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  • 2. The Institutional Capacity and Finance Department (ICF) of the Inter-American Development Bank (IDB)developed this study on cultural industries in LAC. The study was conducted under the supervision ofFrancesco Lanzafame, Housing & Urban Development specialist, by Alessandra Quartesan, UrbanDevelopment and Cultural Heritage consultant, and Monica Romis, Urban and Local EconomicDevelopment consultant. The research team interacted with relevant IDB staff and other international andregional experts in the sector.The study was funded through the IDB “Italian Trust Fund for Cultural Heritage and SustainableDevelopment” to respond to a demand that the Bank received from LAC countries over the last few years.This working paper has the sole objective of contributing to the debate on a topic of importance to theregion, and to elicit comments and suggestions from interested parties. The paper does not reflect theofficial position of the IDB.
  • 3. TABLE OF CONTENTSINTRODUCTION ...................................................................................................................................... 1Methodology .......................................................................................................................................... 2PART I. CULTURAL INDUSTRIES AND DEVELOPMENT ........................................................................ 4I. What Are Cultural Industries?........................................................................................................... 4II. Economic Contribution of Cultural Industries................................................................................ 6III. Local Development ......................................................................................................................... 8IV. Cultural Identity .............................................................................................................................. 9PART II. SECTORS ............................................................................................................................... 11Editorial ................................................................................................................................................11Audiovisual ..........................................................................................................................................14 Cinematographic Industry..........................................................................................................15 Television industry .....................................................................................................................18Phonographic .......................................................................................................................................19 Discographic Industry ................................................................................................................19 Radio ...........................................................................................................................................21Multimedia ...........................................................................................................................................22Visual and Performing Arts ................................................................................................................23Cultural Tourism..................................................................................................................................25Sports....................................................................................................................................................26PART III. CHALLENGES AND OPPORTUNITIES FOR CULTURAL INDUSTRIES ................................... 28ANNEX I. LIST OF LAC INSTITUTIONS RELATED TO CULTURAL INDUSTRIES .................................................40ANNEX II. IDB PROJECTS RELATED TO SECTORS OF CULTURAL INDUSTRIES: 1997 -2007 ..........................46REFERENCES ........................................................................................................................................ 49
  • 4. TABLES, FIGURES AND BOXESTablesTable 1. Cultural Industries’ Contribution to GDP in LAC, 1993-2005 (%)…………………..…7Table 2. Contribution of Cultural Industries to Employment……………………………………...8Table 3. Editorial Sector Laws and Regulations in LAC...……………………………………….13Table 4. VAT in Editorial Sector in LAC………………………………………………………...14Table 5. Summary of the Audiovisual Sector in Selected LAC Countries……………………….15Table 6. Titles Produced, Total Investment and Average Cost per Film by Region, 1997 (US$ millions)………...………………………………………………………………………..16Table 7. Films Released in 2005………………………………………………………………….16Table 8. Means of Financing Motion Picture Production and State Involvement in LAC (1996, US$)………...…………………………………………...………………………………17Table 9. Radios Per Capita in LAC – 1996…………………………………………………….…21Table 10. World Trade Organization Instruments…………………………………….………….36FiguresFigure 1. Structure of Cultural Industries………………………………………………………….5Figure 2. Budget for Cultural Activities in 2005 - % of National Budget ………………………..6Figure 3. Annual Growth of International Tourism in LAC (tourists volume)…………………..25BoxesBox 1. The Linkage between Cultural Industries and Urban Development……………………….9Box 2. Programa Opción Libros.....................................................................................................12Box 3. BASET - Buenos Aires Set de Filiación.............................................................................18Box 4. What Is an Independent Label?………………………………………………………...…20Box 5. CMD - Metropolitan Design Center………………………………………………………23Box 6. Altos de Chavon School of Design………………………………………………………24Box 7. IBERESCENA……………………………………………………………………………24Box 8. “Estrategia de Marca País”………………………………………………………………..27Box 9. Data and Indicators for Cultural Industries……………………………………………….30Box 10. CREA……………………………………………………………………………………31Box 11. Unifrance: Promoting French Cinema Worldwide…………………………………...…33Box 12. Arepa 3000………………………………………………………………………………34Box 13. MEDIA Plus…………………………………………………………………………..…35Box 14. Cultural Industries and Free Trade Agreements in LAC………………………………..37
  • 5. ACRONYMS AND ABBREVIATIONSCAB Convenio Andres BelloCARICOM Caribbean Community and Common MarketCCL Caribbean Copyright LinkCERLALC Regional Center for the Promotion of Book in Latin America and the Caribbean - Centro Regional para el Fomento del Libro en América latina y el CaribeCMD Metropolitan Design Center – Centro Metropolitano di Diseno (Argentina)DANE National Statistical Office - Departamento Administrativo Nacional de Estadistica (Colombia)DR-CAFTA Dominican Republic–Central America Free Trade AgreementEU European UnionFAIGA Argentine Federation of Graphic Industry - Federación Argentina de la Industria Grafica y Afines (Argentina)GATT General Agreement on Tariffs and TradeGATS General Agreement on Trade and ServicesGDP Gross Domestic ProductIDB Inter-American Development BankINCAA National Institute of Cinema and Audiovisual Arts - Instituto Nacional de Cine y Artes Audiovisuales (Argentina)INDEC National Institute of Statistics and Census – Instituto Nacional de Estadistica y Censo (Argentina)IFPI International Federation of Phonographic IndustriesISBN International Standard Book NumbersLAC Latin America and the CaribbeanMERCOSUR Southern Common Market - Mercado Común del SurMSMEs Micro, Small, and Medium EnterprisesNAFTA North American Free Trade AgreementPICE Economic Cooperation and Integration ProgramSMEs Small and Medium EnterprisesTRIMS Agreement on Trade-Related Investment MeasuresTRIPS Agreement on Trade-Related Aspects of Intellectual Property RightsUK United KingdomUNESCO United Nations Educational, Scientific and Cultural OrganizationUNWTO World Tourism OrganizationUS United States of AmericaVAT Value Added TaxWTO World Trade Organization
  • 6. INTRODUCTIONOver the past decade, the new creative- and the potential for cultural industries incultural industries have increasingly become the LAC economy and also identifies theone of the main sources of greater need for a comprehensive approach,production and employment in many structured policies, and targetedcountries. Although the growth of cultural interventions aimed at improving theindustries has been mostly limited to the conditions and prospects of these’s richest countries, a number of low- To date, the approach of countries andand middle-income countries have come to donors (such as the IDB) to culturalrecognize that they too can participate in the industries has been uncoordinated and, incultural economy. In this regard, Latin some countries, insufficient. In the specificAmerican and Caribbean (LAC) countries case of the IDB, while these sectorshave begun to identify new opportunities individually are often included in projects,and are actively seeking sustainable they are not specified as cultural industriessolutions to maintain these industries as an in the Bank’s portfolio.2 Consequently,integral part of cultural and economic life.This development has been brought about by 2 These projects, however, have mostly targetedgrowing concern on the part of LAC the service sub-sectors and have not directlycountries that their cultural industries will be addressed the manufacturing sub-sectors ofmarginalized by globalization. In this cultural industries. In urban and regionalregard, while some countries have development projects, cultural industries aredeveloped mechanisms to protect these present through the rehabilitation of museums,industries, others have not been as proactive, theaters, and libraries or through interventions inand consequently, their cultural industries support of cultural enterprises. In Quito, Ecuador for instance, the Bank implemented aare declining.1 Given the various levels of project for the rehabilitation of the historic citydevelopment of cultural industries in LAC center. This project not only focused on theand the widespread recognition that these rehabilitation of existing museums and librariesindustries are important (even if not (such as the restoration of an historic building forexplicitly categorized as cultural industries), the establishment of the new “Museo de lathere is a need to understand the main Ciudad” and the restoration of the “Teatrochallenges and opportunities that these Sucre”), but it also developed a strategy toindustries currently face in the region. ensure the social sustainability of the project by establishing: i) mechanisms of participation forThe objective of this paper is to assess the residents and users of the area, ii) a program to support traditional economic activities in the areastrengths and weaknesses of cultural (mostly SMEs related to crafts), and iii) a plan toindustries in LAC and offer lessons learned support tourism through the improvement ofthrough this analysis to policymakers and security, environment, and services. All thesedonors. This study demonstrates the value actions were related to sectors within cultural industries. This approach also applies to projects in cities such as Buenos Aires-Argentina,1 In recent years, the production and distribution Cartagena-Colombia, Cuzco-Peru, and Salvadorof cultural industry products, which represent a de Bahia-Brazil, which have a cultural-traditional and important expression of the traditional patrimony linked to culturalculture and creativity of the region, are industries. In the case of tourism, given theincreasingly being more controlled or produced increasing importance that this sector representsabroad by foreign industries, resulting in a loss in the IDB strategy, the volume of projectsof economic benefits and identity. approved by the Bank up to 2005 was roughly 1
  • 7. donors have yet to develop a comprehensive Methodologystrategy to support these industries. The key research questions that provided theAlong with the growing recognition that motivation for the study were:cultural industries are significant in 1) Is it possible to develop local sustainableeconomic terms, is a conviction that these cultural industries in LAC?industries are also essential to maintaining 2) Can cultural industries play a dual role ofthe cultural identity of LAC countries. In economic driver of growth and of culturalthis context and in response to the patterns?challenges posed by globalization, countries 3) Can public policies promote developmenthave stepped up their requests to donors for in the sector?assistance in projects related to the sector. 4) What are the successful (and lessTherefore and with a view to meeting this successful) practices in the sector?need, the international financial and 5) Is performance in the sector linked todevelopment institutions have now an private-public and/or internationalimportant opportunity to leverage their partnerships?considerable experience and capabilities tosupport new initiatives in this field. To answer these questions, the study was carried out in two principal phases—This paper includes this introduction, which regional analysis and country case studies.concludes with a note on the methodologyused in the study, and three main sections. Phase One - Regional AnalysisPart I addresses the main features applicable The first phase of the study was ato all types of cultural industries, including documentary investigation that gathered datathe definition, economic impact, role as a broadly to compensate for the lack ofdriving force in local development, role in systematized information on culturalcultural identity formation and maintenance. industries in LAC. This phase of the studyPart II provides an in-depth assessment of involved researching the economic, cultural,the range of sectors included in LAC and institutional aspects, at the regional andcultural industries through an analysis of country levels, of the following sectors:their structure, main stakeholders, policies, editorial, audiovisual, phonographic, visualand strengths and weaknesses. Finally, Part and performing arts, multimedia, culturalIII highlights the challenges and tourism, and sports.opportunities for these industries in LAC. Inaddition, the paper is supplemented by two Economic – This component of the researchannexes. Annex I includes a table listing the sought to: i) study the economic impact ofmain institutions in LAC related to cultural cultural industries in LAC countries; ii)industries, and Annex II lists IDB projects gather available sectoral level data; iii) studythat include activities associated to these private sector investment at both the countryindustries, carried out between 1997-2007. and regional levels; iv) examine the relationship between the production of cultural products and the locality in order to assess the role of the local culture, tradition, and resources in the production of cultural goods; v) analyze the flows of exports andUS$1.639 million (Altes, 2006). In socialprograms, music, dance, artistic activities, crafts, imports of cultural products in the regionand sports are “tools” to promote education and and between LAC and other countries inreduce crime risk. These examples include order to evaluate the impact of internationalprojects in Venezuela aimed at supporting the trade on cultural industries; and vi) identifyAction Social Center of Music and projects with opportunities and market niches that LACindigenous populations (Cuna) in Panama. 2
  • 8. countries could potentially occupy within of LAC countries, two case studies werethe sector. conducted maximizing the variation in national capacities, structures, and policies.Cultural – This research analyzed: i) the Based on the data gathered during the firstcultural identity and cultural heritage values phase of research, two countries—therelated to cultural industries; ii) the various Dominican Republic and Argentina—weresystems employed to produce cultural selected as case studies. The cases wereproducts; iii) the structure of the sector at the chosen taking into account differences in thecountry and regional levels; iv) the policies, various sectors of cultural industries as wellstrategies, and structural similarities in the as the possibility of making comparisons ofmarkets and among target audiences in the countries’ individual sectors. Finally,terms of language and cultural closeness; the analysis of these two countries wasand v) the forms of organization of cultural particularly useful because they areindustries. representative of the region in terms of geographic position, size, and marketInstitutional – The research conducted on characteristics.institutional aspects compared nationalapproaches to the sector in LAC. To assess the cultural industries in theSpecifically, the analysis focused on the: i) Dominican Republic and Argentina, twoagencies or entities in charge of policy- field missions were carried out, duringmaking for the sector at the country level; ii) which time data was collected through in-regulation of the sector (including depth interviews, observations, andinternational regulations); iii) government documentation. To understand the situationcontributions to the sector through in the capitals of the two countries whereprograms, grants, or loans; and iv) credit and cultural industries are naturallybusiness support services for existing and concentrated, most of the interviews tookemerging firms and artists. place in Santo Domingo and Buenos Aires. However, in order to take into account thePhase Two – Country Case Studies experience of cultural industries at theWith the aim of developing a rich and national level, interviews were also carriedcontextually specific perspective within the out in some provinces.vast populations and large domestic markets 3
  • 9. PART I. CULTURAL INDUSTRIES AND DEVELOPMENTI. What Are Cultural Industries? as a set of sectors that offer “1) service outputs in the fields of entertainment,The term cultural industries in this study education and information (e.g., motionrefers to those sectors that are directly pictures, recorded music, print media, orconcerned with the creation, production, and museums) and 2) manufactured productsdistribution of goods and services that are through which consumers constructcultural in nature and that are usually distinctive forms of individuality, self-protected by the copyright. Cultural goods affirmation, and social display (e.g., fashionand services are those whose primary clothing or jewelry)” (Scott, 2004, p. 462).economic value is derived from their While this definition is similar to that ofcultural value (OConnor, 1999), and have UNESCO, it actually encompasses morethe potential for wealth and job creation sectors. Moreover, following O’Connorthrough the generation and exploitation of (1999), the study focuses on individualsintellectual property. This definition draws working in cultural industries with culturalon those of both UNESCO and GATT, occupations (for example, architects,which define cultural industries mainly as librarians, authors, journalists, graphicgoods and services protected by copyrights. designers, actors, etc.) and without culturalThe sectors generally included by UNESCO occupations (for example, in the editorialinclude “printing, publishing and sector, employees in the printing industry).multimedia, audiovisual, phonographic andcinematographic productions as well as Figure 1 illustrates the sectors and sub-crafts and design” (UNESCO, 2006). sectors that are included in the definition ofHowever, this study highlights the cultural industries used in this study. Whilelimitations of these definitions, and a more some sub-sectors are fully contained in onecomprehensive framework was developed, sector, others are spread across multipletaking into account the complexity of the sectors. In the figure, sub-sectors appear incontext and the multitude of stakeholders white when they are listed with theirinvolved in LAC. principal sector and in grey under the other related sectors.Based on the definition used in this study,cultural industries can therefore be identified 4
