Throughout the world creative industries possess a natural economic potential and an implicit capacity to foster cultural diversity in the global market. In the transition towards modern knowledge-based economies, creative industries have become increasingly important components of national economies and global trade. In the world's most developed economies, the USA and UK, creative industries are a major employer and major export sector, with annual growth rates between 5% and 20%.

In the contemporary economic landscape of the ‘creative economy’, ‘creativity and culture are the essential raw materials of the production cycle just as coal and steel have been since the industrial revolution.’¹  In the realm of the creative economy artistic producers are generators of economic and cultural value. In developing countries the creative economy provides important sources of work, education and investment.

According to the South African Department of Industry (the dti) creative industries are defined as ‘those areas of social and economic activity that are premised on or closely allied with: individual or collective intellectual or artistic creativity, innovation and originality; or the preservation, teaching and celebration of cultural heritage including language.’ The sub-sectors comprising the creative industries are generally regarded as the following: architecture and interior design, craft, design, events and cultural tourism, film, TV and new media, literature and publishing, music, performing arts and dance, urban regeneration and heritage, and visual art and photography.

‘Creativity is the key factor driving development. Across the world, enterprises based on individual creativity are booming, and are having a dramatic impact on global culture and the economy.²  Creative industries are drivers of economic growth and are generally knowledge intensive, involving highly skilled workers; labour intensive and creating more than the average number of jobs; and comprised of small and medium enterprises.

In the UK and India the creative industries represent the fastest growing sectors of the economies in the respective countries. For example in the UK, the creative industries sustain over 2-million jobs, and account for 7.3% of national GDP, comparable in size to and equally important as, the financial sector. Among emerging market economies, India’s film industry, the world’s largest producer of films, personifies the notion that ‘culture is big business’. The industry is worth approximately US$2.3-billion and employs over 4-million people in India alone.³

The dti estimates South Africa's craft sub-sector alone contributes about R2-billion or 0.14% to South Africa's GDP annually. In addition, it provides jobs and income for approximately 38 000 people through at an estimated 7 000 small enterprises. The crafts industry (linked to tourism) is a big sector for women, especially for the economic empowerment of rural women – mainstreaming women in economic development. According to Elle Decoration magazine, it is projected that the crafts sector has the potential to could contribute R5-billion to the country's GDP and 20 000 more jobs by 2015 if supported by appropriate interventions.

The creative economy adding value to South African exports
According to the South African Bureau of Standards, design is one of the most important tools for competitiveness in the new economy. Furthermore, ‘globalization demands that for products to be competitive, they have to be both functional and well designed. As a country, to meet both local and international challenges, we need to produce products that will not only serve our needs, but will be competitive in the world market.’⁴

Moving South African exports up the value chain is central to government’s economic growth strategy, for sustainable job creation and the export of high quality finished goods. Thus, the creative economy is instrumental in adding value to raw commodities, for instance turning South African platinum into award-winning jewellery.

According to Elle Decoration magazine, ‘South African design exports range from recycled bottle top mats to bathplug chain chandeliers and are being snapped up from Mumbai to Hong Kong and are increasingly contributing to local job creation and wealth generation.’ Elle Decoration editor Karen Roos said: ‘It’s outdated to view South Africa as a mere commodity exporter. There’s huge interest in our innovative and functional designs, from Amsterdam to New York.’⁵

Design Indaba CEO Ravi Naidoo states: ‘We really believe that the “creative industry” is the sleeper in the SA economy, and has the potential to be as large a contributor as tourism or the automobile industry. It’s a delicious concept to take high art/design or technology as a solution to the problems of a developing economy.’

Naidoo strongly advocates that we have the right mix of ingredients for a thriving creative sector. ‘This heterogeneity is the lifeblood of creativity.’ In reference to the culturally diverse nature of our society he postulates, ‘On a social level the best ingredient is our diversity … Sparks are flying. The real gold scene in Jo'burg is on the streets of Jozi. How can we give impetus to this? I think we need to refocus the economy!’

‘Design is about problem solving,’ says Naidoo. In South Africa creative industries have the potential to be instrumental in addressing development challenges by creating jobs through cultural production. Globally creative industries have been identified as a high growth sector. South Africa has the opportunity to harness its creative diversity to create its own competitive advantage and to increase the capacity of its creative economy.

Notes
1 http://portal.unesco.org/culture/en/ev.php-URL_ID=29032&URL_DO=DO_TOPIC&URL_SECTION=201.html
2 http://www.creativeclusters.com/modules/wfsection/article.php?articleid=18&page=0
3 http://www.ibpn.co.uk/creative.asp
4 https://www.sabs.co.za/Business_Units/Design_Institute/initiatives/industry/index.aspx
5 http://www.southafrica.info/doing_business/sa_trade/exporting/edida2007.htm