COMPREHENSIVE POLICY OF THE

C O L O M B I AORANGE ECONOMY

COLOMBIA

Iván Duque MárquezPresident of the Republic

Marta Lucía Ramírez BlancoVice President of the Republic

National Council of the Orange Economy

Carmen Inés Vásquez CamachoMinister of Culture

Alicia Arango OlmosMinister of the Interior

Alberto Carrasquilla BarreraMinister of Finance and Public Credit

Ángel Custodio Cabrera BáezMinister of Labor

José Manuel Restrepo AbondanoMinister of Trade, Industry and Tourism

María Victoria Angulo GonzálezMinister of National Education

Karen Cecilia Abudinen AbuchaibeMinister of Information and Communication Technologies

Luis Alberto Rodríguez OspinoDirector of the National Planning Department (DNP)

Juan Daniel Oviedo ArangoDirector of the National Administrative Department of Statistics (DANE)

Carlos Mario Estrada MolinaDirector of the National Learning Service (SENA)

Carolina Romero RomeroGeneral Director of the National Directorate of Copyright (DNDA)

Sandra Gómez AriasPresident of the Territorial Development Fund (FINDETER)

Ministry of Culture

Carmen Inés Vásquez CamachoMinister of Culture

Felipe Buitrago RestrepoVice Minister of Creativity and the Orange Economy

José Ignacio Argote LópezVice Minister of Development and Heritage

Julián David Sterling OlaveSecretary General

Javier Machicado Villamizar Diana Cifuentes Gómez Document coordination

Advisory committee

Adriana González Hassig, Carlos Dueñas Montaño, Gabriel Arjona Pachón, Juan FelipeParra Osorio, María Cristina Díaz Velásquez

Expanded CNEN

Claudia Blum De BarberiMinister of Foreign Affairs

Ernesto Lucena BarreroMinister of Sport

Mabel Gisela Torres TorresMinister of Science, Technology and Innovation

Susana Correa BorreroDirector of the Administrative Department for Social Prosperity

Federico Eduardo Hoyos SalazarPresidential Advisor for the Regions

Hassan Amin Abdul Nassar PérezPresidential Advisor for Communications

Víctor Manuel Muñoz RodríguezPresidential Advisor for Economic Affairs and Digital Transformation

Clara Elena Parra BeltránPresidential Advisor for Competitiveness and Public-Private Governance

Juan Sebastián Arango CárdenasPresidential Advisor for Innovation and Youth, Colombia Joven

Alejandra Carolina Botero BarcoPresidential Advisor for Governance and Execution

José Andrés Romero TarazonaDirector General of the Directorate of National Taxes and Customs (DIAN)

Juan Pablo Liévano VegalaraSuperintendent of Corporations

Andrés Barreto GonzálezSuperintendent of Industry and Trade (SIC)

Ignacio Gaitán VillegasPresident of iNNpulsa

Camilo Fernández de Soto CamachoManaging Director of Colombia Productiva

José Andrés O’meara RiveiraDirector of Colombia Compra Eficiente

Flavia Santoro TrujilloPresident of Procolombia

Javier Díaz FajardoPresident of Bancóldex

Raquel Garavito ChapavalManaging Director of Fontur

Juan Miguel Villa LoraPresident of Colpensiones

Manuel Acevedo JaramilloPresident of the Colombian Institute for Student Loans and Technical Studies Abroad (ICETEX)

Ángela Mercedes Ospina De NichollsDirector of the Presidential Cooperation Agency (APC)

Ana María Fríes MartínezManaging Director of Artesanías de Colombia

Acknowledgements

David Melo Torres, César Parra OrtegaAndrea Martínez MorenoMaría Cristina DíazEditing and editorial production

Instituto Caro y CuervoCopy-editing

Directorate of PopulationsT ranslation of the part-title pages

Álvaro José MorenoEnglish translation

Lorena IglesiasEnglish copy-editor

Andrés OviedoArt direction

Karen Gordillo | Laura Cifuentes | Andrés CanoGraphic style, layout and table design

Bogotá, D.C. 2020ISBN 978-958-753-340-8

República de ColombiaMinisterio de CulturaViceministerio de la Creatividad y la Economía NaranjaCarrera 8 No 8 – 55Teléfono (571) 3424100Bogotá D.C.servicioalcliente@mincultura.gov.cowww.mincultura.gov.co

Copyright Ministerio de Cultura, 2019

ContentsINTRODUCTION 8

PILLARS OF A SUSTAINABILITY POLICY FOR CULTURE AND CREATIVITY 12

2.1. Sustainable development as an objective of the policy for culture and creativity 122.2. Culture and the guarantee of rights 142.3. A broad view of the Orange Economy 152.4. The recognition of multiple values in culture and creativity 222.5. The multiple horizons of cultural and creative organizations 23 2.6. The cultural and creative sector as an ecosystem 312.8. Why write about the conceptual bases of a policy for the cultural and creative economy? 34

POLICY LINES 37

3.1. LINE 1. INFORMATION 393.1.1. Some noteworthy precedents 403.1.2. Information from the public sector for all agents of the cultural ecosystem 413.1.3. Information for decision-making in the private sector and the role of universities in generating sectoral knowledge 423.1.4. The state of information and knowledge about the creative industries 443.1.5. From the economy of culture to cultural rights and human development 45

3.2. LINE 2. INSTITUTIONS 493.2.1. The constitution and operation of formal institutions 503.2.2. The importance of financing instruments in the cultural and creative industries 51

1.2.

3.

