CULTURAL INDUSTRIES IN LATIN AMERICA
AND THE CARIBBEAN:
CHALLENGES AND OPPORTUNITIES
Alessandra Quartesan
Monica Romis
Francesco Lanzafame
SEPTEMBER 2007
The Institutional Capacity and Finance Department (ICF) of the Inter-American Development Bank (IDB)
developed this study on cultural industries in LAC. The study was conducted under the supervision of
Francesco Lanzafame, Housing & Urban Development specialist, by Alessandra Quartesan, Urban
Development and Cultural Heritage consultant, and Monica Romis, Urban and Local Economic
Development consultant. The research team interacted with relevant IDB staff and other international and
regional experts in the sector.
The study was funded through the IDB “Italian Trust Fund for Cultural Heritage and Sustainable
Development” to respond to a demand that the Bank received from LAC countries over the last few years.
This working paper has the sole objective of contributing to the debate on a topic of importance to the
region, and to elicit comments and suggestions from interested parties. The paper does not reflect the
official position of the IDB.
TABLE OF CONTENTS
INTRODUCTION ...................................................................................................................................... 1
Methodology ..........................................................................................................................................2
PART I. CULTURAL INDUSTRIES AND DEVELOPMENT ........................................................................ 4
I. What Are Cultural Industries?...........................................................................................................4
II. Economic Contribution of Cultural Industries................................................................................6
III. Local Development .........................................................................................................................8
IV. Cultural Identity ..............................................................................................................................9
PART II. SECTORS ...............................................................................................................................11
Editorial................................................................................................................................................11
Audiovisual ..........................................................................................................................................14
Cinematographic Industry..........................................................................................................15
Television industry .....................................................................................................................18
Phonographic .......................................................................................................................................19
Discographic Industry ................................................................................................................19
Radio ...........................................................................................................................................21
Multimedia ...........................................................................................................................................22
Visual and Performing Arts ................................................................................................................23
Cultural Tourism..................................................................................................................................25
Sports....................................................................................................................................................26
PART III. CHALLENGES AND OPPORTUNITIES FOR CULTURAL INDUSTRIES ...................................28
ANNEX I. LIST OF LAC INSTITUTIONS RELATED TO CULTURAL INDUSTRIES .................................................40
ANNEX II. IDB PROJECTS RELATED TO SECTORS OF CULTURAL INDUSTRIES: 1997 -2007..........................46
REFERENCES ........................................................................................................................................49
TABLES, FIGURES AND BOXES
Tables
Table 1. Cultural Industries’ Contribution to GDP in LAC, 1993-2005 (%)…………………..…7
Table 2. Contribution of Cultural Industries to Employment……………………………………...8
Table 3. Editorial Sector Laws and Regulations in LAC...……………………………………….13
Table 4. VAT in Editorial Sector in LAC………………………………………………………...14
Table 5. Summary of the Audiovisual Sector in Selected LAC Countries……………………….15
Table 6. Titles Produced, Total Investment and Average Cost per Film by Region, 1997 (US$
millions)………...………………………………………………………………………..16
Table 7. Films Released in 2005………………………………………………………………….16
Table 8. Means of Financing Motion Picture Production and State Involvement in LAC (1996,
US$)………...…………………………………………...………………………………17
Table 9. Radios Per Capita in LAC – 1996…………………………………………………….…21
Table 10. World Trade Organization Instruments…………………………………….………….36
Figures
Figure 1. Structure of Cultural Industries………………………………………………………….5
Figure 2. Budget for Cultural Activities in 2005 - % of National Budget ………………………..6
Figure 3. Annual Growth of International Tourism in LAC (tourists volume)…………………..25
Boxes
Box 1. The Linkage between Cultural Industries and Urban Development……………………….9
Box 2. Programa Opción Libros.....................................................................................................12
Box 3. BASET - Buenos Aires Set de Filiación.............................................................................18
Box 4. What Is an Independent Label?………………………………………………………...…20
Box 5. CMD - Metropolitan Design Center………………………………………………………23
Box 6. Altos de Chavon School of Design………………………………………………………24
Box 7. IBERESCENA……………………………………………………………………………24
Box 8. “Estrategia de Marca País”………………………………………………………………..27
Box 9. Data and Indicators for Cultural Industries……………………………………………….30
Box 10. CREA……………………………………………………………………………………31
Box 11. Unifrance: Promoting French Cinema Worldwide…………………………………...…33
Box 12. Arepa 3000………………………………………………………………………………34
Box 13. MEDIA Plus…………………………………………………………………………..…35
Box 14. Cultural Industries and Free Trade Agreements in LAC………………………………..37
ACRONYMS AND ABBREVIATIONS
CAB Convenio Andres Bello
CARICOM Caribbean Community and Common Market
CCL Caribbean Copyright Link
CERLALC Regional Center for the Promotion of Book in Latin America and the
Caribbean - Centro Regional para el Fomento del Libro en América
latina y el Caribe
CMD Metropolitan Design Center – Centro Metropolitano di Diseno
(Argentina)
DANE National Statistical Office - Departamento Administrativo Nacional de
Estadistica (Colombia)
DR-CAFTA Dominican Republic–Central America Free Trade Agreement
EU European Union
FAIGA Argentine Federation of Graphic Industry - Federación Argentina de la
Industria Grafica y Afines (Argentina)
GATT General Agreement on Tariffs and Trade
GATS General Agreement on Trade and Services
GDP Gross Domestic Product
IDB Inter-American Development Bank
INCAA National Institute of Cinema and Audiovisual Arts - Instituto Nacional de
Cine y Artes Audiovisuales (Argentina)
INDEC National Institute of Statistics and Census – Instituto Nacional de
Estadistica y Censo (Argentina)
IFPI International Federation of Phonographic Industries
ISBN International Standard Book Numbers
LAC Latin America and the Caribbean
MERCOSUR Southern Common Market - Mercado Común del Sur
MSMEs Micro, Small, and Medium Enterprises
NAFTA North American Free Trade Agreement
PICE Economic Cooperation and Integration Program
SMEs Small and Medium Enterprises
TRIMS Agreement on Trade-Related Investment Measures
TRIPS Agreement on Trade-Related Aspects of Intellectual Property Rights
UK United Kingdom
UNESCO United Nations Educational, Scientific and Cultural Organization
UNWTO World Tourism Organization
US United States of America
VAT Value Added Tax
WTO World Trade Organization
1
INTRODUCTION
Over the past decade, the new creative-
cultural industries have increasingly become
one of the main sources of greater
production and employment in many
countries. Although the growth of cultural
industries has been mostly limited to the
world’s richest countries, a number of low-
and middle-income countries have come to
recognize that they too can participate in the
cultural economy. In this regard, Latin
American and Caribbean (LAC) countries
have begun to identify new opportunities
and are actively seeking sustainable
solutions to maintain these industries as an
integral part of cultural and economic life.
This development has been brought about by
growing concern on the part of LAC
countries that their cultural industries will be
marginalized by globalization. In this
regard, while some countries have
developed mechanisms to protect these
industries, others have not been as proactive,
and consequently, their cultural industries
are declining.
1
Given the various levels of
development of cultural industries in LAC
and the widespread recognition that these
industries are important (even if not
explicitly categorized as cultural industries),
there is a need to understand the main
challenges and opportunities that these
industries currently face in the region.
The objective of this paper is to assess the
strengths and weaknesses of cultural
industries in LAC and offer lessons learned
through this analysis to policymakers and
donors. This study demonstrates the value
1
In recent years, the production and distribution
of cultural industry products, which represent a
traditional and important expression of the
culture and creativity of the region, are
increasingly being more controlled or produced
abroad by foreign industries, resulting in a loss
of economic benefits and identity.
and the potential for cultural industries in
the LAC economy and also identifies the
need for a comprehensive approach,
structured policies, and targeted
interventions aimed at improving the
conditions and prospects of these industries.
To date, the approach of countries and
donors (such as the IDB) to cultural
industries has been uncoordinated and, in
some countries, insufficient. In the specific
case of the IDB, while these sectors
individually are often included in projects,
they are not specified as cultural industries
in the Bank’s portfolio.
2
Consequently,
2
These projects, however, have mostly targeted
the service sub-sectors and have not directly
addressed the manufacturing sub-sectors of
cultural industries. In urban and regional
development projects, cultural industries are
present through the rehabilitation of museums,
theaters, and libraries or through interventions in
support of cultural enterprises. In Quito,
Ecuador for instance, the Bank implemented a
project for the rehabilitation of the historic city
center. This project not only focused on the
rehabilitation of existing museums and libraries
(such as the restoration of an historic building for
the establishment of the new “Museo de la
Ciudad” and the restoration of the “Teatro
Sucre”), but it also developed a strategy to
ensure the social sustainability of the project by
establishing: i) mechanisms of participation for
residents and users of the area, ii) a program to
support traditional economic activities in the area
(mostly SMEs related to crafts), and iii) a plan to
support tourism through the improvement of
security, environment, and services. All these
actions were related to sectors within cultural
industries. This approach also applies to projects
in cities such as Buenos Aires-Argentina,
Cartagena-Colombia, Cuzco-Peru, and Salvador
de Bahia-Brazil, which have a cultural-
traditional patrimony linked to cultural
industries. In the case of tourism, given the
increasing importance that this sector represents
in the IDB strategy, the volume of projects
approved by the Bank up to 2005 was roughly
2
donors have yet to develop a comprehensive
strategy to support these industries.
Along with the growing recognition that
cultural industries are significant in
economic terms, is a conviction that these
industries are also essential to maintaining
the cultural identity of LAC countries. In
this context and in response to the
challenges posed by globalization, countries
have stepped up their requests to donors for
assistance in projects related to the sector.
Therefore and with a view to meeting this
need, the international financial and
development institutions have now an
important opportunity to leverage their
considerable experience and capabilities to
support new initiatives in this field.
This paper includes this introduction, which
concludes with a note on the methodology
used in the study, and three main sections.
Part I addresses the main features applicable
to all types of cultural industries, including
the definition, economic impact, role as a
driving force in local development, role in
cultural identity formation and maintenance.
Part II provides an in-depth assessment of
the range of sectors included in LAC
cultural industries through an analysis of
their structure, main stakeholders, policies,
and strengths and weaknesses. Finally, Part
III highlights the challenges and
opportunities for these industries in LAC. In
addition, the paper is supplemented by two
annexes. Annex I includes a table listing the
main institutions in LAC related to cultural
industries, and Annex II lists IDB projects
that include activities associated to these
industries, carried out between 1997-2007.
US$1.639 million (Altes, 2006). In social
programs, music, dance, artistic activities, crafts,
and sports are “tools” to promote education and
reduce crime risk. These examples include
projects in Venezuela aimed at supporting the
Action Social Center of Music and projects with
indigenous populations (Cuna) in Panama.
Methodology
The key research questions that provided the
motivation for the study were:
1) Is it possible to develop local sustainable
cultural industries in LAC?
2) Can cultural industries play a dual role of
economic driver of growth and of cultural
patterns?
3) Can public policies promote development
in the sector?
4) What are the successful (and less
successful) practices in the sector?
5) Is performance in the sector linked to
private-public and/or international
partnerships?
To answer these questions, the study was
carried out in two principal phases—
regional analysis and country case studies.
Phase One - Regional Analysis
The first phase of the study was a
documentary investigation that gathered data
broadly to compensate for the lack of
systematized information on cultural
industries in LAC. This phase of the study
involved researching the economic, cultural,
and institutional aspects, at the regional and
country levels, of the following sectors:
editorial, audiovisual, phonographic, visual
and performing arts, multimedia, cultural
tourism, and sports.
Economic – This component of the research
sought to: i) study the economic impact of
cultural industries in LAC countries; ii)
gather available sectoral level data; iii) study
private sector investment at both the country
and regional levels; iv) examine the
relationship between the production of
cultural products and the locality in order to
assess the role of the local culture, tradition,
and resources in the production of cultural
goods; v) analyze the flows of exports and
imports of cultural products in the region
and between LAC and other countries in
order to evaluate the impact of international
trade on cultural industries; and vi) identify
opportunities and market niches that LAC
3
countries could potentially occupy within
the sector.
Cultural – This research analyzed: i) the
cultural identity and cultural heritage values
related to cultural industries; ii) the various
systems employed to produce cultural
products; iii) the structure of the sector at the
country and regional levels; iv) the policies,
strategies, and structural similarities in the
markets and among target audiences in
terms of language and cultural closeness;
and v) the forms of organization of cultural
industries.
Institutional – The research conducted on
institutional aspects compared national
approaches to the sector in LAC.
Specifically, the analysis focused on the: i)
agencies or entities in charge of policy-
making for the sector at the country level; ii)
regulation of the sector (including
international regulations); iii) government
contributions to the sector through
programs, grants, or loans; and iv) credit and
business support services for existing and
emerging firms and artists.
Phase Two – Country Case Studies
With the aim of developing a rich and
contextually specific perspective within the
vast populations and large domestic markets
of LAC countries, two case studies were
conducted maximizing the variation in
national capacities, structures, and policies.
Based on the data gathered during the first
phase of research,
two countries—the
Dominican Republic and Argentina—were
selected as case studies. The cases were
chosen taking into account differences in the
various sectors of cultural industries as well
as the possibility of making comparisons of
the countries’ individual sectors. Finally,
the analysis of these two countries was
particularly useful because they are
representative of the region in terms of
geographic position, size, and market
characteristics.
To assess the cultural industries in the
Dominican Republic and Argentina, two
field missions were carried out, during
which time data was collected through in-
depth interviews, observations, and
documentation. To understand the situation
in the capitals of the two countries where
cultural industries are naturally
concentrated, most of the interviews took
place in Santo Domingo and Buenos Aires.
However, in order to take into account the
experience of cultural industries at the
national level, interviews were also carried
out in some provinces.
4
PART I. CULTURAL INDUSTRIES AND DEVELOPMENT
I. What Are Cultural Industries?
The term cultural industries in this study
refers to those sectors that are directly
concerned with the creation, production, and
distribution of goods and services that are
cultural in nature and that are usually
protected by the copyright.
Cultural goods
and services are those whose primary
economic value is derived from their
cultural value (O'Connor, 1999), and have
the potential for wealth and job creation
through the generation and exploitation of
intellectual property. This definition draws
on those of both UNESCO and GATT,
which define cultural industries mainly as
goods and services protected by copyrights.
The sectors generally included by UNESCO
include “printing, publishing and
multimedia, audiovisual, phonographic and
cinematographic productions as well as
crafts and design” (UNESCO, 2006).
However, this study highlights the
limitations of these definitions, and a more
comprehensive framework was developed,
taking into account the complexity of the
context and the multitude of stakeholders
involved in LAC.
Based on the definition used in this study,
cultural industries can therefore be identified
as a set of sectors that offer “1) service
outputs in the fields of entertainment,
education and information (e.g., motion
pictures, recorded music, print media, or
museums) and 2) manufactured products
through which consumers construct
distinctive forms of individuality, self-
affirmation, and social display (e.g., fashion
clothing or jewelry)” (Scott, 2004, p. 462).
While this definition is similar to that of
UNESCO, it actually encompasses more
sectors. Moreover, following O’Connor
(1999), the study focuses on individuals
working in cultural industries with cultural
occupations (for example, architects,
librarians, authors, journalists, graphic
designers, actors, etc.) and without cultural
occupations (for example, in the editorial
sector, employees in the printing industry).
Figure 1 illustrates the sectors and sub-
sectors that are included in the definition of
cultural industries used in this study. While
some sub-sectors are fully contained in one
sector, others are spread across multiple
sectors. In the figure, sub-sectors appear in
white when they are listed with their
principal sector and in grey under the other
related sectors.
5
Figure 1. Structure of Cultural Industries
Editorial
Audiovisual
Phonographic
Conventional
Cultural Industries Sectors
Visual and Performing Arts
Cultural Tourism
Sport
Other
Cultural Industreis Sectors
Multimedia
New
Cultural Industries Sectors
Cultural Industries
i
The advertising industry belongs primarily to the multimedia sector, and secondarily to the editorial and the audiovisual sectors.
ii
Design belongs primarily to the visual and performing arts sector, and secondarily to the editorial and the multimedia sectors.
iii
Opera belongs primarily to the visual and performing arts sector, and secondarily to the phonographic sector.
iv
Orchestras belong primarily to the visual and performing arts sector, and secondarily to the phonographic sector.
v
Concerts and performances belong primarily to the visual and performing arts sector, and secondarily to the phonographic and the cultural tourism sectors.
vi
Architecture belongs primarily to the cultural tourism sector, and secondarily to the visual and performing arts sector.
vii
Museums and galleries belong primarily to the cultural tourism sector, and secondarily to the visual and performing arts sector.
viii
Crafts belongs primarily to the visual and performing arts sector, and secondarily to the cultural tourism sector.