  • 10. Figure 1. Structure of Cultural Industries Cultural Industries Conventional Other New Cultural Industries Sectors Cultural Industreis Sectors Cultural Industries Sectors Editorial Audiovisual Phonographic Visual and Performing Arts Cultural Tourism Sport Multimedia Books Cinematographic Industry Discographic Industry Concerts and Performances v Architecture vi Advertising Industry i Printing Industry Television Industry Radio Theatre Museums and Galleries vii Software Publishing Industry Photographic Industry Opera iii Orchestras iv Gastronomy Video Games Journals Home Video Concerts and Performances v Dance Typical Prouducts Media Supports Industry Magazines Advertising Industry i Orchestras iv Opera iii Eco-tourism Design ii Newspapers Crafts viii Concerts and Performances v Literature Design ii Crafts viii5 Libraries Fashon Advertising Industry i Architecture vi Design ii Museums and Galleries vii i The advertising industry belongs primarily to the multimedia sector, and secondarily to the editorial and the audiovisual sectors. ii Design belongs primarily to the visual and performing arts sector, and secondarily to the editorial and the multimedia sectors. iii Opera belongs primarily to the visual and performing arts sector, and secondarily to the phonographic sector. iv Orchestras belong primarily to the visual and performing arts sector, and secondarily to the phonographic sector. v Concerts and performances belong primarily to the visual and performing arts sector, and secondarily to the phonographic and the cultural tourism sectors. vi Architecture belongs primarily to the cultural tourism sector, and secondarily to the visual and performing arts sector. vii Museums and galleries belong primarily to the cultural tourism sector, and secondarily to the visual and performing arts sector. viii Crafts belongs primarily to the visual and performing arts sector, and secondarily to the cultural tourism sector. 5
  • 11. II. Economic Contribution of data impedes efforts to obtain a global overview of the economic dynamics of Cultural Industries cultural industries, to make comparisons among the various sub-sectors of cultural While efforts have been made to assess the industries, and also to compare cultural quantitative importance of cultural industries industries with other economic sectors. as a whole in different countries, there have Moreover, each country has a different been difficulties in measurement. Given the definition of cultural industries, including or multi-sectoral nature of cultural industries, excluding specific sectors or sub-sectors, data (e.g., in terms of jobs and contribution which makes comparisons across countries to GDP) are found across the entire difficult. Finally, even when there is economy, dispersed over a number of agreement on the definition of cultural sectors. Further frustrating quantitative Figure 2. Budget for Cultural Activities in 2005 - % of National BudgetSource: Authors’ elaboration on Banco Central in Tavares (2006) and the Argentine Laboratory of Cultural Industries(2005). *Data refer to 2002 assessment efforts, the majority of LAC industries, countries analyze each sector in countries do not have “satellite accounts” for different ways. The lack of data and cultural industries in their national economic indicators on cultural industries accounting systems.3 The lack of unified prevents many governments from recognizing their importance and giving 3 According to Statistics Canada, the countrys priority to these sectors. As a result, cultural National Statistics Agency, “satellite accounts industries still do not rank highly among the are separate accounting frameworks which priorities competing for public funds within expand the analytical capacity of the national government budgets. Figure 2 shows the accounts into specific areas of concern, without 2005 national budget of selected LAC disrupting or overburdening the national countries for cultural activities as a accounting framework. They maintain strong percentage of the national budget. connections with the central framework but allow the flexibility to introduce alternative concepts or classification systems more Notwithstanding the scarcity of data, the appropriate to a particular field. Because a strong evidence strongly suggests that cultural link to the central framework is maintained, the industries constitute an important and satellite account estimates are fully comparable to standard economic aggregates, like the GDP.” Nowadays satellite accounts are increasingly could also be applied to the complex of cultural being used for tourism and environment and industries as well. 6
  • 12. growing element of contemporary economic development is evident. In the UK, Londonsystems. Indeed, these industries are accounts for 26.9 percent of employment inestimated to account for 7 percent of world British cultural industries, while in the USGDP. In LAC, available statistics indicate more than 50 percent of all workers inthat the average contribution of this sector cultural industries are concentrated in(not including the cultural tourism sector) to metropolitan areas with populations of 1GDP is about 3.5 to 4 percent. This million or more. In most British cities,compares with an average of 5 to 6 percent cultural industries employ between 2 to 8in Europe, and 7 to 8 percent in the United percent of the workforce, reaching nearly 10States of America (US), a major leader in percent in London (Leadbeater and Oakley,the field (De Falco, 2006). Table 1 shows 1999). O’Connor (1999) found that inthe contribution to GDP of cultural Manchester, 6 percent of the population wasindustries for a number of LAC countries employed in cultural industries, a share thatand for the US over the 1993-2005 periods. was higher than in construction and close toAs shown in the table, available data do not the scale of the well-established transportcover the entire period for all countries. and communication sectors. In Argentina,Furthermore, although cultural industries cultural industries in 2004 (not including the Table 1. Cultural Industries’ Contribution to GDP in LAC, 1993-2005 (%) 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Argentina 6.6 … … … … … … 2.32 2.4 2.47 2.63 2.85 3 Brazil … … … … … … … 1.64 1.57 1.5 1.57 1.46 1.36 Chile 2.3 2.5 2.7 2.2 2 2.8 … 2 1.8 1.9 1.9 1.8 … Colombia … … 2.3 2.1 2.1 2 2 1.83 1.83 1.81 1.77 … … Ecuador … … … … … 0.8 … … 1.79 … … … … Mexico 5.4 … … … … 5.7 … … … … … … … Peru … … … … … … … 0.4 0.4 0.5 0.6 0.6 0.6 Paraguay … … 1 1 1 1 1 … … … … … … Uruguay … … … 2.82 3.1 3.3 … 3.05 2.92 2.97 3.15 3.36 3.43 Venezuela … … … … … 2.3 … 1.4 1.4 1.4 1.6 … … US 5.3 5.65 5.95 6.1 6.35 7 7 7.6 7.75 … … … … Source: Authors’ elaboration on country level data from Ministry of Culture of Argentina, Convenio Andres Bello (CAB) and the Competitive Intelligence Unit.still constitute only a modest proportion of cultural tourism and crafts sectors)national budgets, at the same time, they generated US$2.6 billion in Buenos Aires,generate sizable contributions in terms of representing 8.4 percent of the city’sabsolute employment. For instance, in 1991 economy.4 In the same year, thesein the United Kingdom (UK), just under a industries also created more than 128,000million workers (4.5 percent of the total new jobs, or 5 percent of the city’s totallabor force) were employed in cultural employment (Observatorio de Industriasindustries. In the US, these industries Culturales de la Ciudad de Buenos Aires,accounted for 2.4 percent of the total labor 2005). Table 2 shows the contribution offorce in 1992, totaling just over 3 million cultural industries to employment for someworkers (Scott, 2000). Considering that LAC countries and compares it with that ofemployment generation is mainly the US. As indicated in the table, onlyconcentrated in large cities, a linkage 4between cultural industries and urban At an exchange rate of 1 USD = 3.07 Argentine pesos as of 05/09/07. 7
  • 13. Brazil and Uruguay have a percentage close cultural industries flow across nationalto that of the US, while the remaining borders with relative ease, being sold far andcountries have an average share of 3 percent. wide in addition to local markets.In addition, this table does not include data 7) Cultural industries generate positivefor smaller countries, where it is more than externalities as they contribute to the qualitylikely that the contribution to employment is of life in the places where they are presenteven lower. and enhance the cultural identity, image, and prestige of the area. Table 2. Contribution of Cultural Industries to Employment Contribution to Country Year employment Argentina 3.2% 2004 Brazil 5% 1998 Colombia 27,724 employee Various data between 1999 and 2002 Chile 2.7% Average 1990 until 1998 Mexico 3.65% 1998 Paraguay 3.3% 1992 Uruguay 4.9% 1997 United States 5.9% 2001 Source: Authors’ elaboration on OAS (2004) and Piedras (2004).III. Local Development 8) Cultural industries are flexible and can be found in a wide range of locales. ForCultural industries are particularly well instance, some sectors tend to establishsuited to serve as a driver for local themselves in urban areas (see Box 1),development. Specifically, the following where people working in cultural industriesare characteristics of cultural industries: can find affordable places to live, a high 1) Because they are location-dependent, level of communication, and a pool of newcultural industries can create local talent, while others, such as crafts,sustainable jobs that are less susceptible to gastronomy, and cultural tourism, tend tothe fluctuations of the global economy than concentrate also in rural in branch offices or factories of large 9) Finally, cultural industries can, at times,multinational companies. play a critical role in promoting social2) Cultural industries are people intensive cohesion and a sense of belonging; arts,rather than capital intensive, and often culture, and sports can offer meeting placesemploy high-skill, high-wage, creative in a society that is often divided andworkers (Scott, 2004). unequal.3) Cultural industries tend to beenvironmentally friendly. Because of the strong connection between4) Cultural industries tend to be highly cultural industries and the localities in whichinterconnected within cities or regions (e.g., they are embedded, they cannot be createda music band may need video-making simply by the political will of governmentsservices, which in turn requires the services or fiscal incentives. Therefore, top-downof graphic designers). approaches based on planning are unlikely5) Cultural industries tend to be based on to accomplish much at the local level. Morelocal, tacit know-how—for example, a style than for other sectors, for cultural industriesor a sound—that is not accessible globally. it is imperative to start off with what already6) Despite their predisposition to locate in exists on the ground and to build futureclose proximity, and despite the very local development around existing opportunities.nature of their production, products of 8
  • 14. Box 1. The Linkage between Cultural Industries and Urban Development In many metropolitan areas, cultural industries are an important and growing element of the economy. In this regard, large metropolitan areas offer a highly favorable environment for development initiatives based on the cultural economy. In particular, some cultural industries are strictly linked to the urban environment for a number of reasons. First, due to their interconnected nature, cultural industries require high density of communication and interaction to rapidly share, copy, learn and modify ideas. Although electronic networks are increasingly taking the place of face-to-face interactions, cultural entrepreneurs still tend to congregate in cities and towns, where they can work, socialize, and live. Second, a high number of universities and educational institutions tend to be concentrated in urban areas. This set of institutions helps provide cities with streams of talent and ideas by attracting young creative people. Third, cultural entrepreneurs need affordable places to conduct businesses, such as workshops and offices in old warehouses, office blocks, converted schools and banks. Finding an affordable place is extremely important for cultural entrepreneurs, which is why many of them work in run-down areas that more traditional businesses do not want to occupy. Finally, cultural industries often require up-to-date technological and multimedia infrastructure, which is usually available in cities. Cities or regions that lack any pre-existing base of cultural production face a more challenging policy problem. However, even where there were no pre-existing resources of cultural industries (e.g., traditions in a particular sector), some cities have been able to re-invent themselves through the establishment of new cultural industries. Indeed, much new development in old industrial areas has concentrated on building a new cultural economy through conscious efforts to re-use the vestiges of the industrial past (e.g., old buildings and facilities). In this context, local authorities across Europe, Canada and the US are striving to revitalize inner-city areas on the basis of industrial heritage, often in concert with local real estate interests.IV. Cultural Identity In this regard, cultural identity is anCulture is a controversial subject, which has important contributing factor to people’sbeen defined in many different ways in sense of well-being. The identification withdifferent contexts. Broadly speaking, the a specific culture gives people feelings ofimportance of culture to society is the way it belonging and security. It also providescreates “meaning.” This abstract concept of them with access to social networks, whichculture is of direct importance to cultural in turn provide support, shared values, andindustries because it highlights the dual role aspirations. This can help build a sense ofthat cultural industries play. First and trust between people, although excessivelyforemost, culture is a set of symbolic strong cultural identity can also contribute toresources for the creation of meaning. creating barriers between groups. As aHowever, with regard to cultural industries, result of the growing consumption of foreignsymbolic resources are commercialized, and cultural products in LAC, there is anpathways are opened for combined increasing loss of cultural values andeconomic development and the creation of identities in the region, posing the risk thatmeaning. Therefore, cultural industries are LAC will be reduced to a mere buyer ofimportant not only for their economic foreign cultural industries’ products. This issignificance, but also as a vehicle of cultural the case for all sectors of cultural industries,identity. but it is particularly critical for cinema, radio, and television products, especially in 9
  • 15. countries with high illiteracy rates (where other cultures (as an effect of globalization),those sub-sectors perform an important role can reinforce or renew these same traditions,in the construction of local identity).5 strengthen the local cultural heritage, andTherefore, supporting cultural industries create a new set of values. In this way,simultaneously can support local values, cultural industries not only contribute totradition, and culture. The production of economic growth, employment, and culturalcultural goods and services, through identity, but also to cultural renewal.innovation technology and contact with5 In the television industry, in some LACcountries, 70 percent of programming isimported from the US, where a large domesticmarket ensures profit margins (Moneta, 2000). 10
  • 16. PART II. SECTORSThis section provides an overview of the Portuguese worldwide and a significantmain sectors of cultural industries and presence in both Europe and North America,discusses in detail the situation of individual there are great opportunities to strengthenindustries in the region through an analysis existing export markets and develop newof their structure, main stakeholders, niches in global markets. Moreover, LACpolicies, and strengths and weaknesses. As countries should exploit the advantage ofan overall observation, cultural industries being linguistically and culturally close toconstitute a rather disjointed collection of one another and market their culturalindustries bound together by three important industries in ways that would resonate withcommon features. First, in one way or regional audiences.another, they are all concerned with thecreation of symbolic content. Second, the However, and at the same time, it isconsumption of these products rises at a important to note that LAC is not adisproportionately higher rate as disposable homogeneous region as there are significantincome expands (Beyers, 2002). Third, dissimilarities between countries in terms ofdriven by competitive pressures, cultural country size, volume of the market, politicalindustries tend to be located close to each history, and current conditions. Thus, theother geographically, while their products behavior of the industry is not the samecirculate with increasing ease in global across countries and makes it difficult tomarkets. obtain an overall picture of the situation of cultural industries for the entire region. ForAnother observation relevant to cultural example, not all countries in the region haveindustries is that during economic specific regulatory frameworks and entitiesdownturns the entertainment industry suffers dedicated to cultural industries, and not allmore acutely than other industries (Yúdice, countries have undertaken specific actions to1999). For this reason, cultural industries in promote and support these industries.LAC have experienced a drastic decline due Consequently, even when average data forto particular political and social periods and the region is available, it is difficult tothe more recent economic crises that have precisely reflect the conditions of LACaffected several countries in the region. cultural industries as a whole.However, more recently, the growingcreativity of the sector together with lowproduction costs, have brought about arecovery and have increased the Editorialattractiveness of the sector to investors. Inaddition, LAC industries are characterized The editorial sector includes the productionby a high level of quality throughout the of books, journals, magazines, newspapers,production chain, a tradition of original and includes authors, editors, printingproduction, and a presence of high-level industry, publishing industry, distributorsactors. and retailers, from the big distributors to the independent bookshops.These advantages can be further capitalizedon in order to embark on a new period for Since the middle of the 20th century, thisthe region’s cultural industries. With 650 sector has developed dramatically in LAC.million people who speak Spanish and Previously, Argentina, Mexico, and Spain 11
