The Economic Power of Culture: A path to growth and innovation

The Ingoma Zulu dance is one of the purest remnants of Zulu tradition. If packaged correctly, the arts and cultural sectors can contribute significantly to the economic vitality of the KZN government. Picture: Motshwari Mofokeng/African News Agency(ANA)

The Ingoma Zulu dance is one of the purest remnants of Zulu tradition. If packaged correctly, the arts and cultural sectors can contribute significantly to the economic vitality of the KZN government. Picture: Motshwari Mofokeng/African News Agency(ANA)

Published Dec 3, 2024

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By Dr Vusi Shongwe

JORGE Coscia, who was the Cultural Secretary of Argentina, once posited that: “When we learn of what culture and culture consumption have added to the economy, we discover that in addition to spiritual satisfaction … culture generates work. We are finally accepting that culture is more than music, sound, and happiness. Culture is employment, production, and a stimulus for creativity that generates wealth and added value.”

Equally, the former Canadian Heritage Minister, James Moore, opined that: “Any government that says they have a plan for economic recovery, growth, and future growth, that doesn't include a strong plan to support the arts, is a government that doesn't have a plan for economic growth and recovery.”

This is true given that the arts and culture sector is often a precursor to innovation and entrepreneurship.

Globally, there is growing evidence of the strong impact of culture on the economy. This fact can no longer be dismissed. The culture concept is now ampler, richer, and more understood in its economic dimension. It recognises not only the symbolic value of culture, but the potential of what, until now, was deemed “not economics”.

Indeed, there seems to be consensus that culture endows a country with enormous potential for development. This new perspective acknowledges the implications of culture in the development of societies. A development that rescues diversity to integrate it, safeguards knowledge, and contributes to growth in every sense.

The cultural richness of a people grows by incorporating the new, transforming the present, and being respectful of one’s own origins and cultural diversity.

Innovation is a fundamental element in growth. It is especially evident in the new technologies of today that allow joining the global world by eliminating physical barriers. Small and medium-sized enterprises (SMEs) are central to this process since it is these businesses that are better able to create a link between the cultural identity of each community and the global market.

Culture in this regard serves as an opportunity for developing countries to diversify their national economies and join the world market. Above all, it serves as a key tool in public policies for the inclusion of disadvantaged social groups and a key to a better quality of life.

Interestingly, when we think of culture in terms of innovation and growth, what immediately comes to mind is the creative industries sector, which is more and more present in the cultural production context. Creative industries have had a strong growth rate in the global market.

There is an argument that says creative products are effectively immune to recession and an excellent opportunity to boost job creation in developing countries. It’s a debatable argument worth exploring. As a stimulus for creativity that generates wealth and added value, both cultural and creative industries can leverage economic development.

Cultural industries are those industries that involve the sales of creative content, intangible, or of a cultural nature. Creative industries are the sum of a wider range of activities, which range from traditional crafts, cultural celebrations, books, art, music, and performing arts to sectors with an intense use of technology, such as design and the audiovisuals, including the film industry, television, and radio.

Also included are activities directed to services such as architecture, advertising, and new products in media communication, like digital animation and video games.

It’s time our cultural sector is restructured

Culture plays an increasingly significant role in the development of society and the economy. Xu Gongcheng, an associate professor of philosophy at Xiamen University, argues that only when culture surpasses physical and financial capital can the economy be promoted to a higher level of development.

For example, he believes that a developing China can gain a strong footing in the international arena by forming a cultural edge compatible with its social and economic development. This is true, especially when it has been recognised globally that cultural industry, with its small impact on the environment and strong incentives for scientific and technological innovations, is a healthy and potent source of economic growth.

For our culture to remain relevant in the realm of modernity, especially during this time of government cost-cutting measures, there is a serious cultural restructuring that needs to take place. A restructuring that is similar to the one China undertook gave rise to a thriving cultured economy, which, for example, led to various performing arts groups no longer experiencing the disconnection with the market that came from relying on government finance.

Venturing out into the commercial world, some of China’s performing groups produced a number of excellent productions that were well received, filling a niche in the marketplace and enjoying considerable economic benefits. Fortunately, South Africa, especially KwaZulu-Natal (KZN), is blessed with world-class performing arts gurus like Edmund Mhlongo, founder of KwaMashu K-CP Centre, and Jerry Pooe, to mention but a few.

Lest it be forgotten, the legendary and late global performing arts director, the inimitable Mbongeni Ngema, also hails from KZN. His Sarafina stage project mesmerised the world performing arts community.