2.2. 1.3.2.3. Scenarios and spaces for coordination 52

3.2.3.1. Coordination with the territories 543.2.4. Costs, productivity and innovation in the creative sector 553.2.5. High risks and long returns: a transversal feature 56

3. LINE 3. INFRASTRUCTURE 613.3.1. The social construction of territories 613.3.2. The creative and productive vocations of the territories and their relationship with infrastructure 623.3.3. Public goods, Orange Development Areas and sustainability of creative infrastructure 643.4.1. Motivations for entrepreneurship in the cultural and creative sector 703.4.2. Managing projects, managing companies 723.4.3. Understanding the context, the market and its trends 73

3.5. LINE 5. INTEGRATION 773.5.1. Who makes integration possible? 773.5.2. Challenges for a lasting and meaningful integration 78

3.6. LINE 6. INCLUSION 843.6.1. Creativity as a fundamental capacity 853.6.2. Creativity in childhood and youth 863.6.3. Creativity and professional training in the cultural and creative field 883.6.4. Education for work and human development and the creative capacity (ETDH) 903.6.5. Creative capacity and informal education 903.6.6. Crafts, roles and occupations related to the arts and cultural heritage 923.6.7. Skill development as expansion of the creative capacity 93

3.7. LINE 7. INSPIRATION 98Creativity and its products 98

3.7.1. The vitality of creativity and its products 983.7.2. Protection of creations based on intellectual property 993.7.3. The concentration of production and consumption as a challenge 1003.7.4. Proposals, quality and innovation 101

REFERENCES 104

2.2. 1.2.2. 1.

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INTRODUCTION

This document seeks to establish the bases for the development of a cultural and creative economy policy, and a framework for the design of its strategies and the implementation of its activities.  These guidelines were built alongside diverse actors, organizations and institutions throughout the country and they acknowledge the place where they come from and the historical moment that calls upon them.

The time and place for a cultural and creative policy

The first institutional deliberations on the economic dynamics of the cultural sector in Colombia took place a couple of decades ago.  The conversations and diagnoses conducted at that time by the Ministry of Culture, a handful of international agencies and a few associations from the emerging Colombian cultural industry carried important results. Such initiatives as the promotion laws for the film and public spectacle sectors, the creation of working groups to support cultural entrepreneurship within the Ministry of Culture, the National Planning Department and other institutions and, later, a CONPES document (3659 of 2010) that defined the parameters of a national policy for the promotion of the cultural industries in Colombia, have created a framework of actions that continue to have a clear impact.

To the upsurge in sector dynamism, proven among other factors by the activity of numerous cultural associations, the increased production of creative goods and services, and the proliferation of large-format creative industry events like festivals and fairs, we can add the growing representation of Colombian content creators on foreign platforms and markets. But the institutional mission has also encountered great challenges: undeniable capacity gaps within the sector, culturally isolated regions and lack of circulation circuits, as well as a public policy for the creative industries that until now has not been able to coordinate the work of numerous government entities. These are just a few of the many needs and issues whose solution is prioritized today as part of the implementation of the Orange Economy as a state-wide policy. Creating a framework of actions not only faces the challenge of proposing more and better mechanisms to strengthen the sector, but also must heed the call to make decisions after a responsible and informed consideration.A policy for culture and creativity must come from an ecosystemic understanding of a complex sector, in order to encompass the enormous diversity of agents in the country, their values, the types and degrees of market penetration they’ve reached, among other factors. The cultural and creative economy policy must also be designed to go beyond the growth of income and employment; it must seek more than the necessary diversification and updating of the country’s economic model; it must consider the different dimensions of the sustainability that surround the activities that it intends to support, as was clearly established by the 2030 Agenda for Sustainable Development. The challenge is nothing less than to think of culture as a force for construction in present Colombia, a country with the need to establish creative, social and productive ties from a differential approach, the recognition of the other and the territories. 

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The scope of the bases for a cultural and creative policy

In accordance with the foregoing, this first document seeks to establish a conversation between the cultural and creative sector and the country.  It lays the groundwork to answer several of the questions that arouse from culture and creativity agents when they were consulted on the formulation of a policy for their sector, as well as additional ones that appeared along the process.  We propose a foundation for the structuring of the government’s policy and action plans, with the secondary goal of going beyond the current situation and building a reference text for long-term decision-making.

This Conceptual Bases document is composed of two sections. The first one contains a common scaffold of precepts for the formulation of a cultural and creative policy with a sustainability perspective, specifically for the strategies and actions that inform the Comprehensive Policy of the Orange Economy. The second section comprises the guidelines for addressing the seven strategic issues of the sector, explaining the specific importance of each item and making a brief diagnosis of its context, to finally move on to describe the main strategies that the policy associates with each of them.

During the writing process of this document, different and numerous voices were invited to collaborate and help expand the scope of the discussion in order to embrace a sector with diverse values, interests, needs and origins. We were not surprised to find that they are informed, inspiring voices, capable of raising the alarm when fundamental values are at stake and also willing to greet the promising signals from the sector and its policy.

With this comprehensive vision in mind, this document is not only closely related to Line B of Pact X of the National Development Plan 2018-2022, Orange Colombia, the development of an artistic, creative and technological based entrepreneurship for the creation of new industries, but also closely links to Line A, We are all culture: the essence of a country that is transformed from the territories. As a whole, the policy for the culture sector unfolds in Pact X of the 2018-2022 National Development Plan, A Pact for culture and creativity: protection and promotion of our culture and development of the orange economy.

The cultural and creative economy policy is connected to all areas of the National Government, for this reason the document also reflects the contributions of the entities that are part of the National Council of Orange Economy, chaired by the Ministry of Culture and made up of the Ministries of the Interior; Finance and Public Credit; Labor; Trade, Industry and Tourism; National Education, Communication and Information Technologies; and the National Planning Directorate (DNP), the National Administrative Department of Statistics (DANE), the National Learning Service (SENA), the National Copyright Directorate (DNDA) and the Territorial Development Fund (FINDETER).