5
6
II. Economic Contribution of
Cultural Industries
While efforts have been made to assess the
quantitative importance of cultural industries
as a whole in different countries, there have
been difficulties in measurement. Given the
multi-sectoral nature of cultural industries,
data (e.g., in terms of jobs and contribution
to GDP) are found across the entire
economy, dispersed over a number of
sectors. Further frustrating quantitative
assessment efforts, the majority of LAC
countries do not have “satellite accounts” for
cultural industries in their national
accounting systems.
3
The lack of unified
3
According to Statistics Canada, the country's
National Statistics Agency, “satellite accounts
are separate accounting frameworks which
expand the analytical capacity of the national
accounts into specific areas of concern, without
disrupting or overburdening the national
accounting framework. They maintain strong
connections with the central framework but
allow the flexibility to introduce alternative
concepts or classification systems more
appropriate to a particular field. Because a strong
link to the central framework is maintained, the
satellite account estimates are fully comparable
to standard economic aggregates, like the GDP.”
Nowadays satellite accounts are increasingly
being used for tourism and environment and
data impedes efforts to obtain a global
overview of the economic dynamics of
cultural industries, to make comparisons
among the various sub-sectors of cultural
industries, and also to compare cultural
industries with other economic sectors.
Moreover, each country has a different
definition of cultural industries, including or
excluding specific sectors or sub-sectors,
which makes comparisons across countries
difficult. Finally, even when there is
agreement on the definition of cultural
industries, countries analyze each sector in
different ways. The lack of data and
economic indicators on cultural industries
prevents many governments from
recognizing their importance and giving
priority to these sectors. As a result, cultural
industries still do not rank highly among the
priorities competing for public funds within
government budgets. Figure 2 shows the
2005 national budget of selected LAC
countries for cultural activities as a
percentage of the national budget.
Notwithstanding the scarcity of data, the
evidence strongly suggests that cultural
industries constitute an important and
could also be applied to the complex of cultural
industries as well.
Figure 2. Budget for Cultural Activities in 2005 - % of National Budget
Source: Authors’ elaboration on Banco Central in Tavares (2006) and the Argentine Laboratory of Cultural Industries
(2005).
*Data refer to 2002
7
growing element of contemporary economic
systems. Indeed, these industries are
estimated to account for 7 percent of world
GDP. In LAC, available statistics indicate
that the average contribution of this sector
(not including the cultural tourism sector) to
GDP is about 3.5 to 4 percent. This
compares with an average of 5 to 6 percent
in Europe, and 7 to 8 percent in the United
States of America (US), a major leader in
the field (De Falco, 2006). Table 1 shows
the contribution to GDP of cultural
industries for a number of LAC countries
and for the US over the 1993-2005 periods.
As shown in the table, available data do not
cover the entire period for all countries.
Furthermore, although cultural industries
still constitute only a modest proportion of
national budgets, at the same time, they
generate sizable contributions in terms of
absolute employment. For instance, in 1991
in the United Kingdom (UK), just under a
million workers (4.5 percent of the total
labor force) were employed in cultural
industries. In the US, these industries
accounted for 2.4 percent of the total labor
force in 1992, totaling just over 3 million
workers (Scott, 2000). Considering that
employment generation is mainly
concentrated in large cities, a linkage
between cultural industries and urban
development is evident. In the UK, London
accounts for 26.9 percent of employment in
British cultural industries, while in the US
more than 50 percent of all workers in
cultural industries are concentrated in
metropolitan areas with populations of 1
million or more. In most British cities,
cultural industries employ between 2 to 8
percent of the workforce, reaching nearly 10
percent in London (Leadbeater and Oakley,
1999). O’Connor (1999) found that in
Manchester, 6 percent of the population was
employed in cultural industries, a share that
was higher than in construction and close to
the scale of the well-established transport
and communication sectors. In Argentina,
cultural industries in 2004 (not including the
cultural tourism and crafts sectors)
generated US$2.6 billion in Buenos Aires,
representing 8.4 percent of the city’s
economy.
4
In the same year, these
industries also created more than 128,000
new jobs, or 5 percent of the city’s total
employment (Observatorio de Industrias
Culturales de la Ciudad de Buenos Aires,
2005). Table 2 shows the contribution of
cultural industries to employment for some
LAC countries and compares it with that of
the US. As indicated in the table, only
4
At an exchange rate of 1 USD = 3.07 Argentine
pesos as of 05/09/07.
Table 1. Cultural Industries’ Contribution to GDP in LAC, 1993-2005 (%)
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
Argentina
6.6
…
…
…
…
…
…
2.32
2.4
2.47
2.63
2.85
3
Brazil
…
…
…
…
…
…
…
1.64
1.57
1.5
1.57
1.46
1.36
Chile
2.3
2.5
2.7
2.2
2
2.8
…
2
1.8
1.9
1.9
1.8
…
Colombia
…
…
2.3
2.1
2.1
2
2
1.83
1.83
1.81
1.77
…
…
Ecuador
…
…
…
…
…
0.8
…
…
1.79
…
…
…
…
Mexico
5.4
…
…
…
…
5.7
…
…
…
…
…
…
…
Peru
…
…
…
…
…
…
…
0.4
0.4
0.5
0.6
0.6
0.6
Paraguay
…
…
1
1
1
1
1
…
…
…
…
…
…
Uruguay
…
…
…
2.82
3.1
3.3
…
3.05
2.92
2.97
3.15
3.36
3.43
Venezuela
…
…
…
…
…
2.3
…
1.4
1.4
1.4
1.6
…
…
US
5.3
5.65
5.95
6.1
6.35
7
7
7.6
7.75
…
…
…
…
Source: Authors’ elaboration on country level data from Ministry of Culture of Argentina, Convenio
Andres Bello (CAB) and the Competitive Intelligence Unit.
8
Brazil and Uruguay have a percentage close
to that of the US, while the remaining
countries have an average share of 3 percent.
In addition, this table does not include data
for smaller countries, where it is more than
likely that the contribution to employment is
even lower.
III. Local Development
Cultural industries are particularly well
suited to serve as a driver for local
development. Specifically, the following
are characteristics of cultural industries:
1) Because they are location-dependent,
cultural industries can create local
sustainable jobs that are less susceptible to
the fluctuations of the global economy than
jobs in branch offices or factories of large
multinational companies.
2) Cultural industries are people intensive
rather than capital intensive, and often
employ high-skill, high-wage, creative
workers (Scott, 2004).
3) Cultural industries tend to be
environmentally friendly.
4) Cultural industries tend to be highly
interconnected within cities or regions (e.g.,
a music band may need video-making
services, which in turn requires the services
of graphic designers).
5) Cultural industries tend to be based on
local, tacit know-how—for example, a style
or a sound—that is not accessible globally.
6) Despite their predisposition to locate in
close proximity, and despite the very local
nature of their production, products of
cultural industries flow across national
borders with relative ease, being sold far and
wide in addition to local markets.
7) Cultural industries generate positive
externalities as they contribute to the quality
of life in the places where they are present
and enhance the cultural identity, image, and
prestige of the area.
8) Cultural industries are flexible and can be
found in a wide range of locales. For
instance, some sectors tend to establish
themselves in urban areas (see Box 1),
where people working in cultural industries
can find affordable places to live, a high
level of communication, and a pool of new
talent, while others, such as crafts,
gastronomy, and cultural tourism, tend to
concentrate also in rural areas.
9) Finally, cultural industries can, at times,
play a critical role in promoting social
cohesion and a sense of belonging; arts,
culture, and sports can offer meeting places
in a society that is often divided and
unequal.
Because of the strong connection between
cultural industries and the localities in which
they are embedded, they cannot be created
simply by the political will of governments
or fiscal incentives. Therefore, top-down
approaches based on planning are unlikely
to accomplish much at the local level. More
than for other sectors, for cultural industries
it is imperative to start off with what already
exists on the ground and to build future
development around existing opportunities.
Table 2. Contribution of Cultural Industries to Employment
Country
Contribution to
employment
Year
Argentina
3.2%
2004
Brazil
5%
1998
Colombia
27,724 employee
Various data between 1999 and 2002
Chile
2.7%
Average 1990 until 1998
Mexico
3.65%
1998
Paraguay
3.3%
1992
Uruguay
4.9%
1997
United States
5.9%
2001
Source: Authors’ elaboration on OAS (2004) and Piedras (2004).
9
Box 1. The Linkage between Cultural Industries and Urban Development
In many metropolitan areas, cultural industries are an important and growing element of the
economy. In this regard, large metropolitan areas offer a highly favorable environment for
development initiatives based on the cultural economy. In particular, some cultural industries
are strictly linked to the urban environment for a number of reasons. First, due to their
interconnected nature, cultural industries require high density of communication and interaction
to rapidly share, copy, learn and modify ideas. Although electronic networks are increasingly
taking the place of face-to-face interactions, cultural entrepreneurs still tend to congregate in
cities and towns, where they can work, socialize, and live. Second, a high number of
universities and educational institutions tend to be concentrated in urban areas. This set of
institutions helps provide cities with streams of talent and ideas by attracting young creative
people. Third, cultural entrepreneurs need affordable places to conduct businesses, such as
workshops and offices in old warehouses, office blocks, converted schools and banks. Finding
an affordable place is extremely important for cultural entrepreneurs, which is why many of
them work in run-down areas that more traditional businesses do not want to occupy. Finally,
cultural industries often require up-to-date technological and multimedia infrastructure, which is
usually available in cities.
Cities or regions that lack any pre-existing base of cultural production face a more challenging
policy problem. However, even where there were no pre-existing resources of cultural
industries (e.g., traditions in a particular sector), some cities have been able to re-invent
themselves through the establishment of new cultural industries. Indeed, much new
development in old industrial areas has concentrated on building a new cultural economy
through conscious efforts to re-use the vestiges of the industrial past (e.g., old buildings and
facilities). In this context, local authorities across Europe, Canada and the US are striving to
revitalize inner-city areas on the basis of industrial heritage, often in concert with local real
estate interests.
IV. Cultural Identity
Culture is a controversial subject, which has
been defined in many different ways in
different contexts. Broadly speaking, the
importance of culture to society is the way it
creates “meaning.” This abstract concept of
culture is of direct importance to cultural
industries because it highlights the dual role
that cultural industries play. First and
foremost, culture is a set of symbolic
resources for the creation of meaning.
However, with regard to cultural industries,
symbolic resources are commercialized, and
pathways are opened for combined
economic development and the creation of
meaning. Therefore, cultural industries are
important not only for their economic
significance, but also as a vehicle of cultural
identity.
In this regard, cultural identity is an
important contributing factor to people’s
sense of well-being. The identification with
a specific culture gives people feelings of
belonging and security. It also provides
them with access to social networks, which
in turn provide support, shared values, and
aspirations. This can help build a sense of
trust between people, although excessively
strong cultural identity can also contribute to
creating barriers between groups. As a
result of the growing consumption of foreign
cultural products in LAC, there is an
increasing loss of cultural values and
identities in the region, posing the risk that
LAC will be reduced to a mere buyer of
foreign cultural industries’ products. This is
the case for all sectors of cultural industries,
but it is particularly critical for cinema,
radio, and television products, especially in
10
countries with high illiteracy rates (where
those sub-sectors perform an important role
in the construction of local identity).
5
Therefore, supporting cultural industries
simultaneously can support local values,
tradition, and culture. The production of
cultural goods and services, through
innovation technology and contact with
5
In the television industry, in some LAC
countries, 70 percent of programming is
imported from the US, where a large domestic
market ensures profit margins (Moneta, 2000).
other cultures (as an effect of globalization),
can reinforce or renew these same traditions,
strengthen the local cultural heritage, and
create a new set of values. In this way,
cultural industries not only contribute to
economic growth, employment, and cultural
identity, but also to cultural renewal.
11
PART II. SECTORS
This section provides an overview of the
main sectors of cultural industries and
discusses in detail the situation of individual
industries in the region through an analysis
of their structure, main stakeholders,
policies, and strengths and weaknesses. As
an overall observation, cultural industries
constitute a rather disjointed collection of
industries bound together by three important
common features. First, in one way or
another, they are all concerned with the
creation of symbolic content. Second, the
consumption of these products rises at a
disproportionately higher rate as disposable
income expands (Beyers, 2002). Third,
driven by competitive pressures, cultural
industries tend to be located close to each
other geographically, while their products
circulate with increasing ease in global
markets.
Another observation relevant to cultural
industries is that during economic
downturns the entertainment industry suffers
more acutely than other industries (Yúdice,
1999). For this reason, cultural industries in
LAC have experienced a drastic decline due
to particular political and social periods and
the more recent economic crises that have
affected several countries in the region.
However, more recently, the growing
creativity of the sector together with low
production costs, have brought about a
recovery and have increased the
attractiveness of the sector to investors. In
addition, LAC industries are characterized
by a high level of quality throughout the
production chain, a tradition of original
production, and a presence of high-level
actors.
These advantages can be further capitalized
on in order to embark on a new period for
the region’s cultural industries. With 650
million people who speak Spanish and
Portuguese worldwide and a significant
presence in both Europe and North America,
there are great opportunities to strengthen
existing export markets and develop new
niches in global markets. Moreover, LAC
countries should exploit the advantage of
being linguistically and culturally close to
one another and market their cultural
industries in ways that would resonate with
regional audiences.
However, and at the same time, it is
important to note that LAC is not a
homogeneous region as there are significant
dissimilarities between countries in terms of
country size, volume of the market, political
history, and current conditions. Thus, the
behavior of the industry is not the same
across countries and makes it difficult to
obtain an overall picture of the situation of
cultural industries for the entire region. For
example, not all countries in the region have
specific regulatory frameworks and entities
dedicated to cultural industries, and not all
countries have undertaken specific actions to
promote and support these industries.
Consequently, even when average data for
the region is available, it is difficult to
precisely reflect the conditions of LAC
cultural industries as a whole.
Editorial
The editorial sector includes the production
of books, journals, magazines, newspapers,
and includes authors, editors, printing
industry, publishing industry, distributors
and retailers, from the big distributors to the
independent bookshops.
Since the middle of the 20th century, this
sector has developed dramatically in LAC.
Previously, Argentina, Mexico, and Spain
12
constituted the three great poles of a triangle
of production and distribution covering LAC
and the Iberian peninsula. However, the
“boom” of Latin American literature began
in the 1970s and continued into the
following decade. Yet the spectacular
growth of the sector was short-lived and
soon fell into rapid decline, resulting from
the external debt crisis leading to the “lost
decade” of the 1980s and the subsequent
liberalization and deregulation of national
economies. The publishing industry began a
steep decline in 1999, and after 2002 there
was a strong reduction of book titles due to a
loss in publication income and an increase in
book prices. As part of the process of
economic liberalization and deregulation
process, the Spanish publishing industry
took over the largest LAC printing houses
and began buying major bookstores and
distribution centers. At the same time, US
publishers also began penetrating the region
in selected market niches.
Despite the decline, more recently, the
editorial sector in LAC has been
experiencing new growth. Total sales from
the January-March 2006 period registered an
increase of 63 percent compared with the
same period during 2005 (CERLALC,
2006). Between 2001 and 2005, the ISBN
(International Standard Book Numbers)
registry in LAC increased from 61,957 to
83,905 titles, thus growing by 35 percent
(CERLALC et al., 2006).
6
6
The International Standard Book Numbers is a
unique
book identifier code. The ISBN system
was created in the United Kingdom in 1966 and
In LAC, Small and Medium Enterprises
(SMEs) dominate the editorial market. In
this regard, there are about 1,520 editors
with a production higher than 3 books per
year (CERLALC, 2006). At the same time,
new players, such as large publishing
conglomerates and large distributors (e.g.,
supermarkets and the Internet), have also
gained an important share of the market.
