by Paolo Mercado
Wouldn’t we all want to have a healthy economy? Politicians promise it, businesses thrive on it, and every citizen benefits from it. Economic growth, whether at a modest 2 to 3% or a fantastic 10+% is what every nation desires.
Yet when we think of economic growth, oftentimes we think of manufacturing industries as the main driver of growth. We look at manufacturing productivity, blue- and white-collar employment, and the trading and consumption of physical goods as the key drivers of a healthy economy. The one thing we normally don’t think of as a driver of economic growth is Creativity.
For the last 15 years, however, many countries have taken the economic contribution of Creative Industries seriously — defining it, measuring it, and setting clear programs to grow it. In 2001, the British Department for Culture, Media and Sport (DCMS) was the first to formally define creative industries as:
“Those industries which have their origin in individual creativity, skill and talent and which have a potential for wealth and job creation through the generation and exploitation of intellectual property.”
Under this definition, the UK DCMS officially lists 9 sectors as part of the creative economy:
Advertising and marketing
Architecture
Crafts
Design: product, graphic and fashion design
Film, TV, video, radio and photography
IT, software and computer services
Publishing
Museums, galleries and libraries
Music, performing and visual arts
By clearly defining its creative industries, the United Kingdom is able to measure and track its economic contribution. Based on the latest 2014 figures, creative industries in the UK generate US$121 Billion in value (GBP 84.1 Billion). As the DCMS puts it, the creative industries contribute about US$14 Million PER HOUR for the UK!
Furthermore, the UK government has set a clear objective to consciously grow its Creative Industries. From 2009 to 2014, the Gross Value Added (GVA) contribution of the creative industries have clearly outpaced the national UK average.
Many countries such as Australia, Canada, China, Singapore and Malaysia, have adopted the UK agenda of defining, measuring and growing their Creative Industries. Indeed even among developing countries, the growth of Creative and Cultural Industries is seen as an essential path towards inclusive economic development as highlighted in the UNESCO 2013 Creative Economy Report.
It’s very surprising then that the Philippines has not yet defined a serious Creative Economy agenda when many others have already done so. The Arangkada Philippines 2010 Initiative from the Joint Foreign Chambers of Commerce clearly defined Creative Industries as a growth opportunity for the Philippines. However, beyond this initiative, there’s precious little evidence of a clear publicly stated government agenda for growing our Creative Economy.
Even more fundamental, it’s unclear today which department of government is in charge of growing this sector. With the UK, the DCMS owns and drives the Creative Economy agenda. With the Philippines, such an agenda falls in between the chairs of DTI, DEPED, and the NCCA. This is a situation that must urgently change if we’re to harness the tremendous creative potential of the Philippines and turn it into a strong economic driver.
Indeed I believe that the Philippines should ambition to be a Creative Hub for the Asia Pacific Region as a center for English-based Creative Services. In a short period of time, we have become the “Call Center of the World”. Shouldn’t we up the ante and become the Creative Services capital of the world as well? Many factors are surely in our favor:
We have a strong base of raw creative talent considered by others to be the best in Asia. This is especially true for the performing arts, animation, and furniture & fashion design.
We have world class creative role models, like Lea Salonga, Whilce Portacio, Kenneth Cobonpue, Apl.d.App, & Ronnie Del Carmen, who have made a name for themselves internationally, inspiring generations of young Filipino talent to believe that YES, we are world class.
We have an open-minded, globally attuned culture. Our English language proficiency, and general openness allows us to easily blend east and west, yet somehow inject our own Filipino character in what we choose to do.
We have built a strong reputation as a top source of English speaking talent. From the heroic OFWs, to the multitude of BPO call center workers, and the ever-growing Filipino business expats for multi-national companies, Filipino workers have an excellent reputation for reliability, resiliency, adaptability and of course quality of work.
Finally, now, more than any other time, our country is back on a growth track. The public sector is flush with cash, and the private sector is eager to invest behind growth. Even foreign investors are bullish about the Philippines. Investing in growing the Philippine Creative Economy should be a no brainer.
But such potential will not be realized by luck or chance. It must be clearly articulated as a vision, strategically defined with master plans, and pursued with discipline, serious investment, and good old hard work if we are to make the Philippines a Rock Star Economy. [end mark]
Paolo Mercado is a business professional convinced in the value generating power of creativity for private businesses as well as local and national governments. This column explores and investigates how others have successfully turned creativity into economic value for themselves and their community. He is a marketing professional, raised in a family of advertisers and writers, with a passion for teaching and an obsession for the performing arts.
Illustration by Adrian Panadero