Finally, the number of new interactions between civil society, the public sector and private companies, based on collaboration, exchange and the joint elaboration of the framework of this document, has revealed a growing number of entities that develop programs for the creative sector, in addition to the agents in governors’ and mayors’ administrations, universities, business and trade associations, artists, academics and other actors who work with the Ministry of Culture in the territories to identify opportunities that promote artistic creation and strengthen initiatives to enhance the sustainability and appropriation of cultural heritage. All of these are collaborators but also the target of this document and of the cultural and creative economy policy in general. 

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The process of building the policy

According to the Constitution of Colombia, the state recognizes and protects the ethnic and cultural diversity of the nation and has the obligation to protect its cultural and natural wealth, including artistic and cultural heritage-related manifestations, and the cultural identity of the country. In addition, it is the duty of the state to promote, in accordance with the policies on the matter, freedom of expression, the exercise of cultural rights, artistic and cultural creation, and companies, industries and activities that are best suited to further the cultural, social and economic development of the Nation.

The National Constitution of 1991 enshrines and guarantees the social, economic and cultural rights of citizens. In particular, article 71 declares the following:

The search for knowledge and artistic expression are free to be pursued. Plans of economic and social development will include the promotion of science and culture in general. The State will create incentives for individuals and institutions who develop and foster science and technology and other cultural manifestations and will offer special incentives to individuals and institutions who pursue these activities.

By virtue of the foregoing, the National Development Plan (PND) 2018-2022 “A Pact for Colombia, A Pact for Equity”, sanctioned by Law 1955 of 2019, has placed among its commitments a Pact for the protection and promotion of our culture and development of the orange economy (Pact X). For the consolidation of this part of the PND, the Ministry of Culture met in different spaces with about 22,000 stakeholders throughout the national territory, and fostered a consultation process with more than 620 organizations, both public and private.

On the other hand, the bodies that make up the National Council of the Orange Economy are already trying to implement in the territories, through various strategies, the Comprehensive Policy of the Orange Economy. This is done in coordination with local agents, hoping to consolidate the ecosystems that most energize and boost the productivity of the sector. For this purpose, participation spaces were created to define, along with stakeholders and institutions, the policy approaches and strategies for the document presented here.

The Ministry of Culture, in coordination with the entities of the National Council of the Orange Economy, conducted a series of exchanges about the guidelines of the policy, in order to expand citizen participation in the design and development of the Comprehensive Policy of the Orange Economy.  For this national objective, we had the support of governmental, public and private entities, as well as civil society; agents from the Llanos-Orinoco region, the Caribbean, the Central-South Amazon region, the Coffee region, the Pacific coast and the South-West joined the meetings, including among them the Regional Commissions of Competitiveness, Science, Technology and Innovation, the Territorial and Sectoral Councils of Culture, the National Council of Culture, the Compensation Funds, the Secretariats of Culture and the departmental and municipal Economic Development Secretariats, cultural organizations and stakeholders, entrepreneurs, suppliers of cultural and creative goods and services. In sum, all the agents of the orange economy. 

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PILLARS OF A SUSTAINABILITY POLICY FOR CULTURE AND CREATIVITY

This chapter will establish the fundamental premises for a public policy for culture, creativity and its agents that addresses the current situation of the country. It is especially urgent to establish these bases when dealing with an essential and complex component of human development such as culture. The encounters and disagreements of culture with the market make it not only strategic for, but also an objective of a sustainable society. The pillars that we propose below clearly outline the bases for a public policy that is capable of prompting —in the short, medium and long term— the sustainability of our culture and our society.

2.1.  Sustainable development as an objective of the policy for culture and creativityA policy for the development of culture, creativity and its economic sector must ultimately have as a purpose the sustainability of culture itself, of the people who individually contribute to it and of society as a whole. It is impossible to imagine the sustainable development of a country without building on the recognition and strength of its culture and diversity. For this reason, with a perspective that privileges sustainability as the objective of the policy, culture is, at the same time, a means and purpose of development. Culture creates freer, more capable people, who can live richer lives, full of opportunities and experiences. In this regard, Amartya Sen, Nobel Prize in Economic Sciences in 1998, states:

The promotion of well-being and freedoms that we seek in development cannot but include the enrichment of human lives through literature, music, fine arts and other forms of cultural expression and practice, which we have reasons to value (…). Having a high GDP per capita, but little music, art, literature, etc., would not equate to great development success.  In one way or another, culture envelops our lives, our desires, our frustrations, our ambitions, and the freedoms we seek.  Freedom and opportunity for cultural activities are among the basic freedoms whose improvement can be considered constitutive of development. (Sen, 2004: 39)

Taking the above into account, it is necessary to point out three aspects, which will be expanded upon: culture as a fundamental dimension of development, culture in the sustainable development goals and the principles for its sustainability.

Culture as a fundamental dimension of development

The idea of sustainable development arose when the harmful effects of the growing economic activity became undeniable, leading to a change of perspective which placed the conservation of the environment in the forefront.  The Brundtland Report defined sustainable development as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs” (UN, 1984). This appraisal led to the consideration of nature as a legacy that must be preserved.

