CISAC study highlights the untapped potential of creative industries in BRICS countries

Paris, France – September 18, 2014 – An economic study released today by the International Confederation of Societies of Authors and Composers (CISAC) identifies tremendous potential within BRICS countries to increase their creative industries’ contribution to GDP. The findings come at a time when, despite significant economic growth in other areas, these countries’ economies are currently only reaping a small percentage of GDP (between 1 and 6 percent) from their creative sector while other countries around the world are seeing double-digit figures.

In the past ten years, the global trade in creative goods and services has almost tripled, rising to US $624 billion in 2011 and accounting for about 7.5 percent of total global exports. This increase, which represents an annual growth rate of 8.8 percent per year, has significantly outpaced global economic growth over the same period.

In contrast, CISAC’s new study illustrates that in the BRICS countries, total exports of core copyright goods and services (including audio visual goods and services, new media goods, publishing goods, etc.) are significantly lagging behind mature markets. For example, the total combined export of these creative industries from Brazil, Russia, India, China and South Africa are less than half of the USD 25 billion generated by the USA in 2010 despite their combined GDPs being just 12 percent smaller.

“The creative economy generates around 10 to 11 percent to the GDPs of Korea and the USA, respectively, yet culturally rich BRICS countries manage only a fraction of this figure,” said Javed Akhtar, award-winning Indian screenwriter, poet and lyricist and Vice President of CISAC. Underscoring the paradox of India’s economy, he said, “India in particular, which creates strong cultural products that are consumed on all continents - as exemplified by its films and music - can use this Report and the global insight of CISAC to build strong frameworks for its creative industries."

As the international body tasked with protecting the rights and promoting the interest of creators and rights holders worldwide, CISAC has responded to these findings by laying out a four-step action plan for policymakers to unlock the potential of the creative industry in these regions.

With a focus on shoring up the relatively weak intellectual property (IP) framework in these countries in order to capitalise on the strong digital market potential for creative works, this action plan will provide supportive measures for creative industries in BRICS countries. “There is clearly huge potential here if lawmakers can identify and correct the policy challenges that are preventing creators from generating a living wage for themselves and making a greater impact on their country’s economy,” said Gadi Oron, CISAC’s General Director. The strategy includes the following recommendations:

1. Map and Measure the Domestic Creative Economy

This critical step delivers a detailed understanding of the domestic creative economy and highlights the challenges and opportunities. The absence of reliable, accurate and updated information is a major barrier to unlocking the potential of creative industries.

2. Recognise the Importance of Effective Collective Rights Management

Collective management organisations and other similar bodies play a strategic role in the process of stimulating creativity and protecting the rights of artists and creators. They are the only means to efficiently identify, collect and distribute fair remuneration to creators in growing or complex economies.

3. Proactively Support Creativity and Creative Communities

This can be achieved either through direct support initiatives for targeted communities or sectors, or indirectly by finding methods to incentivise creativity and related economic activity.

4. Recognise the Importance of IP and Copyright Protection to the Creative Process

High levels of unlicensed use or piracy provide a substantial disincentive to creativity. It undermines investment in creative activity and as a consequence, reduces their contribution to the national economy.

 

This strategy has been proven to work in a number of regions around the world, serving as a foundation for building a strong and sustainable policy environment for creative industries. Mr. Oron underlined CISAC’s commitment to creators, stating, “We hope that the BRICS countries will find their own path to success as we continue to work with creators around the world to support their efforts and make an impact not only on culture, but also on the economy.”

The study, authored by Pugatch Consilium and entitled “The Creative Industries and the BRICS”, is available here or upon request (info@cisac.org).

 

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Note to Editors

The precise breakdown of the creative economy’s contribution to national GDP is as follows:

• Brazil: 1,5-2,5% of GDP (46th out of 82 countries in the Global Creativity Index)

• China: 6,37% of GDP (58th out of 82 countries in the Global Creativity Index)

• Russia: 6,03% of GDP (30th out of 82 countries in the Global Creativity Index)

• South Africa: 4,11% of GDP (45th out of 82 countries in the Global Creativity Index)

• India: GDP 0.95 % of GDP (50th out of 82 countries in the Global Creativity Index)

 

Supporting Data

Figure 1: The estimated percentage contribution of the copyright-based/creative industry/media and entertainment section to GDP within BRICS and selected countries, 2000 to 2012.

 

Figure 2: Total exports of core copyright goods and services (including audio visual goods and services, new media goods, publishing goods etc.) from the BRICS and selected countries in 2010.