  • 17. constituted the three great poles of a triangle In LAC, Small and Medium Enterprisesof production and distribution covering LAC (SMEs) dominate the editorial market. Inand the Iberian peninsula. However, the this regard, there are about 1,520 editors“boom” of Latin American literature began with a production higher than 3 books perin the 1970s and continued into the year (CERLALC, 2006). At the same time,following decade. Yet the spectacular new players, such as large publishinggrowth of the sector was short-lived and conglomerates and large distributors (e.g.,soon fell into rapid decline, resulting from supermarkets and the Internet), have alsothe external debt crisis leading to the “lost gained an important share of the market.decade” of the 1980s and the subsequentliberalization and deregulation of national Currently, the main player in the LACeconomies. The publishing industry began a editorial sector is Brazil followed bysteep decline in 1999, and after 2002 there Argentina. In Argentina the editorial sectorwas a strong reduction of book titles due to a represents the most important culturalloss in publication income and an increase in industry in the country, and in 2005 it re-book prices. As part of the process of gained its position as the leader in theeconomic liberalization and deregulation Spanish-speaking market followed byprocess, the Spanish publishing industry Mexico and Colombia. Together these threetook over the largest LAC printing houses countries account for more than 60 percentand began buying major bookstores and of the total market (CERLALC, 2006). Indistribution centers. At the same time, US MERCOSUR countries alone, the editorialpublishers also began penetrating the region sector produces about 70,000 titles per year,in selected market niches. which means approximately 400 million copies, in Spanish and in Portuguese, for aDespite the decline, more recently, the total income of US$ 2 billion (Getino,editorial sector in LAC has been 2001). In 2004 Mexico published 2,331experiencing new growth. Total sales from titles with a production of 101 millionthe January-March 2006 period registered an copies, while Colombia published 9,640increase of 63 percent compared with the titles with a production of 36 million copiessame period during 2005 (CERLALC, (CERLALC, 2006).2006). Between 2001 and 2005, the ISBN(International Standard Book Numbers) Some countries have developed specificregistry in LAC increased from 61,957 to policies and programs to support their83,905 titles, thus growing by 35 percent editorial sectors. In Argentina, for example,(CERLALC et al., 2006). 6 the city of Buenos Aires has promoted a program called Opción Libros (see Box 2). Box 2. Programa Opción LibrosThe Program Opción Libros (Option Books) is an activity promoted by the Sub-secretary of CulturalIndustries of Buenos Aires city. The purpose of the program is to promote high-quality editions ofsmall and medium publishing firms through the establishment of dedicated visible sale spaces inbookstores as well as major press promotional activities. Option Books is basically a public policydesigned to promote cultural diversity, providing publicity of selected books in stores. Bookstoresfollowing the program are identified by signs in their shop windows, and their information is includedin the communication materials of the program (bookmarks and catalogues). In addition, in eachbookstore, the program has a dedicated space indicated by special signs, and books included in theprogram are easily identified by special banners.6 The International Standard Book Numbers is aunique book identifier code. The ISBN systemwas created in the United Kingdom in 1966 and was adopted as the international standard ISO in 1970. 12
  • 18. In terms of employment, the editorial sector The regulatory framework applicable to thein Brazil employs about 18,000 people, 63 editorial sector varies greatly throughout thepercent of whom hold permanent jobs. In region. There are different laws andother LAC countries, the figure is lower. regulations applicable to the sector, andFor example, in Mexico 13,000 people are some countries still lack a specificemployed by the editorial sector with 54 regulatory framework. Table 3 lists thepercent of them holding permanent jobs, and existing laws and regulations for thein Colombia fewer than 6,000 people are editorial sector.employed in the sector with 46 percent ofthem holding permanent jobs. Copyrights and the legal deposit of editorial products are usually subject to specificIn the context of this discussion, it is regulations for the editorial sector. Onlyimportant to note that in LAC, only a Argentina, Bolivia and Ecuador have aminority of the population buys and reads specific entity in charge of the legal deposit,newspapers. In 1996 Venezuela and while Argentina, Bolivia, Chile, Colombia,Uruguay were the most important Costa Rica, Ecuador, Honduras, Guatemala,consumers of newspapers despite the fact Mexico, Nicaragua, Panama, Paraguay,that sales stood at only 14.5 newspapers per Peru, Uruguay, and Venezuela all haveyear/100 inhabitants (FELAP, 1996). specific regulations for legal deposits (CERLALC, 2005). Table 3. Editorial Sector Laws and Regulations in LAC Country Law Law 25.441 of 2001 National Law 25.446 of July 2001: promotion of books and reading Argentina Decree 932/2001 of July 2001 Law 25.542: defense of editorial activities, January 2002 Law 22.399: ISBN, February 1981. Brazil Law 10753 of October 2003: national book policy Colombia Law 98 of 1993. Costa Rica Law 7874 of 1999: tax exemptions and price controls Chile Law 19.227 of 1993 Law decree N.289 of 1970: recognition of the Dominican Chamber of Dominican Republic Books. A new book law was under discussion by the National Congress at the time this research was conducted (November 2006) Law 71 of 1987 Ecuador Law 47 of 2006 El Salvador Decree 808 of 1994 Guatemala Law of 1999: promotion of books Mexico Law of May 2006 Paraguay Law 24 of 1991 Peru Law 28086 of 2003 Uruguay Law 15913 of 1987 Venezuela Law of April 1997 Source: Authors’ elaboration based on CERLALC (2006) and field data collection. 13
  • 19. Table 4. VAT in Editorial Sector in LAC Country VAT Argentina, Colombia and Peru Exempt Bolivia, Brazil, Costa Rica, Ecuador, Honduras, Mexico, Nicaragua, 0% Panama, Uruguay and Venezuela Chile 18% Dominican Republic 12% El Salvador 13% Guatemala 12% Paraguay 10% Source: Authors’ elaboration on CERLALC data (2006).As illustrated in Table 4, only some products in situations and places wherecountries exempt books from the Value Internet is not accessible (such as placesAdded Tax (VAT). While the VAT without electricity) and when there is a needexemption helps boost sales of books due to of portability. This is true especially inlower prices, the exemption applies only to regions like LAC, where the accessibility tothe final products and thus creates online data covers a specific market nichesignificant inequalities in the production that is oriented to consumers with particularchain. In most cases, the publishing needs and is still not a mass phenomenon.industry has to bear the VAT as a production Additionally, the phenomenon of piracy hascost. seriously hindered local and foreign investment and has minimized local creationBeginning in 2003, the editorial sector in and production, thus jeopardizing the marketLAC started recovering and growing again in the long run.8 Beyond the simplein the international market as well, reaching economic loss, piracy also means thatabout US$850 million in imports (1.7 respect for cultural products is lacking andpercent of annual growth) and exporting limits the impact of efforts to promote localabout US$340 million (CERLALC and culture and identity. Finally, piracy oftenUNESCO, 2006). supports and feeds organized crime.Despite these positive figures, the editorialsector in LAC still faces a number ofchallenges, most notably a lack of Audiovisualequipment and facilities and the seriousissue of piracy.7 In addition, some countries The audiovisual sector includes thehave neither public incentives nor easy cinematographic and the televisionaccess to credit. Moreover, the publishing industries. Together these two industries areindustry has been negatively impacted by responsible for audiovisual products such asthe shift to digital media. In this regard, the feature films, documentaries, televisionaccessibility to online data in real time is productions, animation, commercials,transforming the way publishing industry corporate and government productions,products are consumed. However, at the educational programs, music videos, andsame time, paper, as a traditional means of catalogue shoots. Table 5 provides andistributing editorial products, is expected to overview of the sector and its presence incontinue as the main source of editorial selected LAC countries.7 The term piracy refers to the unauthorized 8reproduction of work protected by copyright and Trade in pirated books in some countriesalso includes its illegal commercialization. exceeds the legal market. 14
  • 20. Table 5. Summary of the Audiovisual Sector in Selected LAC CountriesItem Argentina Brazil Chile Mexico VenezuelaPopulation (millions) 34.6 161.8 14.3 93.7 21.8Homes with TV (millions) 9.5 3.5 3.5 16 3.9TV Penetration (%) 97.8 86.7 91.9 91.7 76.7Pay TV Subscribers (%) 5.2 4.8 0.8 2.2 0.5Pay TV Penetration 54.7 13.9 21.5 14.5 12.1Home video cassette players (millions) 4 9.8 1.3 10.4 1.7Video cassette penetration (%) 43.2 25 35 58 43.5Movie houses 490 1200 150 1700 220Movie audiences (millions) 21.3 90 7 75 13Movie house attendance: person/year 0.6 0.6 0.6 0.9 0.6Pay TV advertising revenues (US$ millions) 720 2604 296 1055 110Video sales revenues (US$ millions) 110 765 33 205 15.1Movie house revenues (US$ millions) 113 320 22.4 137 15Total audiovisual industries (US$ millions) 2729 4811 608.5 1742.1 987.1GDP/audiovisual revenues (%) 0.96 0.91 0.94 0.5 0.33Audiovisual imports (US$ millions) 441.5 689.9 119.8 252 76Audiovisual exports (US$ millions) 11.5 37 1.5 93.2 45Audiovisual trade balance (US$ millions) -430 -652.9 -118.3 -158.8 -31Source: Getino (1997) in Moneta (2000). Cinematographic Industry offering networking opportunities, and The global market for the film industry is facilitating partnerships and business deals. dominated by Hollywood productions and is estimated to be worth US$60 billion In the context of this discussion, it should be annually.9 The LAC film industry mentioned that the cinematographic industry reportedly accounts for 3 percent of is dominated worldwide by seven large international film production, a proportion major movie production companies (from that is low considering the large audience now on, majors).10 These companies control Spanish and Portuguese speaking the production and distribution of movies worldwide. Following the economic crises worldwide and have a national and that affected several countries in the region, international distribution network that virtually all forms of finance dried up, allows them to screen a regular and constant forcing many cash-strapped production number of movies on an annual basis.11 companies to cut short mid- or post- There is a huge competition for world production. This lack of funds also markets between the US major movie hampered the distribution, marketing, and production companies and other audiovisual screening of films. Notwithstanding those companies. Even the European Union (EU), difficulties, more recently the LAC film despite the scale of its production shown in industry has entered a new period of Table 6, now faces problems similar to those vitality and productivity. Currently, LAC of the LAC region. Indeed, 80 percent of productions appear prominently in European movies do not leave their country international festivals and events, attracting 10 international and national audiences, The majors include Warner Bros., Paramount Pictures, United Artists, Metro Goldwin Mayer, Columbia Pictures, Universal Pictures, and Twentieth Century Fox. 9 11 US productions regularly account for about 85 For instance, US movies account for 62 percent of film audiences worldwide (Riding, percent of movies shown in Mexico (Guzman 2003). Cardenas, 1997). 15
  • 21. of origin. This competition has led EU Currently, the principal actors that financemember countries (and also other countries) the LAC film industry are: i) governments,to argue strongly in favor of a so-called largely through indirect support; ii) private“cultural exception” for audiovisual partnerships; iii) major business enterprisesproducts in the context of international trade such as television stations; and iv)negotiations, on the basis of principles multilateral programs such as IBERMEDIA.similar to those applied to the fields of In recent years, public support for the LACeducation, health, and culture in general. film industry has been aimed at attracting Table 6. Titles Produced, Total Investment and Average Cost per Film by Region, 1997 (US$ millions) Region Titles Total investment Average cost US 889 9,822.8 14.6 EU 912 3,213.8 3.5 LAC 96 113.6 1.2Source: Moneta, 2000.In LAC, only the most economically foreign investment, while domesticpowerful countries, those that currently have productions has been characterized by lowprotection regimes (e.g., Argentina, Brazil, levels of funding—predominantly grants andand Mexico), have been able to maintain seed funding. However, some countries doregular production. As Table 7 shows, in provide incentives for local production.12 In2005 among LAC countries, Argentina had general, various types of tax incentives are Table 7. Films Released in 2005 Country Number of Films US 563 France 200 (estimated) Spain 142 Britain 89 Argentina 65 Brazil 47 Mexico 25 Chile 14 Colombia 8 (2004) Venezuela 6 (average 1990-2000) Peru 4 (2004) Source: Authors’ elaboration on country-level data.the highest number of film releases (65), offered in most LAC countries and in manycompared with 47 for Brazil, and only 25 for cases, represent the principal form ofMexico. In this regard, local and regionalproduction and distribution could be boosted 12 For instance, in Brazil, tax shelters andif protection regimes and incentives for co- concessions largely drove local film productionproduction with foreign private capital from during the 1990s. In 2006 Mexico’s Congressboth within and outside the region, passed a tax incentive law to permit individualsfollowing the European model, were or corporations to allocate as much as 10 percentadopted. of their federal tax payments to a national filmmaking fund. 16
  • 22. support for the film industry. On the other entering export markets. In addition, the hand, estimates show that throughout the general elimination of state support policies 1990s local film companies received that accompanied the liberalization and approximately 0.5 percent per capita in restructuring of LAC economies during the public assistance in comparison to 1990s has significantly contributed to the approximately 1.8 percent for the European sector’s deteriorating situation. industry, and 5.5 percent for US local industry (CAB, 2003). Table 8 provides an Piracy is also a major problem in the overview of the main means of financing industry that hinders its further and the amount of state support for film development. Specifically, the low prices of Table 8. Means of Financing Motion Picture Production and State Involvement in LAC (1996, US$) Advance Financial Country Subsidy State Support Loans Premiums on sales Partnership Argentina X 53,434,000 (from tax revenues) X X X Bolivia X X State and municipal tax Brazil incentives to production and co- X production Chile X 900,000 (from national budget) Colombia 110,000 (from national budget) X Costa Rica X 185,000 (from national budget) X Cuba National budget support X Mexico 2,550,000 (national budget) X Peru 200,000 (national budget) X Uruguay X National budget support X X 5,320,247 national budget Venezuela X X X X support and tax incentivesSource: Getino (1997) in Moneta (2000). production in selected LAC countries for pirated products negatively impacts 1996. Argentina, which has one of the audiences in movie theaters, thus making it strongest film industries in LAC, has also by less appealing to show domestic movies in far the largest amount of state support to the theaters and to increase the number of movie industry. theaters in the country.13 Piracy also seriously thwarts the involvement of TV Given the modest size of domestic markets channels in the film industry. Even if and the close ties between movie theaters collaboration between the film and and the multinational majors, which tend to television industries is in fact very easy favor foreign films, it is difficult to recover because many producers and technicians capital outlays or earn a decent profit on the often work in both sectors, the high degree basis of the domestic market alone. Overall, LAC countries lack a strategy to bring their 13 For instance, in the Dominican Republic a film productions to the international market pirated movie costs about 50-80 Dominican on a continuous basis. While production pesos (US$ 1.50 - to $2.50) and after seeing it, a rates are rising and private investment has person can return the movie to the vendor and increased since the early 1990s, a lack of exchange it for a new one. In contrast, a movie finance still remains a major impediment to theater ticket in the Dominican Republic costs sustaining growth in film production and about 100-180 Dominican pesos (US$ 3.00 - $5.50). 17