Currently, the main player in the LAC
editorial sector is Brazil followed by
Argentina. In Argentina the editorial sector
represents the most important cultural
industry in the country, and in 2005 it re-
gained its position as the leader in the
Spanish-speaking market followed by
Mexico and Colombia. Together these three
countries account for more than 60 percent
of the total market (CERLALC, 2006). In
MERCOSUR countries alone, the editorial
sector produces about 70,000 titles per year,
which means approximately 400 million
copies, in Spanish and in Portuguese, for a
total income of US$ 2 billion (Getino,
2001). In 2004 Mexico published 2,331
titles with a production of 101 million
copies, while Colombia published 9,640
titles with a production of 36 million copies
(CERLALC, 2006).
Some countries have developed specific
policies and programs to support their
editorial sectors. In Argentina, for example,
the city of Buenos Aires has promoted a
program called Opción Libros (see Box 2).
was adopted as the international standard ISO in
1970.
Box 2. Programa Opción Libros
The Program Opción Libros (Option Books) is an activity promoted by the Sub-secretary of Cultural
Industries of Buenos Aires city. The purpose of the program is to promote high-quality editions of
small and medium publishing firms through the establishment of dedicated visible sale spaces in
bookstores as well as major press promotional activities. Option Books is basically a public policy
designed to promote cultural diversity, providing publicity of selected books in stores. Bookstores
following the program are identified by signs in their shop windows, and their information is included
in the communication materials of the program (bookmarks and catalogues). In addition, in each
bookstore, the program has a dedicated space indicated by special signs, and books included in the
program are easily identified by special banners.
13
In terms of employment, the editorial sector
in Brazil employs about 18,000 people, 63
percent of whom hold permanent jobs. In
other LAC countries, the figure is lower.
For example, in Mexico 13,000 people are
employed by the editorial sector with 54
percent of them holding permanent jobs, and
in Colombia fewer than 6,000 people are
employed in the sector with 46 percent of
them holding permanent jobs.
In the context of this discussion, it is
important to note that in LAC, only a
minority of the population buys and reads
newspapers. In 1996 Venezuela and
Uruguay were the most important
consumers of newspapers despite the fact
that sales stood at only 14.5 newspapers per
year/100 inhabitants (FELAP, 1996).
The regulatory framework applicable to the
editorial sector varies greatly throughout the
region. There are different laws and
regulations applicable to the sector, and
some countries still lack a specific
regulatory framework. Table 3 lists the
existing laws and regulations for the
editorial sector.
Copyrights and the legal deposit of editorial
products are usually subject to specific
regulations for the editorial sector. Only
Argentina, Bolivia and Ecuador have a
specific entity in charge of the legal deposit,
while Argentina, Bolivia, Chile, Colombia,
Costa Rica, Ecuador, Honduras, Guatemala,
Mexico, Nicaragua, Panama, Paraguay,
Peru, Uruguay, and Venezuela all have
specific regulations for legal deposits
(CERLALC, 2005).
Table 3. Editorial Sector Laws and Regulations in LAC
Country
Law
Law 25.441 of 2001
National Law 25.446 of July 2001: promotion of books and reading
Decree 932/2001 of July 2001
Law 25.542: defense of editorial activities, January 2002
Argentina
Law 22.399: ISBN, February 1981.
Brazil
Law 10753 of October 2003: national book policy
Colombia
Law 98 of 1993.
Costa Rica
Law 7874 of 1999: tax exemptions and price controls
Chile
Law 19.227 of 1993
Dominican Republic
Law decree N.289 of 1970: recognition of the Dominican Chamber of
Books. A new book law was under discussion by the National
Congress at the time this research was conducted (November 2006)
Law 71 of 1987
Ecuador
Law 47 of 2006
El Salvador
Decree 808 of 1994
Guatemala
Law of 1999: promotion of books
Mexico
Law of May 2006
Paraguay
Law 24 of 1991
Peru
Law 28086 of 2003
Uruguay
Law 15913 of 1987
Venezuela
Law of April 1997
Source: Authors’ elaboration based on CERLALC (2006) and field data collection.
14
As illustrated in Table 4, only some
countries exempt books from the Value
Added Tax (VAT). While the VAT
exemption helps boost sales of books due to
lower prices, the exemption applies only to
the final products and thus creates
significant inequalities in the production
chain. In most cases, the publishing
industry has to bear the VAT as a production
cost.
Beginning in 2003, the editorial sector in
LAC started recovering and growing again
in the international market as well, reaching
about US$850 million in imports (1.7
percent of annual growth) and exporting
about US$340 million (CERLALC and
UNESCO, 2006).
Despite these positive figures, the editorial
sector in LAC still faces a number of
challenges, most notably a lack of
equipment and facilities and the serious
issue of piracy.
7
In addition, some countries
have neither public incentives nor easy
access to credit. Moreover, the publishing
industry has been negatively impacted by
the shift to digital media. In this regard, the
accessibility to online data in real time is
transforming the way publishing industry
products are consumed. However, at the
same time, paper, as a traditional means of
distributing editorial products, is expected to
continue as the main source of editorial
7
The term piracy refers to the unauthorized
reproduction of work protected by copyright and
also includes its illegal commercialization.
products in situations and places where
Internet is not accessible (such as places
without electricity) and when there is a need
of portability. This is true especially in
regions like LAC, where the accessibility to
online data covers a specific market niche
that is oriented to consumers with particular
needs and is still not a mass phenomenon.
Additionally, the phenomenon of piracy has
seriously hindered local and foreign
investment and has minimized local creation
and production, thus jeopardizing the market
in the long run.
8
Beyond the simple
economic loss, piracy also means that
respect for cultural products is lacking and
limits the impact of efforts to promote local
culture and identity. Finally, piracy often
supports and feeds organized crime.
Audiovisual
The audiovisual sector includes the
cinematographic and the television
industries. Together these two industries are
responsible for audiovisual products such as
feature films, documentaries, television
productions, animation, commercials,
corporate and government productions,
educational programs, music videos, and
catalogue shoots. Table 5 provides an
overview of the sector and its presence in
selected LAC countries.
8
Trade in pirated books in some countries
exceeds the legal market.
Table 4. VAT in Editorial Sector in LAC
Country
VAT
Argentina, Colombia and Peru
Exempt
Bolivia, Brazil, Costa Rica, Ecuador,
Honduras, Mexico, Nicaragua,
Panama, Uruguay and Venezuela
0%
Chile
18%
Dominican Republic
12%
El Salvador
13%
Guatemala
12%
Paraguay
10%
Source: Authors’ elaboration on CERLALC data (2006).
15
Table 5. Summary of the Audiovisual Sector in Selected LAC Countries
Item
Argentina
Brazil
Chile
Mexico
Venezuela
Population (millions)
34.6
161.8
14.3
93.7
21.8
Homes with TV (millions)
9.5
3.5
3.5
16
3.9
TV Penetration (%)
97.8
86.7
91.9
91.7
76.7
Pay TV Subscribers (%)
5.2
4.8
0.8
2.2
0.5
Pay TV Penetration
54.7
13.9
21.5
14.5
12.1
Home video cassette players (millions)
4
9.8
1.3
10.4
1.7
Video cassette penetration (%)
43.2
25
35
58
43.5
Movie houses
490
1200
150
1700
220
Movie audiences (millions)
21.3
90
7
75
13
Movie house attendance: person/year
0.6
0.6
0.6
0.9
0.6
Pay TV advertising revenues (US$ millions)
720
2604
296
1055
110
Video sales revenues (US$ millions)
110
765
33
205
15.1
Movie house revenues (US$ millions)
113
320
22.4
137
15
Total audiovisual industries (US$ millions)
2729
4811
608.5
1742.1
987.1
GDP/audiovisual revenues (%)
0.96
0.91
0.94
0.5
0.33
Audiovisual imports (US$ millions)
441.5
689.9
119.8
252
76
Audiovisual exports (US$ millions)
11.5
37
1.5
93.2
45
Audiovisual trade balance (US$ millions)
-430
-652.9
-118.3
-158.8
-31
Source: Getino (1997) in Moneta (2000).
Cinematographic Industry
The global market for the film industry is
dominated by Hollywood productions and is
estimated to be worth US$60 billion
annually.
9
The LAC film industry
reportedly accounts for 3 percent of
international film production, a proportion
that is low considering the large audience
Spanish and Portuguese speaking
worldwide. Following the economic crises
that affected several countries in the region,
virtually all forms of finance dried up,
forcing many cash-strapped production
companies to cut short mid- or post-
production. This lack of funds also
hampered the distribution, marketing, and
screening of films. Notwithstanding those
difficulties, more recently the LAC film
industry has entered a new period of
vitality and productivity. Currently, LAC
productions appear prominently in
international festivals and events, attracting
international and national audiences,
9
US productions regularly account for about 85
percent of film audiences worldwide (Riding,
2003).
offering networking opportunities, and
facilitating partnerships and business deals.
In the context of this discussion, it should be
mentioned that the cinematographic industry
is dominated worldwide by seven large
major movie production companies (from
now on, majors).
10
These companies control
the production and distribution of movies
worldwide and have a national and
international distribution network that
allows them to screen a regular and constant
number of movies on an annual basis.
11
There is a huge competition for world
markets between the US major movie
production companies and other audiovisual
companies. Even the European Union (EU),
despite the scale of its production shown in
Table 6, now faces problems similar to those
of the LAC region. Indeed, 80 percent of
European movies do not leave their country
10
The majors include Warner Bros., Paramount
Pictures, United Artists, Metro Goldwin Mayer,
Columbia Pictures, Universal Pictures, and
Twentieth Century Fox.
11
For instance, US movies account for 62
percent of movies shown in Mexico (Guzman
Cardenas, 1997).
16
of origin. This competition has led EU
member countries (and also other countries)
to argue strongly in favor of a so-called
“cultural exception” for audiovisual
products in the context of international trade
negotiations, on the basis of principles
similar to those applied to the fields of
education, health, and culture in general.
In LAC, only the most economically
powerful countries, those that currently have
protection regimes (e.g., Argentina, Brazil,
and Mexico), have been able to maintain
regular production. As Table 7 shows, in
2005 among LAC countries, Argentina had
the highest number of film releases (65),
compared with 47 for Brazil, and only 25 for
Mexico. In this regard, local and regional
production and distribution could be boosted
if protection regimes and incentives for co-
production with foreign private capital from
both within and outside the region,
following the European model, were
adopted.
Currently, the principal actors that finance
the LAC film industry are: i) governments,
largely through indirect support; ii) private
partnerships; iii) major business enterprises
such as television stations; and iv)
multilateral programs such as IBERMEDIA.
In recent years, public support for the LAC
film industry has been aimed at attracting
foreign investment, while domestic
productions has been characterized by low
levels of funding—predominantly grants and
seed funding. However, some countries do
provide incentives for local production.
12
In
general, various types of tax incentives are
offered in most LAC countries and in many
cases, represent the principal form of
12
For instance, in Brazil, tax shelters and
concessions largely drove local film production
during the 1990s. In 2006 Mexico’s Congress
passed a tax incentive law to permit individuals
or corporations to allocate as much as 10 percent
of their federal tax payments to a national
filmmaking fund.
Table 7. Films Released in 2005
Country
Number of Films
US
563
France
200 (estimated)
Spain
142
Britain
89
Argentina
65
Brazil
47
Mexico
25
Chile
14
Colombia
8 (2004)
Venezuela
6 (average 1990-2000)
Peru
4 (2004)
Source: Authors’ elaboration on country-level data.
Table 6. Titles Produced, Total Investment and Average Cost per Film
by Region, 1997 (US$ millions)
Region
Titles
Total investment
Average cost
US
889
9,822.8
14.6
EU
912
3,213.8
3.5
LAC
96
113.6
1.2
Source: Moneta, 2000.
17
support for the film industry. On the other
hand, estimates show that throughout the
1990s local film companies received
approximately 0.5 percent per capita in
public assistance in comparison to
approximately 1.8 percent for the European
industry, and 5.5 percent for US local
industry (CAB, 2003). Table 8 provides an
overview of the main means of financing
and the amount of state support for film
production in selected LAC countries for
1996. Argentina, which has one of the
strongest film industries in LAC, has also by
far the largest amount of state support to the
industry.
Given the modest size of domestic markets
and the close ties between movie theaters
and the multinational majors, which tend to
favor foreign films, it is difficult to recover
capital outlays or earn a decent profit on the
basis of the domestic market alone. Overall,
LAC countries lack a strategy to bring their
film productions to the international market
on a continuous basis. While production
rates are rising and private investment has
increased since the early 1990s, a lack of
finance still remains a major impediment to
sustaining growth in film production and
entering export markets. In addition, the
general elimination of state support policies
that accompanied the liberalization and
restructuring of LAC economies during the
1990s has significantly contributed to the
sector’s deteriorating situation.
Piracy is also a major problem in the
industry that hinders its further
development. Specifically, the low prices of
pirated products negatively impacts
audiences in movie theaters, thus making it
less appealing to show domestic movies in
theaters and to increase the number of movie
theaters in the country.
13
Piracy also
seriously thwarts the involvement of TV
channels in the film industry. Even if
collaboration between the film and
television industries is in fact very easy
because many producers and technicians
often work in both sectors, the high degree
13
For instance, in the Dominican Republic a
pirated movie costs about 50-80 Dominican
pesos (US$ 1.50 - to $2.50) and after seeing it, a
person can return the movie to the vendor and
exchange it for a new one. In contrast, a movie
theater ticket in the Dominican Republic costs
about 100-180 Dominican pesos (US$ 3.00 -
$5.50).
Table 8. Means of Financing Motion Picture Production
and State Involvement in LAC (1996, US$)
Country
Subsidy
State Support
Loans
Premiums
Advance
on sales
Financial
Partnership
Argentina
X
53,434,000 (from tax revenues)
X
X
X
Bolivia
X
X
Brazil
State and municipal tax
incentives to production and co-
production
X
Chile
X
900,000 (from national budget)
Colombia
110,000 (from national budget)
X
Costa Rica
X
185,000 (from national budget)
X
Cuba
National budget support
X
Mexico
2,550,000 (national budget)
X
Peru
200,000 (national budget)
X
Uruguay
X
National budget support
X
X
Venezuela
X
5,320,247 national budget
support and tax incentives
X
X
X
Source: Getino (1997) in Moneta (2000).
18
of piracy in the movie industry limits
incentives for TV channels to buy
copyrights and broadcast movies, especially
domestically produced ones.
Another opportunity for the expansion of the
industry in LAC is film location The
Hollywood film industry is increasingly
producing more movies on locations outside
of the US, benefiting from lower labor rates
and incentives offered by many countries
anxious to attract foreign productions. LAC
could take greater advantage of this
opportunity and make greater efforts to
promote not only its locations, but also its
production services, through skilled labor
force and streamlined processes for filming
in public spaces. In fact, some countries
have established agencies and film
commissions precisely with this goal in
mind (see Box 3 on the Argentina
experience).
Television industry
The television industry is divided according
to its form of broadcast: open-air television
channels and paid television channels (cable,
satellite, and paid TV). Especially in areas
with high illiteracy rates, TV, with its high
penetration rates, assumes the functions of
school, newspaper, and social community.
The great majority of Latin American
families, 84.1 percent, has access to open
TV (Moneta, 2000). Indeed, the problem in
the region is not one of access, but rather the
content of TV programs.
Private and commercial television programs
dominate the market. More than 50 percent
of TV programs in LAC are imported due to
the fact that it is economically more
convenient to purchase programs in the
international market than to locally develop
new ones. The US, where a huge domestic
market ensures profits that will cover costs,
supplies 70 percent of programming
imports. However, some countries have
been successful in locally producing their
television programming, such as Chile and
Argentina. Given the general imbalance
between domestic production of TV
programs and imported programming,
several countries in the region (Peru,
Colombia, Venezuela, Chile, Ecuador,
Argentina and Bolivia) have established
legal quotas for domestic programs.
Moreover, a smaller group of countries led
by Venezuela has started its own news
network, mainly to counter the domination
of CNN.
In the context of television production,
telenovelas play a particularly important role
in the LAC cultural industry landscape. In
this regard, telenovelas represent one of the
most exportable products already present in
the international market with the potential to
achieve even greater success. Currently,
there are some highly developed and
commercialized media systems such as
Brazil’s TV Globo and Mexico’s Televisa
that have already successfully exported
programming to other countries in the region
as well as to the US, EU, and other
international markets (including China).
