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PRESENTATION
BY
THE MOST HON. P. J. PATTERSON, ON, OCC, PC, QC
ON
LEVERAGING CARICOM’s HUMAN, CULTURAL AND
NATURAL ASSETS FOR THE ECONOMIC DEVELOPMENT
OF THE COMMUNITY
AT
THE 26TH INTER-SESSIONAL MEETING OF THE
CONFERENCE OF HEADS OF GOVERNMENT OF THE
CARIBBEAN COMMUNITY (CARICOM)
NASSAU, THE BAHAMAS
FEBRUARY, 26-27, 2015
-.-.-.-.-.
1.0
Among the major challenges faced by Caribbean countries,
is
economic
vulnerability.
This
results
from
trade
dependency together with our precarious export economies.
Many Caribbean countries have prospered in the past from
the export of a small number of commodities, such as sugar,
rice, bananas and bauxite.
Further reliance on these commodities to maintain living
standards and to encourage economic growth is becoming
hazardous, for primary commodities are the most stagnant
sector in the growth of world trade.
Trade expansion has
been changing in favour of science and knowledge, intensive
goods and services.
(Norman Girvan, www.unesco.org/most/girvan.htm)
There is an urgent need to find new development pathways
that encourage creativity and innovation in the pursuit of
inclusive,
development.
equitable
and
sustainable
growth
and
“When the creative sector becomes part of
an overall development and growth strategy, it can
contribute to the revitalization of the national economy
2
wherever hybrid and dynamic economic and cultural
exchanges occur and innovation are nurtured.” UNESCO
1.1 The CARICOM region is at a juncture where it cannot
abandon a mixed industrial platform of traditional
sectors such as oil, gas, and light manufacturing.
Agriculture has to be modernized.
Construction and
financial services must be pursued. We are all
expanding tourism, but we urgently need to increase
the linkages with other sectors of the economy to
maximize the benefits.
So greater emphasis must be
placed on those services which reflect the region’s
indigenous talents as well as its artistic and cultural
traditions.
Several Caribbean countries have demonstrated their
comparative advantage in various cultural industries,
specially in music, craft, literary arts, culinary arts,
fashion design, festivals, theatre, film and cultural
tourism.
3
We have gained significant international recognition for
our cultural expressions, products and services.
These
industries therefore represent leverage points for
building competitiveness and increasing the export of
cultural and creative services.
Caribbean people are among the most gifted and
creative people on the planet.
We have excelled in the fields of sports, music,
literature and the arts.
According to Sir Arthur Lewis, These “are products of
the creative imagination.
And yet, they tend to be
distinctively national in character.
This is the essential
and most valuable sense in which West Indians must
be different to other people.”
We have yet to effectively capitalize on its abundance
of raw artistic and creative talent or consistently derive
adequate
return
even
from
low
and
sporadic
investment.
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2.1
Knowledge and Creative Economy
There is a symbiotic relationship between creativity and
knowledge, particularly in the sciences and the arts.
Both creativity and knowledge draw strength from
culture.
These lead to the development of innovation
and technology.
The Knowledge and Creative Economy provides the
larger context in which the importance of the cultural
and creative industries to the Caribbean is advanced.
The Creative Economy is driven by and in turn fuels the
Knowledge Economy, where creativity is a powerful
engine of economic growth and wealth creation.
It is characterized by new innovative technologies, new
occupations, based on new and traditional knowledge
intensive activities, and economic value derived from
human creativity and intellectual property in intangibles
such as ideas, design, brands and style.
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Creative content is also driving the development and
sale of new technologies and related software.
The
creative industries are at the core of the knowledge and
Creative Economies. These represent sectors in which
CARICOM has comparative advantage.
In addition to its economic potential, culture and the
creative industries are also central to the promotion of
regional identity and unity and an important component
in youth development, Community and nation building.
The foundation of the CARICOM construct is located in
the common historical and cultural heritage of the
Region.