In short, our cultural and creative industries need to embark on a serious restructuring process. The cultural creative industries remain a major source of innovative ideas and thus can contribute to an economy’s innovative potential and the generation of new products and services.

Most importantly, if ingeniously packaged, marketed, and funded well, the cultural creative industry can be a major source of dynamic job creation, encompassing many traditional professions that are essential for sustainable livelihood and people’s well-being.

The restructuring trajectory that is suggested resonates well with the once famous Accelerated and Shared Growth Initiative for SA (Asgisa), which recognised creative industries, particularly the craft and film sectors, as the drivers of sustainable economic opportunities and livelihoods for local communities in South Africa.

Ironically, in 2011, the current Deputy President, Paul Mashatile, who was then Minister of Arts and Culture, stated that in developing South Africa, the promotion of creative industries was yet to be incorporated into the industrial and economic policies.

Thirteen years down the line, has the incorporation happened? As in the lyrics … there are more questions than answers. At the risk of ingratiating oneself with Mashatile, as Minister of Arts and Culture, the man was far ahead of his time. It was during his time that the concept of the Golden Mzansi economy was introduced.

Mashatile changed the perception that being appointed Minister of Arts and Culture was a demotion. He turned the Department of Arts and Culture around and made it an exciting and important department in the bigger scheme of things. Truth be told, the department is the engine of all government departments, a point that requires a separate discussion.

Arts, culture, and the value of the symbolic

If properly and ingeniously packaged, the arts can play a crucial role in generating a significant level of economic growth. Sadly though, the multi-layered contributions of the arts and arts-related activities rank among the lesser known and unheralded aspects of our society.

In fact, highlighting the substantial private and public economic benefits from a thriving arts environment continues to be a theme often stressed by arts advocates of every stripe across the country.

In short, as a country, we are yet to realise the full economic potential of “assets” like arts and culture. We have not capitalised on our own creative community. The point is that we have, historically and currently, very strong assets in arts and culture, but we are failing at a very key point in time to leverage those assets to create higher-paying, rapidly growing industries.

We can think of this as a failing, but we can also think of it as an important opportunity that exists now. One way to better position the “creative economy” moving forward is through business-related training and education. The reality is that many already working in the arts and culture fields lack, for example, the accounting or marketing savvy to grow their own enterprises.

Helping arts entrepreneurs could be critical to the province’s overall economy. People come to cities; people invest in cities because they have a strong arts and culture community, and economic development follows that.

While the arts continue to struggle for recognition as an important revenue generator in South Africa, the growing strength of their collective contributions may cause policymakers to think twice about substantially increasing the funding allocated to the Department of Sport, Arts, and Culture. Undoubtedly, if packaged correctly, the arts and cultural sectors can contribute significantly to the economic vitality of the KZN government.

Cultural tourism

Like any significant change, the opportunity is ripe to chart a new course for heritage in the tourism space, regardless of how effective the old one has been. It is time our tourism sector reinvents itself by unashamedly acknowledging the indespensability of heritage in leveraging both economic development and tourism. Without belabouring on this point, heritage and tourism are inextricably intertwined. They are reverently referred to as the Siamese twins.

Despite the value of tourism to the local economy, it is an indictment that this crucial aspect is still in the hands of the private sector. The province’s future could be reasonably secure if it could be in the hands of the local communities.

Tourism can take on a bold new role as an advocate for such redevelopment with the endorsement of the local hotel industry. By endorsement, one means something that goes beyond a simple expression of support. In this way, local hotels/lodges/B&Bs, et al would share in its success rather than fear it as a competitor.

Promotion of historical or heritage sites contributes to culture tourism. Globally, there is a growing desire for people to reconnect with their heritage. The benefits of heritage-orientated tourists are massive. Heritage tourists take longer trips, spend more money, and stay longer. Heritage tourism creates jobs, creates new markets for local and regional arts and crafts, and builds community pride.

Culture tourism brings along economic benefits, sociocultural benefits, and environmental resource benefits. If well developed and presented, it can improve a destination’s economy, generate productive activities amongst businesses, boost the self-esteem and productive spirit in its citizens, ensure an acceptable state of environmental and cultural resources, create a positive image of a stable government, inspire the cooperation of foreign and domestic parties, and instill confidence in tourists to return.

* Dr Vusi Shongwe is the former head of the Department of the Royal Household. The contribution is written in his personal capacity. The views expressed here are his own.