However, telenovela exports are only a
minor element in the overall balance of trade
in television products since imports far
Box 3. BASET - Buenos Aires Set de Filmación
The Sub-secretary of Cultural Industries of the city of Buenos Aires, Argentina has a program
aimed at the film industry, called BASET, Buenos Aires Set de Filmación. BASET provides
assistance to audiovisual production in the city of Buenos Aires, especially in the management
of licenses for filming in public spaces, offers consultant services and information about
locations and production services. In particular, BASET has a team that assists and monitors
filming in public streets, which is very important because if a film producer does not have a
license, he or she can face administrative sanctions or legal action. In 2005 BASET assisted in
the production of 38 feature films, 468 commercials, and 58 television programs.
19
outweigh exports. In 1997 exports of
telenovelas accounted for some US$100
million for TV Globo (Brazil) and Televisa
(Mexico) and roughly US$15 million for
firms in Colombia, Argentina and
Venezuela. As for the cinematographic
industry, some of the obstacles to increase
exports of telenovelas and other television
products are related to selecting a standard
(Japanese, US or European), the costs of
technological adaptation, and rising
production costs involved in using the new
technologies in order to make products
competitive (Moneta, 2000).
14
In their most elaborate and polished
versions, telenovelas have served to increase
understanding of certain features of Latin
America and the Caribbean’s multicultural
identity in foreign countries, and generally
speaking, have provided a successful basis
for learning how to market symbolic goods
internationally. Following these examples,
telenovelas represent a means to reaffirm
local heritage and catalyze social content as
well as to promote local culture in both local
and international markets.
Phonographic
The phonographic sector includes a range of
activities with various streams. It
encompasses the production and distribution
of sound recordings or sound carriers
(records, tapes, CDs, MP3s), the
manufacture of instruments and audio
equipment, live performances, professional
and technical services, music publishing, the
administration of authors’ and other related
rights, and music broadcasting.
14
However, a recent technological breakthrough
may mitigate some of these issues. According to
CNN.com (September 27, 2006), the Britain-
based New Medium Enterprises (NME) recently
stated that it “had solved a technical production
problem that makes it possible to produce a
cheap multiple-layer DVD disk containing one
film in different, competing formats.”
Discographic Industry
In most industrialized and developing
countries, music represents one of the main
significant cultural industries, whether
assessed in cultural or economic terms. Ten
years ago, the Latin American music
industry was considered the fastest-growing
sector of the world entertainment economy.
Music sales doubled from 1981 (US$12
million) to 1992 (US$24 million) and then
nearly doubled again by 1996 (US$40
million) (Ochoa and Yúdice, 2002).
However, its growth slowed by the end of
the 1990s, when the economic crises
affected the music industry as well. In 2000
Latin American music sales accounted for
just 5 percent of total world sales (Throsby,
2002).
While there has been a decline in
international sales, there has also been
increased consumption of local and regional
products (Cunningham et al., 2005).
For
instance, MERCOSUR countries have the
largest share of production volume and sales
in LAC, having more than 130 million units
sold per year (Getino, 2001). This trend
indicates an improved capacity of local
music industries in a number of countries to
serve their domestic customers. However,
there is considerable variation across
countries. Considering the popularity of
local and regional music throughout LAC,
there is great potential to strengthen regional
consumption and culturally proximate
markets for Latin music.
In the context of this discussion, it is
important to emphasize that there are three
major issues that are partly responsible for
the current situation of the music industry
worldwide: i) the industry structure, ii) the
new digital technologies that enable easy
home downloading, and iii) the phenomenon
of piracy.
In particular, vertical integration has been a
prominent characteristic of the international
music industry over the past few decades
and has led to a series of significant mergers
20
within and between different sectors of the
media industries. As a result of these
mergers and take-overs during the 1980s and
early 1990s, a few multinational media
corporations now “own” most of the
superstars as well as a large repertoire of
music copyrights.
15
In this regard, the
marketing strategy of these companies has
focused on a few hits by selected artists and
has not attempted to disseminate the work of
many others. This establishes a division of
labor with LAC firms. The latter, given the
high returns they need to justify their
investment in an album (some US$100,000
or more), tend to specialize in identifying
new talent, and then selling their contracts or
licenses to the majors for promotion and
distribution. Thus, independent labels act as
15
Together, Sony (Japan), Universal-Vivendi
(France), AOL Time Warner (US), EMI-Virgin
(UK), and BMG (Germany) consistently account
a source of new talent and new sounds. In
addition, most of the creative, as opposed to
the financial risk-taking, is undertaken by
these small independent firms, where new
ideas result from experimentation. As such,
many developing countries’ independent
labels represent a valuable resource that can
only be exploited if assistance is provided at
the creative stage. More specifically, and
despite their somewhat strong presence and
vitality, local independent labels face
difficulties in credit access, distribution, and
management. Furthermore, these firms also
need various forms of assistance, including
technological expertise and advice on
product development and copyright
protection (see Box 4).
for 70-80 percent of global music sales (Wallis,
2001).
Box 4. What Is an Independent Label?
The mode of production of independent labels is often linked to a personal relationship to the
music being produced—a special interest in a particular musical genre, the search for unknown
talent as a policy of the company, or a political commitment to some forms of music.
Independents do not exist in isolation, but are rather part of a network that includes other
venues of cultural and music production such as cultural centers of the state, NGOs, and
specific artists. However, relationships between the different actors of this network can often
be difficult because ministries of culture, record companies, and artistic organizations come
from totally different backgrounds and use different “languages”. Consequently, better
communication among these actors is becoming increasingly important in order to expand the
benefits that independent labels can reap from their involvement in these networks.
Distribution is a crucial issue for independents. The means of distribution for independents
changed at the end of the 1980s and the beginning of the 1990s with the diversification in
music genres promoted by industries. The emergence of categories such as world music, new
age music, Latin music, etc. have played a role in diversifying the offer. Over the last few
decades, independents have been able to place at least a portion of their catalogues in music
stores. In addition to these main distribution channels, independents also distribute their
products in various types of formal and informal venues, ranging from bookstores to small craft
stores or through improvised moveable stands in front of theaters. Often these smaller
informal venues offer a much more personal approach to distribution and even sell more
records than the big stores. However, despite new approaches, distribution is becoming a
significant problem for independents. If a record produced by an independent company is
successful, it is likely to be overtaken either by the majors who offer lucrative contracts to
successful artists or by piracy. In either case, the independent label ends up for not earning
the high level of revenues from a newly discovered artist.
21
In terms of the technology used in the
industry, the business model of the
discographic industry has experienced rapid
techno-economic changes with the growth
of the digital and Internet economy (e.g.
iTunes, iPods, Napster, MP3, online
subscriptions, ring-tones, etc.). Perhaps the
most drastic change is that consumers are
becoming producers. To some degree,
technological innovation is also challenging
the traditional structure of the industry, with
the emergence of thousands of independents
and multiple venues of self-production that
do not go through the system of the industry.
In this context, it is important to note that
transformation in digital technology has also
led to the development of multiple forms of
piracy: from large-scale organizations to
personal downloading of music via the
Internet. According to IFPI (International
Federation of Phonographic Industries), the
volume of illegal music sold worldwide in
2001 was about US$4.3 billion, meaning
that almost 40 percent of all CDs and
cassettes sold around the world are pirated
copies (IFPI, 2002). In fact, piracy rates in
LAC countries are among the highest in the
world and discourage investment and artist
development. Getino (2001) estimates that
the losses caused by piracy are on the order
of 25 million dollars per year in Argentina
and 110 million in Brazil. In some countries,
such as Argentina and the Dominican
Republic, copyright collective societies, the
government, and the school system work
together to carry out awareness campaigns
targeting students, considering that young
people are the main consumers of pirated
music.
Radio
Traditionally, radio has had high
penetration in both urban and rural areas.
Especially in rural areas, even without
electricity, radio is able to reach almost
every household. However, the important
role that radio has played and continues to
play, is now partly shifting to television.
As shown in Table 9, in 1996 the ratio of
number of radios per capita (hundred
inhabitants) was 68 in Argentina, 61 in
Bolivia and a little less in Uruguay and
Venezuela (45). Overall, in LAC, there is
one radio for every three inhabitants.
Table 9. Radios Per Capita in LAC - 1996
Country
Radios /100 inhab.
Argentina
68
Bolivia
61
Brazil
22.2
Colombia
14
Costa Rica
26
Dominican Republic
17
Honduras
39
Mexico
25
Uruguay
45
Venezuela
45
Source: FELAP, 1996.
22
Community radio stations, owned, run and
editorially controlled by the public they
serve, constitute a reality that complements
publicly and privately owned networks.
Currently, there are more than 2,000
community radio stations broadcasting in
Latin America, 400 of which are affiliated
with the World Association of Community
Radio Broadcasters (AMARC). These
“alternative” radio stations may not have a
range beyond the neighborhoods, villages or
islands from where they broadcast, and
many of them are staffed by local
volunteers. In addition and unlike
commercial radio, which makes money from
advertising, community radio stations are
not profit-oriented, though sometimes they
accept small advertising fees in order to
survive (Roncagliolo, 1999) . Finally, the
most important function of these radio
stations is to contribute to the creation and
the evolution of indigenous and local
content and to foster local development
through increased ownership.
Multimedia
Multimedia is situated at the crossroads of a
large number of technologies and economic
sectors. Because this industry is under
continuous development, available data
quickly become unreliable and out of date.
The multimedia sector combines content
(text, pictures, sound, music, graphics, data,
animation, full-motion video) to create a
variety of communication products. The
sector includes the advertising industry,
video games industry, software industry, and
all media support. Even if relatively new,
this sector is experiencing fast growth,
depending mostly on the increasing presence
of personal computers and the rapid
convergence of computing and
telecommunications. It is important to
highlight that the use of these technologies
is also increasing in rural areas through the
diffusion of Internet-based local services.
As a sector of cultural industries,
multimedia provides creative new ways of
production. Other sectors of the cultural
industries use multimedia for a variety of
purposes ranging from fine arts, to
entertainment, to commercial art, to
journalism, to media and software services.
In this context, small businesses are an
important, if not dominant, force in the
multimedia sector. However, they often
lack the required skills in management,
funding, setting up strategic partnerships,
and distributing and marketing their
products and services. Although data are
not available, employment in the sector also
shows important dynamics, especially in the
areas of multimedia and software
Within the multimedia sector, the video
games industry plays an important role. In
particular, concerning the video games
industry and new media, LAC is a
contradictory and changing market. It is
difficult to talk about a proper LAC video
games industry; rather, it can be seen as an
industry that locates itself between local
representation of the global video games
industry and the “appendix” of the national
toys and games industries (Lugo et al.,
2002). This definition is confirmed by
market trends and the role of the players.
Thus, defining the video games market as a
“maquila” of the global industry seems to be
correct.
16
Finally, the main stakeholders
perceive piracy as a major threat to the
future of the video games industry in LAC.
To date, this industry offers little
opportunity to create a local games industry
that can provide added value in terms of
software. To the contrary, “it seems
improbable that the region would have”
16
The maquila, also called Maquiladoras, are
industries managed by international corporations
in economically deprived areas that mainly
import spare components of certain products,
assemble them using cheap labor and export
them tax free to the US. The maquilas
significantly benefit from special government
treatment—presumably justified by the fact that
they are located in poor areas.
23
soon “the opportunity to offer its own
version of Space Invaders—as the television
did with the telenovelas—because the
market and the industry have already been
colonized and the economic actors appear to
be from another planet” (Lugo et al., 2002).
For this reason, LAC has been defined as the
“backyard” of the US (Lugo et al., 2002).
Visual and Performing Arts
The visual and performing arts sector
includes theater, opera, dance, concerts and
performances, orchestras, design, fashion,
from the traditional fine arts to popular arts
such as crafts. LAC presents a varied offer
of quality products related to the visual and
performing arts sector. Moreover, there is
an important presence of new creativity
mixed with traditional experience.
The most important sub-sector of the visual
and performing arts is represented by local
crafts production. In this regard, handicraft
producers in LAC are mostly micro
enterprises whose businesses are strictly
connected with tourism. Yet the sector is
often poorly organized and dispersed, there
is no consensus among the actors, and there
is some resistance to becoming more
business-oriented. The crafts sub-sector is
both an important generator of wealth and a
key factor in preserving traditional culture
and guaranteeing cultural diversity;
therefore, this sector could be an ideal way
to develop and encourage local cultural
diversity. By reflecting the creativity,
culture and heritage of crafts people, crafts
products have an increased added value.
17
However, much work remains to be done to
preserve, promote, and increase the presence
of the crafts sector in socioeconomic and
cultural terms. The main weaknesses in the
crafts sector are mostly related to a lack of
associations of firms, access to credit, and
innovation. Furthermore, in some countries
(for example, Argentina) there is no specific
legislation for the sector.
The design sub-sector runs across many
cultural industries that use visual support
for their products. Box 5 describes an
innovative program funded by the city of
Buenos Aires, Argentina.
17
Department of Trade and Industry of South
Africa, “Cultural Sector Technology
Development Trends” at
<http://www.thedti.gov.za/downloads/developm
enttrends/culturalsectortourismsectorTechnology
developmenttrends.pdf> accessed on September
2007.
Box 5. CMD - Metropolitan Design Center
The CMD is a public institution created to assist companies, designers, and entrepreneurs in
Buenos Aires with the aim of improving their competitiveness in design and innovation trough:
Innovation - Seeks to create and communicate know-how among the various actors in the
value chain;
Strategic Design - Works on design strategies by drawing on the experience of what has been
achieved in some productive sectors (the communication infrastructure, timber and mineral
industry, fur supply, tourist development and cultural production, among others);
Management - Promotes, designs, and organizes programs for a more efficient use of
resources in the value chain.
The principal working areas of the CMD are:
Research and Dissemination (I + T, Investigación + Transferencia) – Develops strategic design
know-how that can be transferred to the production and commercial system;
Product - Contributes to the creation of multidisciplinary and cross-institutional teams;
Fashion - Interacts with the entire fashion system network: textiles, leather goods, footwear,
accessories, jewelry, and bijouterie, to achieve a strong bond aimed at enhancing opportunities
in the sector;
Interactive Design - Provides new information and communication technologies;
Incubation - Promotes the growth and development of projects linked to design, tourism, and
cultural industries; to date, CMD has incubated 25 firms.
24
In the Dominican Republic, since 1982, the
Altos de Chavon School of Design has
trained graphic designers for local and
international job markets (see Box 6).
Students who graduate from the school find
jobs in the editorial sector (for example,
with Editora Taller and Centro Leon),
magazines, advertising, and design, or in
graphic design firms. Usually the quality of
the designer products is good, which means
that there is no need to seek talent outside
of the country.
With regards to the performing arts sector, it
is important to note that the worker is not a
factor of production, but is in fact, the
product itself. There is no complex process
between the raw material and the final
product. Due to this particular
characteristic, there are some important
consequences for the economics of the
sector. Unlike other industries, performing
arts cannot improve their productivity to
compensate for an increase in costs. The
performing arts is a sector with increasing
costs and low demand, which in most cases,
means that there is insufficient revenue to
cover these costs. To support the performing
arts, there are specific programs at the
national and international levels, such as the
IBERESCENA program for theater (see Box
7), which is patterned on the IBERMEDIA
program of the audiovisual sector.
Box 7. IBERESCENA
IBERESCENA is a multilateral technical and financial cooperation project designed to
encourage the development of contemporary theater and dance in the Ibero-American region.
The program aims to create and consolidate a theater and dance network in its member states,
in the Spanish-speaking countries, through grants, subsidies, and other incentives. To develop
the activities of the program, a multilateral financial fund of 1 million dollars was established. The
minimum contribution for member countries is US$75,000. IBERESCENA is especially designed
to complement the actions of artists, managers, and performing arts organizations. The
participating countries are: Argentina, Colombia, Chile, Spain, Mexico, the Dominican Republic,
and Venezuela.
