It was the second of July 1997; the Thai government floated the baht due to lack of foreign currency reserves and in a resounding crash, collapsed the financial system of the East and Southeast Asia region. South Korea’s debt-to-GDP ratio rose to 40% as the International Monetary Fund stepped in to stabilize the won. Neck deep with more than $55 billion in loans, South Korea undertook intensive economic reform and in less than five years, repaid its debt. In full. It’s ingenious plan to restart the economy? South Korea developed its entertainment industry into what is now known as “Hallyu” or Korean Wave — the sharp rise of production and consumption of the country’s creative content. As of 2012, the Korea Creative Industry reported more than $5.02 billion total value in cultural exports and in 2020, BTS — a seven member K-Pop group — accounted for $4.9 billion in sales for the South Korean economy or almost as much revenue as Korean Air Lines.

What is the creative economy, what comprises the gamut of creative industries, and, most importantly, how can the Philippines harness the inherent creativity of Filipinos and use it as a driver for economic recovery?

In its Ministerial Conference in 2004, the United Nations Conference on Trade and Development (UNCTAD) defined creative industries:

o as cycles of creation, production, and distribution of goods and services that use creativity and intellectual capital as primary inputs;

o constitute a set of knowledge-based activities, focused on but limited to arts, potentially generating revenues from trade and intellectual property rights;

o comprise tangible products and intangible intellectual or artistic services with creative content, economic value and market objectives;

o stand at the crossroads of artisan, services, and industrial sectors; and,

o constitute a new dynamic sector in world trade.

Creative industries are vast in scope, ranging from traditional knowledge and cultural heritage to more technology and services-oriented sub-groups such as audio-visuals and new media. UNCTAD broadly classifies these industries into four sub-groups: 1.) Cultural heritage or the origin of all forms of arts; 2.) Artworks such as visual arts and performing arts; 3.) Media such as publishing and printed media and audiovisuals, and, 4.) Functional creations such as design, and new media or other digital related services.

Other models by other development institutions expanded on the UNCTAD definition of creative industries and included those which provide heritage and cultural expressions, as included by the United Nations Educational, Scientific, and Cultural Organization (UNESCO) and copyright-based industries, as included by the World Intellectual Property Organization (WIPO).

In 2018, the UNCTAD released its Creative Economy Outlook and estimated that in the Philippines, creative goods account for roughly $3.23 million in exports and $915 million in terms of creative services. While the values look encouraging, the Philippines lags behind in the Asia-Pacific cluster and accounts for only 2% of the regional pile. The contribution of creative industries to the gross domestic product (GDP) and gross national income (GNI) is small, only at 2% to 5% respectively, far less compared to other emerging economies. For a service-oriented economy, the Philippines cannot afford to leave a major driver of economic growth, such as the creative industries, underdeveloped.

Now, more than ever, is the time to develop the potential of Philippine creative industries, and harness the potential of culture, indigenous knowledge, and innovation as economic resources. Along with the tourism industry, cultural and creative sectors are among the most affected by the COVID-19 crisis and yet, cultural and creative content are necessary in cultivating a sense of community and well-being to individuals locked down in their own homes. It’s time for strategic policy interventions to strengthen the creative industries value chain and rebuild our nation upon the backbone of creative work, an ImagineNation.

Following the UNCTAD creative industry value-chain analysis, the Philippines can strengthen each vertical or stage of creative goods and services production and sale to build an operational model of the Philippines Creative Economy. Firstly, in terms of creation or the conception stage, the Philippines needs to build creative capabilities by embedding arts, design, and media in various levels of education. Creative industries should also be made part of the nation’s investment priorities plan and interested businesses, accorded investment incentives. Secondly, in terms of production, the Philippines needs infrastructure support or shared service facilities to be made available to small enterprises to subsidize production costs. Funding flows for small and micro-creative entrepreneurs should likewise be made accessible to ensure continued capacity for production. Thirdly, digitization efforts should be improved so that creative industries can take advantage of online platforms to distribute their content digitally. Technical assistance and training on digital service distribution will also aid in the sale and export of creative goods and services. Finally, export promotion for creative goods and services can be made a topline executive policy direction. New brands, markets, and products should also be included in an industry development strategy. Trade facilitation issues, such as slow clearance of goods, should be addressed and handled.

The Philippine creative economy strategy, containing targets that improve on the creative value-chain, can be the subject of policy action at the national level. This was the aim in the drafting and filing of House Bill No. 8101 or the “Philippine Creative Industries Act” — an endeavor headed by Representative Christopher de Venecia and supported by all members of the House of Representatives Committee on the Creative Industry and Performing Arts. Its passage, funding, and continued support is something that the Philippines urgently needs if it aims to return to the country’s economic growth level. It is a necessity and can be a reality. Much of the Philippines’ pride as a nation was decimated because of the onslaught of joblessness and business closures brought on by the pandemic. However, the distribution of creative goods and services have the soft power to bolster mental health and national pride. The generation of new resources for economic development, such as creative goods and services, can open markets, opportunities, bring about cultural expression, and even strengthen institutional partnerships between the public and private sector.

It is also a means for sharing our stories, our experiences, our culture to the world but retain our identity. ImagineNation, or the Philippines as a robust contributor of global wealth in the form of creative goods and services, is not just a pipe dream. It can be made our next reality.

This article is written in celebration of 2021 as the International Year of Creative Economy for Sustainable Development.

Kristine C. Francisco-Alcantara is the Managing Partner of ABAD/ALCANTARA/ASSOCIATES