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Shortly thereafter, the first Human Development Report, published in 1990, introduced a people-centered approach, changing the perception of the needs and goals associated with development and bringing human lives to the fore.  This approach no longer prioritized income generation as the end of development,  instead, it focused its efforts on offering individuals access to opportunities through the strengthening of human rights, freedoms and capacities (UNDP, 2015). Despite the progress made in consolidating a less linear vision of sustainable development, a fourth complement should be added to its environmental, social and economic dimensions: culture. In 2004, within the framework of the Universal Forum of Cultures, Agenda 21 stated that cultural diversity “is the main heritage of humanity. It is the product of thousands of years of history, the fruit of the collective contribution of all peoples through their languages, imaginations, technologies, practices and creations”  (UNESCO, 2004.). Along with UNESCO, its promoters declared that cultural diversity contributes to a “more satisfactory intellectual, affective, moral and spiritual existence for all people” (UNESCO, 2004. Art.3), and is one of the essential elements of transformation of social reality.

 Culture in the Sustainable Development Goals (SDG)

Today, sustainable development is a comprehensive approach, which considers multiple dimensions related to people, the planet and prosperity.  While Agenda 2030 (ECLAC, 2016) recognizes that the eradication of poverty, inequality and exclusion is the most important global challenge, it also considers that the improvement of knowledge, skills and technologies is necessary to expand people’s future options, reduce risks and maintain developmental gains.

If development problems are interconnected and dependent on each other, the proposed solutions must be equally integrated.  It makes sense then that UNESCO has associated culture with several of the Sustainable Development Goals (SDGs), especially those that focus on quality education, sustainable cities, the environment, economic growth, consumption patterns and sustainable production, inclusive and peaceful societies, gender equality and food security.  Ultimately, what is generally accepted and understood is that culture is a key determinant of what different societies conceive as their most important needs, instead of an expendable ornament in the shopping basket of a society that has reached the threshold of development.

Culture is central to the SDGs related to cohesion and social stability.  Dialogue between different cultures and peoples makes mutual understanding, recognition and reconciliation possible, which are essential for a society that, like Colombia, is committed to peace-building.  In this sense, culture is an important force that has the potential to facilitate post-conflict reconciliation, help rebuild lives, and restore well-being (UNESCO, 2010).

In relation to gender equality and intercultural dialogue, and due to its emphasis on the understanding and respect of differences, culture has the capacity to empower women by recognizing their role as creators and carriers of value in society. Women from a great many local cultures have the responsibility of interpreting cultural forms and practices, as well as transmitting them to new generations.

Culture can also be a vehicle for meeting the SDGs related to environmental sustainability. Biological and cultural diversity are closely related. In many instances, the practices of societies classified as “developing” have been carried out for generations in an environmentally sustainable manner. In this sense, the recognition of traditional

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environmental management systems can be fundamental for the sustainability of places and people.

Culture has the potential to impact the SDGs related to revenue and growth, due to the ecosystem of opportunities that it provides to the diversity of organizations and companies that carry out creative work.  From small businesses, which require initial injections of capital, resources and skills, or the new strategies explored by cultural tourism companies, to the cultural and creative industries that lead technological and content innovation, culture and creativity have the potential to bring growth, jobs and dynamism to the country’s economy.

It can be said that culture allows communities to be more resilient.  In strengthening local identity and values, the possibility arises of adapting the globalized market to the language and practices of local communities, and have both benefit in the process. A greater awareness of cultural values enables people to become agents of their own development.

2.2. Culture and the guarantee of rightsThe bases of the Orange Economy Policy are an instrument that contributes to the achievement of two objectives within the framework of the social rule of law, especially in relation to sustainable development, as established above, and the guarantee of cultural rights.  Cultural rights are an integral part of human rights and have had progressive recognition in relevant international instruments, from the Universal Declaration of Human Rights promulgated in 1948 (UN, 1948) to the recent UNESCO Conventions on Intangible Cultural Heritage (2001) and Protection and Promotion of the Diversity of Cultural Expressions (2005). General Comment No. 21 of the Committee on Economic, Social and Cultural Rights, regarding the right of everyone to participate in cultural life (2010), establishes that cultural rights “are an integral part of human rights and, like the other rights, are universal, indivisible and interdependent. The full promotion and respect of cultural rights is essential for the maintenance of human dignity and positive social interaction between individuals and communities in a diverse and multicultural world”. (UN, 2010)

In this way, cultural rights are closely related to economic rights, a link that takes on special relevance in the context of poverty, as the same Comment indicates: “it must be borne in mind that, in practice, poverty seriously restricts the ability of a person or a group of persons to exercise the right to take part in, gain access and contribute to, on equal terms, all spheres of cultural life, and more importantly, seriously affects their hopes for the future and their ability to enjoy effectively their own culture”(UN, 2010). In this sense, any effort to advance decent work and the generation of economic opportunities for cultural creators and agents is not only a way to improve economic indicators, but also to guarantee cultural rights.

In line with the international framework, Colombia’s Constitution of 1991 recognizes the country’s cultural diversity and includes specific rights in this area, incorporating international human rights instruments ratified by Congress.  While the Constitution of 1886 saw national identity as a uniform unit of a linguistic (Spanish language), religious (Catholic religion) and political (conservativism) nature, the more recent document did not prolong the idea of a confessional and homogeneous state, but rather instated that of a multicultural one, where different ideologies and perspectives have a place.  In this way,

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within the framework of the current constitution, “it could be said that it is the different cultures and different ways of thinking —accepting the challenge of respecting rights— that give rise to the possibility of national unity and the construction of a peaceful and democratic country” (Gaviria Díaz, 2012: 49).

