{"id":4566,"date":"2024-10-07T21:34:41","date_gmt":"2024-10-07T19:34:41","guid":{"rendered":"https:\/\/www.rivistaeco.com\/?p=4566"},"modified":"2024-10-07T21:34:41","modified_gmt":"2024-10-07T19:34:41","slug":"an-economic-policy-for-the-cultural-industry","status":"publish","type":"post","link":"https:\/\/www.rivistaeco.com\/en\/2024\/10\/07\/an-economic-policy-for-the-cultural-industry\/","title":{"rendered":"An Economic Policy for the Cultural Industry"},"content":{"rendered":"<p><i><span style=\"font-weight: 400;\">Italy has an enormous artistic and cultural heritage that remains underutilised. This is partly because the sector is too often associated with tourism, perpetuating its weaknesses. Instead, there should be stronger integration with the entire economic activity, investing in training and new skills and exploiting opportunities such as cultural welfare.<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">Can cultural heritage contribute to the economy?<\/span> <span style=\"font-weight: 400;\">Or is it merely a tool to enhance the aesthetics of our cities and fill our leisure time? Capturing the value of sectors that produce cultural goods and services remains an extremely complex exercise. However, there is now greater awareness of the professional and economic contributions arising from the various activities linked to our tangible and intangible cultural heritage: from the conservation and restoration of monuments to live performances, from television production to filmmaking, just to name a few.<\/span><\/p>\n<h3><b>Numbers and Problems of the Cultural Economy<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Numerous international (OECD, UNESCO, UNCTAD, European Commission) and national (Istat, Symbola-Unioncamere) sources provide an idea of the economic scope of the so-called &#8220;cultural and creative sectors.&#8221; Employment generated as well as added value varies between 1% and 4% of the total, depending on the definition used, which can include, for example, gastronomy. In general, the sector shows growth trends\u2014after the sharp halt caused by COVID-19\u2014thanks to increasing relationships with the rest of the economy. Just consider the economic weight of platforms and the role played by content.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, the economic contribution of the cultural and creative sectors remains below its potential. The reasons are numerous and are certainly influenced by the overall state of the national economy, characterised by low innovation and productivity rates. Without claiming to be exhaustive, here I highlight three issues directly related to how public policy interacts with these specific sectors and which should be considered in the construction of an economic enhancement strategy for culture.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The first issue concerns the still limited knowledge of the cultural and creative sectors, leading to a lack of ambitious and clear economic policies. The second issue, directly stemming from the first, involves policies still too focused on the culture-tourism connection, not sufficiently incentivising the development of new collaborations between sectors, for example with the health sector. The third issue concerns the support for the requalification and improvement of skills, not necessarily aligned with the particularly small size of many cultural operators who struggle to invest in training or acquire the necessary skills to face essential challenges such as the digital and green transition.<\/span><\/p>\n<h3><b>A Great Untapped Potential<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">According to Eurostat data, culture in Europe contributes to 3.8% of employment, up from 3.7% in 2019. The increase in cultural employment in recent years is driven by some Nordic countries (Sweden, Norway) but especially by Cyprus, Ireland, and Luxembourg. In Italy, cultural employment grows at a much lower rate than these countries but is similar to that of Germany and especially France. However, it is important to note two things: first, in absolute terms, our numbers remain well below those of our counterparts; second, we are the only country among those with growing cultural employment where total cultural employment has not reached pre-pandemic levels.<\/span><\/p>\n<h3><b>Total Cultural Employment in Germany, France, and Italy: Comparison 2019-2022 (in thousands)<\/b><\/h3>\n<figure id=\"attachment_4567\" aria-describedby=\"caption-attachment-4567\" style=\"width: 640px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-4567 size-large\" src=\"https:\/\/www.rivistaeco.com\/wp-content\/uploads\/sites\/2\/2024\/10\/Montalto_1-1024x964.png\" alt=\"\" width=\"640\" height=\"603\" srcset=\"https:\/\/www.rivistaeco.com\/wp-content\/uploads\/sites\/2\/2024\/10\/Montalto_1-1024x964.png 1024w, https:\/\/www.rivistaeco.com\/wp-content\/uploads\/sites\/2\/2024\/10\/Montalto_1-300x282.png 300w, https:\/\/www.rivistaeco.com\/wp-content\/uploads\/sites\/2\/2024\/10\/Montalto_1-768x723.png 768w, https:\/\/www.rivistaeco.com\/wp-content\/uploads\/sites\/2\/2024\/10\/Montalto_1-1536x1446.png 1536w, https:\/\/www.rivistaeco.com\/wp-content\/uploads\/sites\/2\/2024\/10\/Montalto_1-2048x1928.png 2048w, https:\/\/www.rivistaeco.com\/wp-content\/uploads\/sites\/2\/2024\/10\/Montalto_1-600x565.png 600w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><figcaption id=\"caption-attachment-4567\" class=\"wp-caption-text\">Source: Author&#8217;s elaboration on Eurostat data.