New Economics for Sustainable Development: Creative Economy

New Economics for Sustainable Development: Creative Economy

United Nations Economist Network

Source: United Nations Economist Network

The creative economy, also referred to as the orange economy, is an evolving concept centered on how creative assets, knowledge-based activities, and intellectual capital drive economic growth and sustainable development. This multidisciplinary framework encompasses the cycles of creation, production, and distribution within creative industries, which utilize original or copyrightable intellectual property as primary inputs. These industries are classified into four major roles: heritage, art, media, and functional creations, covering diverse fields from traditional crafts and performing arts to technology-intensive sectors like software, design, and digital media.

Existing global and regional governance frameworks, agreements, and mandates provided through intergovernmental processes establish the international legal and policy foundation for the creative sector. Key milestones include the 2004 Sao Paulo Consensus, which first mandated support for creative industries in developing countries, and the Bridgetown Covenant of 2021, which emphasizes creating an enabling environment through innovation and vocational training. Furthermore, United Nations General Assembly resolution 74/198 designated 2021 as the International Year of Creative Economy for Sustainable Development, recognizing the sector as vital for attaining the 2030 Agenda through international trade.

The relationship between new economics for sustainable development concepts highlights how the creative economy complements green, blue, circular, and digital economic models. A creative approach to the circular economy involves designing out waste and pollution to keep materials in use, while the digital economy provides global value chain opportunities for developing nations to offer creative services. Additionally, the creative economy links to the blue economy through sustainable coastal tourism and gastronomy, and integrates with frugal innovation by using agile design to meet customer needs efficiently.

Implications for sustainable development and linkages to specific sustainable development goals demonstrate the sector’s role in fostering inclusive growth, particularly for women and youth. While creative industries employ a high percentage of young people and women, significant barriers remain, including a persistent digital divide and unequal access to leadership roles. Despite these challenges, creative services are highly transformative and resilient, with global exports reaching nearly $1.1 trillion in 2020 and showing greater stability during the COVID-19 pandemic than other service sectors.

The priority within NESD concept is driven by an increasing demand for creative products, entertainment, and tourism. The COVID-19 pandemic shifted consumption toward online platforms and demonstrated that physical presence is often unnecessary for creative jobs, facilitating international value chain development through digital collaboration. Near-shoring has also emerged as a significant trend, benefiting countries that are culturally and physically proximate to major global markets.

Constraints to integration into mainstream economy at the country level stem from the limitations of traditional economic philosophy in quantifying creative value. Mainstream models often fail to capture direct returns from creative activities, such as the value-addition of patents, or the significant positive externalities generated by cultural exposure and artistic proximity. These measurement gaps often prevent the creative sector from receiving adequate attention and investment within standard economic frameworks.

Policy recommendations to strengthen or support the creative economy focus on centering culture as a driver of trade and innovation at both the international and national levels. Recommended actions include establishing innovation funds to finance content development in developing countries, forming national bodies to nurture digital creativity, and fostering partnerships between academia and the private sector for research and development. Academic research must also expand to better measure digital creative products and employment through methodologies like the “creative trident,” which tracks specialist, support, and embedded creative labor.

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