for creative goods and services

MANILA, Philippines - Creative industries in the Philippines and other developing countries must vigorously pursue opportunities in export markets to enable them to reap benefits from the growing international trade in creative goods and services.

The recommendation was made by the United Nations Conference on Trade and Development (UNCTAD) in the Creative Economy Report 2010 it recently released with the United Nations Development Programme.

UNCTAD classified creative industries into four large groups including heritage, arts, media and functional creations.

Fifteen creative industries covering arts to the wider fields of science and technology comprise the creative economy, according to John Howkins’ book.

UNCTAD asked developing nations to design tailor-made export strategies for the most competitive creative sectors.

“Development of brands, new markets and new products all these targets should be well articulated. Specialists should be in charge of quality control for exportable creative products in order to respond to the requirements of major markets,” it suggested.

Trade facilitation issues must be also addressed, it said, noting as an example the slow clearance of goods through ports and customs offices and the need to simplify inspection and paperwork for exports.  

“It is important that creative industries be included in the national strategy for export development,” it noted.

The report cited a number of East Asian countries which are implementing outward-looking strategy for their domestic creative industries, and that actively target foreign direct investments and export markets in addition to local markets for creative products.

Countries with highly export-oriented creative industries are Singapore, Hong Kong SAR and mainland China.

Several major Asia Pacific economies including India, Indonesia, Malaysia, the Philippines, Republic of Korea, Thailand and Vietnam have much activities related to the creative economy as well as a strategic interest in creative-industry development.

Apart from the development of export markets, the UNCTAD identified other critical areas where developing countries need new policy initiatives to boost their creative economies.

These are the provision of infrastructure, the provision of finance and investment, the creation of institutional mechanisms, an appropriate regulatory framework, the establishment of creative clusters and a mechanism for effective data-collection measures and analysis.

The UNCTAD also pointed out that infrastructure needs of the emerging creative economies of developing countries arise at all points in the value chain: from initial creative production to marketing and retailing.

“As with any other industry, the creative industries need affordable access to appropriate space in which to work and to live, transportation and distribution facilities,” it said.

Moreover, the report identified the need for access to information and communication technology (ICT) among the infrastructure requirements particular to the creative industries.

“There is no doubt, however, that access to ICT, in terms of identification of market opportunities, training, innovations, networking and sales, is a significant factor in the development of the viability of small business units. Access to ICT provides a link between education and commerce and assists in turning knowledge into marketable products,” it noted.  

Over six consecutive years, growth rate of the world exports of creative goods and services posted an annual growth rate of 14 percent. Revenues reached $592 billion in 2008 despite the world economic crisis, more than double their 2002 level.

“This is a confirmation that the creative industries hold great potential for developing countries that seek to diversify their economies and leapfrog into one of the most dynamic sectors of the world economy,” the report stressed.

The UNCTAD said evidence suggests that even during the global recession, people continued to go to cinemas and museums, listen to music, watch videos and television shows and play video games.

“Even in times of crisis, creative products continue to thrive as an integral part of our lives,” it added. “This explains why some creative sectors appear more resilient to economic downturns and can contribute to a more sustainable and inclusive economic recovery.”   – Philexport News and Features