  • 23. Box 3. BASET - Buenos Aires Set de FilmaciónThe Sub-secretary of Cultural Industries of the city of Buenos Aires, Argentina has a programaimed at the film industry, called BASET, Buenos Aires Set de Filmación. BASET providesassistance to audiovisual production in the city of Buenos Aires, especially in the managementof licenses for filming in public spaces, offers consultant services and information aboutlocations and production services. In particular, BASET has a team that assists and monitorsfilming in public streets, which is very important because if a film producer does not have alicense, he or she can face administrative sanctions or legal action. In 2005 BASET assisted inthe production of 38 feature films, 468 commercials, and 58 television programs.of piracy in the movie industry limits of TV programs in LAC are imported due toincentives for TV channels to buy the fact that it is economically morecopyrights and broadcast movies, especially convenient to purchase programs in thedomestically produced ones. international market than to locally develop new ones. The US, where a huge domesticAnother opportunity for the expansion of the market ensures profits that will cover costs,industry in LAC is film location The supplies 70 percent of programmingHollywood film industry is increasingly imports. However, some countries haveproducing more movies on locations outside been successful in locally producing theirof the US, benefiting from lower labor rates television programming, such as Chile andand incentives offered by many countries Argentina. Given the general imbalanceanxious to attract foreign productions. LAC between domestic production of TVcould take greater advantage of this programs and imported programming,opportunity and make greater efforts to several countries in the region (Peru,promote not only its locations, but also its Colombia, Venezuela, Chile, Ecuador,production services, through skilled labor Argentina and Bolivia) have establishedforce and streamlined processes for filming legal quotas for domestic public spaces. In fact, some countries Moreover, a smaller group of countries ledhave established agencies and film by Venezuela has started its own newscommissions precisely with this goal in network, mainly to counter the dominationmind (see Box 3 on the Argentina of CNN.experience). In the context of television production,Television industry telenovelas play a particularly important roleThe television industry is divided according in the LAC cultural industry landscape. Into its form of broadcast: open-air television this regard, telenovelas represent one of thechannels and paid television channels (cable, most exportable products already present insatellite, and paid TV). Especially in areas the international market with the potential towith high illiteracy rates, TV, with its high achieve even greater success. Currently,penetration rates, assumes the functions of there are some highly developed andschool, newspaper, and social community. commercialized media systems such asThe great majority of Latin American Brazil’s TV Globo and Mexico’s Televisafamilies, 84.1 percent, has access to open that have already successfully exportedTV (Moneta, 2000). Indeed, the problem in programming to other countries in the regionthe region is not one of access, but rather the as well as to the US, EU, and othercontent of TV programs. international markets (including China). However, telenovela exports are only aPrivate and commercial television programs minor element in the overall balance of tradedominate the market. More than 50 percent in television products since imports far 18
  • 24. outweigh exports. In 1997 exports of Discographic Industrytelenovelas accounted for some US$100 In most industrialized and developingmillion for TV Globo (Brazil) and Televisa countries, music represents one of the main(Mexico) and roughly US$15 million for significant cultural industries, whetherfirms in Colombia, Argentina and assessed in cultural or economic terms. TenVenezuela. As for the cinematographic years ago, the Latin American musicindustry, some of the obstacles to increase industry was considered the fastest-growingexports of telenovelas and other television sector of the world entertainment economy.products are related to selecting a standard Music sales doubled from 1981 (US$12(Japanese, US or European), the costs of million) to 1992 (US$24 million) and thentechnological adaptation, and rising nearly doubled again by 1996 (US$40production costs involved in using the new million) (Ochoa and Yúdice, 2002).technologies in order to make products However, its growth slowed by the end ofcompetitive (Moneta, 2000).14 the 1990s, when the economic crises affected the music industry as well. In 2000In their most elaborate and polished Latin American music sales accounted forversions, telenovelas have served to increase just 5 percent of total world sales (Throsby,understanding of certain features of Latin 2002).America and the Caribbean’s multiculturalidentity in foreign countries, and generally While there has been a decline inspeaking, have provided a successful basis international sales, there has also beenfor learning how to market symbolic goods increased consumption of local and regionalinternationally. Following these examples, products (Cunningham et al., 2005). Fortelenovelas represent a means to reaffirm instance, MERCOSUR countries have thelocal heritage and catalyze social content as largest share of production volume and saleswell as to promote local culture in both local in LAC, having more than 130 million unitsand international markets. sold per year (Getino, 2001). This trend indicates an improved capacity of local music industries in a number of countries toPhonographic serve their domestic customers. However, there is considerable variation across countries. Considering the popularity ofThe phonographic sector includes a range of local and regional music throughout LAC,activities with various streams. It there is great potential to strengthen regionalencompasses the production and distribution consumption and culturally proximateof sound recordings or sound carriers markets for Latin music.(records, tapes, CDs, MP3s), themanufacture of instruments and audio In the context of this discussion, it isequipment, live performances, professional important to emphasize that there are threeand technical services, music publishing, the major issues that are partly responsible foradministration of authors’ and other related the current situation of the music industryrights, and music broadcasting. worldwide: i) the industry structure, ii) the new digital technologies that enable easy14 home downloading, and iii) the phenomenon However, a recent technological breakthrough of piracy.may mitigate some of these issues. According (September 27, 2006), the Britain-based New Medium Enterprises (NME) recently In particular, vertical integration has been astated that it “had solved a technical production prominent characteristic of the internationalproblem that makes it possible to produce a music industry over the past few decadescheap multiple-layer DVD disk containing one and has led to a series of significant mergersfilm in different, competing formats.” 19
  • 25. within and between different sectors of the a source of new talent and new sounds. Inmedia industries. As a result of these addition, most of the creative, as opposed tomergers and take-overs during the 1980s and the financial risk-taking, is undertaken byearly 1990s, a few multinational media these small independent firms, where newcorporations now “own” most of the ideas result from experimentation. As such,superstars as well as a large repertoire of many developing countries’ independentmusic copyrights.15 In this regard, the labels represent a valuable resource that canmarketing strategy of these companies has only be exploited if assistance is provided atfocused on a few hits by selected artists and the creative stage. More specifically, andhas not attempted to disseminate the work of despite their somewhat strong presence andmany others. This establishes a division of vitality, local independent labels facelabor with LAC firms. The latter, given the difficulties in credit access, distribution, andhigh returns they need to justify their management. Furthermore, these firms alsoinvestment in an album (some US$100,000 need various forms of assistance, includingor more), tend to specialize in identifying technological expertise and advice onnew talent, and then selling their contracts or product development and copyrightlicenses to the majors for promotion and protection (see Box 4).distribution. Thus, independent labels act as Box 4. What Is an Independent Label? The mode of production of independent labels is often linked to a personal relationship to the music being produced—a special interest in a particular musical genre, the search for unknown talent as a policy of the company, or a political commitment to some forms of music. Independents do not exist in isolation, but are rather part of a network that includes other venues of cultural and music production such as cultural centers of the state, NGOs, and specific artists. However, relationships between the different actors of this network can often be difficult because ministries of culture, record companies, and artistic organizations come from totally different backgrounds and use different “languages”. Consequently, better communication among these actors is becoming increasingly important in order to expand the benefits that independent labels can reap from their involvement in these networks. Distribution is a crucial issue for independents. The means of distribution for independents changed at the end of the 1980s and the beginning of the 1990s with the diversification in music genres promoted by industries. The emergence of categories such as world music, new age music, Latin music, etc. have played a role in diversifying the offer. Over the last few decades, independents have been able to place at least a portion of their catalogues in music stores. In addition to these main distribution channels, independents also distribute their products in various types of formal and informal venues, ranging from bookstores to small craft stores or through improvised moveable stands in front of theaters. Often these smaller informal venues offer a much more personal approach to distribution and even sell more records than the big stores. However, despite new approaches, distribution is becoming a significant problem for independents. If a record produced by an independent company is successful, it is likely to be overtaken either by the majors who offer lucrative contracts to successful artists or by piracy. In either case, the independent label ends up for not earning the high level of revenues from a newly discovered artist.15 Together, Sony (Japan), Universal-Vivendi(France), AOL Time Warner (US), EMI-Virgin(UK), and BMG (Germany) consistently account for 70-80 percent of global music sales (Wallis, 2001). 20
  • 26. In terms of the technology used in the development. Getino (2001) estimates thatindustry, the business model of the the losses caused by piracy are on the orderdiscographic industry has experienced rapid of 25 million dollars per year in Argentinatechno-economic changes with the growth and 110 million in Brazil. In some countries,of the digital and Internet economy (e.g. such as Argentina and the DominicaniTunes, iPods, Napster, MP3, online Republic, copyright collective societies, thesubscriptions, ring-tones, etc.). Perhaps the government, and the school system workmost drastic change is that consumers are together to carry out awareness campaignsbecoming producers. To some degree, targeting students, considering that youngtechnological innovation is also challenging people are the main consumers of piratedthe traditional structure of the industry, with music.the emergence of thousands of independentsand multiple venues of self-production thatdo not go through the system of the industry. Radio Traditionally, radio has had highIn this context, it is important to note that penetration in both urban and rural areas.transformation in digital technology has also Especially in rural areas, even withoutled to the development of multiple forms of electricity, radio is able to reach almostpiracy: from large-scale organizations to every household. However, the importantpersonal downloading of music via the role that radio has played and continues toInternet. According to IFPI (International play, is now partly shifting to television.Federation of Phonographic Industries), the As shown in Table 9, in 1996 the ratio ofvolume of illegal music sold worldwide in number of radios per capita (hundred2001 was about US$4.3 billion, meaning inhabitants) was 68 in Argentina, 61 inthat almost 40 percent of all CDs and Bolivia and a little less in Uruguay andcassettes sold around the world are pirated Venezuela (45). Overall, in LAC, there iscopies (IFPI, 2002). In fact, piracy rates in one radio for every three inhabitants.LAC countries are among the highest in theworld and discourage investment and artist Table 9. Radios Per Capita in LAC - 1996 Country Radios /100 inhab. Argentina 68 Bolivia 61 Brazil 22.2 Colombia 14 Costa Rica 26 Dominican Republic 17 Honduras 39 Mexico 25 Uruguay 45 Venezuela 45 Source: FELAP, 1996. 21
  • 27. Community radio stations, owned, run and As a sector of cultural industries,editorially controlled by the public they multimedia provides creative new ways ofserve, constitute a reality that complements production. Other sectors of the culturalpublicly and privately owned networks. industries use multimedia for a variety ofCurrently, there are more than 2,000 purposes ranging from fine arts, tocommunity radio stations broadcasting in entertainment, to commercial art, toLatin America, 400 of which are affiliated journalism, to media and software services.with the World Association of Community In this context, small businesses are anRadio Broadcasters (AMARC). These important, if not dominant, force in the“alternative” radio stations may not have a multimedia sector. However, they oftenrange beyond the neighborhoods, villages or lack the required skills in management,islands from where they broadcast, and funding, setting up strategic partnerships,many of them are staffed by local and distributing and marketing theirvolunteers. In addition and unlike products and services. Although data arecommercial radio, which makes money from not available, employment in the sector alsoadvertising, community radio stations are shows important dynamics, especially in thenot profit-oriented, though sometimes they areas of multimedia and softwareaccept small advertising fees in order tosurvive (Roncagliolo, 1999) . Finally, the Within the multimedia sector, the videomost important function of these radio games industry plays an important role. Instations is to contribute to the creation and particular, concerning the video gamesthe evolution of indigenous and local industry and new media, LAC is acontent and to foster local development contradictory and changing market. It isthrough increased ownership. difficult to talk about a proper LAC video games industry; rather, it can be seen as an industry that locates itself between local representation of the global video gamesMultimedia industry and the “appendix” of the national toys and games industries (Lugo et al.,Multimedia is situated at the crossroads of a 2002). This definition is confirmed bylarge number of technologies and economic market trends and the role of the players.sectors. Because this industry is under Thus, defining the video games market as acontinuous development, available data “maquila” of the global industry seems to bequickly become unreliable and out of date. correct.16 Finally, the main stakeholders perceive piracy as a major threat to theThe multimedia sector combines content future of the video games industry in LAC.(text, pictures, sound, music, graphics, data, To date, this industry offers littleanimation, full-motion video) to create a opportunity to create a local games industryvariety of communication products. The that can provide added value in terms ofsector includes the advertising industry, software. To the contrary, “it seemsvideo games industry, software industry, and improbable that the region would have”all media support. Even if relatively new,this sector is experiencing fast growth,depending mostly on the increasing presence 16 The maquila, also called Maquiladoras, areof personal computers and the rapid industries managed by international corporationsconvergence of computing and in economically deprived areas that mainlytelecommunications. It is important to import spare components of certain products,highlight that the use of these technologies assemble them using cheap labor and exportis also increasing in rural areas through the them tax free to the US. The maquilasdiffusion of Internet-based local services. significantly benefit from special government treatment—presumably justified by the fact that they are located in poor areas. 22
  • 28. soon “the opportunity to offer its own both an important generator of wealth and aversion of Space Invaders—as the television key factor in preserving traditional culturedid with the telenovelas—because the and guaranteeing cultural diversity;market and the industry have already been therefore, this sector could be an ideal waycolonized and the economic actors appear to to develop and encourage local culturalbe from another planet” (Lugo et al., 2002). diversity. By reflecting the creativity,For this reason, LAC has been defined as the culture and heritage of crafts people, crafts“backyard” of the US (Lugo et al., 2002). products have an increased added value.17 However, much work remains to be done to preserve, promote, and increase the presenceVisual and Performing Arts of the crafts sector in socioeconomic andThe visual and performing arts sector cultural terms. The main weaknesses in theincludes theater, opera, dance, concerts and crafts sector are mostly related to a lack ofperformances, orchestras, design, fashion, associations of firms, access to credit, andfrom the traditional fine arts to popular arts innovation. Furthermore, in some countriessuch as crafts. LAC presents a varied offer (for example, Argentina) there is no specificof quality products related to the visual and legislation for the sector.performing arts sector. Moreover, there is The design sub-sector runs across manyan important presence of new creativity cultural industries that use visual supportmixed with traditional experience. for their products. Box 5 describes anThe most important sub-sector of the visual innovative program funded by the city of Buenos Aires, Argentina. Box 5. CMD - Metropolitan Design CenterThe CMD is a public institution created to assist companies, designers, and entrepreneurs inBuenos Aires with the aim of improving their competitiveness in design and innovation trough:Innovation - Seeks to create and communicate know-how among the various actors in thevalue chain;Strategic Design - Works on design strategies by drawing on the experience of what has beenachieved in some productive sectors (the communication infrastructure, timber and mineralindustry, fur supply, tourist development and cultural production, among others);Management - Promotes, designs, and organizes programs for a more efficient use ofresources in the value chain.The principal working areas of the CMD are:Research and Dissemination (I + T, Investigación + Transferencia) – Develops strategic designknow-how that can be transferred to the production and commercial system;Product - Contributes to the creation of multidisciplinary and cross-institutional teams;Fashion - Interacts with the entire fashion system network: textiles, leather goods, footwear,accessories, jewelry, and bijouterie, to achieve a strong bond aimed at enhancing opportunitiesin the sector;Interactive Design - Provides new information and communication technologies;Incubation - Promotes the growth and development of projects linked to design, tourism, andcultural industries; to date, CMD has incubated 25 firms.and performing arts is represented by localcrafts production. In this regard, handicraftproducers in LAC are mostly micro 17enterprises whose businesses are strictly Department of Trade and Industry of Southconnected with tourism. Yet the sector is Africa, “Cultural Sector Technology Development Trends” atoften poorly organized and dispersed, there < no consensus among the actors, and there enttrends/culturalsectortourismsectorTechnologyis some resistance to becoming more developmenttrends.pdf> accessed on Septemberbusiness-oriented. The crafts sub-sector is 2007. 23