Box 6. Altos de Chavon School of Design
Since 1982, the school has been affiliated with the School of Design of Parsons University in
New York City that recognizes degrees earned at Altos de Chavon. Other affiliated universities
are in Japan, Korea, and France. These partnerships mean that after studying for two years at
Altos de Chavon, students can either enter the job market or continue their studies in one of
the school’s affiliates. The Parsons School of Design also has a program specifically for
Dominican students. Of the total 1,100 students graduating, 20 percent went on to study at
Parsons. Recently, the school also entered into a new partnership with a Mexican University.
Just as with Parsons, Altos de Chavon graduates have the option of continuing their studies in
Mexico. In particular, the advantage of this new partnership is that for Dominican students,
Mexico is more affordable than New York City. For example, of 18 students graduating last
year, six of them continued their studies at the Mexican university, while the others all found
employment.
The school seems to have good connections with local firms. Students who graduate with a
degree in graphic design generally work for magazines, advertising, and design or graphic
firms. For instance, 80 percent of the employees in one Dominican graphic design firm are
graduates of Altos de Chavon. In addition, many advertising companies actively recruit
professionals from the school. The school’s serigraphy workshop also provides services for
outside firms, including a firm from Puerto Rico that has been printing cards there for five
years. In other cases, firms ask the school to provide some services using student labor. For
example, a firm producing tiles requested the school to develop a new product line, and fine
arts students carried out the project. Another example is the design of a new logo for a hotel
by graphics students. On the whole, almost all graduates find jobs or go on to study at one of
the affiliate universities. Fashion students find often job in the Zonas Francas (Free Trade
Zones) in the many garment factories as quality control auditors or product developers.
25
The promotion of visual and performing arts
can substantially impact the alleviation of
poverty by supporting the sustainability of
cultural activities such as crafts
manufacturing, dance, and music.
Participation in cultural activities, whether
dance, theatre, music or crafts, builds self-
esteem and confidence and contributes to
building a strong identity, which is
important not only for individual growth,
but also for the ability to engage
productively in the society. Moreover,
gender relations can also be addressed in
this sector since many artists, producers, and
performers are women, although few women
own or run associations. Finally, a
production that emphasizes quality and
unique features through well-developed
local design and crafts has a great likelihood
of differentiating itself from other products
and increasing international
competitiveness.
Cultural Tourism
Tourism has become one of the most
important industries globally, placing it
ahead of the production of automobiles and
chemicals, and playing an increasingly
significant role in the global market.
Worldwide in 2006, there where 36 million
more tourists than in 2005 (3 million more
just in the Americas).
18
In the last two
years, LAC countries have evidenced
important growth in international tourism
visitors. According to UNWTO (2006),
both in 2005 and 2006 the international
tourism market in the region grew
significantly, especially in Central America
(see Figure 3).
This trend is being fueled by the process of
globalization and by technology, through the
proliferation of online services and tools that
make it easier for travelers to choose their
destinations and customize their itineraries
based on their interests. In this regard, the
following two trends currently dominate the
tourism market:
• Mass tourism that is tailored to the
interests of the individual consumer and
not related to the unique characteristics of
the destination; this kind of tourism takes
into account both sports and leisure travel
18
Source: World Tourism Organization
-
http://www.world-tourism.org/ (accessed in
March 2007).
Figure 3. Annual Growth of International Tourism in LAC (tourists volume)
Source: Authors’ elaboration on UNWTO data.
26
as well as standardized and all-inclusive
travel packages; and
• Cultural tourism, characterized by a
growing number of travelers who rank
cultural heritage and other cultural
activities as one of the top reasons for
traveling.
Cultural tourism includes tourism in urban
areas, particularly historic or large cities,
with particular emphasis on monuments and
architecture, and cultural facilities such as
museums and galleries. This type of tourism
also covers rural areas and includes nature
and eco-tourism. Moreover, gastronomy
and typical products are an important part of
cultural tourism. The rise of cultural
tourism can be interpreted as a result of
modern globalization in which international
travel and cultural discovery have become
part of the consumption patterns of large
parts of the western world. At the same
time, cultural tourism is largely fed by
domestic tourism, which demonstrates an
increasing awareness on the part of people
of their indigenous heritage.
In LAC, cultural tourism is an increasingly
important source of income for local
populations and governments. LAC
countries offer a variety of cultural
attractions to tourists; archeological sites,
colonial cities, and natural scenery are
among the first resources sustaining the
development of the sector. Unfortunately,
specific data on the contribution of cultural
tourism to market and employment level is
not easy to obtain. However, data is
available on the tourism sector’s
contribution (including mass and cultural
tourism) to GDP in LAC. In Mexico, in
1998 the contribution of tourism to GDP
was about 8 percent (Piedras, 2004). In
Argentina, according to the National
Institute of Statistics and Census (INDEC),
in 2006 international tourism, especially
cultural tourism, was the third largest source
of income for the country. On the other
hand, there are countries such as in the
Caribbean, where tourism represents one of
the most important economic activities
(reaching 34.1 percent of GDP in the
Bahamas and 29.2 in Barbados), which often
translates into resorts oriented to mass
tourism. The economic relevance of cultural
tourism is also related to the fact that
cultural tourists spend substantially more
than “standard” tourists do. In addition,
tourism also creates direct employment and
contributes to other sectors indirectly related
to it.
Given its economic contribution, tourism
can be viewed as an instrument for poverty
alleviation and boosting socio-economic
development. However, there is lack of
dialogue among institutions, especially
between the tourism and cultural sectors.
Moreover, tourism often fails to establish
successful linkages with the local economy,
especially considering that in some countries
(such as in the Caribbean), the most
prominent form of tourism are resorts
oriented to mass tourism, which largely
depends on imports. On the other hand, in
some countries, public strategies for cultural
tourism have been developed; these
strategies emphasize the linkage to unique
typical aspects of the country, such as the
“Estrategia de Marca País” (Strategy for a
Country Brand) program in Argentina (see
Box 8). Overall, it is necessary to seek out
strategies aimed at fostering the
development of cultural tourism, not only as
an economic engine, but also as an
important means of preserving and
promoting local cultural and natural
heritage.
Sports
The sports sector plays a significant role in
modern societies; in fact, in some LAC
countries, sports is much more than a sector;
rather, it is the national passion. This is the
case of baseball and cricket in the Caribbean
and soccer in Brazil and Argentina.
27
The economic impacts of the sports sector
are multiple, although not measured. This
sector involves other sectors of cultural
industries (for instance, the audiovisual,
phonographic, and editorial sectors through
broadcasting of sports competitions on
television and radio, news reports, and daily
and weekly newspaper reports). The sports
sector also has a social cohesion function
and can help distract people from socio-
economic frustrations, facilitate social and
cultural integration, and also help to reduce
social and gender distance. Furthermore,
sports clubs have the potential to perform
wide-ranging socio-cultural functions,
including leadership, participation, skills
development, providing a community hub,
health promotion, social networks, and
community identity.
Finally, in the cultural realm, sports may be
both an expression of national or regional
cultural characteristics and a source of
cultural creativity. For example, it has been
argued that the style in which Brazilians
play soccer is illustrative of other attributes
of the Brazilian “character” (Zurcher and
Meadow, 1967).
Box 8. “Estrategia de Marca País”
The project, known as “Marca Argentina”, was initiated in 2004 by the Presidency of the Nation
and the Ministry of Tourism in collaboration with other public organisms and numerous private
institutions. Marca Argentina was created to introduce products that can be clearly associated
with Argentina to the market. The project provides a system of visual identity graphically
identifying Argentine products and aims to establish a brand symbolizing national identity. The
brand is also helpful in terms of identifying local authentic products, and at the same time is an
easy way to link products to quality.
28
PART III. CHALLENGES AND OPPORTUNITIES FOR CULTURAL
INDUSTRIES
Despite the unique characteristics of each
sector in cultural industries, they share a
number of common challenges. This section
discusses these challenges as opportunities
for future intervention by governments, the
private sector, and multilateral development
banks. Before starting this discussion, a
general observation should be highlighted:
cultural industries cross the boundary
between culture and economics, creating a
need for dialogue and links between cultural
and economic actors. In many developing
countries, the importance of cultural
industries, and more broadly that of the
cultural arena, is often under-appreciated by
local decision-makers. The low status of
cultural industries has resulted in a lack of
coordination of the policy-making branches
of national and local governments,
especially between culture and economic
development departments. These
departments often have conflicting agendas,
resulting in incoherent policies for the
sector. In addition to the lack of policy
coordination, these two sets of actors often
view one another as belonging to completely
different areas of interest in terms of their
vision, values, and objectives (Moneta,
2000). On the one hand, many economists
do not view culture as a resource that can
foster economic development, while on the
other, actors in the cultural area often do not
recognize the economic dimension of their
activities, and, consequently, fail to take
advantage of economic opportunities. In
order to foster greater competitiveness of
cultural industries, linkages need to be
created to improve the dialogue among
economists, public officials, businesspeople,
bankers, and their counterparts in the
cultural sector. With this observation in
mind, this section addresses the specific
challenges common to all sectors in cultural
industries and offers possible solutions for
intervention.
Public policies and role of the
state
There is a need for new industrial and
cultural policies targeted to cultural
industries (Buquet, 2006). First, there is a
disconnect between existing state policy and
the sector needs because traditionally
cultural policies have focused on grant-
giving and subsidizing cultural institutions.
Public entities that are the target of state
support usually are not connected with
commercial and cultural entrepreneurs,
which often do not seek public subsidies.
Second, market distortions create a need for
state intervention. Since many cultural
industries have large economies of scale,
they tend towards oligopoly and therefore
exhibit abusive and unfair practices. Indeed,
large multinational corporations usually
dominate many markets around the world
and hinder the competition of cultural goods
and services that are produced domestically
or by third countries. These conditions
justify state intervention to compensate for
market distortions and facilitate the
distribution of alternative cultural products
by promoting domestic production and
cultural diversity. Third, cultural industries
produce a number of benefits that are not
entirely captured by market and investment
returns. These industries contribute to
educating and training people, giving
pleasure to current and future generations,
thus increasing the attractiveness of a
country to tourists, and helping build a
country’s image—all of which create
economic benefits in the medium- and long-
run. Additionally, many cultural industries
29
are sustainable, environmentally friendly,
and require little investment in new
infrastructure.
Among the policies that have been applied
successfully to this sector are decreasing
fiscal pressure, tax reduction for the import
of production inputs, direct or indirect
subsidies, government procurement (to
ensure demand of cultural industries
products), and easy credit. Such policies
direct investment to this sector by increasing
return on investment. An example of this
type of policy is the publishing industry in
Colombia. The Colombian book law (Law
no. 98, 1993) provides two decades of tax
relief for resident publishers and guarantees
that 20 percent of their output will be
purchased by public libraries. In this regard,
national legislation has been among the
decisive factors in the consolidation of the
industry, contributing to the country’s
growth in book exports. From 2003 to 2004,
total book exports grew at a rate of 18.7
percent, increasing from US$94.6 to
US$112.4 million.
19
Some of the measures
that have been adopted in Colombia can be
applied to other countries in the region,
including the adoption of a national book
policy, tax exemptions on inputs, free transit
for publication-related negatives, and
systems to encourage the import of
equipment for the printing industry (Moneta,
2000).
In contrast with policies designed to increase
return on investment, in other cases, policies
aimed at cultural industries support domestic
production that would not be viable without
such assistance. This is often the case in the
film industry. For instance, in Argentina the
success of the movie industry is due to the
central role that the state plays in both the
production and screening of movies through
the INCAA (National Institute of Cinema
and Audiovisual Arts), a government agency
that promotes the Argentine film industry
through a variety of funding mechanisms
19
International Book Fair of Bogotá’s website,
accessed on April 2007.
(mainly subsidies, grants, and easy credit) to
qualified Argentine film production
companies.
20
INCAA’s budget comes from
the national government, as well as
percentages of box office revenues (both
domestic and foreign), TV royalties, and
home video revenues. It is an autonomous
(autarkic) entity, which means that it decides
how to use its resources. In this regard,
there is little doubt that without state support
channeled through INCAA, the sector would
not be viable.
Yet government intervention not only
applies to developing countries’ cultural
industries; indeed, several developed
countries have launched a number of
initiatives to support their domestic cultural
industries, which otherwise would not be
profitable. In Canada, for example, there are
a number of institutions that provide support
(at the federal, provincial and municipal
levels) to the domestic film industry
including the National Film Board of
Canada, Telefilm Canada, the Department of
Canadian Heritage, the Canadian Radio-
Television and Telecommunications
Commission, and the Canada Council for
the Arts. Through government-funded
institutions, quotas, incentives and
production grants, the Canadian film
industry has been provided with the means
to create high-quality programming, which
has resulted in the doubling of film
production over the last decade.
Indeed, governments can also play an
important role in providing effective legal
and regulatory frameworks for cultural
industries, which are often lacking in LAC
countries. In many countries in the region,
regulations are characterized by old laws,
20
According to the Laboratorio de Industrias
Culturales, Subsecretaria de la Nación, in 2005,
65 films where released in Argentina (on
average, an Argentine resident went 0.96 times
to the movies in 2005, while the average for the
city of Buenos Aires was 3.94 times). For
additional details, see the section on the
audiovisual sector in Part II of this paper.
30
lacking in coordination and thus,
overlapping over time. Confusion on the
legislative and regulatory side, together with
the multi-sectoral nature of cultural
industries, has resulted in the creation of a
plethora of agencies and institutions that
provide redundant oversight of the sector.
Regulations and institutions are also needed
to combat piracy, which has grown
dramatically in recent years. Trade in illegal
products in some countries exceeds the legal
market, especially in the sectors
characterized by the presence of non-
traditional media. In 2000 the International
Federation of Phonographic Industries, the
global piracy enforcement agency of the
sector, estimated that the market share of
pirated products in the phonographic sector
was 90 percent in Paraguay, 75 percent in
Brazil, and 60 percent in Mexico (IFPI,
2001, in Gauthier and Yúdice 2002). In the
editorial sector, piracy is also a huge issue.
In 2001 the annual turnover of the legal
publishing industry in Latin America and
Spain was estimated at US$5 billion per
year, compared with the pirated book market
of US$8 billion (Kuntz, 2001). However, it
would be naive to assume that effective
control of piracy will automatically lead to
the creation of legitimate businesses.
Besides the economic loss, piracy also
means an inadequate respect for cultural
products and thus hinders efforts to promote
local cultural heritage and cultural identity.
Finally, the public sector, together with
private actors, could take steps to improve
the availability of reliable and accurate data.
As mentioned earlier, given the multi-
sectoral nature of cultural industries, data on
these industries are found across a number
of other sectors in the entire economy, thus
hampering efforts to obtain an accurate
overview of cultural industries and making
comparisons among its various sub-sectors
as well as with other economic sectors
difficult. In this regard, data and economic
indicators are needed to identify the
strengths, weaknesses, and opportunities for
the sector and to better allocate private and
public resources. In particular, the lack of
data and economic indicators has important
implications for the political economy of
cultural industries, because without such
data, public and private actors do not have
a clear idea of the impact of the sector on the
overall economy. Consequently, they
remain unconvinced of its importance and
do not give it a high priority in the political
agenda. Following the examples of Chile’s
Banco Central and Colombia’s statistical
institute (DANE), LAC countries should
develop special satellite accounts for culture
(see Box 9). Furthermore, these accounts
should be created in a comparable fashion
throughout the region so that a regional
analysis would be possible.
Box 9. Data and Indicators for Cultural Industries
An increasing number of governments have recognized the importance of cultural industries by
developing policies at the national and sub-national levels to support their growth. The UK is
widely recognized as having played a ground-breaking role in devising these analytical models,
with the government’s Department for Culture, Media and Sport producing the first Creative
Industries Mapping Documents in 1998 and 2001 as part of their efforts to reinvigorate
economically depressed industrial towns and cities. In LAC, the Convenio Andrés Bello (CAB),
a regional institution based in Bogotá devoted to the promotion of culture, has published a
number of pioneering studies on the economic dimensions of cultural industries in LAC. In
connection with its program for economy and culture, it has collaborated with member
countries to improve their systems of economic information for culture. With the financial
support of the IDB, CAB has been working on a draft methodological handbook for the
implementation of satellite accounts for culture, which will also allow statisticians to define the
contribution of cultural industries to the economy (in terms of GDP, for example) by
implementing cultural measures in the national accounting and statistics system. The outcome
would be to create an information system on culture, and the handbook builds on the
experience and efforts of DANE in Colombia and Chile’s Banco Central, both of which have
also been working on the development of special satellite accounts for culture.