<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">S<\/span><span style=\"font-weight: 400;\">Why? An analysis of sectoral data offers a first interpretative clue: Italy&#8217;s specialisation sectors such as arts and entertainment and heritage face post-COVID recovery difficulties, while creative services like design, fashion, and advertising show a clear recovery, surpassing pre-pandemic levels.<\/span><\/p>\n<h3><b>Cultural Employment by Selected Activity Sectors (percentage change 2022-2019)<\/b><\/h3>\n<figure id=\"attachment_4569\" aria-describedby=\"caption-attachment-4569\" style=\"width: 640px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-4569 size-large\" src=\"https:\/\/www.rivistaeco.com\/wp-content\/uploads\/sites\/2\/2024\/10\/Montalto_2-1024x473.png\" alt=\"\" width=\"640\" height=\"296\" srcset=\"https:\/\/www.rivistaeco.com\/wp-content\/uploads\/sites\/2\/2024\/10\/Montalto_2-1024x473.png 1024w, https:\/\/www.rivistaeco.com\/wp-content\/uploads\/sites\/2\/2024\/10\/Montalto_2-300x138.png 300w, https:\/\/www.rivistaeco.com\/wp-content\/uploads\/sites\/2\/2024\/10\/Montalto_2-768x354.png 768w, https:\/\/www.rivistaeco.com\/wp-content\/uploads\/sites\/2\/2024\/10\/Montalto_2-1536x709.png 1536w, https:\/\/www.rivistaeco.com\/wp-content\/uploads\/sites\/2\/2024\/10\/Montalto_2-2048x945.png 2048w, https:\/\/www.rivistaeco.com\/wp-content\/uploads\/sites\/2\/2024\/10\/Montalto_2-600x277.png 600w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><figcaption id=\"caption-attachment-4569\" class=\"wp-caption-text\">Source: Author&#8217;s elaboration on Eurostat data.<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">These data essentially tell us that what we might define as the &#8220;core&#8221; of the cultural and creative sectors in Italy relies on increasingly limited human resources. This issue needs to be addressed if we want arts and heritage to continue being part of our country&#8217;s identity, image, and economy, as governments of all political hues seem to support, albeit with very different objectives.<\/span><\/p>\n<h3><b>Regulatory Recognition<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">After a series of unsuccessful attempts, the law for the promotion of Made in Italy, approved on December 27, 2023, for the first time includes regulations for cultural and creative enterprises. The same law establishes a &#8220;Fund for Small and Medium Creative Enterprises&#8221; as well as a single register for cultural and creative enterprises. The regulatory recognition confirms the attention these sectors have managed to attract, but to move to the implementation phase, the issue of the approximate knowledge of their contours and characteristics needs to be resolved. Defining them is not a simple exercise, given the heterogeneity of productive activities generally included in the cultural and creative sectors (ranging from restoration to video games, passing through advertising and fashion) and the multiplicity of actors (for-profit and non-profit enterprises, volunteer organizations, foundations, public entities) along with the impact of technological transformations and the increasingly important role culture plays within the production system.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To temporarily address the lack of a clear definition of what constitutes a cultural and creative enterprise, the law distinguishes between companies engaged in &#8220;core&#8221; activities (e.g., ideation, creation, production of cultural products and services) and &#8220;support&#8221; companies (management and distribution services). However, clear and measurable parameters\u2014such as employment, turnover, or type of production\u2014are missing to identify them, which is why the implementing decrees have not yet been published despite the 90-day deadline from the law&#8217;s approval. The Ministry of Culture has recently launched a new research project with the support of Istat to address the knowledge gap, with results to be published gradually throughout 2024 and 2025. However, the ultimate objectives of the law remain unclear (innovation, social cohesion, sustainability, or sector structuring?), risking a repeat of the model of scattered funding.