An effective way of encouraging the people of the
region to feel connected and “intensely Caribbean” with
a strong sense of community and identity, is by
unleashing
creative
and
cultural
appreciation,
imagination and production.
6
By developing the sector, tremendous social and
economic benefits are derived.
It has also long been
acknowledged that sports, especially through cricket,
football, netball and track and field is fertile ground for
Caribbean integration.
In addition to the games we play and related activities,
there is now need to expand our thinking to the value
of
broadcasting
rights,
content
production,
merchandising, events production and other associated
activities that require creative input to yield the value
added.
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3.0
Regional and international data on the value and
performance of the creative industries
Recent UNESCO and UNCTAD data demonstrates that
the global market value of the creative economy is
approximately US$1.6 trillion.
As we sit in this room, we have no complete idea of the
value of our region’s creative output.
Our region has to invest in gathering the necessary
data to support our cultural and creative industries
policy development policies and programmes, or else
we will continue to ‘shoot in the dark’ strategically.
UNCTAD research shows that the share of developing
country exports in the world trade of creative goods
and services has grown steadily in recent years, with
total exports reaching US$631 billion in 2011, more
than double their 2002 level.
8
While other sectors were in decline, the average annual
growth rate was 8.8% during the period 2002 – 2011.
Knowledge based industries proved to be more resilient
to external shocks.
Growth in developing country exports of creative goods
was even stronger, averaging 12.1% over the same
period.
(Creative Economy Report (2003), Special
Edition, UNESCO).
Exports from developing countries represented, in some
cases, as much as 43% of their total exports.
The Sports Industry is growing faster than GDP both in
booming economies (Brazil, Russia, India, China, South
Africa and as well in the more mature markets of
Europe and North America. – (A. T. Kearney)
James (2007) calculates the economic contribution of
Jamaica’s copyright sector to the Jamaican economy in
2005 at J$29 billion or 4.8 percent of GDP.
In Trinidad and Tobago it was of the magnitude of
4.8% of GDP in 2011 and accounted for 5% of jobs.
9
In St. Lucia, the contribution of the sector to GDP has
been rising steadily from approximately 3.2% of GDP in
2000 to approximately 7.8% in 2010.
However, the data we have collected in the Caribbean
is far from complete or representative.
many different reasons.
This is so for
Collecting this data is not a
simple or straightforward task, given the informality of
our creative and cultural sectors.
However, data
gathering is essential, in order to ensure that the
correct decisions are being made for their policy
development processes.
Investing in culture and the creative sector, as a driver
of social development, can also lead to results that
contribute to the overall well-being of communities,
individual self-esteem and the quality of life, dialogue
and cohesion.
These results generated from fostering
the creative and cultural industries may be harder to
quantify, but are no less important. (Creative Economy
Report, 2013, Special Edition, UNESCO)
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4.0
Definitions of cultural/creative industries –
Developing Policy Models
It has been widely asked – what do these concepts of
cultural industries, creative industries and the creative
economy really mean?
Varying definitions of the terms “cultural”, “creative”
and “copyright” industries have been utilized by
agencies in seeking to evaluate the contribution of
these industries to national and global economies.
The terms “cultural industries” and “creative industries”
are often used interchangeably.
But they each have
different meanings and bring different understandings
from political, legal, philosophical, economic and even
ideological points of view.
While we are not able, at this sitting, to explore all the
meanings and their significance in relation to the
Caribbean circumstance, we must understand clearly
that because this is the highest level of political
dialogue in the Caribbean on this issue, the
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decisions which Heads of Government make on
this item must reflect the fullest understanding
of the complex related issues.
Many of you will ask, ‘why on earth are the definitions
important?
These are not simply technical matters to
be deliberated on in another forum?
The issue of definitions, while seemingly mundane, is
the basis upon which cultural and creative industries
policy models are designed.