31
Private Investment and
“Hybrid” Sources of Financing
In addition to public policies, private
investment is also needed. The key issue
facing potential investors in cultural
industries is return on investment. Due to
the difficulties in evaluating cultural
industries (according to traditional
indicators), it is not easy to assess the
economic value of these sectors. However,
the analysis of GDP and employment-level
contribution of cultural industries illustrated
in this paper highlights the importance of
these industries in national economies.
An important role for the development of
cultural industries, especially for
conventional sectors, could be played by
private investment, commercial sponsorship,
and advertising. Other significant forms of
financing are “hybrid” interventions, public-
private investment, and co-productions (i.e.,
ventures in which governments or
businesses provide seed funding or start-up
capital). Box 10 describes a successful
public-private initiative—an incubator for
cultural enterprises—in the city of Cordoba,
Argentina.
Other interesting sources of financing
include philanthropic investments, foreign
investments (particularly in co-production
and joint-venture arrangements), and major
business enterprise investment through
revenue-sharing arrangements and product
endorsements (especially in the
phonographic and audiovisual sectors). For
instance, cuts in public funding and
increasing production rates have fostered
greater private investment, particularly in
Argentina where local television stations
such as Telefé have invested in local
audiovisual productions (Cunningham et al.,
2005).
In the context of this discussion, it is
important to note that business advice and
finance is often tailored to the needs of
mainstream sectors/businesses, and that a
common feature of cultural industries is that
these sectors are characterized by mainly
micro, small and medium enterprises
(MSMEs). MSMEs in these sectors
typically have low levels of investment and
often lack of capital to increase their
production. In this regard, cultural
entrepreneurs face significant difficulties in
securing financing in the amount and at the
time it is needed. Often cultural industries
need little capital to start up their activities
and require venture capital in subsequent
phases of their activities, yet both kinds of
financing—the initial micro-credit and the
subsequent venture capital—are difficult for
these industries to obtain. In addition,
Box 10. CREA
CREA (Creative Industries and Cultural Enterprises Incubator of the city of Cordoba -
Incubadora de Industrias Creativas y Empresas Culturales de Córdoba), is a public-private
initiative designed to promote and support ideas with entrepreneurial potential in the field of
cultural industries. CREA provides technical assistance to firms to develop or start their
businesses and conducts research to explore new markets. CREA’s private partners are
concentrated in business activities not related to the cultural field, which was a conscious
decision of the Municipality of Cordoba aimed at avoiding conflict of interest and developing
cultural industries as productive sectors. Currently, the main partners of CREA include: the
Municipality of Cordoba, the Secretary of Culture of the Nation, the Historic and Urban
Patrimony Institute of the National University of Cordoba (Instituto de Patrimonio Histórico y
Urbano de la Universidad Nacional de Cordoba), Córdoba Development Agency (Agencia de
Desarrollo Económico de Córdoba - ADEC), Cultural Promoters Network of LAC (Red de
Promotores Culturales de Latinoamérica y el Caribe), British Council Argentina, Volkswagen
Argentina, Metalúrgica Roma, Arcor, and Telmex.
32
because of the often intangible nature of
cultural products (especially services),
cultural entrepreneurs face tremendous
difficulties in accessing conventional lines
of credit because they lack the required
collateral and guarantees.
Coordination among sectors
A lack of coordination among sectors of
cultural industries poses a serious challenge
at three different levels among: i) public
institutions, ii) public and private actors
across different sectors, and iii) and private
actors. First, although multiple institutions
are often involved in a specific sector, they
rarely coordinate their efforts. For instance,
in the crafts sector in the Dominican
Republic, the main institution,
CENADARTE, is not involved in many
projects that the National Council for
Competitiveness has implemented with
artisans. Often the overlapping,
uncoordinated institutions fail to maximize
the impact that each could have on the
sector. In the Argentine phonographic
sector, the three collective societies that
manage copyrights and royalties are another
example of the lack of coordination.
21
These societies rarely work together; on the
contrary, they often disagree on relevant
issues, which results in slow and
complicated decision-making processes.
Second, communication is also extremely
important among the different sectors of
cultural industries. As stated earlier, cultural
industries tend to be interconnected with one
another and often trade services. Because
these sectors are interrelated, the success or
failure of one sector will inevitably affect
the others. Therefore, it is imperative that
21
A collective society is an organization that
represents a group of rights holders. This makes
it easier to collect and distribute royalties and
levies. The three Argentine collective societies
correspond to the three types of copyrights
existing in the country: editorial/publishing
rights, singers’/performers’ rights, and
phonographic producers’ rights.
the main stakeholders of each sector
communicate with one another and
coordinate their policies. In this study, the
importance of coordination was particularly
clear in the case of the crafts and tourism
sectors in the Dominican Republic, in which
local crafts producers, because they are not
formally part of the tourism sector, they
therefore cannot take advantage of the
opportunity to increase sales and grow as a
sector.
22
Finally, the fragmentation of the
private sector is a common feature of many
cultural industries in LAC. Yet while SMEs
and individual entrepreneurs account for
most of the production in cultural industries,
these firms are highly disjointed and rarely
form associations. Thus, excessive
fragmentation and a lack of associationalism
are a serious obstacle to the growth of the
sector. To address this situation, better
integration of the private sector would help
the government recognize the importance of
this sector of the economy and facilitate the
design of policies targeted to cultural
industries.
Product distribution
For many cultural industries, distribution is
a greater challenge than production. In
many cases, cultural entrepreneurs can
easily produce their own projects, either
because new technologies have lowered
entry barriers (such as in the discographic
sector, where digital technologies have made
it extremely easy for an artist to produce an
album), or because support measures are
available (such as in the cinema industry,
where national or international funds
support production). However, once
produced, these products face enormous
difficulties reaching the market. For
instance, notwithstanding the large number
of craft producers and the size of the market
in the Dominican Republic, local artisans
experience real difficulties distributing their
22
See chapter on Visual and Performing Arts in
Part II.
33
products.
23
In the case of the Dominican
Republic, the problem is that the main
channel of commercialization for craft
products is tourism, which in the country is
mostly resort-oriented, mass tourism. This
type of tourism concentrates on products
that are mainly mass produced and often
imported and does not establish any linkages
with local craft producers, who are thus left
out of the business network.
The main distribution problem is the
presence of large multinational companies
that retain the largest share of the market
with their massive marketing capabilities
around the world. In addition, policies in
the sector have, for many years, focused on
the production of these goods and services
and on their subsidization, without really
thinking about the market. The combination
of these two factors has resulted in an
inadequate distribution of LAC cultural
23
According to CENADARTE, in 2006 there
were approximately 10,000 craft producers.
products. This is particularly important
considering that LAC domestic markets are
often small with low levels of purchasing
power. Consequently, domestic markets do
not guarantee a large pool of consumers for
goods and services of local cultural
industries. For these reasons, marketing and
distribution strategies play a crucial role in
the sector, and many lessons can be drawn
from some more or less successful existing
practices. For instance, the French
government funds an agency whose mission
is to support the distribution of French
movies abroad (see Box 11). This
association—which brings together close to
500 members, including feature film and
short film producers, sales agents, directors,
and actors—follows each stage of the
distribution of a French movie abroad,
ensuring that French movies have sufficient
international exposure.
Box 11. Unifrance: Promoting French Cinema Worldwide*
The Unifrance association operates under the direct supervision of the CNC (Cinematography
National Center - Centre National de la Cinématographie), the state-run body responsible for
funding policies for French cinema administered by the Ministry of Culture. The budget of the
association is comprised of funding from the CNC, a grant from the Ministry of Foreign Affairs
(aimed at joint projects with its diplomatic offices around the world), and revenues generated
by Unifrance itself.
Unifrance highlights all current French films, including those in production, on its web site and
in its information newsletter, which has a distribution of 5,000 copies worldwide. The
association also participates in all major international film festivals and markets. During these
events, it assists artistic delegations and offers French professionals access to promotional
and marketing locales and facilities. Unifrance also provides follow-up support to the
commercial release of French films abroad. In conjunction with the CNC, Unifrance sponsors
many activities with the aim of maximizing the exposure of French films in worldwide markets.
The association also works closely with French producers and sales agents in the marketing of
films abroad and provides support and financial backing to foreign distributors in the lead-up to
the release of French films by facilitating press relations, providing grants for film prints,
subtitling and dubbing, and assistance to broaden release patterns for films, among others.
* Source: www.unifrance.org accessed on March 2007.
34
However, even with governmental support,
there is no guarantee of success. The
German experience is an example of a failed
effort of state support in the movie industry.
Notwithstanding one of the highest subsidies
in Europe for movie distribution in theaters,
totaling US$150 million per year, German
movies have been unsuccessful in capturing
large audiences both at home and abroad.
Indeed, German movies account for only 7
percent of box office revenues in the
domestic market (Getino, 1998). Generally
speaking, there is evidence that subsidies for
movie distribution in theaters may actually
have a perverse effect because subsidized
movies either are not screened in theaters or
fail to attract audiences (Fuenzalida, 2000).
In contrast with the German example, a
successful case is an innovative private
distribution strategy by an independent
Venezuelan record label, Latin World
Entertainment group (LWE). This company
was able to obtain the exclusive distribution
rights to the album Arepa 3000 and secured
a market for the album by bundling its
distribution with that of a pre-paid cell
phone (see Box 12).
Regional market integration
In order to increase the competitiveness of
cultural industries in LAC, there is a need to
foster regional integration and cooperation.
To compete with large international
companies (especially in the phonographic
and audiovisual sectors) and to overcome
the limitations of domestic markets, both in
terms of size and purchasing power, it is
crucial for LAC cultural industries to expand
into the regional market. Regional
initiatives among neighboring countries (in
the framework of MERCOSUR or
CARICOM, for example) should be
supported to promote collaboration and,
perhaps even the creation of a regional (or
sub-regional) seal or brand. One of the few
examples of sub-regional cooperation is
provided by four Caribbean countries
(Jamaica, Barbados, Trinidad and Tobago,
St. Lucia) whose authors’ collective
societies have united under the umbrella of
the Caribbean Copyright Link (CCL). CCL
acts as a shared service center for the
societies, allowing them to pool their
resources in order to reduce costs,
streamline operations, and increase the
number of operations for their members.
24
24
Each CCL member focuses on typical author
society tasks such as membership, rights
acquisition, licensing, monitoring, collection,
and distribution. The society then sends its
documentation and performance data concerning
local works to CCL, which maintains a central
database. The database handles royalty
distribution, monitors and maintains CIS
Box 12. Arepa 3000
Latin World Entertainment (LWE) group is a Venezuelan independent record label focused
primarily on production and with limited distribution capacity. When an American independent
record label (Luaka Bop) began looking for a distributor for Arepa 3000, the second album of
the Venezuelan fusion band, Amigos Invisibles, the owner of LWE decided to offer its services.
After negotiations between Luaka Bop and EMI failed, he courted the American independent
label and, through a firm commitment to purchase a large number of CDs, obtained an
exclusive distribution deal for the record. At the same time, he was aware of the forthcoming
launch of a new prepaid cell phone product by Movilnet, one of the largest mobile phone
operators in Venezuela. Realizing that this product and Arepa 3000 targeted the same youth
demographic audience, he came up with the idea of bundling the record with the pre-paid cell
phone as a package, thus ensuring that the album would be distributed and legally sold.
Consequently, Movilnet bought 80,000 units, which allowed LWE to secure the purchase of a
large number of copies in excess of Luaka’s original sales estimates. A media campaign
including TV and radio ads featuring the members of the band was then launched.
35
While still a nascent organization, CCL has
already begun to see some results from the
collaboration, with significant improvements
in licensing, royalty collection, and
distribution. However, apart from this
experience, regional or sub-regional
collaboration is still limited. In this regard,
the LAC region may draw lessons from the
EU experience. To some extent, a variety of
assistance and promotion measures
implemented within the EU have helped to
keep in check the domination of
multinational companies in the film
industry. In order to strengthen its movie
industry, the EU set up a program called
MEDIA Plus that began operations in
January 2001 with the objective of
strengthening the competitiveness of the
European audiovisual industry (see Box 13).
International Trade
Another cross-cutting issue identified in the
study is the treatment of cultural industries
in international trade regulations. On one
hand, trade liberalization may adversely
affect local production of cultural industries,
while on the other, excessive protection may
limit economic benefits resulting from
international trade. For this reason, cultural
industries have traditionally been viewed as
a delicate issue in free trade agreements. In
most cases, trade in these industries is either
regulated by bilateral agreements or is
excluded altogether by treaties.
(Commonwealth of Independent States) data
standards, and exports regional data worldwide.
An important change for cultural matters
within the World Trade Organization
(WTO) occurred during the Uruguay Round,
which took place from September 1986 to
April 1994, when the General Agreement on
Trade and Services (GATS) and the
Agreement on Trade-Related Aspects of
Intellectual Property Rights (TRIPS) were
adopted. Another WTO instrument
regarding the international trade of cultural
industries is the Agreement on Trade-
Related Investment Measures (TRIMS).
Table 10 summarizes the main WTO tools
that affect cultural industries.
During the final negotiations of the Uruguay
Round, some countries expressed concern
that the WTO principles regarding goods
and services (including copyright-protected
products) would result in a loss in cultural
specificity in favor of mass production of
standardized goods and services.
25
To
address this concern, the negotiators
proposed exemptions to preserve domestic
production, guarantee local cultural forms of
expression, and avoid the standardization of
tastes and behaviors. Since then, this
25
This is particularly true for the “Most Favored
Nation” (MFN) and national treatment rules.
The MFN rule means that every time a member
state improves the benefits that it gives to a
particular trading partner, it then has to give the
same “best” treatment to all other WTO
members. The national treatment principle also
means that imported and locally produced goods
should be treated equally. In this regard, the
same treatment should apply to foreign and
domestic services, as well as to foreign and local
trademarks, copyrights, and patents.
Box 13. MEDIA Plus
The program has a budget of 400 million euros, providing both pre- and post-production
support. MEDIA Plus co-finances training initiatives for audiovisual industry professionals, the
development of production projects (feature films, television drama, documentaries, animation,
and new media), and the distribution and promotion of European audiovisual products and
cinematographic festivals. This program also sponsors, together with other organizations, the
European Film Promotion (EFP) to promote and market European cinema throughout the
world. The EFP, which was established in 1997 and has 27 national export and promotion
organizations from 28 countries, provides an example of an interesting regional effort to: i)
increase competitive opportunities in the international marketplace; ii) enhance the distribution
possibilities; and iii) contribute to the opening of new markets.
36
understanding has been known as the
“cultural exception.”
Among countries that have developed
special policies and exemptions, the EU has
refused to liberalize the audiovisual sector
and services related to libraries, archives,
and museums. In addition, the EU also
decided to develop regional public policies
to support the audiovisual sector such as
broadcasting (TV and radio) quotas,
financial aid (for production and distribution
such as the MEDIA Plus program), and
regional co-production agreements.
Following the Uruguay Round, cultural
industries began to experience increasing
challenges from international competition.
Given the difficulties that cultural industries
face to be competitive in the market, the
thirtieth General Conference of UNESCO
reaffirmed that the free circulation of
cultural goods and services should not be
subject only to the rules of the international
marketplace. Furthermore, the effects of
multilateral trading systems on cultural
goods and services have led to consultations
on the importance of cultural diversity. As a
result of the consultations, in 2005 148
countries signed the UNESCO’s Convention
on the Protection and Promotion of the
Diversity of Cultural Expressions that came
into force in March 2007. This convention
is the most recent instrument created to
foster the promotion of cultural diversity
while dealing with the challenges associated
with trade in cultural goods and services.
Article 1 - h) of the Convention reaffirms
the rights of sovereign states to “maintain,
adopt and implement policies and measures
that they deem appropriate for the protection
and promotion of the diversity of cultural
expressions on their territory.”
Even in the existing regional trade
agreements in LAC, cultural industries are
usually a sensitive issue, mirroring the
tensions created by global trade. In
particular, there is a lack of a general
consensus that has resulted in exemptions
and bilateral agreements in order to regulate
trade in cultural industries. Box 14
summarizes the situation of cultural
industries in free trade agreements in the
region.