  • 29. Box 6. Altos de Chavon School of DesignSince 1982, the school has been affiliated with the School of Design of Parsons University inNew York City that recognizes degrees earned at Altos de Chavon. Other affiliated universitiesare in Japan, Korea, and France. These partnerships mean that after studying for two years atAltos de Chavon, students can either enter the job market or continue their studies in one ofthe school’s affiliates. The Parsons School of Design also has a program specifically forDominican students. Of the total 1,100 students graduating, 20 percent went on to study atParsons. Recently, the school also entered into a new partnership with a Mexican University.Just as with Parsons, Altos de Chavon graduates have the option of continuing their studies inMexico. In particular, the advantage of this new partnership is that for Dominican students,Mexico is more affordable than New York City. For example, of 18 students graduating lastyear, six of them continued their studies at the Mexican university, while the others all foundemployment.The school seems to have good connections with local firms. Students who graduate with adegree in graphic design generally work for magazines, advertising, and design or graphicfirms. For instance, 80 percent of the employees in one Dominican graphic design firm aregraduates of Altos de Chavon. In addition, many advertising companies actively recruitprofessionals from the school. The school’s serigraphy workshop also provides services foroutside firms, including a firm from Puerto Rico that has been printing cards there for fiveyears. In other cases, firms ask the school to provide some services using student labor. Forexample, a firm producing tiles requested the school to develop a new product line, and finearts students carried out the project. Another example is the design of a new logo for a hotelby graphics students. On the whole, almost all graduates find jobs or go on to study at one ofthe affiliate universities. Fashion students find often job in the Zonas Francas (Free TradeZones) in the many garment factories as quality control auditors or product developers.In the Dominican Republic, since 1982, the between the raw material and the finalAltos de Chavon School of Design has product. Due to this particulartrained graphic designers for local and characteristic, there are some importantinternational job markets (see Box 6). consequences for the economics of theStudents who graduate from the school find sector. Unlike other industries, performingjobs in the editorial sector (for example, arts cannot improve their productivity towith Editora Taller and Centro Leon), compensate for an increase in costs. Themagazines, advertising, and design, or in performing arts is a sector with increasinggraphic design firms. Usually the quality of costs and low demand, which in most cases,the designer products is good, which means means that there is insufficient revenue tothat there is no need to seek talent outside cover these costs. To support the performingof the country. arts, there are specific programs at the national and international levels, such as theWith regards to the performing arts sector, it IBERESCENA program for theater (see Boxis important to note that the worker is not a 7), which is patterned on the IBERMEDIAfactor of production, but is in fact, the program of the audiovisual sector.product itself. There is no complex process Box 7. IBERESCENAIBERESCENA is a multilateral technical and financial cooperation project designed toencourage the development of contemporary theater and dance in the Ibero-American region.The program aims to create and consolidate a theater and dance network in its member states,in the Spanish-speaking countries, through grants, subsidies, and other incentives. To developthe activities of the program, a multilateral financial fund of 1 million dollars was established. Theminimum contribution for member countries is US$75,000. IBERESCENA is especially designedto complement the actions of artists, managers, and performing arts organizations. Theparticipating countries are: Argentina, Colombia, Chile, Spain, Mexico, the Dominican Republic,and Venezuela. 24
  • 30. The promotion of visual and performing arts ahead of the production of automobiles andcan substantially impact the alleviation of chemicals, and playing an increasinglypoverty by supporting the sustainability of significant role in the global market.cultural activities such as crafts Worldwide in 2006, there where 36 millionmanufacturing, dance, and music. more tourists than in 2005 (3 million moreParticipation in cultural activities, whether just in the Americas).18 In the last twodance, theatre, music or crafts, builds self- years, LAC countries have evidencedesteem and confidence and contributes to important growth in international tourismbuilding a strong identity, which is visitors. According to UNWTO (2006),important not only for individual growth, both in 2005 and 2006 the internationalbut also for the ability to engage tourism market in the region grewproductively in the society. Moreover, significantly, especially in Central Americagender relations can also be addressed in (see Figure 3).this sector since many artists, producers, andperformers are women, although few women This trend is being fueled by the process ofown or run associations. Finally, a globalization and by technology, through theproduction that emphasizes quality and proliferation of online services and tools thatunique features through well-developed make it easier for travelers to choose theirlocal design and crafts has a great likelihood destinations and customize their itinerariesof differentiating itself from other products based on their interests. In this regard, theand increasing international following two trends currently dominate thecompetitiveness. tourism market: • Mass tourism that is tailored to the interests of the individual consumer andCultural Tourism not related to the unique characteristics of the destination; this kind of tourism takesTourism has become one of the most into account both sports and leisure travelimportant industries globally, placing it Figure 3. Annual Growth of International Tourism in LAC (tourists volume) Source: Authors’ elaboration on UNWTO data. 18 Source: World Tourism Organization - (accessed in March 2007). 25
  • 31. as well as standardized and all-inclusive (reaching 34.1 percent of GDP in the travel packages; and Bahamas and 29.2 in Barbados), which often• Cultural tourism, characterized by a translates into resorts oriented to mass growing number of travelers who rank tourism. The economic relevance of cultural cultural heritage and other cultural tourism is also related to the fact that activities as one of the top reasons for cultural tourists spend substantially more traveling. than “standard” tourists do. In addition, tourism also creates direct employment andCultural tourism includes tourism in urban contributes to other sectors indirectly relatedareas, particularly historic or large cities, to it.with particular emphasis on monuments andarchitecture, and cultural facilities such as Given its economic contribution, tourismmuseums and galleries. This type of tourism can be viewed as an instrument for povertyalso covers rural areas and includes nature alleviation and boosting socio-economicand eco-tourism. Moreover, gastronomy development. However, there is lack ofand typical products are an important part of dialogue among institutions, especiallycultural tourism. The rise of cultural between the tourism and cultural sectors.tourism can be interpreted as a result of Moreover, tourism often fails to establishmodern globalization in which international successful linkages with the local economy,travel and cultural discovery have become especially considering that in some countriespart of the consumption patterns of large (such as in the Caribbean), the mostparts of the western world. At the same prominent form of tourism are resortstime, cultural tourism is largely fed by oriented to mass tourism, which largelydomestic tourism, which demonstrates an depends on imports. On the other hand, inincreasing awareness on the part of people some countries, public strategies for culturalof their indigenous heritage. tourism have been developed; these strategies emphasize the linkage to uniqueIn LAC, cultural tourism is an increasingly typical aspects of the country, such as theimportant source of income for local “Estrategia de Marca País” (Strategy for apopulations and governments. LAC Country Brand) program in Argentina (seecountries offer a variety of cultural Box 8). Overall, it is necessary to seek outattractions to tourists; archeological sites, strategies aimed at fostering thecolonial cities, and natural scenery are development of cultural tourism, not only asamong the first resources sustaining the an economic engine, but also as andevelopment of the sector. Unfortunately, important means of preserving andspecific data on the contribution of cultural promoting local cultural and naturaltourism to market and employment level is heritage.not easy to obtain. However, data isavailable on the tourism sector’scontribution (including mass and cultural Sportstourism) to GDP in LAC. In Mexico, in1998 the contribution of tourism to GDP The sports sector plays a significant role inwas about 8 percent (Piedras, 2004). In modern societies; in fact, in some LACArgentina, according to the National countries, sports is much more than a sector;Institute of Statistics and Census (INDEC), rather, it is the national passion. This is thein 2006 international tourism, especially case of baseball and cricket in the Caribbeancultural tourism, was the third largest source and soccer in Brazil and Argentina.of income for the country. On the otherhand, there are countries such as in theCaribbean, where tourism represents one ofthe most important economic activities 26
  • 32. Box 8. “Estrategia de Marca País”The project, known as “Marca Argentina”, was initiated in 2004 by the Presidency of the Nationand the Ministry of Tourism in collaboration with other public organisms and numerous privateinstitutions. Marca Argentina was created to introduce products that can be clearly associatedwith Argentina to the market. The project provides a system of visual identity graphicallyidentifying Argentine products and aims to establish a brand symbolizing national identity. Thebrand is also helpful in terms of identifying local authentic products, and at the same time is aneasy way to link products to quality.The economic impacts of the sports sector wide-ranging socio-cultural functions,are multiple, although not measured. This including leadership, participation, skillssector involves other sectors of cultural development, providing a community hub,industries (for instance, the audiovisual, health promotion, social networks, andphonographic, and editorial sectors through community identity.broadcasting of sports competitions ontelevision and radio, news reports, and daily Finally, in the cultural realm, sports may beand weekly newspaper reports). The sports both an expression of national or regionalsector also has a social cohesion function cultural characteristics and a source ofand can help distract people from socio- cultural creativity. For example, it has beeneconomic frustrations, facilitate social and argued that the style in which Brazilianscultural integration, and also help to reduce play soccer is illustrative of other attributessocial and gender distance. Furthermore, of the Brazilian “character” (Zurcher andsports clubs have the potential to perform Meadow, 1967). 27
  • 33. PART III. CHALLENGES AND OPPORTUNITIES FOR CULTURAL INDUSTRIESDespite the unique characteristics of each industries and offers possible solutions forsector in cultural industries, they share a intervention.number of common challenges. This sectiondiscusses these challenges as opportunitiesfor future intervention by governments, the Public policies and role of theprivate sector, and multilateral developmentbanks. Before starting this discussion, a stategeneral observation should be highlighted:cultural industries cross the boundary There is a need for new industrial andbetween culture and economics, creating a cultural policies targeted to culturalneed for dialogue and links between cultural industries (Buquet, 2006). First, there is aand economic actors. In many developing disconnect between existing state policy andcountries, the importance of cultural the sector needs because traditionallyindustries, and more broadly that of the cultural policies have focused on grant-cultural arena, is often under-appreciated by giving and subsidizing cultural institutions.local decision-makers. The low status of Public entities that are the target of statecultural industries has resulted in a lack of support usually are not connected withcoordination of the policy-making branches commercial and cultural entrepreneurs,of national and local governments, which often do not seek public subsidies.especially between culture and economic Second, market distortions create a need fordevelopment departments. These state intervention. Since many culturaldepartments often have conflicting agendas, industries have large economies of scale,resulting in incoherent policies for the they tend towards oligopoly and thereforesector. In addition to the lack of policy exhibit abusive and unfair practices. Indeed,coordination, these two sets of actors often large multinational corporations usuallyview one another as belonging to completely dominate many markets around the worlddifferent areas of interest in terms of their and hinder the competition of cultural goodsvision, values, and objectives (Moneta, and services that are produced domestically2000). On the one hand, many economists or by third countries. These conditionsdo not view culture as a resource that can justify state intervention to compensate forfoster economic development, while on the market distortions and facilitate theother, actors in the cultural area often do not distribution of alternative cultural productsrecognize the economic dimension of their by promoting domestic production andactivities, and, consequently, fail to take cultural diversity. Third, cultural industriesadvantage of economic opportunities. In produce a number of benefits that are notorder to foster greater competitiveness of entirely captured by market and investmentcultural industries, linkages need to be returns. These industries contribute tocreated to improve the dialogue among educating and training people, givingeconomists, public officials, businesspeople, pleasure to current and future generations,bankers, and their counterparts in the thus increasing the attractiveness of acultural sector. With this observation in country to tourists, and helping build amind, this section addresses the specific country’s image—all of which createchallenges common to all sectors in cultural economic benefits in the medium- and long- run. Additionally, many cultural industries 28
  • 34. are sustainable, environmentally friendly, (mainly subsidies, grants, and easy credit) toand require little investment in new qualified Argentine film productioninfrastructure. companies.20 INCAA’s budget comes from the national government, as well asAmong the policies that have been applied percentages of box office revenues (bothsuccessfully to this sector are decreasing domestic and foreign), TV royalties, andfiscal pressure, tax reduction for the import home video revenues. It is an autonomousof production inputs, direct or indirect (autarkic) entity, which means that it decidessubsidies, government procurement (to how to use its resources. In this regard,ensure demand of cultural industries there is little doubt that without state supportproducts), and easy credit. Such policies channeled through INCAA, the sector woulddirect investment to this sector by increasing not be viable.return on investment. An example of thistype of policy is the publishing industry in Yet government intervention not onlyColombia. The Colombian book law (Law applies to developing countries’ culturalno. 98, 1993) provides two decades of tax industries; indeed, several developedrelief for resident publishers and guarantees countries have launched a number ofthat 20 percent of their output will be initiatives to support their domestic culturalpurchased by public libraries. In this regard, industries, which otherwise would not benational legislation has been among the profitable. In Canada, for example, there aredecisive factors in the consolidation of the a number of institutions that provide supportindustry, contributing to the country’s (at the federal, provincial and municipalgrowth in book exports. From 2003 to 2004, levels) to the domestic film industrytotal book exports grew at a rate of 18.7 including the National Film Board ofpercent, increasing from US$94.6 to Canada, Telefilm Canada, the Department ofUS$112.4 million.19 Some of the measures Canadian Heritage, the Canadian Radio-that have been adopted in Colombia can be Television and Telecommunicationsapplied to other countries in the region, Commission, and the Canada Council forincluding the adoption of a national book the Arts. Through government-fundedpolicy, tax exemptions on inputs, free transit institutions, quotas, incentives andfor publication-related negatives, and production grants, the Canadian filmsystems to encourage the import of industry has been provided with the meansequipment for the printing industry (Moneta, to create high-quality programming, which2000). has resulted in the doubling of film production over the last decade.In contrast with policies designed to increasereturn on investment, in other cases, policies Indeed, governments can also play anaimed at cultural industries support domestic important role in providing effective legalproduction that would not be viable without and regulatory frameworks for culturalsuch assistance. This is often the case in the industries, which are often lacking in LACfilm industry. For instance, in Argentina the countries. In many countries in the region,success of the movie industry is due to the regulations are characterized by old laws,central role that the state plays in both theproduction and screening of movies through 20the INCAA (National Institute of Cinema According to the Laboratorio de Industriasand Audiovisual Arts), a government agency Culturales, Subsecretaria de la Nación, in 2005,that promotes the Argentine film industry 65 films where released in Argentina (on average, an Argentine resident went 0.96 timesthrough a variety of funding mechanisms to the movies in 2005, while the average for the city of Buenos Aires was 3.94 times). For19 International Book Fair of Bogotá’s website, additional details, see the section on theaccessed on April 2007. audiovisual sector in Part II of this paper. 29