They require the close political attention and decision
making in policy making, because many of these
industries make products and provide services that are
representative of our societies.
Wrapped up in our creative output are our history, our
culture, our social mores, our dreams, aspirations and
even our disappointments.
The decisions made today
for our cultural and creative industries will shape our
societies as we head into the future.
12
[Policy models for the cultural and creative industries
around the world are based on the meanings each
nation or region chooses in keeping with their particular
circumstances.]
One existing school of thought is based on the
UNCTAD/UNDP model which (2008) defines “creative
industries” as, “cycles of creation, production and
distribution of goods and services that use creativity
and intellectual capital as primary inputs.
They
comprise a set of knowledge-based activities that
produce tangible goods and intangible intellectual or
artistic services with creative content, economic value
and market objectives.”
The creative industries refer to the applied arts such as
advertising, design, publishing and audio-visuals, which
have copyrightable elements.
13
Another emphasis is on ‘Cultural Industries’. That can
be seen as the core copyright industries comprised of
the traditional art forms, such as the performing,
literary and visual arts.
[One way to establish the difference between the two is
in describing Cultural Industries as the core copyright
industries comprised of the traditional art forms, such
as the performing, literary and visual arts…
…while the creative industries refer to the applied arts
such as advertising, design, publishing and audiovisuals which have copyrightable elements.]
Another classification system is the WIPO system which
further elaborates a more highly differentiated typology
of core copyright, interdependent copyright and partial
copyright industries, as well as non-dedicated support
industries.
14
[Cultural and creative industries policy modeling also
causes each nation state to focus on the industries it is
classifying as cultural and creative industries.
With
between 13 and 21 industries to choose from,
developing a policy model allows the nation state to
identify its areas of priority emphasis.]
[While there are several policy models, in more recent
times, various countries of the world have adopted and
adapted
existing
models
and
have
developed
culturally-specific models that are in keeping with
the nuances of their socio-economic circumstances.]
The CARICOM document tabled speaks largely to
strengthening existing cultural policy frameworks in
keeping
with
the
cultural
imperatives
of
national/regional identity and heritage preservation and
promotion.
15
[There remains yet a school of thought that a policy
approach to the cultural and creative industries should
be grounded in industry development, intellectual
property, commerce, finance and investment and
should be separate from, while connected to,
national cultural policies.]
Sound regional policy demands that we remain
sensitive to the history and cultures of the Caribbean,
our national histories and cultures, industry cultures,
cultures of work and the nuances of national and
regional economies and politics.
emphasis
on
legislative
We must place due
reform,
compliance,
job
creation, investment promotion, capital investment,
product development, MSME growth and business
development.
This approach would seek to develop a cultural and
creative ecosystem through the nurturing, enabling,
incubation and facilitation of talent and the derivative
production.
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Our
policy
must
be
framed
to
encourage
the
development and trade of talent on an equitable basis,
with the good of all of our people in mind.
The Region needs to take a unique and hybrid,
integrated policy approach.
17
Human Resource Development
One of the very important enabling conditions for the
creative industries in CARICOM to realize their true potential
as a significant force in the modern economy, is that of
appropriate Human Resource Development. The nurturing
and use of creative resources knowledge and talents to spur
innovation in all its forms, is as important as the other
enabling structural parameters put in place for
the
development of these industries.
A
conducive,
educational
and
cultural
environment,
encouraging young fertile minds will lead to increasing levels
of innovation and creativity.
Our education and training systems should be geared to
promote important 21st century skills and aptitudes such as
creativity, innovation, critical thinking and entrepreneurial
attitudes from the earliest stages.
18
The subject areas in which several students have remarkable
talent,
for
example,
fine
art
and
sport,
are
often
marginalized in favour of those seen as more directly linked
to traditional job areas.
reasons.
These
This is unfortunate for many
students
are
sometimes
dubbed
‘underachievers’ and become disenchanted with education.