Table 10. World Trade Organization Instruments
GATS
General Agreement on
Trade in Services
- Covers all internationally traded services.
- Is the first multilateral agreement including cultural services.
- Does not oblige WTO members to open all their service
industries to foreign partners.
TRIPS
Agreement on Trade-
Related Aspects of
Intellectual Property
Rights
- Brings intellectual property rights under common international
GATT/WTO rules.
- Requires WTO member countries to adhere to minimum
standards for protection of intellectual property rights.
- Obliges countries to grant minimum periods of protection for
copyrighted works.
- Obliges countries to fight unauthorized reproduction (piracy).
TRIMS
Agreement on Trade
Related Investment
Measures
- Applies only to measures that affect trade in goods and that
discriminate against foreigners or foreign products.
37
Box 14. Cultural Industries and Free Trade Agreements in LAC
MERCOSUR* - Few references to cultural industries exist in MERCOSUR legislation. One of
them is in the agreement to liberalize cross-border investment, known as the Colonia Protocol
(1994). Given the flow of Argentine and Brazilian audiovisual products into Paraguay and
Uruguay, each country stipulated a specific bilateral agreement to regulate the trade of Cultural
Industries. In the Colonia Protocol, Article 2 of the Annex specifies each country's exemptions:
Brazil excluded its radio, television, and telecommunications industries; Paraguay and Uruguay
both exempted their radio, television, publishing, and telecommunications sectors; and
Argentina did not make any exemptions in the communications sector.
Since its inception, the central focus of MERCOSUR has been on economic development, and
cultural issues were not considered in the original negotiations that resulted in the Treaty of
Asunción. Later, during the 1990s, the concern that a strictly economic and technical-
bureaucratic model of regional integration would not yield the results expected of the
agreement was raised. Drawing on the experience of the EU, which initially also limited itself
to the economic dimension and later expanded to include culture among its priorities, a series
of governmental and intergovernmental meetings and seminars, both private and public,
proposed that the treaty should not be limited to trade agreements or governmental activities.
As a result of these developments, the idea of the Cultural MERCOSUR emerged as a
mechanism that functions on the basis of agreements between the ministries of culture of the
region (Moisés, 2000).
The Cultural Integration Protocol, approved in 1996 in the city of Fortaleza, Brazil (CMC,
11/96), seeks to provide the legal framework for cultural integration within the trade bloc. The
main issues of the Protocol are: i) the promotion of the cooperation and the exchange between
government institutions and cultural agents, and ii) the enrichment and diffusion of the
MERCOSUR’s cultural and artistic diversity. Like the EU legislation, this document recognizes
that “culture constitutes a fundamental element of integration processes” and establishes that
“member-states will seek to promote cooperation and trade between their cultural institutions
and agents” (Article 1), with priority given to those ventures that “express the historical
traditions, the common values and the diversity of member-states” (Article 2). The main
initiatives carried out in the context of the Cultural Integration Protocol were: i) a special
customs treatment for cultural goods (the so-called “MERCOSUR Cultural Seal”), which allows
the free circulation of goods destined to exhibition at cultural events (favoring exhibition and
performing arts); ii) a fellowships program; iii) an exchange program for young writers; iv)
itinerant photograph and cartoon exhibitions; v) co-financed editions of writers from the four
partners; vi) the “MERCOSUR Cultural House” in Colonia, Uruguay; and vii) other initiatives
related to the preservation of the “common cultural patrimony” (Galperin, 1999). In July 2006,
Buenos Aires, Argentina, was designated as the permanent headquarters of the MERCOSUR
Cultural Seal.
NAFTA**- Due to the lack of a consensus among member-states on cultural industries, they
were therefore left out of the agreement. For example, negotiations concerning audiovisual
industries in NAFTA highlighted the trading partners’ different agendas. Given the cultural
protectionism agenda of Canada, US products do not flow smoothly to Canada (unlike in
Mexico), even though 80 percent of the population lives within 100 miles of the American
border and there are no language barriers (with the exception of Quebec). On the other hand,
when Mexico’s chief NAFTA negotiator was asked whether his country feared that the inclusion
of cultural industries in the agreement would affect his country’s national identity, he replied
that the issue “has little relevance for Mexico” and that, given Mexico’s cultural heritage, “there
is no cause for concern”' (quoted in García-Canclini, 1996). As a result of these different
agendas, a double standard was set within NAFTA. Annex 2106 establishes that, between the
US and Canada, cultural industries are exempted from the agreement.
38
DR-CAFTA - This is one of the most “open” trade agreements. In DR-CAFTA, all services
have been liberalized under the agreement, unless an existing law already protected a service
at the time the agreement was signed. As a result, there is a “reserve list” in which all the
sectors previously protected are listed. Some sectors of cultural industries are regulated by
specific chapters or clauses.
CARICOM*** – The Caribbean Community and Common Market (CARICOM) was established
in 1973 by four first signatory countries: Barbados, Jamaica, Guyana, and Trinidad and
Tobago. Currently, CARICOM has 15 full members; Colombia, Mexico, the Dominican
Republic, and Venezuela are observer members. UNESCO and CARICOM agree to co-
operate through their appropriate organisms, and their cooperation extends to all matters
arising in the spheres of education, science, and culture.
* The concept of MERCOSUR (Mercado Común del Sur - Southern Common Market) began in 1986
when Argentina and Brazil signed the Economic Cooperation and Integration Program (PICE). The
project was later expanded to include Uruguay and Paraguay, and was finally consolidated when the four
countries signed the Asunción Treaty on March 26, 1991. Bolivia, Chile, Colombia, Ecuador, and Peru
currently have associate member status, while Mexico is an observer. In addition, Venezuela became a
full member in 2006.
** The North American Free Trade Agreement (NAFTA) is a free trade agreement between Mexico, the
US, and Canada launched in January 1994 and represents the world’s largest free trade area.
*** Originally, this agreement encompassed the United States of America and Central American countries
(Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua) and was called CAFTA. In 2004 the
Dominican Republic joined the negotiations, and the agreement was renamed DR-CAFTA (Dominican
Republic–Central America Free Trade Agreement).
Education and training
Cultural entrepreneurs need to develop a
mix of creative and business skills. Across
all sectors, there is a low level of
management skills, especially because
entrepreneurs are usually artists. For
example, in the film industry in Chile,
movie directors are the executive producers
of their own movies, which often negatively
impacts the final product. In general, movie
directors need to focus on the creative
aspects of the project, and executive
producers need to ensure the economic
viability of films, so when these roles are
intertwined, both can be compromised. This
practice extends beyond the Chilean film
industry and is widely present across LAC.
For example, craft producers often do not
know the cost structure of their products and
fix their retail prices without any relation to
costs; as result, sometimes prices are
disproportional (either too high or too low)
compared to the real value of the products.
Moreover, very often educational
institutions do not offer management
training, and there is a lack of educational
programs aimed at developing cultural
managers.
While management training may be lacking,
educational and training programs aimed at
developing technical and creative skills are
quite adequate in the region. In fact, there
are many good schools that offer training in
the various sectors of cultural industries with
good results. Interestingly, these successful
cases are all driven by private initiatives,
such as the Altos de Chavón School of
Design in the Dominican Republic and, in
Argentina, the University of Cinema and the
Graphic School of the Gutenberg
Foundation. For example, the Gutenberg
Foundation is a private entity, funded
mainly by firms, which provides technical
training in graphics through courses,
seminars, high school courses, college
studies. According to some of the main
actors involved in the project, the foundation
provides a means to socialize the cost of
training in the industry. The government
provides a small contribution, the Federation
39
of Graphic Industries (FAIGA) contributes
20 percent of total resources, and individual
firms also pay a fee; these three
contributions cover about 80 percent of the
total costs. Finally, students pay a monthly
fee (US$65/month) to make up the
remaining 20 percent.
26
The fact that the
school is almost completely financed by the
private sector makes it particularly
responsive to the needs of the industry. In
26
At an exchange rate of 1 USD = 3.07
Argentine pesos as of 5/9/07.
addition, students are able to find jobs very
easily, and entrepreneurs are satisfied with
their training and preparation. However,
notwithstanding the adequacy of training in
technical and creative skills, a good level of
cultural and management education (at all
grades) is key to recognizing the value and
exploiting the potential of cultural industries
in the region.
40
ANNEX I. LIST OF LAC INSTITUTIONS RELATED TO CULTURAL INDUSTRIES
Country
Public Institutions
Private Institutions
Universities
Free Trade
Agreements
Argentina
Secretaria de Cultura de la Presidencia de la
Nación
Subsecretaria de Industrias Culturales de la
Ciudad de Buenos Aires
Observatorio de Industrias Culturales de la
Ciudad de Buenos Aires (under the
Subsecretaria de IC)
Secretaria de Medios de Comunicación de la
Nación
Fondo Nacional de las Artes
Instituto Nacional de Cine y Artes Audiovisuales
(INCAA)
Cámara Argentina de Productores Artísticos y Culturales (CAPAC)
Sociedad General de Autores y Compositores (SADAIC)
Sociedad General de Autores de la Argentina (ARGENTORES)
Camara de Empresarios Culturales
Cámara Argentina del Libro
Sociedad Argentina de Musicos
Observatorio de Industrias
Culturales de la Universidad
de Buenos Aires
Instituto Universitario
Nacional de Arte (IUNA)
Universidad del Cine
Mercosur
member
Bahamas
Cultural Affairs Division, Ministry of Youth, Sports
and Culture
National Cultural Foundation
Bahamas Film and TV Commission
Bimini Museum
Caricom
member*
Barbados
Ministry of Education, Youth Affairs and Sports
Government Information Service
National Cultural Foundation (NCF)
Corporate Affairs and Intellectual Property Office
Culture Section – Prime Minister's Office
Barbados National Trust
Caricom
member
Belize
Ministry of national
Development, Investment and Culture
Ministry of Tourism, Culture, Information and
Broadcasting
Institute of creative Arts
Institute of Social and Cultural Research
Belize Arts Council
Lamanai Field Research
Center
Caricom
member
Bolivia
Ministerio de Educación, Cultura y Deportes
Viceministerio de Cultura
Comisión de Desarrollo Humano del Congreso
Comité de Cultura
Sociedad Boliviana de Autores y Compositores de Música
Mercosur
associate
member
* It is a member of the Community but not of the Common Market.
Country
Public Institutions
Private Institutions
Universities
Free Trade
Agreements
41
Brazil
Ministerio da Cultura
Agência Nacional do Cinema – ANCINE
Cinemateca Brasilera
Centro Tecnico Audiovisual
Funarte Fundação Nacional de Arte
Observatório Cultural de São Paulo
Instituto Itau Cultural
Instituto Pensarte
FENAC - Federação Nacional da Cultura
Escola de Comunicação e
Artes Universidade de São
Paulo
Fórum de Ciência e Cultura
da Universidade Federal do
Rio de Janeiro (UFRJ)
CiberIDEA
Coordenação Interdisciplinar
de Estudos Culturais (UFRJ)
Programa Avançado de
Cultura Contemporânea -
PACC/UFRJ
Instituto de Estudos e
Projetos em Comunicação e
Cultura - INDECS
Núcleo de Estudos da
Cultura (NECOIM)
Centro de Estudos
Avançados
Multidisciplinares (CEAM)
Universidade de Brasília
Mercosur
member
Chile
Consejo Nacional de la Cultura y las Artes
Fondo de Desarrollo de las Artes y la Cultura
(FONDART)
Consejo Nacional de Television (CNTV)
Asociación de Cortometrajistas de Chile (ACORCH)
Asociación de Directores y Guionistas de Chile (ADG)
Asociación de Documentalistas de Chile (ADOC)
Asociación de Productores de Cine y TV (APCT)
Fundación Chilena de las Imágenes en Movimiento
Sindicato de Actores de Chile (SIDARTE)
Sindicato de Técnicos Cinematográficos (SINTECI)
Sociedad de Autores Nacionales de Teatro, Cine y Audiovisuales,
ATN
Sociedad de Gestión de los Creadores de Imagen Fija,
CREAIMAGEN
Sociedad Chilena del Derecho de Autor
Mercosur
associate
member
Colombia
Ministerio de Cultura
Sistema Nacional de Información Cultural
Colombia (SINIC)
Grupo de Políticas Culturales y Asuntos
Internacionales (Ministerio de la Cultura)
Observatorio de Cultura Urbana del Instituto
Distrital de Cultura y Turismo
Convenio Andres Bello
British Council Colombia
Universidad Nacional de
Colombia
Faculdad de Artes
Mercosur
associate
member
Costa Rica
Ministerio de Cultura, Juventud y Deportes
Centro Nacional de la Cultura (CENAC)
INCORPORE
Asociación EDUCARTE
Universidad Nacional
Programa Identidad Cultural,
Arte y Tecnología (ICAT )
DR-Cafta
member
Country
Public Institutions
Private Institutions
Universities
Free Trade
Agreements
42
Costa Rica
Asociación de Compositores y Autores Musicales, ACAM
Cámara Costarricense del Libro
Cámara Nacional de Radio, CANARA
Asociación Costarricense de Profesionales de Turismo,
ACOPROT
Cámara Nacional de Turismo, CANATUR
Dominican
Republic
Secretaría de Estado de Cultura
DINAC (Dirección Nacional de Cine)
Oficina Nacional de Derecho de Autor
Cinemateca Nacional
CENADARTE
ONAPI
Comisión Permanente de la Feria del Libro
Escuela de Diseno Altos de
Chavón
DR-Cafta
member
Ecuador
Ministerio de Educación y Cultura
Subsecretaría de Cultura de Ecuador
Consejo Nacional de Cultura
Sistema Nacional de Información Cultural
(SINIC)
Sociedad de Autores y Compositores del Ecuador (SAYCE)
Instituto Ecuatoriano de Propiedad Intelectual (IEPI)
Mercosur
associate
member
El
Salvador
Consejo Nacional para la Cultura y el Arte
(CONCULTURA)
Dirección de Cultura del Ministerio de
Relaciones Exteriores
Patronato Pro-Cultura de El Salvador
Asociación Salvadoreña de Trabajadores del Arte y la Cultura
ASTAC
Centro de investigación y
documentación de las Artes
– CEIDAR
DR-Cafta
member
Guatemala
Ministerio de Cultura y Deportes
Aporte para la Descentralización Cultural –
ADESCA
Editorial Cultura
Radio Faro Cultural
Asociación Guatemalteca de Autores y Compositores (AGAYC)
Casa de Artes
Nojib'sa
Casa Comal
DR-Cafta
member
Guyana
Ministry of Culture, Youth and Sports
National Trust of Guyana
Guyana Government Information Agency
Ministry of Amerindian Affairs
Guyana and Caribbean Political and Cultural Center for Popular
Education
Caricom
member
Haiti
Ministère de la Culture et de la Communication
L'Institut de Sauvegarde du Patrimoine National
Fondation culture création
Fondation connaissance et
liberté
Caricom
member
Honduras
Secretaria de Estado en los Despachos de
Cultura, Turismo y Deportes
Asesoría de Asuntos Culturales
Dirección General de Propiedad Intelectual de
Honduras (DIGEPIH)
Asociación de Autores, Compositores, Intérpretes y Músicos de
Honduras (AACIMH)
DR-Cafta
member
Jamaica
Ministry of Education, Youth and Culture,
Division of Culture
Jamaica Cultural Development Commission
(Under the Ministry of Local Government and
Jamaica National Building Society Foundation
Bob Marley Foundation
Recording Industry Association of Jamaica Limited (RIAJam)
The Edna Manley College of
the Visual and Performing
Arts (EMCVPA)
Caricom
member
Country
Public Institutions
Private Institutions
Universities
Free Trade
Agreements
43
Jamaica
Community Development)
Things Jamaican
(Under the Ministry of Industry, Commerce and
Technology).
Jamaican Intellectual Property Rights Office
JAMPRO Trade and investment facilitation
agency
Jamaica Film Commission
The Jamaica National Heritage Trust
Jamaica Culture Alliance
Jamaican Artist Assistance Association
Wassi Art
Mexico
Consejo Nacional para la Cultura y las Artes
(CONACULTA)
Under the coordination of CONACULTA:
SIC (Sistema de Informacion Cultural)
Centro Nacional de las ARTES (CENART)
Cineteca Nacional
Istituto Mexicano de Cinematografia (IMCINE)
Sistema Nacional De Fomento Musical
Centro de Capacitación Cinematográfica
Centro Nacional de las Artes
Coordinación de Patrimonio Cultural y Turismo
Educal Libros y Arte
Fondo Nacional para la Cultura y las Artes
Instituto Nacional de Bellas Artes
Radio Educación
Fideicomiso para la Cultura México/EE.UU.