  • 35. lacking in coordination and thus, Finally, the public sector, together withoverlapping over time. Confusion on the private actors, could take steps to improvelegislative and regulatory side, together with the availability of reliable and accurate data.the multi-sectoral nature of cultural As mentioned earlier, given the multi-industries, has resulted in the creation of a sectoral nature of cultural industries, data onplethora of agencies and institutions that these industries are found across a numberprovide redundant oversight of the sector. of other sectors in the entire economy, thusRegulations and institutions are also needed hampering efforts to obtain an accurateto combat piracy, which has grown overview of cultural industries and makingdramatically in recent years. Trade in illegal comparisons among its various sub-sectorsproducts in some countries exceeds the legal as well as with other economic sectorsmarket, especially in the sectors difficult. In this regard, data and economiccharacterized by the presence of non- indicators are needed to identify thetraditional media. In 2000 the International strengths, weaknesses, and opportunities forFederation of Phonographic Industries, the the sector and to better allocate private andglobal piracy enforcement agency of the public resources. In particular, the lack ofsector, estimated that the market share of data and economic indicators has importantpirated products in the phonographic sector implications for the political economy ofwas 90 percent in Paraguay, 75 percent in cultural industries, because without suchBrazil, and 60 percent in Mexico (IFPI, data, public and private actors do not have2001, in Gauthier and Yúdice 2002). In the a clear idea of the impact of the sector on theeditorial sector, piracy is also a huge issue. overall economy. Consequently, theyIn 2001 the annual turnover of the legal remain unconvinced of its importance andpublishing industry in Latin America and do not give it a high priority in the politicalSpain was estimated at US$5 billion per agenda. Following the examples of Chile’syear, compared with the pirated book market Banco Central and Colombia’s statisticalof US$8 billion (Kuntz, 2001). However, it institute (DANE), LAC countries shouldwould be naive to assume that effective develop special satellite accounts for culturecontrol of piracy will automatically lead to (see Box 9). Furthermore, these accountsthe creation of legitimate businesses. should be created in a comparable fashionBesides the economic loss, piracy also throughout the region so that a regionalmeans an inadequate respect for cultural analysis would be possible.products and thus hinders efforts to promotelocal cultural heritage and cultural identity. Box 9. Data and Indicators for Cultural IndustriesAn increasing number of governments have recognized the importance of cultural industries bydeveloping policies at the national and sub-national levels to support their growth. The UK iswidely recognized as having played a ground-breaking role in devising these analytical models,with the government’s Department for Culture, Media and Sport producing the first CreativeIndustries Mapping Documents in 1998 and 2001 as part of their efforts to reinvigorateeconomically depressed industrial towns and cities. In LAC, the Convenio Andrés Bello (CAB),a regional institution based in Bogotá devoted to the promotion of culture, has published anumber of pioneering studies on the economic dimensions of cultural industries in LAC. Inconnection with its program for economy and culture, it has collaborated with membercountries to improve their systems of economic information for culture. With the financialsupport of the IDB, CAB has been working on a draft methodological handbook for theimplementation of satellite accounts for culture, which will also allow statisticians to define thecontribution of cultural industries to the economy (in terms of GDP, for example) byimplementing cultural measures in the national accounting and statistics system. The outcomewould be to create an information system on culture, and the handbook builds on theexperience and efforts of DANE in Colombia and Chile’s Banco Central, both of which havealso been working on the development of special satellite accounts for culture. 30
  • 36. Private Investment and and joint-venture arrangements), and major business enterprise investment through“Hybrid” Sources of Financing revenue-sharing arrangements and product endorsements (especially in theIn addition to public policies, private phonographic and audiovisual sectors). Forinvestment is also needed. The key issue instance, cuts in public funding andfacing potential investors in cultural increasing production rates have fosteredindustries is return on investment. Due to greater private investment, particularly inthe difficulties in evaluating cultural Argentina where local television stationsindustries (according to traditional such as Telefé have invested in localindicators), it is not easy to assess the audiovisual productions (Cunningham et al.,economic value of these sectors. However, 2005).the analysis of GDP and employment-levelcontribution of cultural industries illustrated In the context of this discussion, it isin this paper highlights the importance of important to note that business advice andthese industries in national economies. finance is often tailored to the needs of mainstream sectors/businesses, and that aAn important role for the development of common feature of cultural industries is thatcultural industries, especially for these sectors are characterized by mainlyconventional sectors, could be played by micro, small and medium enterprisesprivate investment, commercial sponsorship, (MSMEs). MSMEs in these sectorsand advertising. Other significant forms of typically have low levels of investment andfinancing are “hybrid” interventions, public- often lack of capital to increase theirprivate investment, and co-productions (i.e., production. In this regard, culturalventures in which governments or entrepreneurs face significant difficulties inbusinesses provide seed funding or start-up securing financing in the amount and at thecapital). Box 10 describes a successful time it is needed. Often cultural industriespublic-private initiative—an incubator for need little capital to start up their activitiescultural enterprises—in the city of Cordoba, and require venture capital in subsequentArgentina. phases of their activities, yet both kinds of financing—the initial micro-credit and theOther interesting sources of financing subsequent venture capital—are difficult forinclude philanthropic investments, foreign these industries to obtain. In addition,investments (particularly in co-production Box 10. CREA CREA (Creative Industries and Cultural Enterprises Incubator of the city of Cordoba - Incubadora de Industrias Creativas y Empresas Culturales de Córdoba), is a public-private initiative designed to promote and support ideas with entrepreneurial potential in the field of cultural industries. CREA provides technical assistance to firms to develop or start their businesses and conducts research to explore new markets. CREA’s private partners are concentrated in business activities not related to the cultural field, which was a conscious decision of the Municipality of Cordoba aimed at avoiding conflict of interest and developing cultural industries as productive sectors. Currently, the main partners of CREA include: the Municipality of Cordoba, the Secretary of Culture of the Nation, the Historic and Urban Patrimony Institute of the National University of Cordoba (Instituto de Patrimonio Histórico y Urbano de la Universidad Nacional de Cordoba), Córdoba Development Agency (Agencia de Desarrollo Económico de Córdoba - ADEC), Cultural Promoters Network of LAC (Red de Promotores Culturales de Latinoamérica y el Caribe), British Council Argentina, Volkswagen Argentina, Metalúrgica Roma, Arcor, and Telmex. 31
  • 37. because of the often intangible nature of the main stakeholders of each sectorcultural products (especially services), communicate with one another andcultural entrepreneurs face tremendous coordinate their policies. In this study, thedifficulties in accessing conventional lines importance of coordination was particularlyof credit because they lack the required clear in the case of the crafts and tourismcollateral and guarantees. sectors in the Dominican Republic, in which local crafts producers, because they are not formally part of the tourism sector, they therefore cannot take advantage of theCoordination among sectors opportunity to increase sales and grow as a sector.22 Finally, the fragmentation of theA lack of coordination among sectors of private sector is a common feature of manycultural industries poses a serious challenge cultural industries in LAC. Yet while SMEsat three different levels among: i) public and individual entrepreneurs account forinstitutions, ii) public and private actors most of the production in cultural industries,across different sectors, and iii) and private these firms are highly disjointed and rarelyactors. First, although multiple institutions form associations. Thus, excessiveare often involved in a specific sector, they fragmentation and a lack of associationalismrarely coordinate their efforts. For instance, are a serious obstacle to the growth of thein the crafts sector in the Dominican sector. To address this situation, betterRepublic, the main institution, integration of the private sector would helpCENADARTE, is not involved in many the government recognize the importance ofprojects that the National Council for this sector of the economy and facilitate theCompetitiveness has implemented with design of policies targeted to culturalartisans. Often the overlapping, industries.uncoordinated institutions fail to maximizethe impact that each could have on thesector. In the Argentine phonographicsector, the three collective societies that Product distributionmanage copyrights and royalties are anotherexample of the lack of coordination.21 For many cultural industries, distribution isThese societies rarely work together; on the a greater challenge than production. Incontrary, they often disagree on relevant many cases, cultural entrepreneurs canissues, which results in slow and easily produce their own projects, eithercomplicated decision-making processes. because new technologies have loweredSecond, communication is also extremely entry barriers (such as in the discographicimportant among the different sectors of sector, where digital technologies have madecultural industries. As stated earlier, cultural it extremely easy for an artist to produce anindustries tend to be interconnected with one album), or because support measures areanother and often trade services. Because available (such as in the cinema industry,these sectors are interrelated, the success or where national or international fundsfailure of one sector will inevitably affect support production). However, oncethe others. Therefore, it is imperative that produced, these products face enormous difficulties reaching the market. For21 A collective society is an organization that instance, notwithstanding the large numberrepresents a group of rights holders. This makes of craft producers and the size of the marketit easier to collect and distribute royalties and in the Dominican Republic, local artisanslevies. The three Argentine collective societies experience real difficulties distributing theircorrespond to the three types of copyrightsexisting in the country: editorial/publishing 22rights, singers’/performers’ rights, and See chapter on Visual and Performing Arts inphonographic producers’ rights. Part II. 32
  • 38. products.23 In the case of the Dominican products. This is particularly importantRepublic, the problem is that the main considering that LAC domestic markets arechannel of commercialization for craft often small with low levels of purchasingproducts is tourism, which in the country is power. Consequently, domestic markets domostly resort-oriented, mass tourism. This not guarantee a large pool of consumers fortype of tourism concentrates on products goods and services of local culturalthat are mainly mass produced and often industries. For these reasons, marketing andimported and does not establish any linkages distribution strategies play a crucial role inwith local craft producers, who are thus left the sector, and many lessons can be drawnout of the business network. from some more or less successful existing practices. For instance, the FrenchThe main distribution problem is the government funds an agency whose missionpresence of large multinational companies is to support the distribution of Frenchthat retain the largest share of the market movies abroad (see Box 11). Thiswith their massive marketing capabilities association—which brings together close toaround the world. In addition, policies in 500 members, including feature film andthe sector have, for many years, focused on short film producers, sales agents, directors,the production of these goods and services and actors—follows each stage of theand on their subsidization, without really distribution of a French movie abroad,thinking about the market. The combination ensuring that French movies have sufficientof these two factors has resulted in an international exposure.inadequate distribution of LAC cultural Box 11. Unifrance: Promoting French Cinema Worldwide* The Unifrance association operates under the direct supervision of the CNC (Cinematography National Center - Centre National de la Cinématographie), the state-run body responsible for funding policies for French cinema administered by the Ministry of Culture. The budget of the association is comprised of funding from the CNC, a grant from the Ministry of Foreign Affairs (aimed at joint projects with its diplomatic offices around the world), and revenues generated by Unifrance itself. Unifrance highlights all current French films, including those in production, on its web site and in its information newsletter, which has a distribution of 5,000 copies worldwide. The association also participates in all major international film festivals and markets. During these events, it assists artistic delegations and offers French professionals access to promotional and marketing locales and facilities. Unifrance also provides follow-up support to the commercial release of French films abroad. In conjunction with the CNC, Unifrance sponsors many activities with the aim of maximizing the exposure of French films in worldwide markets. The association also works closely with French producers and sales agents in the marketing of films abroad and provides support and financial backing to foreign distributors in the lead-up to the release of French films by facilitating press relations, providing grants for film prints, subtitling and dubbing, and assistance to broaden release patterns for films, among others. * Source: accessed on March 2007.23 According to CENADARTE, in 2006 therewere approximately 10,000 craft producers. 33
  • 39. Box 12. Arepa 3000Latin World Entertainment (LWE) group is a Venezuelan independent record label focusedprimarily on production and with limited distribution capacity. When an American independentrecord label (Luaka Bop) began looking for a distributor for Arepa 3000, the second album ofthe Venezuelan fusion band, Amigos Invisibles, the owner of LWE decided to offer its services.After negotiations between Luaka Bop and EMI failed, he courted the American independentlabel and, through a firm commitment to purchase a large number of CDs, obtained anexclusive distribution deal for the record. At the same time, he was aware of the forthcominglaunch of a new prepaid cell phone product by Movilnet, one of the largest mobile phoneoperators in Venezuela. Realizing that this product and Arepa 3000 targeted the same youthdemographic audience, he came up with the idea of bundling the record with the pre-paid cellphone as a package, thus ensuring that the album would be distributed and legally sold.Consequently, Movilnet bought 80,000 units, which allowed LWE to secure the purchase of alarge number of copies in excess of Luaka’s original sales estimates. A media campaignincluding TV and radio ads featuring the members of the band was then launched.However, even with governmental support, foster regional integration and cooperation.there is no guarantee of success. The To compete with large internationalGerman experience is an example of a failed companies (especially in the phonographiceffort of state support in the movie industry. and audiovisual sectors) and to overcomeNotwithstanding one of the highest subsidies the limitations of domestic markets, both inin Europe for movie distribution in theaters, terms of size and purchasing power, it istotaling US$150 million per year, German crucial for LAC cultural industries to expandmovies have been unsuccessful in capturing into the regional market. Regionallarge audiences both at home and abroad. initiatives among neighboring countries (inIndeed, German movies account for only 7 the framework of MERCOSUR orpercent of box office revenues in the CARICOM, for example) should bedomestic market (Getino, 1998). Generally supported to promote collaboration and,speaking, there is evidence that subsidies for perhaps even the creation of a regional (ormovie distribution in theaters may actually sub-regional) seal or brand. One of the fewhave a perverse effect because subsidized examples of sub-regional cooperation ismovies either are not screened in theaters or provided by four Caribbean countriesfail to attract audiences (Fuenzalida, 2000). (Jamaica, Barbados, Trinidad and Tobago, St. Lucia) whose authors’ collectiveIn contrast with the German example, a societies have united under the umbrella ofsuccessful case is an innovative private the Caribbean Copyright Link (CCL). CCLdistribution strategy by an independent acts as a shared service center for theVenezuelan record label, Latin World societies, allowing them to pool theirEntertainment group (LWE). This company resources in order to reduce costs,was able to obtain the exclusive distribution streamline operations, and increase therights to the album Arepa 3000 and secured number of operations for their members.24a market for the album by bundling itsdistribution with that of a pre-paid cellphone (see Box 12). 24 Each CCL member focuses on typical author society tasks such as membership, rights acquisition, licensing, monitoring, collection, and distribution. The society then sends itsRegional market integration documentation and performance data concerning local works to CCL, which maintains a centralIn order to increase the competitiveness of database. The database handles royaltycultural industries in LAC, there is a need to distribution, monitors and maintains CIS 34