The research evidence is quite strong that students who
receive consistent exposure to the arts – e.g. music, drama
and dance are better problem solvers and critical thinkers
and do better in school.
Our education systems need to become as flexible,
responsive and innovative as the output it intends to spawn.
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5.0
Overview of the Regional Development Strategy for
the Cultural Industries in CARICOM
The Region has made some significant progress in advancing
a strategy for the development of cultural and creative
industries to build competitive export industries that are
based on local talents and resources.
A Regional Task Force on Cultural Industries was mandated
by the Second Joint Meeting of the COTED-COHSOD
(January 2008, Guyana) to develop a comprehensive
Regional Development Strategy and Action Plan for the
cultural industries in the Region, to focus on “approaches to
providing relief from tariffs and other duties and charges on
products that are inputs to the cultural industries”.
A series of studies, national and regional consultations led to
the Draft Regional Development Strategy and Action Plan for
the Cultural Industries, which was in principle, approved by
(COSHOD) at its Twenty-Second Meeting in February 2012.
20
The draft strategy sets among its objectives, growing the
creative economy by building more globally competitive
cultural
industries
as
the
foundation
for
increased
employment in the sector and advocates for better
management of the sector to relocate more of the value
chain back to the Region.
Sector strategies have been prepared by the Task Force for
the sub-sectors in which the Region has demonstrated
comparative advantage, namely music, audio-visuals, visual
art, publishing, festivals, fashion, performing arts and craft.
Cross-cutting
developmental
issues
addressed
by
the
Strategy are policy, legislation and institutional frameworks;
investment and financing; innovation; intellectual property
management; marketing and business support services;
human resource development; research and data collection;
inter-sectoral linkages and the establishment of cultural
districts.
21
An important component of the Strategy is the proposed
regional exemptions regime for the cultural industries in
CARICOM which would be implemented under the CSME,
linked with the free movement of artists and cultural
workers.
A broad package of incentives contains the proposal to grant
exemptions from tariffs and other duties and charges on
inputs to the cultural industries, to approved cultural
entrepreneurs and artists who are listed in national registries
and a regional registry of artists.
In February 2012, the Draft Regional Development Strategy
was presented to the Twenty-second Meeting of COHSOD in
Guyana. It endorsed the proposal to introduce a Regional
Exemptions Regime for the culture sector and approved
cultural entrepreneurs and artists.
Establishing
a
public/private sector fund for the cultural industries was
accepted as essential for its growth.
22
Where in this vast array of subsectors does our comparative
advantage lie?
Given resource scarcity, the answer to this
fundamental question must determine the subsectors into
which regional and national resources should flow.
How do we train and incentivise the persons engaged in
creative processes such as composers, song writers,
designers, performing artists, athletes, coaches?
How do we blend the traditional skills of accounting, legal,
marketing,
publishers,
venture
capitalists,
financiers,
exporters, broadcasters?
23
FINANCIAL RESOURCES
The development of the sector requires adequate financial
resources.
The sector can generate financial returns and jobs in quick
time, as the resources needed by the practitioners are
essentially for “bridging”, and in the case of institutions, for
structuring and start-up operations.
These resources should be available on appropriate terms
and in a timely and predictable manner.
Much of the actual funds required could be generated in the
first instance from (i) resources being made available to the
Region through partnership programmes such as the
CARIFORUM-EU Economic Partnership Agreement (EPA);
resources being managed by regional institutions such as
the CDB, the CDF and CARIBBEAN EXPORT; and (iii) through
a mechanism specifically designed to appeal to the
CARIPPEAN DIASPORA.
These are priority areas for the Region.
24
Much of the resources for the longer-term development and
sustainability can be generated through well designed
mechanisms for the relevant institutions to share in the
proceeds earned by the stakeholders and from direct private
investment.
The
private
contribution
whether
by
way
of
direct
investment or donation can be facilitated by appropriate
incentives,
within the constraints Member States might
have.
