Pitchaya Sirivunnabood, PhD
Capacity Building and Training Economist, Asian Development Bank Institute

Herlyn Gail A. Alegre
Capacity Building and Training Associate, Asian Development Bank Institute

(con't)

Although the creative economy has much potential, challenges remain, especially due to the lack of appropriate policies to support the industries. Insufficient financing and financial sustainability and a lack of standard valuation of creative work could stagnate its growth (Sioson and Korwatanasakul, 2021). For example, Thailand faces the challenges of a lack of common understanding on the meaning of creative industries and the rapid changes in the digital landscape (Punpeng, 2021), while the Philippines needs a centralised government agency to create a policy roadmap for creative industries (Mercado, 2021). 

Amid these challenges, the COVID-19 pandemic has significantly affected creative industries worldwide. Although there are no data available on its impact on the industries in Southeast Asia yet, UNESCO (2021) has estimated an overall contraction of 750 billion US dollars in gross value added by cultural and creative industries worldwide in 2020. Losses in revenue in these industries in 2020 could be in the range of 20 to 40 per cent across different economies, possibly resulting in 10 million job losses for creative workers globally, especially freelancers. The Philippines’ creative industries, for example, were likely affected severely due to the country’s heavy reliance on creative freelancers. Given the ongoing COVID-19 pandemic, a comprehensive policy framework for the creative economy must be developed to support the people and the economy to thrive and recover in the post-pandemic era.

Rebuilding After the Pandemic—Some Policy Recommendations 

Fostering the creative economy in the Fourth Industrial Revolution amid the COVID-19 pandemic is a true challenge for countries around the world, not just those in Southeast Asia. We suggest the following three major socioeconomic factors for consideration when designing comprehensive policy frameworks or a roadmap for the development of the creative economy. 

First, digitalisation can be adopted by (i) supporting technological innovation via financial support and the facilitation of R&D investment, (ii) strengthening ICT infrastructure for digital readiness, and (iii) facilitating digital transformation in all related sectors, areas, and groups of people. For example, creative entrepreneurs could tap on the proliferation of electronic-commerce (e-commerce) and mobile-commerce (m-commerce) sites in Southeast Asia to reach their markets and keep the economy alive despite the COVID-19 restrictions (Sioson and Korwartanasakul, 2021). When disruptions affect creative market demand and the market capacity to supply this demand, such as in the case of the Philippines, digital platforms can help to improve the demand for services and their delivery mechanism and find alternative markets, models, and revenue sources (Mercado, 2021).

Second, although technology is being maximised, it is important to nurture creative talents, which cannot be replaced by automation, to avoid extreme job losses. This can be achieved through (i) educational reforms to equip people with digital technologies and to upgrade the skills necessary in these changing times, (ii) capacity building initiatives for SMEs to support them in niche markets and national branding, and (iii) the establishment of mechanisms to protect intellectual property rights. Taking Singapore as an example, Wee (2021) noted that modernised technology is not enough, and cited “building a strong talent pipeline in new skills… creating platforms for rapid prototyping and experimentation amongst creatives, technologists and business” should intersect with technological advancement. The development and enforcement of international property rights laws and regulations will encourage more ideas for creative products and services. 

Third, partnerships and networks for knowledge creation and cultural exchanges are essential for boosting creative industries and the production of cultural goods and creative services. These partnerships promote the recognition of cultural diversity and national branding networks, thus leading to an increase in demand for creative products. The partnerships and networks can be established at the international level (among countries) and the domestic level (e.g., city partnerships). Clustering or fostering city partnerships could assist in the technological shift to digitalisation, nurturing creative talents, and establishing an environment where creative workers in both the formal and informal sectors can thrive to reach the goal of sustainable development.

Additionally, immediate attention should be paid to the post-COVID19 strategies for the recovery of creative industries and the economy. Due to the lockdowns and social-distancing restrictions, the adoption of digitalisation is necessary to continue economic transactions. The use of digital platforms and e-commerce can facilitate market expansion and reinforce connections for creative industries. Besides bridging people and markets, digitalisation is an essential part of developing creative products and services and executing innovative ideas and the approaches for delivering them. Moreover, financial support, e.g., subsidy campaigns and long-term loan programs with preferable interest rates, must be offered to SMEs and creative entrepreneurs affected by the COVID-19 pandemic to maintain business liquidity. 

The creative industries have increasingly played an important role in boosting economic growth for sustainable development. To support and promote economic activities in these industries, Southeast Asian countries will need to develop and design comprehensive and inclusive policy frameworks, taking into account cultural diversity and digital advancement. 

Note:

The original version of this article was previously published in the Asian Development Bank Institute’s Asia Pathways blog. The original version, including the references list, may be downloaded from: https://www.asiapathways-adbi.org/2021/09/supporting-creative-econo....