  • 40. Box 13. MEDIA Plus The program has a budget of 400 million euros, providing both pre- and post-production support. MEDIA Plus co-finances training initiatives for audiovisual industry professionals, the development of production projects (feature films, television drama, documentaries, animation, and new media), and the distribution and promotion of European audiovisual products and cinematographic festivals. This program also sponsors, together with other organizations, the European Film Promotion (EFP) to promote and market European cinema throughout the world. The EFP, which was established in 1997 and has 27 national export and promotion organizations from 28 countries, provides an example of an interesting regional effort to: i) increase competitive opportunities in the international marketplace; ii) enhance the distribution possibilities; and iii) contribute to the opening of new markets.While still a nascent organization, CCL has An important change for cultural mattersalready begun to see some results from the within the World Trade Organizationcollaboration, with significant improvements (WTO) occurred during the Uruguay Round,in licensing, royalty collection, and which took place from September 1986 todistribution. However, apart from this April 1994, when the General Agreement onexperience, regional or sub-regional Trade and Services (GATS) and thecollaboration is still limited. In this regard, Agreement on Trade-Related Aspects ofthe LAC region may draw lessons from the Intellectual Property Rights (TRIPS) wereEU experience. To some extent, a variety of adopted. Another WTO instrumentassistance and promotion measures regarding the international trade of culturalimplemented within the EU have helped to industries is the Agreement on Trade-keep in check the domination of Related Investment Measures (TRIMS).multinational companies in the film Table 10 summarizes the main WTO toolsindustry. In order to strengthen its movie that affect cultural industries.industry, the EU set up a program calledMEDIA Plus that began operations in During the final negotiations of the UruguayJanuary 2001 with the objective of Round, some countries expressed concernstrengthening the competitiveness of the that the WTO principles regarding goodsEuropean audiovisual industry (see Box 13). and services (including copyright-protected products) would result in a loss in cultural specificity in favor of mass production ofInternational Trade standardized goods and services.25 To address this concern, the negotiatorsAnother cross-cutting issue identified in the proposed exemptions to preserve domesticstudy is the treatment of cultural industries production, guarantee local cultural forms ofin international trade regulations. On one expression, and avoid the standardization ofhand, trade liberalization may adversely tastes and behaviors. Since then, thisaffect local production of cultural industries,while on the other, excessive protection maylimit economic benefits resulting from 25 This is particularly true for the “Most Favoredinternational trade. For this reason, cultural Nation” (MFN) and national treatment have traditionally been viewed as The MFN rule means that every time a membera delicate issue in free trade agreements. In state improves the benefits that it gives to amost cases, trade in these industries is either particular trading partner, it then has to give theregulated by bilateral agreements or is same “best” treatment to all other WTOexcluded altogether by treaties. members. The national treatment principle also means that imported and locally produced goods should be treated equally. In this regard, the same treatment should apply to foreign and(Commonwealth of Independent States) data domestic services, as well as to foreign and localstandards, and exports regional data worldwide. trademarks, copyrights, and patents. 35
  • 41. Table 10. World Trade Organization InstrumentsGATS - Covers all internationally traded services.General Agreement on - Is the first multilateral agreement including cultural services.Trade in Services - Does not oblige WTO members to open all their service industries to foreign partners.TRIPS - Brings intellectual property rights under common internationalAgreement on Trade- GATT/WTO rules.Related Aspects of - Requires WTO member countries to adhere to minimumIntellectual Property standards for protection of intellectual property rights.Rights - Obliges countries to grant minimum periods of protection for copyrighted works. - Obliges countries to fight unauthorized reproduction (piracy).TRIMS - Applies only to measures that affect trade in goods and thatAgreement on Trade discriminate against foreigners or foreign products.Related InvestmentMeasures understanding has been known as the result of the consultations, in 2005 148 “cultural exception.” countries signed the UNESCO’s Convention on the Protection and Promotion of the Among countries that have developed Diversity of Cultural Expressions that came special policies and exemptions, the EU has into force in March 2007. This convention refused to liberalize the audiovisual sector is the most recent instrument created to and services related to libraries, archives, foster the promotion of cultural diversity and museums. In addition, the EU also while dealing with the challenges associated decided to develop regional public policies with trade in cultural goods and services. to support the audiovisual sector such as Article 1 - h) of the Convention reaffirms broadcasting (TV and radio) quotas, the rights of sovereign states to “maintain, financial aid (for production and distribution adopt and implement policies and measures such as the MEDIA Plus program), and that they deem appropriate for the protection regional co-production agreements. and promotion of the diversity of cultural expressions on their territory.” Following the Uruguay Round, cultural industries began to experience increasing Even in the existing regional trade challenges from international competition. agreements in LAC, cultural industries are Given the difficulties that cultural industries usually a sensitive issue, mirroring the face to be competitive in the market, the tensions created by global trade. In thirtieth General Conference of UNESCO particular, there is a lack of a general reaffirmed that the free circulation of consensus that has resulted in exemptions cultural goods and services should not be and bilateral agreements in order to regulate subject only to the rules of the international trade in cultural industries. Box 14 marketplace. Furthermore, the effects of summarizes the situation of cultural multilateral trading systems on cultural industries in free trade agreements in the goods and services have led to consultations region. on the importance of cultural diversity. As a 36
  • 42. Box 14. Cultural Industries and Free Trade Agreements in LACMERCOSUR* - Few references to cultural industries exist in MERCOSUR legislation. One ofthem is in the agreement to liberalize cross-border investment, known as the Colonia Protocol(1994). Given the flow of Argentine and Brazilian audiovisual products into Paraguay andUruguay, each country stipulated a specific bilateral agreement to regulate the trade of CulturalIndustries. In the Colonia Protocol, Article 2 of the Annex specifies each countrys exemptions:Brazil excluded its radio, television, and telecommunications industries; Paraguay and Uruguayboth exempted their radio, television, publishing, and telecommunications sectors; andArgentina did not make any exemptions in the communications sector.Since its inception, the central focus of MERCOSUR has been on economic development, andcultural issues were not considered in the original negotiations that resulted in the Treaty ofAsunción. Later, during the 1990s, the concern that a strictly economic and technical-bureaucratic model of regional integration would not yield the results expected of theagreement was raised. Drawing on the experience of the EU, which initially also limited itselfto the economic dimension and later expanded to include culture among its priorities, a seriesof governmental and intergovernmental meetings and seminars, both private and public,proposed that the treaty should not be limited to trade agreements or governmental activities.As a result of these developments, the idea of the Cultural MERCOSUR emerged as amechanism that functions on the basis of agreements between the ministries of culture of theregion (Moisés, 2000).The Cultural Integration Protocol, approved in 1996 in the city of Fortaleza, Brazil (CMC,11/96), seeks to provide the legal framework for cultural integration within the trade bloc. Themain issues of the Protocol are: i) the promotion of the cooperation and the exchange betweengovernment institutions and cultural agents, and ii) the enrichment and diffusion of theMERCOSUR’s cultural and artistic diversity. Like the EU legislation, this document recognizesthat “culture constitutes a fundamental element of integration processes” and establishes that“member-states will seek to promote cooperation and trade between their cultural institutionsand agents” (Article 1), with priority given to those ventures that “express the historicaltraditions, the common values and the diversity of member-states” (Article 2). The maininitiatives carried out in the context of the Cultural Integration Protocol were: i) a specialcustoms treatment for cultural goods (the so-called “MERCOSUR Cultural Seal”), which allowsthe free circulation of goods destined to exhibition at cultural events (favoring exhibition andperforming arts); ii) a fellowships program; iii) an exchange program for young writers; iv)itinerant photograph and cartoon exhibitions; v) co-financed editions of writers from the fourpartners; vi) the “MERCOSUR Cultural House” in Colonia, Uruguay; and vii) other initiativesrelated to the preservation of the “common cultural patrimony” (Galperin, 1999). In July 2006,Buenos Aires, Argentina, was designated as the permanent headquarters of the MERCOSURCultural Seal.NAFTA**- Due to the lack of a consensus among member-states on cultural industries, theywere therefore left out of the agreement. For example, negotiations concerning audiovisualindustries in NAFTA highlighted the trading partners’ different agendas. Given the culturalprotectionism agenda of Canada, US products do not flow smoothly to Canada (unlike inMexico), even though 80 percent of the population lives within 100 miles of the Americanborder and there are no language barriers (with the exception of Quebec). On the other hand,when Mexico’s chief NAFTA negotiator was asked whether his country feared that the inclusionof cultural industries in the agreement would affect his country’s national identity, he repliedthat the issue “has little relevance for Mexico” and that, given Mexico’s cultural heritage, “thereis no cause for concern” (quoted in García-Canclini, 1996). As a result of these differentagendas, a double standard was set within NAFTA. Annex 2106 establishes that, between theUS and Canada, cultural industries are exempted from the agreement. 37
  • 43. DR-CAFTA - This is one of the most “open” trade agreements. In DR-CAFTA, all services have been liberalized under the agreement, unless an existing law already protected a service at the time the agreement was signed. As a result, there is a “reserve list” in which all the sectors previously protected are listed. Some sectors of cultural industries are regulated by specific chapters or clauses. CARICOM*** – The Caribbean Community and Common Market (CARICOM) was established in 1973 by four first signatory countries: Barbados, Jamaica, Guyana, and Trinidad and Tobago. Currently, CARICOM has 15 full members; Colombia, Mexico, the Dominican Republic, and Venezuela are observer members. UNESCO and CARICOM agree to co- operate through their appropriate organisms, and their cooperation extends to all matters arising in the spheres of education, science, and culture. * The concept of MERCOSUR (Mercado Común del Sur - Southern Common Market) began in 1986 when Argentina and Brazil signed the Economic Cooperation and Integration Program (PICE). The project was later expanded to include Uruguay and Paraguay, and was finally consolidated when the four countries signed the Asunción Treaty on March 26, 1991. Bolivia, Chile, Colombia, Ecuador, and Peru currently have associate member status, while Mexico is an observer. In addition, Venezuela became a full member in 2006. ** The North American Free Trade Agreement (NAFTA) is a free trade agreement between Mexico, the US, and Canada launched in January 1994 and represents the world’s largest free trade area. *** Originally, this agreement encompassed the United States of America and Central American countries (Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua) and was called CAFTA. In 2004 the Dominican Republic joined the negotiations, and the agreement was renamed DR-CAFTA (Dominican Republic–Central America Free Trade Agreement).Education and training training, and there is a lack of educational programs aimed at developing culturalCultural entrepreneurs need to develop a managers.mix of creative and business skills. Acrossall sectors, there is a low level of While management training may be lacking,management skills, especially because educational and training programs aimed atentrepreneurs are usually artists. For developing technical and creative skills areexample, in the film industry in Chile, quite adequate in the region. In fact, theremovie directors are the executive producers are many good schools that offer training inof their own movies, which often negatively the various sectors of cultural industries withimpacts the final product. In general, movie good results. Interestingly, these successfuldirectors need to focus on the creative cases are all driven by private initiatives,aspects of the project, and executive such as the Altos de Chavón School ofproducers need to ensure the economic Design in the Dominican Republic and, inviability of films, so when these roles are Argentina, the University of Cinema and theintertwined, both can be compromised. This Graphic School of the Gutenbergpractice extends beyond the Chilean film Foundation. For example, the Gutenbergindustry and is widely present across LAC. Foundation is a private entity, fundedFor example, craft producers often do not mainly by firms, which provides technicalknow the cost structure of their products and training in graphics through courses,fix their retail prices without any relation to seminars, high school courses, collegecosts; as result, sometimes prices are studies. According to some of the maindisproportional (either too high or too low) actors involved in the project, the foundationcompared to the real value of the products. provides a means to socialize the cost ofMoreover, very often educational training in the industry. The governmentinstitutions do not offer management provides a small contribution, the Federation 38
  • 44. of Graphic Industries (FAIGA) contributes addition, students are able to find jobs very20 percent of total resources, and individual easily, and entrepreneurs are satisfied withfirms also pay a fee; these three their training and preparation. However,contributions cover about 80 percent of the notwithstanding the adequacy of training intotal costs. Finally, students pay a monthly technical and creative skills, a good level offee (US$65/month) to make up the cultural and management education (at allremaining 20 percent.26 The fact that the grades) is key to recognizing the value andschool is almost completely financed by the exploiting the potential of cultural industriesprivate sector makes it particularly in the region.responsive to the needs of the industry. In26 At an exchange rate of 1 USD = 3.07Argentine pesos as of 5/9/07. 39
  • 45. ANNEX I. LIST OF LAC INSTITUTIONS RELATED TO CULTURAL INDUSTRIES Free Trade Country Public Institutions Private Institutions Universities AgreementsArgentina Secretaria de Cultura de la Presidencia de la Cámara Argentina de Productores Artísticos y Culturales (CAPAC) Observatorio de Industrias Mercosur Nación Sociedad General de Autores y Compositores (SADAIC) Culturales de la Universidad member Subsecretaria de Industrias Culturales de la de Buenos Aires Sociedad General de Autores de la Argentina (ARGENTORES) Ciudad de Buenos Aires Instituto Universitario Camara de Empresarios Culturales Observatorio de Industrias Culturales de la Nacional de Arte (IUNA) Cámara Argentina del Libro Universidad del Cine Ciudad de Buenos Aires (under the Subsecretaria de IC) Sociedad Argentina de Musicos Secretaria de Medios de Comunicación de la Nación Fondo Nacional de las Artes Instituto Nacional de Cine y Artes Audiovisuales (INCAA)Bahamas Cultural Affairs Division, Ministry of Youth, Sports National Cultural Foundation Caricom and Culture Bahamas Film and TV Commission member* Bimini MuseumBarbados Ministry of Education, Youth Affairs and Sports Barbados National Trust Caricom Government Information Service member National Cultural Foundation (NCF) Corporate Affairs and Intellectual Property Office Culture Section – Prime Ministers OfficeBelize Ministry of national Belize Arts Council Lamanai Field Research Caricom Development, Investment and Culture Center member Ministry of Tourism, Culture, Information and Broadcasting Institute of creative Arts Institute of Social and Cultural ResearchBolivia Ministerio de Educación, Cultura y Deportes Sociedad Boliviana de Autores y Compositores de Música Mercosur Viceministerio de Cultura associate Comisión de Desarrollo Humano del Congreso member Comité de Cultura * It is a member of the Community but not of the Common Market. 40
  • 46. Free Trade Country Public Institutions Private Institutions Universities AgreementsBrazil Ministerio da Cultura Observatório Cultural de São Paulo Escola de Comunicação e Mercosur Agência Nacional do Cinema – ANCINE Instituto Itau Cultural Artes Universidade de São member Cinemateca Brasilera Paulo Instituto Pensarte Centro Tecnico Audiovisual Fórum de Ciência e Cultura FENAC - Federação Nacional da Cultura da Universidade Federal do Funarte Fundação Nacional de Arte Rio de Janeiro (UFRJ) CiberIDEA Coordenação Interdisciplinar de Estudos Culturais (UFRJ) Programa Avançado de Cultura Contemporânea - PACC/UFRJ Instituto de Estudos e Projetos em Comunicação e Cultura - INDECS Núcleo de Estudos da Cultura (NECOIM) Centro de Estudos Avançados Multidisciplinares (CEAM) Universidade de BrasíliaChile Consejo Nacional de la Cultura y las Artes Asociación de Cortometrajistas de Chile (ACORCH) Mercosur Fondo de Desarrollo de las Artes y la Cultura Asociación de Directores y Guionistas de Chile (ADG) associate (FONDART) member Asociación de Documentalistas de Chile (ADOC) Consejo Nacional de Television (CNTV) Asociación de Productores de Cine y TV (APCT) Fundación Chilena de las Imágenes en Movimiento Sindicato de Actores de Chile (SIDARTE) Sindicato de Técnicos Cinematográficos (SINTECI) Sociedad de Autores Nacionales de Teatro, Cine y Audiovisuales, ATN Sociedad de Gestión de los Creadores de Imagen Fija, CREAIMAGEN Sociedad Chilena del Derecho de AutorColombia Ministerio de Cultura Convenio Andres Bello Universidad Nacional de Mercosur Sistema Nacional de Información Cultural British Council Colombia Colombia associate Colombia (SINIC) member Faculdad de Artes Grupo de Políticas Culturales y Asuntos Internacionales (Ministerio de la Cultura) Observatorio de Cultura Urbana del Instituto Distrital de Cultura y TurismoCosta Rica Ministerio de Cultura, Juventud y Deportes INCORPORE Universidad Nacional DR-Cafta Centro Nacional de la Cultura (CENAC) Asociación EDUCARTE Programa Identidad Cultural, member Arte y Tecnología (ICAT ) 41