In order to engender action and appropriate response the
Conference
needs
to
mandate
the
relevant
regional
institutions, namely the CARICOM SECRETARIAT, and the
CARICOM DEVELOPMENT FUND (CDF), to collaborate with
the CARIFORUM, the CARIBBEAN Export Development Fund
(CEDA) and the CARIBBEAN DEVELOPMENT BANK (CDB) in
identifying donor resources to assist the financing of the
development of the cultural and creative industries.
25
Our Working Group proposes that the Conference request
the Caribbean Development Fund and the Caribbean
Development Bank to collaborate with the CARICOM
Secretariat, in designing a mechanism for sustainable
financing of the sector, including private sector resources
and partnerships.
Collaboration and co ordination will be vital to the efficient
and effective use of resources for the development of the
sector. We further recommend the creation of a Caribbean
Creative Industries Management Unit.
Initial consultations suggest that such an arrangement could
receive support, if the Region affords it priority.
The
Conference is invited to endorse the concept and mandate
the
Caribbean
Export
Development
Agency
and
the
CARICOM Secretariat to fully elaborate, including the
possibilities for funding and to become sustaining and selffinancing.
26
Lifting all boats
It is the province of each country to decide on its own
priorities, settle its own policy model and promote its
national brand.
But none of that conflicts with the regional development of
unique Caribbean products and services that integrate both
our cultural and traditional activities with the creative and
emerging, which include animation, digital design, video
games.
This will allow the production of Caribbean
programming and reduce the foreign content of Caribbean
programming through converged cultural and creative
disciplines.
For too long, our history has embedded the myopic view
that at every step we must compete at the expense of each
other rather than pool our resources together and work with
each other in areas where we share common interests and a
single goal.
Caribbean nations must capitalize on our
phenomenal cultural and creative output, so much of which
27
is attributable to our rich ethnic mix and the variety of our
indigenous folk lore and innate skills.
The creative industries offer the larger Caribbean feasible
options to leapfrog into high growth areas of the global
economy by showcasing to the world its distinctive cultural
content.
This would be a welcome boost to the integration process.
28
Tourism
For most of our Member States, Tourism is increasingly seen
as the flagship of our economic well-being. The remarkable
views, vistas and ecosystems of the region are legendary,
but we cannot depend on sun, sand and sea alone.
Nowhere are the benefits of the linkages more obvious and
compelling than here in The Bahamas and neighbouring
Haiti.
Haiti has a rich cultural legacy – its origins bring
variety and wealth.
We need now to market and diversify specifics of our
economy to broaden client appeal, even as we fashion
specific tourism products which reflect our cultures and in
doing so employ our cultural and creative practitioners.
Ponder the difference it would make if the finest craft from
Haiti would displace the souvenirs our visitors purchase,
which bear a stamp from the Orient?
29
We should arrange a Caribbean Cultural Itinerary and a
Regional Sports Calendar which permit us to market the
Region for entertainment, culture and sports.
The track meets, the cricket tournaments, the football
games, the boxing bouts – the Carnivals in Trinidad &
Tobago and Haiti;
Crop Over, Jankanoo, The Reggae
Festivals, The St. Lucia Jazz.
This will increase our tourism arrivals and allow those who
come from distant destinations to be exposed to a variety of
tastes and experiences.
What if we could attract just 1% of the growing Chinese
tourism trade, bringing people who seek to trace the
heritage of their relatives who came to the Caribbean more
than a century ago?
30
Youth
Youth are the backbone of the creative industries in
CARICOM, both as consumers and producers and represent
over 30% of th Region’s population.
A strategy that
combines our cultural and sporting assets with the Region’s
innovative
youthful
human
resource
and
with
new
technologies, opens up opportunities for a new and
sustainable
development
pathway
that
leverages
the
Community’s strengths.