<\/span><\/p>\n<h3><b>Culture Is Not Just Tourism<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The phrase &#8220;culture is Italy&#8217;s oil&#8221; reflects the extractive approach with which we have long related to our heritage. The economic returns of cultural tourism are so evident that we have almost equated the cultural economy with the tourism economy, neglecting both the environmental and social costs of (over)tourism and the minimal contribution of tourism to the development and growth of the cultural and creative sectors themselves. Tourism is perhaps the most intuitive channel through which culture can contribute to the economy, but not necessarily to sustainable and quality growth\u2014neither of territories nor of sectors. It remains an activity with low added value. This is reflected in wages and working conditions. In 2021, at the EU level, the average salary was around 20,000 euros per employee (Eurostat). In our country, it is a particularly uncompetitive sector: while in terms of total nights we have surpassed France and Germany, we are only third in terms of added value produced (World Travel &amp; Tourism Council 2023). In other words, if arts and heritage drive most tourist flows, it will be difficult to revive the fortunes of the cultural industry by favouring alliances with an inherently fragile and precarious sector.<\/span><\/p>\n<h3><b>The Opportunities of &#8220;Cultural Welfare&#8221;<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">What new alliances should be built then? The most interesting and promising hybridisations come from a new supply chain gradually taking shape around the concept of &#8220;cultural welfare.&#8221; This should be understood as the multidisciplinary practice that studies and enhances the relationship between culture and health, aiming to promote the positive effect of the former on individual and collective well-being. This is a rapidly developing practice, especially after the publication of the World Health Organization&#8217;s 2019 study on the topic. &#8220;Theatre Syrup,&#8221; for example, is Ater Foundation&#8217;s cultural welfare initiative in collaboration with the Emilia-Romagna Region&#8217;s departments of Culture, Health, and Welfare, allowing children aged 3 to 11 and their companions to visit theatres with a voucher provided by paediatricians in their district. These initiatives not only work on health determinants but also offer cultural operators the opportunity to enrich their skills and explore new areas of professional development. However, there is no national policy on the matter, while in France, for example, an agreement has been signed between the Ministry of Culture and the Ministry of Health to integrate a quality cultural offer in hospitals.<\/span><\/p>\n<h3><b>When Training Funds Are Not Enough<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">There is no productivity and growth without skills. Renewing and strengthening skills is the primary goal of the &#8220;EU Pact for Skills for the Cultural and Creative Industries Ecosystem,&#8221; which establishes a European framework on the topic with a particular focus on green, digital, entrepreneurial, and technical skills, complementing the numerous European projects already funded in this area. In Italy, the most significant action is the projects funded under the National Recovery and Resilience Plan through the 10 million euro &#8220;Capacity Building for Cultural Operators to Manage the Digital and Ecological Transition&#8221; (the so-called &#8220;Tocc&#8221; call). However, training initiatives risk simply turning into new (and often unsustainable) obligations for already structurally fragile sectors with few resources rather than strengthening their sustainability and competitiveness. According to preliminary data from the &#8220;4C \u2013 Decarbonisation in the Cultural and Creative Field&#8221; research launched and conducted by the Santagata Foundation to address the climate emergency, for the vast majority of organisations participating in the survey (73%), the lack of dedicated personnel is one of the main reasons for the absence of structuring in sustainability.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In conclusion, an economic policy for the cultural and creative sectors should contribute to creating a more integrated production system with the rest of the economy by preparing interventions that favour new practices of &#8220;cross-fertilisation&#8221; as well as the development of new welfare services, particularly involving sectors with employment levels still below pre-COVID levels. And without limiting culture to an appendage of tourism or a filler for summer evenings. Social policies should, in turn, consider the possibility of equipping small operators with professional figures capable of supporting green and digital transition paths in addition to training courses. This necessary transition in the cultural sectors should become a qualification element\u2014and not an additional choke point\u2014for a sector that increasingly attracts interest but remains poorly known and understood.<\/span><\/p>\n<p><em><b>Bio<\/b><\/em><\/p>\n<p><em><span style=\"font-weight: 400;\">Valentina Montalto is an associate professor at KEDGE Business School in Paris and a UNESCO Consultant for the Culture | 2030 Indicators project.<\/span><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Italy has an enormous artistic and cultural heritage that remains underutilised. 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