South South
C. Harnessing the potential of new and emerging technologiestechnologies
Several policy areas have to be involved to develop creative economies through new and emerging technologies. The recent UNCTAD report called Creative Industry 4.0 (UNCTAD, 2022b) provides recommendations for developing countries to harness new and emerging technologies to develop their creative economies. The recommendations focus on three broad areas: developing human capacities, creating an enabling environment, and overcoming infrastructure barriers to digitalization.
Human skills are a key element to pursue digital transformation of the creative economy. Developing human capacities requires investment in the education system, including schools, universities, colleges, and training providers, who can provide people with the right mix of skills. Digital competencies are essential, but generic and complementary skills, such as literacy and numerical skills, skills in design, marketing, and entrepreneurship, are also needed for most professions in digitalized creative industries.
A specific characteristic of the creative sector is that some artists and craftspeople may have negative attitudes towards business, marketing concepts, or new technologies. Policies can create places such as fabrication laboratories (or fab labs) for artists and designers to test and experiment with new technologies (UNCTAD, 2022b). With the rise of e-commerce, skills to participate in digital trade are essential for creative professionals and MSMEs. Education policies must be accessible and inclusive to all (UNCTAD, 2021b), including women, people with disabilities, and different age groups. Life-long learning is becoming an essential tool.
New and emerging technologies may become an important part of the future “business as usual” in creative economy. By then, digital capacities may not be reserved to experts but to be expected from all, underscoring the importance of inclusive policies to develop digital skills.
Creating an enabling environment involves several policy dimensions. An enabling environment may include giving the private sector fiscal incentives and creating funding programmes to support research and development in creative industries. Some high-risk segment content sectors may need government support to have better access to capital. Other creative activities may be considered commercially non-viable public goods that need non-commercial public support to exist. An appropriate competition policy and adequate competition law enforcement is also needed to build an enabling environment.69 It is important to strike the right balance between intellectual property protection on the one hand, and prevention of abuse of IPR on the other. Appropriate competition and intellectual property policy are key to preventing abuse of IPR and maintaining open and competitive markets in the creative economy, which could facilitate and not deter entry by new firms.
Governments must also consider fostering e-commerce and better protecting consumers and small businesses in digital markets by adopting appropriate regulatory and legislative frameworks for e-commerce, consumer protection, data protection and privacy, e-payments, and cybersecurity (UNCTAD, 2021c).
There are various international programmes to assist developing economies in fostering e-commerce. For example, UNCTAD’s eTrade Readiness Assessments provide a snapshot of the e-commerce ecosystem in developing countries and support them in benefiting from digital transformation.
Overcoming infrastructure barriers to digitalization is crucial. This is particularly important because digital technologies are paramount in accessing markets. Universal and affordable access to the Internet is the first step, even if providing connectivity to crafts sectors in rural areas is a challenge. However, connectivity alone is not sufficient. Other infrastructures such as access to financial services, postal services, and transport networks are also required (UNCTAD, 2022b). Synergies can be pursued as digitalization can also facilitate access to several infrastructure services. This is the case of the potential for digital financial services to improve financial inclusion through improved coverage and efficiency (UNCTAD, 2021d).
Some governments have facilitated access to digital infrastructure services to encourage online shopping as an alternative to physical shopping during the COVID-19 pandemic. Several telecommunications providers have made available data services for minimal or no costs. In Ghana, Kenya, Rwanda and Uganda, central banks have temporarily permitted companies and banks to lower or scrap transaction costs and fees on digital payments and mobile money transfers to encourage the use of mobile money in preference to cash. Governments, like the Russian Federation and the United Arab Emirates, have encouraged the use of mobile payments but are yet to formally unveil specific regulations (WTO 2020a).
Overcoming infrastructure barriers to digitalization will contribute to harness the potential of new and emerging technologies for the creative economy.
©Narin Sapaisarn/Adobe Stock
Ch apt er I
ec Sp
ia ls
ec tio n on th e In te rn at io na lY ea r o f C re ati ve Ec on om y
fo rS us ta in ab le De ve lop me nt, 20 21
In December 2019, the United Nations General Assembly adopted resolution 74/198 on the International Year of Creative Economy for Sustainable Development, 2021. The resolution “requests the secretariat of UNCTAD and in consultation with UNESCO and relevant entities of the United Nations system, to inform the General Assembly at its seventy-seventh session of the implementation of the present resolution, through a dedicated section of the Creative Economy Outlook, elaborating in particular on how the resolution is aligned with and advances the 2030 Agenda”.
In addition, the resolution:
•
recognizes that the creative economy, known as the “orange economy” in a number of countries, involves, inter alia, knowledge-based economic activities and the interplay between human creativity and ideas, knowledge, and technology, as well as cultural values or artistic, cultural heritage and other individual or collective creative expressions;•
acknowledges that creative industries can help to foster positive externalities while preserving and promoting cultural heritages and diversity, as well as enhance developing countries’ participation in and benefit from new and dynamic growth opportunities in world trade; and•
emphasises the resilient growth in international trade in creative industries, including the trade of creative goods and services, and its contribution to the global economy, and recognizing the economic and cultural values of the creative economy.The next sections highlight how UNCTAD and other United Nations agencies, civil society organisations, countries, and other stakeholders implemented the resolution.