The creative economy has emerged as a vital driver of economic growth and resilience, social inclusion and equity, international influence and intercultural dialogue, and sustainable development. The sector currently represents approximately 3% of global gross domestic product (GDP) (UNCTAD 2022), with predictions suggesting this share could triple by 2030 (Shapiro 2024). Its upward trajectory has been evident in the 20% increase in trade of creative goods between 2010 and 2020, alongside a more than doubling of creative services exports during the same period (UNICEF 2020).
The sector is dominated by micro, small, and medium-sized enterprises (MSMEs) and is a significant source of employment, accounting for 6.2% of all workers and 50 million jobs worldwide. The creative economy employs more of those aged between 15–29 than any other sector, and about half of its practitioners are women (IFC, n.d.). Diversifying our economies and societies away from environmentally intensive industrial production and boosting the creative economy will enhance our collective resilience to climate-related shocks, reduce our contribution to them, and advance sustainable growth and development across Asia and the Pacific.
Growing Global Attention to the Creative Economy
Since the United Nations designated 2021 the International Year of Creative Economy and Sustainable Development, its considerable potential has been increasingly recognized on the global policy stage. The United Nations General Assembly adopted two key resolutions on the creative economy in 2020 and 2023, aiming to more systematically track progress and capture impacts (UNCTAD 2022).
The creative economy also featured in the G20 Leaders’ Declarations in 2022 and 2023, underscoring its prioritization among policy makers representing 80% of the global economy. The G20 Culture Working Group—established under the Indian presidency in 2023—also serves as an example of how collaborative efforts can address the needs of the creative economy while promoting sustainability and demonstrating the contemporary capacity of emerging economies to spearhead global initiatives. In the ASEAN Comprehensive Recovery Framework and Vision 2045, the creative economy is explicitly recognized as a vehicle for building back better in the immediate aftermath of the coronavirus disease (COVID-19) pandemic and as a catalyst for longer-term economic transformation (ASEAN 2021).
Leveraging Research and Capacity Building to Cultivate the Creative Economy
As the creative economy solidifies its role as a cornerstone of the Asia and Pacific region’s sustainable development, the Asian Development Bank (ADB) and the Asian Development Bank Institute (ADBI) are actively engaged in various initiatives to elevate the sector’s profile, build capacity among its diverse stakeholders, and strengthen the evidence base underpinning policymaking. The publication of Creative Economy 2030 provides a roadmap for building an enabling environment for the creative economy to grow and thrive through a collection of peer-reviewed insights, case studies, and guidance for policy makers (Sonobe et al. 2022).
The “Creative Economy Seminar: Our Common Future,” held in Jakarta in July 2024, fostered a dynamic series of exchanges on how to nurture a creative economy ecosystem through a combination of financial support, policy and regulatory frameworks, educational programs, and cultural platforms (Asian Development Bank 2024). ADBI is also preparing to host a panel discussion on how to leverage the creative economy for the sustainability transformation at the upcoming World Conference on Creative Economy in Tashkent, with partners from the Uzbekistan Art and Culture Development Foundation and the Asian Creative and Digital Economy Youth Summit (World Conference on Creative Economy 2024). This reflects an enduring recognition of the considerable potential for the creative economy in Asia and the Pacific, with youthful demographics, rapidly rising education and income levels, broad-based digitalization, and increasing clout on the world stage.
Policy Recommendations
To advance the development of the creative economy in the Asia and the Pacific region, a tailored set of policy recommendations is essential.
Building an Enabling Environment
Building a conducive ecosystem that includes comprehensive policy frameworks, financial support, targeted educational programs, and cultural platforms is essential in fostering the creative economy.
For example, Indonesia’s adoption of a Creative Economy Law in 2019 (Am Badar and Am Badar 2019)—as well as a series of subsequent regulations (Lembaran Negara Republik Indonesia 2020)—aims to sharpen intellectual property protections for creative producers, channel funding and open tax incentives for cultural activities, foster research and development and training opportunities, and create a standardization and certification regime for the creative economy. This provides the basis for upskilling workforces in a rapidly evolving landscape, promoting creative hubs and districts in both urban and rural areas, and encouraging innovation and investment in the sectors comprising the creative economy. Targeted financing in high-potential sectors is also key to unlocking the full potential of the creative economy. Sectors such as the film industries of Bollywood; Hong Kong, China; and the Republic of Korea, along with the music industries producing K-pop and Mandopop, are not only cultural icons but also major economic drivers.
Improving Social Equity and Inclusion
The creative economy represents a proven vehicle for advancing youth employment, gender equality, socioeconomic inclusion, and a dynamic and resilient landscape of MSMEs. The adoption of targeted initiatives can amplify the benefits of the creative economy for historically marginalized communities.
The Singaporean Skills Framework for the Arts is designed to encourage learning and career progression, focusing on those in the early stages of their creative careers (Skills Future Singapore 2023). In the Philippines, the Anthill Fabric Gallery and Kandama Enterprise provide a platform for indigenous women to develop and showcase their garment manufacturing skills (Santos 2024). Thailand’s Creative Lanna Project knits together the National Development Plan’s strategic prioritization of the creative economy with the local level of governance, aiming to tackle regional disparities and promote international cooperation with neighboring countries to its northern economic corridor (NEC) through the provision of creative employment opportunities, festivals and design weeks for local producers, and culture-driven eco-tourism (Chiang Mai University 2021). Indonesia’s One Village One Product initiative supports local MSMEs to bring their products to market (Rosmeli & Haryadi 2018), embodying the recognition that MSMEs account for 89% of domestic consumption, 57% of GDP, and 97% of jobs in the country (Anatan and Nur 2023).
Fostering Multistakeholder Collaboration and Interagency Coordination
The creative economy is marked by the diversity and dynamism of its participants and activities. A study by Setiawan (2018) suggests that this encompasses at least 17 sub-sectors, from product design and architecture to film and photography, music and fashion to performing and fine arts, and advertising and tourism to gaming and animation. This underscores the importance of interagency cooperation and multistakeholder collaboration. Indonesia has established a dedicated Agency for Creative Economy, which provides a platform for coordinating efforts (Ministry of Tourism and Creative Economy, Republik of Indonesia, n.d.). In addition, advisory groups composed of creative stakeholders—ranging from industry leaders to artists and entrepreneurs, media and entertainment organizations, and universities and think tanks—should be established to address the immediate needs of the creative economy while also laying the groundwork for sustainable, long-term growth. The G20 Culture Working Group established under India’s presidency in 2023 offers an example that could be replicated at the national level (UNESCO 2023).
Accelerating the Sustainability Transformation
The creative economy represents an opportunity to promote more environmentally friendly forms of employment, adopt more sustainable business models, and craft innovative ideas that will be essential in tackling climate change. The Circular Creative Economy concept emphasizes reducing waste through the reuse and recycling of materials, opening new business opportunities in areas such as upcycling and sustainable fashion, appealing to eco-conscious consumers (Asian Development Bank 2024). Traditional industries, such as handloom weaving in the Philippines and the Environmental Bamboo Foundation in Indonesia, create eco-friendly jobs by using local renewable resources, applying low-impact production techniques, and bridging socioeconomic and sustainability objectives (Santos 2024; Environmental Bamboo Foundation 2021).
Going forward, the further development and expansion of creative hubs in Asia and the Pacific can position the creative economy as a catalyst for sustainable development through the integration of renewable energy systems into economic operations, promoting eco-friendly products and shifting economies away from environmentally intensive industries.
References
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