Similarly, the fact that the 1991 Constitution in its first article defines Colombia as a social state under the rule of law implies a specific mode of legal and political organization of the nation, which can be summarized as follows:

The social state of law is the legal and political organization that is inspired by the purpose of offering state action a very broad field of deployment within the scope of social realities, in order to make equality real and effective through satisfaction of the vital demands of the less favored, the correction of the unjust structures arising from the abuse of having too much, the effective right to judicial protection and collective property and the framing of private initiative and freedom of enterprise in a legal structure that puts them at the service of the integral development of the person. (Madrid-Malo, 1998: 34-35)

As stated by the jurisprudence of the Constitutional Court, “the Constitution is conceived in such a way that the organic part of it only acquires meaning and reason as the application and implementation of the principles and rights inscribed in the dogmatic part of the same document” (Sentence T-406/92, MP Ciro Angarita Barón). As a consequence, it is possible to argue that all public action bases its legitimacy and is justified implicitly or explicitly by a declaration in favor of the materialization of some right or group of human rights (Roth, 2011).

The preceding statements imply that the principles and cultural rights recognized in the dogmatic component of the 1991 Constitution are part of the central obligations of the state and are mandatory in the national legal system: “henceforth and from the 1991 Constitution, culture is not a secondary matter, nor can it be a privilege enjoyed only by some Colombians, but it must be extended to all, under the understanding that since it constitutes one of the foundations of nationality, its promotion, development and dissemination is a matter that must have the special attention of the state” (Constitutional Court Sentence C-671/99, MP Alfredo Beltrán Sierra).

Since the constitutional mandate described above, and especially after the creation of the Ministry of Culture in 1997, the country has advanced significantly in the support and encouragement of agents of the cultural sector, the development of cultural infrastructure, the protection of cultural heritage, the issuing of wide-ranging regulations that have strengthened the production of cultural goods and services (Law 98 of 1993, Book Law; Laws 814 of 2003 and 1556 for Film; Law 1493 of 2011 on public spectacles of the performing arts) and, more recently, of Law 1834 of 2017 that provides a broad framework of action to include the Orange Economy at the center of the government’s agenda and the objectives of national and territorial public policy.

2.3. A broad view of the Orange EconomyToday the terms “cultural industries”, “creative industries”, and “creative economy” or “orange economy” are widely used in different countries of the world and international organizations in the context of the formulation of public policies and international cooperation instruments. These terms, however, have different definitions and scopes according to the context. There are several factors that have influenced their use, both

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in academic and governmental settings.  Among these are the negative connotation that the term “cultural industry” originally had, as well as the initial orientation of some policies for the development and strengthening of creative industries in some countries of the world, widely criticized for limiting themselves to seeking an impact on macroeconomic indicators.

Additionally, given the breadth of what is understood by creativity1, there are many pathways when it comes to defining the set of productive sectors that are part of the orange economy and, therefore, as many approaches to public policy on the issue. Hence the difficulty of reaching a unified understanding on the delimitation of the sector and on the activities, programs and instruments that governments should develop to strengthen the sector and satisfy the needs of its agents.

The expression “cultural industry”, understood as the creation, standardization, industrial reproduction and mass distribution of cultural works, was coined in the first half of the 20th century by Theodor Adorno and Max Horkheimer.  In that historical context the concept of “cultural industry” had a negative connotation, as its products were seen as ignoring social needs and only geared to satisfy the demands of capital. Even though more than seventy years have passed since these ideas were first published, they are still present in the criticism of the industrial development of culture: they allow us to analyze the risks inherent in the processes of mass production and the homogenization of cultural consumption; but they have also prevented a fair assessment of the positive effects that cultural industries have had in terms of democratizing access to various cultural and artistic manifestations and boosting the creative potential of the cultural ecosystem.

In the sixties, UNESCO recognized and began to discuss the profound changes that arose in the cultural field thanks to mass production and its effect on social groups, the challenges facing creative workers, internationalization phenomena and forms of public and private intervention (UNESCO, 1982).  For this reason, in 1978, this organization approved for the first time a comparative research program on cultural industries, with the aim of investigating the role of these industries in the cultural development of societies.

As a result of this program, the document Cultural Industries, a Challenge for the Future of Culture was published, where it is stated that, “a cultural industry exists when cultural goods and services are produced, reproduced, stored or distributed through industrial and commercial lines, that is, on a large scale and according to a strategy based on economic considerations”. The document recognizes the emergence of new sectors of activity, such as television, computing and video production and declares that “the power of these industries and their international dimension are increasingly being felt, decisively marking the future of culture, which is at risk around the world”. (UNESCO, 1982) This study found that some of the risks inherent to the development of cultural industries included the marginalization of cultural messages that do not take the form of marketable products, as well as the massive dissemination of messages that conflict with cultural identities. At the same time, it recognizes that the radical transformation in the exercise of the artistic profession and creativity in general has allowed human beings to access a previously unimaginable number

1 According to Cropley (2011), today this term goes beyond the association it has usually received in relation to traditional arts and may refer to i) the ability of people to communicate ideas in a suggestive or inspiring way, ii) the ability to generate a new understanding or way of seeing things;  iii) the creation of diverse works with characteristics that are generally associated with the beautiful or the imaginative;  or iv) with the design and construction of new or more efficient apparatus, structures and processes.

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of cultural messages through the products of cultural industries.  Likewise, it identifies the possibility of giving a new impulse to education inside and outside the school system and, with this, of promoting the effective participation of individuals and communities in the expression of their culture.

In response to these issues, and acknowledging the potential of cultural industries as pioneers of sustainable development, instruments began to appear at the international level seeking that the consolidation of these industries went in harmony with cultural development at the local level, simultaneously taking advantage of their potential as generators of wealth and as sources of employment.  An example of this is the UNESCO Universal Declaration on Cultural Diversity (2001), which enshrined as one of its guiding principles the complementarity of the economic and cultural aspects of development.

Thanks to the recognition of this potential, a large number of countries have designed public policies in the last thirty years for the development and strengthening of cultural and, later, creative industries.  Many of them have achieved successful cultural, social, political and economic transformations, stimulating inclusive development, innovation and the transfer of knowledge in all sectors of the economy, as well as a greater well-being among the population.