The Creative Economy is uniquely suited to explode real
financial power among the youth of the Caribbean.
It is an
industry which belongs to the 21st century, where our youth,
including graduates at the tertiary level, can find traction
and excel.
It allows for individual creativity, rewards skill and talent,
drives activities with great potential to provide wealth and
jobs by promoting intellectual property.
31
Our youth are eager to ride this strong wave to reduce
alarming rates of unemployment and not remain alienated or
disenchanted.
They find particularly attractive the field of animation that
leverages digital technology.
32
Drivers of the CSME
Professor Norman Girvan in a presentation to the Festival del
Caribe, Santiago de Cuba in July 2012, raised the
fundamental
question:
“Can
cultural
production
succeed in driving integration, where economics and
politics have failed?”
He points out that “in spite of (or
because of?) political fragmentation, economic crisis and
social problems of various kinds; we see many signs of
cultural intercourse and cultural creativity, in several
expressions, and across the barriers of language and polity,
in the regional space.”
Our entertainers and artistes are now serving as drivers of
the CSME.
33
DECISIONS
Within the cultural and creative industries throughout the
region, the feeling of neglect prevails.
The practitioners
and stakeholders are agitated at the slow pace of policy
evolution and the paucity of Government recognition and
support.
But anyone who properly examines the global development
of cultural and creative industries, will find that the regional
process is not that far behind. Virtually every Member State
and CARICOM as a whole can point to a number of steps
which have been taken already to aid the development of
these industries.
But there is much more to be done to
optimize the natural creative, cultural talent and knowledgebased economies that have been formulated over time.
34
As you embark on this important discussion, I implore you to
take a number of bold and far-reaching decisions.
1.
To declare that CARICOM must leverage its Human,
Cultural and Natural Assets in order to secure the
Economic Development of the Community.
2.
To determine that the nations of the Community
agree on molding a productive, efficient growth path
and development which emphasizes the value of a
knowledge economy, driven by our cultural and
creative industries and our natural assets.
3.
That Conference endorse the Ten (10) Priority
Actions recommended by COHSOD in 2012, as the
pillars on which to guide the strengthening of this
sector.
4.
Approve the establishment of dedicated institutional
support at the Regional level, with full collaboration
from the national level,
implement
the
Regional
charged and equipped to
Strategy
and
provide
targeted support to the sector.
35
Mr. Chairman,
Forty-two years ago, Heads of four Independent States and
eight Non-Independent States, resolved in the Georgetown
Summit to negotiate as a single bloc new trade and
economic relationships with Europe.
As a Ministerial member of the negotiating team, we set out
to establish trading arrangements on two commodities of
huge importance to the Caribbean, particularly in several of
our smaller islands – sugar and bananas.
The protocols we signed then no longer obtain.
We managed to resist reciprocity for new non-traditional
agricultural products and a range of manufactures and semimanufactures.
With the advent of the W.T.O, reciprocity is now the order of
the day.
36
We sought to ensure that the exploitation of our mineral
resources – oil and bauxite could benefit from European
technology and attractive financial terms.
The scope for expansion is virtually exhausted and so there
is little room for advancement in this area.
The time has come to enter a new frontier – to secure our
full share in an area of soaring global growth – the
Knowledge Economy - a niche anchored by our cultural
heritage, our creativity, innovation and our superb talents
which span the range of arts, music, sports, animation,
festivals, food, wellness and the hospitality trade.
Nature has blessed us with our rivers, our mountains, our
azure seas, our pristine beaches, the marine and terrestrial
fauna and flora, our delicate and precious ecosystem.
Invaluable though these are, nothing can compare with our
human assets – the Caribbean people.
We must convert
their potential to realize the comparative advantage we
enjoy.
37
Let this Nassau Meeting of Heads order a paradigm shift to
guarantee the full development of the cultural industries.
Sound loud the clarion call:
“Culture is the Region’s Business.”
38