  • 47. Free Trade Country Public Institutions Private Institutions Universities AgreementsCosta Rica Asociación de Compositores y Autores Musicales, ACAM Cámara Costarricense del Libro Cámara Nacional de Radio, CANARA Asociación Costarricense de Profesionales de Turismo, ACOPROT Cámara Nacional de Turismo, CANATURDominican Secretaría de Estado de Cultura Escuela de Diseno Altos de DR-CaftaRepublic Chavón member DINAC (Dirección Nacional de Cine) Oficina Nacional de Derecho de Autor Cinemateca Nacional CENADARTE ONAPI Comisión Permanente de la Feria del LibroEcuador Ministerio de Educación y Cultura Sociedad de Autores y Compositores del Ecuador (SAYCE) Mercosur Subsecretaría de Cultura de Ecuador Instituto Ecuatoriano de Propiedad Intelectual (IEPI) associate Consejo Nacional de Cultura member Sistema Nacional de Información Cultural (SINIC)El Consejo Nacional para la Cultura y el Arte Patronato Pro-Cultura de El Salvador Centro de investigación y DR-CaftaSalvador (CONCULTURA) documentación de las Artes member Asociación Salvadoreña de Trabajadores del Arte y la Cultura Dirección de Cultura del Ministerio de ASTAC – CEIDAR Relaciones ExterioresGuatemala Ministerio de Cultura y Deportes Asociación Guatemalteca de Autores y Compositores (AGAYC) DR-Cafta Aporte para la Descentralización Cultural – Casa de Artes member ADESCA Nojibsa Editorial Cultura Casa Comal Radio Faro CulturalGuyana Ministry of Culture, Youth and Sports Guyana and Caribbean Political and Cultural Center for Popular Caricom National Trust of Guyana Education member Guyana Government Information Agency Ministry of Amerindian AffairsHaiti Ministère de la Culture et de la Communication Fondation culture création Fondation connaissance et Caricom LInstitut de Sauvegarde du Patrimoine National liberté memberHonduras Secretaria de Estado en los Despachos de Asociación de Autores, Compositores, Intérpretes y Músicos de DR-Cafta Cultura, Turismo y Deportes Honduras (AACIMH) member Asesoría de Asuntos Culturales Dirección General de Propiedad Intelectual de Honduras (DIGEPIH)Jamaica Ministry of Education, Youth and Culture, Jamaica National Building Society Foundation The Edna Manley College of Caricom Division of Culture Bob Marley Foundation the Visual and Performing member Jamaica Cultural Development Commission Arts (EMCVPA) Recording Industry Association of Jamaica Limited (RIAJam) (Under the Ministry of Local Government and 42
  • 48. Free TradeCountry Public Institutions Private Institutions Universities AgreementsJamaica Community Development) Jamaica Culture Alliance Things Jamaican Jamaican Artist Assistance Association (Under the Ministry of Industry, Commerce and Wassi Art Technology). Jamaican Intellectual Property Rights Office JAMPRO Trade and investment facilitation agency Jamaica Film Commission The Jamaica National Heritage TrustMexico Consejo Nacional para la Cultura y las Artes Fideicomiso para la Cultura México/EE.UU. Universidad nacional Nafta (CONACULTA) Fundación Televisa, A.C. Autonoma de Mexico UNAM member Under the coordination of CONACULTA: Sociedad General de Escritores de México (SOGEM) Universidad Autónoma SIC (Sistema de Informacion Cultural) Metropolitana, México UAM Mercosur Sociedad Mexicana de Directores y Realizadores de Obras observer Centro Nacional de las ARTES (CENART) Audiovisuales member Cineteca Nacional Sociedad de Autores y Compositores de Música (SACM) Istituto Mexicano de Cinematografia (IMCINE) Sociedad de Autores de Obras Visuales (SAOV) Sistema Nacional De Fomento Musical Sociedad Mexicana de Autores de las Artes Plásticas (SOMAAP) Centro de Capacitación Cinematográfica Sociedad Mexicana de Autores de Obras Fotográficas (SMAOF) Centro Nacional de las Artes Sociedad Mexicana de Coreógrafos (SOMEC) Coordinación de Patrimonio Cultural y Turismo Sociedad Mexicana de Caricaturistas (SMC) Educal Libros y Arte Sociedad Mexicana de Historietistas (SOMEHI) Fondo Nacional para la Cultura y las Artes Sociedad Mexicana de Fotógrafos Profesionales (SMFP) Instituto Nacional de Bellas Artes Asociación de Mujeres en el Cine y la Televisión, A.C. Radio Educación Asociación Nacional de Intérpretes (ANDI) Asociación Nacional de Actores (A.N.D.A.) Asociación Mexicana de Productores Independientes Asociación Mexicana de Gestores de Patrimonio Cultural (AMGPC) Asociación Nacional de Ciudades Mexicanas del Patrimonio Mundial Asociación de Libreros de México Academia Mexicana de Artes y Ciencias Cinematográficas Asociación Mexicana de Filmadoras (AMFI) Federación Mexicana de Cooperativas de Cine y Medios Audiovisuales Centro Mexicano de Protección y Fomento de los Derechos de Autor (CeMPRO) Cámara Nacional de la Industria Editorial Mexicana (CANIEM) Cámara Nacional de la Industria Cinematográfica (CANACINE) Cámara Nacional de la Industria de la Radio y Televisión (CIRT) Cámara Nacional de la Industria de las Artes Gráficas 43
  • 49. Free Trade Country Public Institutions Private Institutions Universities AgreementsMexico (CANAGRAG) Cámara Nacional de la Industria de Televisión por Cable (CANITEC) Comisión Nacional de FilmacionesNicaragua Ministerio de Educación, Cultura y Deporte Fundación Mejía Godoy DR-Cafta Instituto Nicaragüense de Cultura Asociación de Cantautores Nicaragüenses member within Consejo Nacional de Cultura Ministerio de Asociación de Promotores de Cultura Educación, Cultura y Deporte Unión Nacional de Artistas Plásticos de Nicaragua (UNAP)Panama Instituto Nacional de Cultura INAC (including Asociación Nacional de Conciertos de Panamá Member of Dirección del Patrimonio Histórico and Unión Nacional De Artistas de Panamá (UNAP) Panama Dirección Nacional de las Artes) Trade A.N.D.I.AP. Asociación Nacional de Intérpretes, Autores y Promotion El Portal del Estado Panameño Productores de Panamá Agreement Dirección municipal de Cultura y educación de Sociedad Panameña de Autores y Compositores whit US Panamá Dirección General de Artesanías Nacionales de Panamá (Ministerio de Comercio e industrias de Panamá) Asociación Cultural Alterarte Consejo Nacional para la Cultura y las Artes (CONACULTA)Paraguay Ministerio de Educación y Cultura Fundación Cinemateca y Archivo Visual del Paraguay Mercosur Viceministerio de Cultura Fundación Arlequín Teatro member Servicio de Promoción Artesanal (Ministerio de Autores Paraguayos Asociados (APA) Industria y Comercio) Fondo Nacional para la Cultura y las Artes (FONDEC)Peru Instituto Nacional de Cultura (INC) Ministerio de Asociación Peruana de Autores Y Compositores (APDAYC) Instituto de Investigación Mercosur Educación Asociación Peruana de Artistas Visuales (APSAV) Universidad de San Martín associate Unidad de Promoción Escolar de Cultura y de Porres member Sociedad Peruana de Directores y Productores Cinematográficos Deporte Asociación de Cineastas del Perú Centro de Etnomusicología Consejo Nacional de Danza del Perú Cámara Peruana del Libro Andina del Instituto Riva Consejo Nacional de Cine del Perú- CONACINE Agüero Centro de Estudios, Investigación y Difusión de la Música Instituto Nacional de Defensa de la Competencia Latinoamericana (PUCP) y de la Protección de la Propiedad Intelectual del Perú (INDECOPI)Suriname Ministry of Education and Community Academy of Arts and Culture Caricom Development member Heritage SurinameTrinidad Ministry of Community Development, Culture and Whos Who in Trinidad and Tobago University of West Indies at Caricomand Gender Affairs St. Augustine, TnT member Trinidad Arts SocietyTobago Office of the Prime Minister Sports and Culture National Drama Association of Trinidad and Tobago Center for Carnival and Fund Festival Arts Institute of Caribbean Studies 44
  • 50. Free Trade Country Public Institutions Private Institutions Universities AgreementsTrinidad Institute of Internationaland RelationsTobago Department of Liberal Arts Trinidad and Tobago Cultural Association of the University of MiamiUruguay Ministerio de Educación y Cultura Fundación Punta del Este Programa de Políticas Mercosur Dirección de Cultura Asociación de Autores del Uruguay (AGADU) Culturales member Comisión del Patrimonio Cultural de la Nación de Centro de Estudios Asociación de Productores y Realizadores de Cine y Video de Uruguay Interdisciplinarios Uruguay Latinoamericanos (CEIL) Departamento de Artes Plásticas, Letras, Sociedad Uruguaya de Actores Música, Teatro Universidad de la República Sociedad Uruguay de Artistas Interpretes (SUDEI) Sistema Nacional de Información Cultural, Científica y Tecnológica Academia Nacional De Artes (MEC) SODRE: Servicio Oficial de Difusión, Radiotelevisión y EspectáculosVenezuela Ministerio de Educación, Cultura y Deportes Centro Internacional de Investigaciones Museológicas y del Universidad Nacional Mercosur Dirección General Sectorial de Museos y Artes Patrimonio Cultural Experimental Francisco de member Visuales FUNDEF: Fundación de Etnomusicología y Folklore Miranda (within Instituto Venezolano de Investigaciones Científicas y sobre Museology (museum Consejo Nacional de la Cultura la tutela del CONAC) studies) faculty Sistema nacional de Información Cultural (SINDAIC) Fundación para la cultura urbana Fundavisual Latina Sociedad de Autores y Compositores de Venezuela (SACVEN) 45
  • 51. ANNEX II. IDB PROJECTS RELATED TO SECTORS OF CULTURAL INDUSTRIES: 1997 -2007 ProjectCountry Project Name Year Fund Department Sector Number Local Development and Cultural Industries 2006 RS-T1226 Italian Cultural Heritage & S Dev. SDS Urban Development and Housing Sustainable Tourism Cluster as a Development Strategy 2006 RG-T1228 Spanish Framework General Fund Urban Development and HousingRegional Local Development: Policies and Interventions from theSupport 2002 TC0210030 Italian Individual Consultant Fund Urban Development and Housing Italian Experience 2003 TC0212036 Japanese Special Fund RE2 Tourism Mundo Maya Program TC0110048 Korea Fund Technical Cooperation RE2 Tourism 2001 Development Tourism of Jesuit Missions 2001 TC0106032 Spanish Fund for Consultants (ICEX) RE1 Tourism Consolidation of Wine Tourism 2006 AR-M1018 MIF-Small Enterprise Dev. Facility MIF TourismArgentina Support Integrated Development Tourism Sector in Salta AR0292 Ordinary Capital RE1 Tourism 2003 Province 2003 TC0303030 Fund for Special Operations RE2 Tourism Archeological Tourism Sector Belize 2002 TC0208019 Fund for Special Operations RE2 Tourism Archeological Facilities Design Support 2000 TC0009017 Swiss Fund Consultants & Training RE2 Tourism BO-T1051 Fund for Belgian Consultants Representation Urban Development and Housing Masterplan for Museums in La Paz 2006 Bolivia Jesuit Missions in the Chiquitania 2006 BO-M1022 MIF-Small Enterprise Dev. Facility MIF Tourism Bolivia Improvements to the Cultural Center of the San Francisco BO-T1032 Italian Cultural Heritage & S Dev. Representation Urban Development and Housing 2005 Convent Bolivia 2004 BO0216 Fund for Special Operations RE1 Urban Development and Housing Revitalization and Urban Dev. of La Paz 2002 BO0218 Fund for Special Operations RE1 Urban Development and Housing 2002 TC0210059 Fund for Special Operations Urban Development and Housing Sustainable Tourism Development Program 2002 BO0174 Fund for Special Operations RE1 Tourism BR-T1042 French Human Resources RE1 Urban Development and Housing 2006 Contribution PROCIDADES 2005 BR-T1019 French Fund for Consulting Serv RE1 Urban Development and Housing Brazil 2004 BR-T1020 Portuguese Tech. Cooperation Fund RE1 Urban Development and Housing Socio-cultural Restoration in the Historic ¨Gloria¨ BR-T1017 Portuguese Tech. Cooperation Fund SDS Urban Development and Housing 2005 Neighborhood 46
  • 52. ProjectCountry Project Name Year Fund Department Sector Number 2003 BR0391 Ordinary Capital RE1 Urban Development and Housing Downtown São Paulo Rehabilitation Procentro 2002 BR0357 Ordinary Capital RE1 Urban Development and Housing Pará Urban Development Brazil 2002 BR0374 Ordinary Capital Urban Development and Housing Preservation Historical, Cultural Sites 1999 BR0261 Ordinary Capital Urban Development and Housing 1998 TC9712581 EEC Fund Technical RE1 Urban Development and Housing Preservation Historical & Cultural Sites Cooperation Program of Culture and Tourism Integration in Bahia 2006 BR-T1038 Italian Cultural Heritage & S Dev. RE1/SDS Tourism Strategic Plan Tourism Development State Minas 2002 TC0112001 Portuguese Tech. Cooperation RE1 Tourism Gerais Fund Audiovisual Industries in Chile: Development 2007 CH-T1041 Italian Fund MIF Private Sector Development Opportunity for Valparaiso 2007 CH-T1034 Spanish Framework General RE1 Tourism Program for the Promotion of Tourism in Chile Fund Chile Community Based Tourism Development- Chiloe 2003 CH0172 Ordinary Capital RE1 Tourism and Palena 2005 CH-L1004 Ordinary Capital Urban Development and Housing Urban Renewal and Development Valparaiso 2004 CH-L1010 Ordinary Capital Urban Development and Housing Support for audiovisual industry: Articulation of prod 2007 CH-M1020 MIF-Small Enterprise Dev. Facility MIF Private Sector Development chain & commercialization 2005 CO-T1023 Italian Cultural Heritage & S Dev. RE3/SDS Urban Development and Housing Revitalization of Downtown Area of Bogota 2003 TC0301025 Spanish Framework General RE3/SDS Urban Development and HousingColombia Fund Historic Centers Recovery 2001 TC0011049 Italian Firms and Spec.Inst.Fund Urban Development and Housing 2001 TC0105030 Spanish Fund for Consultants RE3/SDS Urban Development and Housing Rehabilitation Historic Centers (ICEX) 1998 TC9802225 Japanese Trust Fund RE3/SDS Urban Development and Housing Renewal Manizales City & Creat.metropol. Consultancy Support for Heritage Preservation and Urban 2006 CR-T1016 Spanish Framework General RE2 Urban Development and HousingCosta Rica Development Project FundDominican 1999 TC9902027 Spanish Fund for Consultants SDS Urban Development and Housing Revitaliz.ciudad Colonial Sto. Domingo Republic (ICEX) Master Plan Colonial City Santo Domingo 2001 TC0105008 Fund for Special Operations RE2/SDS Urban Development and Housing Experience on Rehabilitation of Urban Areas 2003 EC-T1003 Fund for Special Operations RE3 Urban Development and Housing Rehabilitation Historical Downtown Area of Quito 2004 TC0301023 Italian Cultural Heritage & S Dev. RE3 Urban Development and Housing Ecuador Rehabilitation of Historical Downtown Quito, Second 2005 EC-L1006 Ordinary Capital RE3 Urban Development and Housing Stage 47
  • 53. ProjectCountry Project Name Year Fund Department Sector Number Ecuador Cuenca. Renewal of Downtown Areas and Land 2006 EC-L1021 Ordinary Capital Urban Development and Housing Management 2005 EC-T1040 Italian Cultural Heritage & S Dev. RE3 Urban Development and Housing Sustainable Productive Sector Development in 2005 EC-M1010 MIF-Small Enterprise Dev. MIF Tourism Galapagos Facility Local Participation Galapagos Tourism 2001 TC9902016 MIF-Human Resource Facility MIF Tourism El Support for Urban Planning in the Metropolitan Area 2003 TC0301025 Swedish Fund Services & Urban Development and HousingSalvador of San Salvador Training Rehabilitation Historical Downtown Area Guatemala 2004 GU-T1016 Fund for Special Operations Urban Development and HousingGuatemala City Competitive Development of Cultural Tourism with 2005 GU-M1005 MIF-Small Enterprise Dev. Tourism Indigenous Communities Facility Guyana 2005 HA-T1022 Fund for Special Operations Urban Development and Housing Haiti 2005 HA-L1002 Fund for Special Operations Urban Development and Housing Urban Rehabilitation Program 2004 HA-T1013 Fund for Special Operations Urban Development and Housing 1999 TC9712490 Fund for Special Operations Urban Development and Housing Municipal Development Program Tegucigalpa for 2004 HO-L1001 Fund for Special Operations Urban Development and HousingHonduras the Central District Tourism Development for MSMEs in the Tequila 2006 ME-M1016 MIF-Small Enterprise Dev. MIF Tourism México Region Facility 2002 TC0112029 French Human Resources Urban Development and Housing Economic Revitalization Panama Old City Center Panama Contribution 1999 TC9711385 Swedish Fund Services & Tourism Restoration Neighborhood of San Felipe Training Promotion of Tourism to the Missions in the Guaraní 2006 PR-M1008 TourismParaguay World Developing the Northeastern Tourist Circuit to 2004 PE-M1009 MIF-Small Enterprise Dev. MIF Tourism Enhance MSME Competitiveness Facility Peru 2000 TC0103041 Spanish Fund for Consultants RE3 Urban Development and Housing Rehabilitation of Limas Downtown (ICEX) Promotion Tourism Program in Peru 1998 TC9810278 French Fund for Consulting Serv. TourismSuriname Urban Development Plan in Paramaribo 2004 TC0306019 French Caribbean Contribution Urban Development and HousingUruguay Urban Recovery Program 1998 UR0112 Ordinary Capital Urban Development and Housing Urban Rehabilitation and Development of Caracas 2006 VE-T1006 Fund for Special Operations Urban Development and Housing CityVenezuela PEF:VE-L1017 Support to the Social Action Center 2006 VE-L1018 Ordinary Capital Social Investment for the Music, Phase II Support to the Action Social Center of Music Phase I 1997 VE0105 Ordinary Capital Social Investment 48
  • 54. REFERENCESAltes, C., El turismo en América Latina y el Caribe y la experiencia del BID, Banco Interamericano de Desarrollo, 2006Beyers, W. B., “Culture, services and regional development,” Service Industries Journal No. 22, 2002.Buquet, G., “Industrias Culturales. Hacia un Uruguay Cultural y productivo en el Siglo XXI. Diagnostico y Politicas de Accion,” Montevideo, November 2006.CERLALC - UNESCO, Percepción sobre el clima empresarial Editorial en 2006 y tendencias a corto plazo, 2006CERLALC, El espacio Iberoamericano del Libro, Centro Regional para el Fomento del Libro en América Latina y el Caribe. - Ministerio de Cultura de España. Dirección General del Libro, Archivos y Bibliotecas - Federación de Gremios de Editores de España, FGEE - Grupo Iberoamericano de Editores, GIE, September 2006.Convenio Andrés Bello (CAB), “Impacto del sector cinematografico sobre la economia colombiana: situación actual y perspectivas,” Bogotá, 2003.Cunningham, S., Keane, M. and Ryan Mark David, Finance and investment in creative industries in developing countries, Asia-Pacific Creative Communities: A Strategy for the 21st Century Senior Expert Symposium Jodhpur, India, 22-26 February Session three, Roundtable Two - 24 February 2005.De Falco, C., Remarks by the Executive Vice President of the Inter-American Development Bank, Opening Session of the Third Inter-American Meeting of Ministers of Culture and Highest Appropriate Authorities, 2006.Department of Trade and Industry of South Africa, “Cultural Sector Technology Development Trends” retrieved on September 2007 from < ologydevelopmenttrends.pdf>.Federación Latinomericana de Periodistas (FELAP), Boletín CICCUS Nº1, April 1996.Fuenzalida, V. F., La TV como industria cultural in America Latina, 2000.Gauthier, A. M., and Yudice, G. The Latin American Music Industry in an era of Crisis, November, Paper prepared for The Global Alliance for Cultural Diversity, United Nations Educational, Scientific and Cultural Organisation (UNESCO), Paris, 2002.Getino, O., Cine y television en America Latina. Prodccion y mercados, CICCUS, Buenos Aires, 1998.Getino, O., Las Industrias Culturales del Mercosur, Observatorio de Industrias Culturales de Buenos Aires, November 2001.Guzman Cardenas, C., Innovación y Competitividad de las Industrias Culturales y de la Comunicación en Venezuela, 1997.Kuntz, L. I., “Pirates and the Paper Chase,” UNESCO Courier, March 2001Leadbeater, C., and K. Oakley, The Independents: Britain’s new cultural entrepreneur, Demos Panton House, 1999.Lugo, J., Sampson, T., and M. Lossada, “Latin Americas New Cultural Industries still Play Old Games From the Banana Republic to Donkey Kong,” 2002Moneta, C. J., Cultural Industries in the Latin American economy: current status and outlook in the context of globalization, Office of Cultural Affairs OAS/OEA - December 2000O’Connor, J., The cultural Production Sector in Manchester – research and strategy, 1999.O’Connor, J., The Definition of ‘Cultural Industries’, Manchester Institute for Popular Culture - Manchester Metropolitan University, 1999. 49
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