In the case of Colombia, cultural policy has recognized since its inception the importance of goods and services whose origins are culture and creativity: they are carriers of values for society through symbolic resources that contribute to the development of identities, human capital, social cohesion and coexistence. For this reason, that policy has proposed for the cultural industries a comprehensive development that is respectful of human rights, of the collective rights to creation and expression, and of the environment. This is evident in the 1991 Constitution, the General Law of Culture, and CONPES 3659 of 2010. This conceptual bases document recognizes and expands more than a decade of ongoing work to strengthen the cultural industries in Colombia.

Additionally, through Law 1516 of 2012, the Colombian Congress approved the Convention on the Protection and Promotion of the Diversity of Cultural Expressions, signed in Paris on October 20, 2005. After the required procedures, Colombia became a member state to this Convention in 2013. In this capacity, the country undertakes to seek complementarity between the economic and cultural aspects of development, guaranteeing the fundamental right of participation in and enjoyment of cultural manifestations, as well as to protect, promote and maintain cultural diversity as an essential condition for sustainable development.

The transition to the creative industries

In the last three decades, the ways of creating, producing and distributing cultural goods and services have changed constantly and sometimes dramatically. Production processes have become more sophisticated and new forms of distribution on a global scale have emerged. In this new reality, local cultural manifestations coexist with productions made for worldwide mass consumption.  That is why a more expansive view of the practices traditionally covered by the “cultural industries” is adopted, and a broader selection of sectors now falls under the term “creative industries”. This new name acknowledges recent forms of expression that incorporate symbolic content through the use of digital technologies.

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The term “creative industries” was itself first used in the Australian policy document Creative Nation (1994), which defined culture as “that which gives us a sense of ourselves” (Hawkings, 2014).  This broad definition encompassed not only traditionally state-supported institutions such as the Australian Opera, Ballet, and national symphony orchestras, but also television, film, regional community festivals, radio, school programs, libraries, and information technologies.

Later, in 1997, the UK identified thirteen sectors, collectively called the “creative industries”.  They were defined as “the industries that originate in individual creativity, ability and talent and that have a potential for the creation of wealth and jobs through the generation and exploitation of intellectual property” (Fonseca, 2008).  This selection was conducted after identifying the sectors with the greatest economic potential or that offered a competitive advantage for the country.  The British approach was replicated in several countries, which saw in the strengthening of the creative industries an opportunity for the development of their economies.

The first public policies for the promotion of creative industries were criticized for being exclusively aimed at increasing GDP without addressing the socio-economic inclusion of traditionally marginalized sectors and populations. Several countries drafted policies taking the British model as the sole reference in the search for a new socio-economic paradigm that would bring accelerated development, but they did not properly evaluate the cultural, social and economic realities of their own local contexts (Fonseca, 2008).

However, in the last two decades the scope of public policies aimed at the development and strengthening of the orange economy has been expanded considerably.  Various nations have proposed policy approaches that recognize the coincidences and divergences between the sectors that make up the cultural and creative ecosystem, which are different for each country and the result of specific historical and social contexts. In addition, they recognize the specific needs of the agents, as well as the existence of different stages of small business development.  These approaches seek a balance between social, environmental and economic aspects that would guarantee inclusive development.

Besides seeking an impact on the main economic indicators, the following needs surrounding the sector have been identified: i) promote creativity and culture as part of early childhood education, as it is essential for the development of a sustainable sector ecosystem and as a tool for critical thinking, well-being and creative skills throughout life; ii) the development of specific capacities in the field of cultural and creative occupations, and of soft skills for the development of sustainable businesses; iii) the creation of instruments and regulatory measures to provide different types of agents and companies with greater access to sources of financing ;  and iv) the development of sustainable cultural tourism that safeguards national heritage and creates lasting connections and a culture of understanding among a greater number of people.

Groups, sectors and subsectors of the orange economy in Colombia

The Orange Economy Policy has the challenge of achieving a balanced development of the diversity of organizations and actors that comprise the creative field, through the implementation of strategic lines that respond to their needs in terms of human capital development, strengthening of support ecosystems, physical and technological infrastructure, and bettering of conditions for the appropriation and enjoyment of cultural and creative manifestations by the citizens of Colombia.

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Specifically, within the framework of this document, the subsectors that comprise the cultural and creative field have been classified into three different categories according to their characteristics: arts and heritage, traditional cultural industries and creative industries. This categorizing intends to tailor strategies and actions to the specific needs of each segment. 

The category of Arts and Heritage comprises the visual arts, the performing arts, heritage and cultural tourism, and education. These are traditional sectors of culture related to the tangible and intangible heritage and to artistic practices that carry highly symbolic, aesthetic and historical values.  We include education in this group, for it is a fundamental requirement for the transmission of culture —and it actually intersects all sectors.

The Traditional Cultural Industries group comprises the publishing, phonographic and audiovisual sectors.  These cultural industries are characterized by mass production and distribution of their content and they were the ones that first appeared and spread throughout the country at the beginning of the 20th century. They have therefore played a key role in the growth of the cultural and creative sector in Colombia.

Finally, the Creative Industries category comprises digital media, design and advertising.  The creations of these sectors have both symbolic value and implement functional, technical and aesthetic considerations associated with a particular use. Within this group we include a wide range of subsectors, such as video games, fashion, and architecture.  Save for the last one mentioned, the development of these disciplines in Colombia has been recent and only grown considerably in the last twenty or thirty years.

