The United Nations Conference on Trade and Development (Unctad) has found in its ‘Creative Economy Outlook 2022’ report that the creative economy offers a feasible development option to all countries, particularly developing economies.

The report, which was launched at the third World Congress on Creative Economy, in Indonesia, on October 7, defines creative industries as cycles of creating, producing and distributing goods and services that use creativity and intellectual capital as primary inputs.

They comprise a set of knowledge-based activities that produce tangible goods and intangible intellectual or artistic services with creative content, economic value and market objectives.

Unctad says that although creative services exports vastly exceed those of creative goods, developing countries are underrepresented and face hurdles in exporting these services. In addition, there is a significant creative trade data gap between developed and developing countries.

Unctad Secretary-General Rebeca Grynspan says the report comes at a time when the global community faces some of the most significant challenges in decades, including the impact of the Covid-19 pandemic, a looming climate change and environmental crisis, geopolitical tensions and a major cost-of-living crisis.

“Despite these challenges, the creative economy remains a critical sector for sustainable development,” she states.

The outlook finds that trade in creative goods and services generates increasing revenues for countries, with services having a dominant role. The latest available data shows that, in 2020, creative goods and services represented 3% of total merchandise exports and 21% of total services exports.

Global exports of creative goods increased from $419-million in 2010 to $524-million in 2020, while global exports of creative services increased from $487-billion to almost $1.1-trillion during the same period.

Developing economies export more creative goods than developed ones, on average.

Unctad reports that China was by far the largest exporter of creative goods in 2020, at $169-billion, followed by the US, at $32-billion, Italy, at $27-billion, Germany, at $26-billion, and Hong Kong, at $24-billion.

This while South-South trade in creative goods has almost doubled in the past two decades. In 2020, South-South trade in creative goods represented 40.5% of creative exports by developing economies.

Unctad says South-South trade is important for developing economies to create new trading opportunities and diversify exports.

Creative goods exports were, however, hit hard by the Covid-19 pandemic and lockdowns worldwide. Creative goods exports were down by 12.5% in 2020, while exports of all goods fell by only 7.2%.

However, preliminary data show that creative goods exports began to recover in 2021 and surpassed 2019 levels.

Creative services exports also rose, with their share of total services exports increasing from 12.3% in 2010 to 21.4% in 2020.

Developed economies export significantly more creative services than developing ones, accounting for 82.3% of all creative services exports in 2020.

The largest creative services exporters in 2020 were the US, at $206-billion, Ireland, at $174-billion, Germany, at $75-billion, China, at $59-billion and the UK, at $57-billion.

Creative services were more resilient than other services sectors during the pandemic. Exports of creative services were down by only 1.8% in 2020, while exports of all services fell by 20%, Unctad reports.

The organisation explains that developing countries face several barriers to participating in services trade, including creative services. These include lack of fundamental skills and infrastructure, which can hinder them from becoming competitive players in creative services, and trade restrictions.

Responses from 33 countries to an Unctad online survey provide insights into how the creative economy’s social, political and economic significance has grown at the national level.

Since 2015, more developing countries have issued national strategies, policies and regulations for the sector. Most respondent countries have established a strategy or national plan to support and develop creative industries.

In addition, several countries drafted national plans for their creative industries in 2020 and 2021 as an integral part of their post-Covid-19 recovery plans. These typically include new and emerging technology investment, and e-commerce and digital platform development.

MEASURING CHALLENGES

Unctad cites a lack of harmonised definitions and methodologies, as well as a lack of data, among the key challenges to measuring the creative economy.

The organisation explains that a lack of data may lead to some creative industries and activities being overlooked by analysis, policy design and development.

Several frameworks exist to measure the creative economy, with patterns of common industries and products covered, however, these frameworks often vary owing to national or regional classifications, activity or product coverage and methodology.

This makes for a challenging process of quantifying creative services, which often lack appropriate statistical systems, adequate institutional arrangements and information technology infrastructure. Even if the data exists, Unctad says processing of the information might be challenging.

Unctad says more disaggregated data is ultimately required to gain more insight into the role of creative services in economic transformation, and their potential for services-led diversification in developing economies.