Fundación Televisa, A.C.
Sociedad General de Escritores de México (SOGEM)
Sociedad Mexicana de Directores y Realizadores de Obras
Audiovisuales
Sociedad de Autores y Compositores de Música (SACM)
Sociedad de Autores de Obras Visuales (SAOV)
Sociedad Mexicana de Autores de las Artes Plásticas (SOMAAP)
Sociedad Mexicana de Autores de Obras Fotográficas (SMAOF)
Sociedad Mexicana de Coreógrafos (SOMEC)
Sociedad Mexicana de Caricaturistas (SMC)
Sociedad Mexicana de Historietistas (SOMEHI)
Sociedad Mexicana de Fotógrafos Profesionales (SMFP)
Asociación de Mujeres en el Cine y la Televisión, A.C.
Asociación Nacional de Intérpretes (ANDI)
Asociación Nacional de Actores (A.N.D.A.)
Asociación Mexicana de Productores Independientes
Asociación Mexicana de Gestores de Patrimonio Cultural
(AMGPC)
Asociación Nacional de Ciudades Mexicanas del Patrimonio
Mundial
Asociación de Libreros de México
Academia Mexicana de Artes y Ciencias Cinematográficas
Asociación Mexicana de Filmadoras (AMFI)
Federación Mexicana de Cooperativas de Cine y Medios
Audiovisuales
Centro Mexicano de Protección y Fomento de los Derechos de
Autor (CeMPRO)
Cámara Nacional de la Industria Editorial Mexicana (CANIEM)
Cámara Nacional de la Industria Cinematográfica (CANACINE)
Cámara Nacional de la Industria de la Radio y Televisión (CIRT)
Cámara Nacional de la Industria de las Artes Gráficas
Universidad nacional
Autonoma de Mexico UNAM
Universidad Autónoma
Metropolitana, México UAM
Nafta
member
Mercosur
observer
member
Country
Public Institutions
Private Institutions
Universities
Free Trade
Agreements
44
Mexico
(CANAGRAG)
Cámara Nacional de la Industria de Televisión por Cable
(CANITEC)
Comisión Nacional de Filmaciones
Nicaragua
Ministerio de Educación, Cultura y Deporte
Instituto Nicaragüense de Cultura
within Consejo Nacional de Cultura Ministerio de
Educación, Cultura y Deporte
Fundación Mejía Godoy
Asociación de Cantautores Nicaragüenses
Asociación de Promotores de Cultura
Unión Nacional de Artistas Plásticos de Nicaragua (UNAP)
DR-Cafta
member
Panama
Instituto Nacional de Cultura INAC (including
Dirección del Patrimonio Histórico and
Dirección Nacional de las Artes)
El Portal del Estado Panameño
Dirección municipal de Cultura y educación de
Panamá
Dirección General de Artesanías Nacionales de
Panamá (Ministerio de Comercio e industrias de
Panamá)
Asociación Cultural Alterarte Consejo Nacional
para la Cultura y las Artes (CONACULTA)
Asociación Nacional de Conciertos de Panamá
Unión Nacional De Artistas de Panamá (UNAP)
A.N.D.I.AP. Asociación Nacional de Intérpretes, Autores y
Productores de Panamá
Sociedad Panameña de Autores y Compositores
Member of
Panama
Trade
Promotion
Agreement
whit US
Paraguay
Ministerio de Educación y Cultura
Viceministerio de Cultura
Servicio de Promoción Artesanal (Ministerio de
Industria y Comercio)
Fondo Nacional para la Cultura y las Artes
(FONDEC)
Fundación Cinemateca y Archivo Visual del Paraguay
Fundación Arlequín Teatro
Autores Paraguayos Asociados (APA)
Mercosur
member
Peru
Instituto Nacional de Cultura (INC) Ministerio de
Educación
Unidad de Promoción Escolar de Cultura y
Deporte
Consejo Nacional de Danza del Perú
Consejo Nacional de Cine del Perú- CONACINE
Instituto Nacional de Defensa de la Competencia
y de la Protección de la Propiedad Intelectual del
Perú (INDECOPI)
Asociación Peruana de Autores Y Compositores (APDAYC)
Asociación Peruana de Artistas Visuales (APSAV)
Sociedad Peruana de Directores y Productores Cinematográficos
Asociación de Cineastas del Perú
Cámara Peruana del Libro
Centro de Estudios, Investigación y Difusión de la Música
Latinoamericana (PUCP)
Instituto de Investigación
Universidad de San Martín
de Porres
Centro de Etnomusicología
Andina del Instituto Riva
Agüero
Mercosur
associate
member
Suriname
Ministry of Education and Community
Development
Heritage Suriname
Academy of Arts and Culture
Caricom
member
Trinidad
and
Tobago
Ministry of Community Development, Culture and
Gender Affairs
Office of the Prime Minister Sports and Culture
Fund
Who's Who in Trinidad and Tobago
Trinidad Arts Society
National Drama Association of Trinidad and Tobago
University of West Indies at
St. Augustine, TnT
Center for Carnival and
Festival Arts
Institute of Caribbean
Studies
Caricom
member
Country
Public Institutions
Private Institutions
Universities
Free Trade
Agreements
45
Trinidad
and
Tobago
Institute of International
Relations
Department of Liberal Arts
Trinidad and Tobago
Cultural
Association of the University
of Miami
Uruguay
Ministerio de Educación y Cultura
Dirección de Cultura
Comisión del Patrimonio Cultural de la Nación de
Uruguay
Departamento de Artes Plásticas, Letras,
Música, Teatro
Sistema Nacional de Información Cultural,
Científica y Tecnológica
Academia Nacional De Artes (MEC)
SODRE: Servicio Oficial de Difusión,
Radiotelevisión y Espectáculos
Fundación Punta del Este
Asociación de Autores del Uruguay (AGADU)
Asociación de Productores y Realizadores de Cine y Video de
Uruguay
Sociedad Uruguaya de Actores
Sociedad Uruguay de Artistas Interpretes (SUDEI)
Programa de Políticas
Culturales
Centro de Estudios
Interdisciplinarios
Latinoamericanos (CEIL)
Universidad de la República
Mercosur
member
Venezuela
Ministerio de Educación, Cultura y Deportes
Dirección General Sectorial de Museos y Artes
Visuales
Consejo Nacional de la Cultura
Sistema nacional de Información Cultural
(SINDAIC)
Centro Internacional de Investigaciones Museológicas y del
Patrimonio Cultural
FUNDEF: Fundación de Etnomusicología y Folklore
(within Instituto Venezolano de Investigaciones Científicas y sobre
la tutela del CONAC)
Fundación para la cultura urbana
Fundavisual Latina
Sociedad de Autores y Compositores de Venezuela (SACVEN)
Universidad Nacional
Experimental Francisco de
Miranda
Museology (museum
studies) faculty
Mercosur
member
46
ANNEX II. IDB PROJECTS RELATED TO SECTORS OF CULTURAL INDUSTRIES: 1997 -2007
Country
Project Name
Year
Project
Number
Fund
Department
Sector
Local Development and Cultural Industries
2006
RS-T1226
Italian Cultural Heritage & S Dev.
SDS
Urban Development and Housing
Sustainable Tourism Cluster as a Development Strategy
2006
RG-T1228
Spanish Framework General Fund
Urban Development and Housing
Local Development: Policies and Interventions from the
Italian Experience
2002
TC0210030
Italian Individual Consultant Fund
Urban Development and Housing
2003
TC0212036
Japanese Special Fund
RE2
Tourism
Mundo Maya Program
2001
TC0110048
Korea Fund Technical Cooperation
RE2
Tourism
Regional
Support
Development Tourism of Jesuit Missions
2001
TC0106032
Spanish Fund for Consultants (ICEX)
RE1
Tourism
Consolidation of Wine Tourism
2006
AR-M1018
MIF-Small Enterprise Dev. Facility
MIF
Tourism
Argentina
Support Integrated Development Tourism Sector in Salta
Province
2003
AR0292
Ordinary Capital
RE1
Tourism
2003
TC0303030
Fund for Special Operations
RE2
Tourism
Archeological Tourism Sector
2002
TC0208019
Fund for Special Operations
RE2
Tourism
Belize
Archeological Facilities Design Support
2000
TC0009017
Swiss Fund Consultants & Training
RE2
Tourism
Masterplan for Museums in La Paz
2006
BO-T1051
Fund for Belgian Consultants
Representation
Bolivia
Urban Development and Housing
Jesuit Missions in the Chiquitania
2006
BO-M1022
MIF-Small Enterprise Dev. Facility
MIF
Tourism
Improvements to the Cultural Center of the San Francisco
Convent
2005
BO-T1032
Italian Cultural Heritage & S Dev.
Representation
Bolivia
Urban Development and Housing
2004
BO0216
Fund for Special Operations
RE1
Urban Development and Housing
2002
BO0218
Fund for Special Operations
RE1
Urban Development and Housing
Revitalization and Urban Dev. of La Paz
2002
TC0210059
Fund for Special Operations
Urban Development and Housing
Bolivia
Sustainable Tourism Development Program
2002
BO0174
Fund for Special Operations
RE1
Tourism
2006
BR-T1042
French Human Resources
Contribution
RE1
Urban Development and Housing
2005
BR-T1019
French Fund for Consulting Serv
RE1
Urban Development and Housing
PROCIDADES
2004
BR-T1020
Portuguese Tech. Cooperation Fund
RE1
Urban Development and Housing
Brazil
Socio-cultural Restoration in the Historic ¨Gloria¨
Neighborhood
2005
BR-T1017
Portuguese Tech. Cooperation Fund
SDS
Urban Development and Housing
Country
Project Name
Year
Project
Number
Fund
Department
Sector
47
Downtown São Paulo Rehabilitation Procentro
2003
BR0391
Ordinary Capital
RE1
Urban Development and Housing
2002
BR0357
Ordinary Capital
RE1
Urban Development and Housing
Pará Urban Development
2002
BR0374
Ordinary Capital
Urban Development and Housing
Preservation Historical, Cultural Sites
1999
BR0261
Ordinary Capital
Urban Development and Housing
Preservation Historical & Cultural Sites
1998
TC9712581
EEC Fund Technical
Cooperation
RE1
Urban Development and Housing
Program of Culture and Tourism Integration in Bahia
2006
BR-T1038
Italian Cultural Heritage & S Dev.
RE1/SDS
Tourism
Brazil
Strategic Plan Tourism Development State Minas
Gerais
2002
TC0112001
Portuguese Tech. Cooperation
Fund
RE1
Tourism
Audiovisual Industries in Chile: Development
Opportunity for Valparaiso
2007
CH-T1041
Italian Fund
MIF
Private Sector Development
Program for the Promotion of Tourism in Chile
2007
CH-T1034
Spanish Framework General
Fund
RE1
Tourism
Community Based Tourism Development- Chiloe
and Palena
2003
CH0172
Ordinary Capital
RE1
Tourism
2005
CH-L1004
Ordinary Capital
Urban Development and Housing
Urban Renewal and Development Valparaiso
2004
CH-L1010
Ordinary Capital
Urban Development and Housing
Chile
Support for audiovisual industry: Articulation of prod
chain & commercialization
2007
CH-M1020
MIF-Small Enterprise Dev. Facility
MIF
Private Sector Development
2005
CO-T1023
Italian Cultural Heritage & S Dev.
RE3/SDS
Urban Development and Housing
Revitalization of Downtown Area of Bogota
2003
TC0301025
Spanish Framework General
Fund
RE3/SDS
Urban Development and Housing
Historic Centers Recovery
2001
TC0011049
Italian Firms and Spec.Inst.Fund
Urban Development and Housing
Rehabilitation Historic Centers
2001
TC0105030
Spanish Fund for Consultants
(ICEX)
RE3/SDS
Urban Development and Housing
Colombia
Renewal Manizales City & Creat.metropol.
1998
TC9802225
Japanese Trust Fund
Consultancy
RE3/SDS
Urban Development and Housing
Costa Rica
Support for Heritage Preservation and Urban
Development Project
2006
CR-T1016
Spanish Framework General
Fund
RE2
Urban Development and Housing
Revitaliz.ciudad Colonial Sto. Domingo
1999
TC9902027
Spanish Fund for Consultants
(ICEX)
SDS
Urban Development and Housing
Dominican
Republic
Master Plan Colonial City Santo Domingo
2001
TC0105008
Fund for Special Operations
RE2/SDS
Urban Development and Housing
Experience on Rehabilitation of Urban Areas
2003
EC-T1003
Fund for Special Operations
RE3
Urban Development and Housing
Rehabilitation Historical Downtown Area of Quito
2004
TC0301023
Italian Cultural Heritage & S Dev.
RE3
Urban Development and Housing
Ecuador
Rehabilitation of Historical Downtown Quito, Second
Stage
2005
EC-L1006
Ordinary Capital
RE3
Urban Development and Housing
Country
Project Name
Year
Project
Number
Fund
Department
Sector
48
2006
EC-L1021
Ordinary Capital
Urban Development and Housing
Cuenca. Renewal of Downtown Areas and Land
Management
2005
EC-T1040
Italian Cultural Heritage & S Dev.
RE3
Urban Development and Housing
Sustainable Productive Sector Development in
Galapagos
2005
EC-M1010
MIF-Small Enterprise Dev.
Facility
MIF
Tourism
Ecuador
Local Participation Galapagos Tourism
2001
TC9902016
MIF-Human Resource Facility
MIF
Tourism
El
Salvador
Support for Urban Planning in the Metropolitan Area
of San Salvador
2003
TC0301025
Swedish Fund Services &
Training
Urban Development and Housing
Rehabilitation Historical Downtown Area Guatemala
City
2004
GU-T1016
Fund for Special Operations
Urban Development and Housing
Guatemala
Competitive Development of Cultural Tourism with
Indigenous Communities
2005
GU-M1005
MIF-Small Enterprise Dev.
Facility
Tourism
Guyana
2005
HA-T1022
Fund for Special Operations
Urban Development and Housing
2005
HA-L1002
Fund for Special Operations
Urban Development and Housing
2004
HA-T1013
Fund for Special Operations
Urban Development and Housing
Haiti
Urban Rehabilitation Program
1999
TC9712490
Fund for Special Operations
Urban Development and Housing
Honduras
Municipal Development Program Tegucigalpa for
the Central District
2004
HO-L1001
Fund for Special Operations
Urban Development and Housing
México
Tourism Development for MSMEs in the Tequila
Region
2006
ME-M1016
MIF-Small Enterprise Dev.
Facility
MIF
Tourism
Economic Revitalization Panama Old City Center
2002
TC0112029
French Human Resources
Contribution
Urban Development and Housing
Panama
Restoration Neighborhood of San Felipe
1999
TC9711385
Swedish Fund Services &
Training
Tourism
Paraguay
Promotion of Tourism to the Missions in the Guaraní
World
2006
PR-M1008
Tourism
Developing the Northeastern Tourist Circuit to
Enhance MSME Competitiveness
2004
PE-M1009
MIF-Small Enterprise Dev.
Facility
MIF
Tourism
Rehabilitation of Lima's Downtown
2000
TC0103041
Spanish Fund for Consultants
(ICEX)
RE3
Urban Development and Housing
Peru
Promotion Tourism Program in Peru
1998
TC9810278
French Fund for Consulting Serv.
Tourism
Suriname
Urban Development Plan in Paramaribo
2004
TC0306019
French Caribbean Contribution
Urban Development and Housing
Uruguay
Urban Recovery Program
1998
UR0112
Ordinary Capital
Urban Development and Housing
Urban Rehabilitation and Development of Caracas
City
2006
VE-T1006
Fund for Special Operations
Urban Development and Housing
PEF:VE-L1017 Support to the Social Action Center
for the Music, Phase II
2006
VE-L1018
Ordinary Capital
Social Investment
Venezuela
Support to the Action Social Center of Music Phase I
1997
VE0105
Ordinary Capital
Social Investment
49
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