This categorization is practical for the construction of a public policy strategy. Nowadays, it is perhaps more appropriate to think of combinations between contents that are conceived for various platforms, physical and virtual, and of a blend of practices by means of which they are produced and appropriated. Nowadays, content and messages are created so that, partially or totally, and with a greater or lesser degree of synchronicity, they can circulate and be consumed through more than one medium or device, which makes a sectoral categorization often seem anachronistic. Given the forms of consumption and sustainability pathways of cross-media, hybrid forms of creation must be considered by this public policy in an increasingly informed, open and vigorous way.

Graph of Categories, sectors and subsectors

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Visual ArtsPerforming Arts

Tourism and Cultural Heritage

EducationGastronomyHandicrafts

Digital Media

Design

Advertising

PublishingPhonographic

Audiovisual

Arts and Heritage

Cultural Industries

Creative Industries, NewMedia and Content Software

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Painting, sculpture, photography, video art and performance.

Concerts, opera, circus, orchestras, dance and theater.

Museums, traditional kitchens, handicrafts, natural parks, libraries, archives, festivals andcarnivals.

Training in arts and heritage occupations, training in artistic practices, training inmanagement and cultural entrepreneurship.

Traditional cuisines and traditional alcoholic beverages.

Indigenous, traditional, popular and contemporary.

Videogames, interactive audiovisual content, digital platforms, software and app development,and animation; news agencies and other information services.

Interior design, graphic arts and illustration, jewelry, toys, industrial design, architecture,fashion and furniture design.

Consulting services; creative services; production of advertising material; media use, creationand execution of advertising campaigns; marketing campaigns and other advertising services.

Bookstores, books, newspapers, magazines and literature.

Recorded music.

Cinema, television, video and radio.

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2.4.  The recognition of multiple values in culture and creativityHow much is the culture of a country worth? How much is the culture of its inhabitants, their communities or their organizations worth? Who is called to set this value? And what factors should be considered when evaluating it? The concept of value in culture is complex and involves multiple perspectives. Theories of cultural value have changed over time and have gone from objectivism, which claimed that a series of universal characteristics could be taken into account to evaluate its manifestations, to a certain relativism, which gives a flexible, permeable and unfinished interpretation of the cultural value (Devesa, 2006).

Although economic science has strived to explain and express the non-monetary values of cultural manifestations, it is evident that there are still many elements in their complex value that cannot be calculated. The main thing here is to show that what the market values does not always coincide with what is culturally considered worthy.  There is a distance between what is paid for and consumed, on the one hand, and what has deep values for a society in the long term, on the other.

As the valuation of culture is subject to the influence of factors related to the social context, the subjectivity of each individual, and how all this changes over time, there is some consensus that the objective measurement of culture is not possible. Some authors have chosen to disaggregate cultural and creative value into a series of subsidiary values and characteristics that include, among others, the aesthetic quality of its manifestations, its unique character, its spiritual and symbolic meaning, its social function and its historical and educational relevance (Throsby, 2012).

The economy also has a great difficulty in assessing culture and creativity and the goods and services they produced. In some cases, like books or movies, the price of a product and the number of people who use and consume it can become a first reference, although imperfect, of its value, to the extent that there is a market to sell and buy said product. And it is imperfect because even when the quantities demanded of these goods can give a measure of the benefit or utility derived by those who acquire them in the market, that assessment does not consider aspects such as their educational role or what their content represents for the identity of a nation, just to mention a couple of adjacent values.

When we examine heritage assets and manifestations, both tangible and intangible, which are not fully incorporated in the market, their valuation from an economic perspective becomes much more complex. Even when a large number of individuals may not directly use heritage assets, they can still value their existence, the legacy they represent for future generations, or simply value the option of having access to them when they decide to do so.

The implications of the difficulty to value culture are not only theoretical, but they challenge cultural policy to design mechanisms to promote expressions that create and integrate symbolic and social values the market underappreciates. In the language of economists, these are cultural manifestations that, due to their characteristics, become merit goods for individuals, and the weak demand for them becomes a market failure to be corrected.

On the other hand, the difficult coexistence of cultural and market value challenges organizations and entrepreneurs of culture and creativity to design strategies to show why the characteristics of their products and services should translate into monetary

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value, generating income and sustenance for them, when they so desire.  Ultimately, it can be said that a good part of the challenge of creative initiatives is transforming cultural values into market value.

This challenge implies tracing policy action lines to promote cultural and creative industries that are flexible enough to consider the inclusion of traditionally marginalized sectors and populations in conditions of equity and with a differential approach. These communities are the ones who support symbolic and social realities not acknowledged by the market that nonetheless represent adjacent relevant values for the construction of a diverse and multicultural nation.

The participation of ethnic communities, in terms of the enforceability of their cultural rights and the design of mechanisms and conditions for inclusion in the policy of creative industries, represents an opportunity to affirm the value of diversity in attaining the sustainability of culture and in claiming the necessary perspective to give its actions a comprehensive approach.

Ethnic communities are not often formally constituted as economic agents —insofar as their cultural activities are tied predominantly to the survival of their identity. However, and due to the interdependence of the components of human development, it does not mean that the cultural values they bring to life cannot in turn generate economic benefits that can be directed towards their collective well-being and sustainability. In this framework, the participation of ethnic communities in the design of specific inclusion mechanisms in the orange economy will be oriented towards safeguarding the knowledge that sustains these preferred assets and defining the different scenarios in which the economic benefits derived from their inclusion in the market can strengthen political projects, life plans and the views on self-development they have helped to build.

While acknowledging the conditions of vulnerability of ethnic communities represents an additional challenge when it comes to providing relevant basic goods and adequate conditions for the development of their life projects, this policy will always strive to recognize the different ways in which these communities can strengthen, rebuild and heal their social fabric, deeply affected by the conflict and its underlying factors, through creative industries. 

2.5.  The multiple horizons of cultural and creative organizationsAn important requirement to formulate and implement differentiated and pertinent policy mechanisms is to understand that agents, initiatives and organizations of the cultural and creative sector pursue a multiplicity of horizons, which reflect the diverse values associated with culture and, in turn, depend on creative diversity as a fundamental component of development. Some cases associated with this statement will be explained below:

Knowledge, artisanal traditions and practices, and cultural heritage

At the base of the country’s culture, deeply rooted in practices, traditions and heritage, we find handicrafts and craftspeople.  According to the Diagnosis of the Artisanal Sector in Colombia, 31,003 craftspeople were registered in the Statistical Information System of Artisanal Activity (SIEAA) as of June 2019, residing in 29 departments and 539 municipalities

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of the country, although the Artisanal Census of 1998 counted more than 58,000 (Artesanías de Colombia, 2019). If families dependent on these artisans are also included, the number of Colombians who depend on handicrafts can reach 250,000 people.

The aforementioned diagnosis describes a sector almost always linked with informality, whose relationships are mediated by social, political, cultural, as well as economic realities.  The evidence shows that most artisans live in rural areas and belong to an ethnic group.  Indigenous and Afro-Colombian artisan population is high vis-a-vis the total population of the country.  Most of the artisans surveyed consider themselves vulnerable, especially because they are indigenous or because they are victims of the armed conflict.  Furthermore, most of the sector is made up of older women, who make their handicrafts while carrying out other activities, such as domestic work — in addition to not being usually paid, the latter does not receive social recognition. In general, artisans live in poverty. In many cases, income from handicrafts is not enough to cover the expenses of the household, which means that craft production is not an exclusive activity and its knowledge is easily lost. Policies for the provision of basic public goods and the recognition of these communities’ rights are thus at the base of their sustainability.

To develop the capacities of artisans, programs like the Workshop Schools must be structured based on the recognition that artisanal knowledge and its forms of transmission are different from scientifically and socially legitimized forms of knowledge. “It is in live, direct, manual and intellectual work that the artisan can build a culture. This characteristic is what allows the sense of autonomous training and responsibility for your work to develop more strongly in this form of learning”  (Vega D., El campo artesanal. Aporte teórico social y pedagógico, 2013, cited by Artesanías de Colombia, 2017).

The artisanal practice reproduces symbolic, historical and diversity values, hence its sustainability is important.  However, as recognized by the aforementioned diagnosis, artisans can benefit from the promotion of “conditions or situations that allow the commercialization of artisanal products, to the extent that they are conceived by the communities as a source of income.”  The fairs and platforms where handicrafts can be marketed have expanded their coverage and strategies.  According to Artesanías de Colombia, there is a current circuit of more than 50 annual events for the promotion and commercialization of crafts, including exhibitions, local markets, and regional and international fairs.  Through these strategies, promoted, organized or supported by Artesanías de Colombia, artisans produced more than $ 26,500 million pesos in direct income. Nevertheless, networks, associations and private intermediaries with a conscious vision of sectoral development based on the strengthening of the heritage, social and economic capital of the communities, can also be supported through policies that promote integration with markets that increasingly redounds in the greater well-being and sustainability of the country’s artisan population.

Cultural tourism

Cultural tourism is intimately related to handicrafts, heritage and ethnic communities. The policy proposed for the sustainable development of this sector (Mincultura, 2012) recommends the appropriate use of cultural resources as a fundamental component and strengthening cultural processes that foster the preservation of cultural heritage. Accordingly, the principle of respect for the sociocultural identity of host communities and the safeguard of their tangible and intangible heritage becomes paramount. The next

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step should be the development of viable long-term economic activities, which provide all agents with socio-economic benefits equitably distributed among the host communities, thus contributing to the reduction of poverty.

However, the development of sustainable cultural tourism faces great challenges in its implementation. With annual growth rates of around 10%, tourist activity in the country is expanding at a rate that must be matched by initiatives that avoid a negative impact on communities and their environment.  At the root of the challenges is the disparity between the internal capacities of communities and the demands of the outside world, and their inability to grasp and successfully manage the culture shock brought about by visitors (Rotich, 2012).  The gaps in capacities range from the basic ones —reading, writing, arithmetic, etc.— to more complex ones, such as the ability to design and produce unique and valuable experiences for users, or those related to market access and effective promotion of a touristic offer.  Besides, there are deficiencies in infrastructure and the provision of public goods in the country, especially in rural areas, as well as the concentration of financial capital in the hands of external agents.  Together, these factors can impact negatively the stability of communities and their culture and increase internal inequality due to the uneven distribution of economic benefits. Therefore, the cultural tourism policy must focus on equitable capacity building and the provision of opportunities for all agents involved in it: tourism service providers, agents in the tourism value chain and tourists.

Festivals, training programs and non-profit cultural processes

Throughout the country there are numerous initiatives for the management of non-profit cultural manifestations. The National Concerted Venues Program of the Ministry of Culture supported in 2018 more than 760 festivals, 680 arts and cultural training projects, and 230 processes in houses of culture, museums, theaters and media collectives, in all departments of the country.

Although these initiatives are diverse in nature, they have factors in common, the main one being a motivation generally tied to cultural identity and the expression of spiritual values by local communities. In the same way, their transmission, creation, production and dissemination processes take place mainly in a context that is sometimes associative, sometimes community based, rather than individually or as a business initiative. Most of them are non-profit and, to a large extent, are not formally constituted as economic agents.

For these agents and organizations, the objective of their activity is based on the freedom of expression of ideas and sensibilities and on the encounter between the members of a community around them. Expression is a means to strengthen identity and coexistence.  To that extent, its existence and continuity are fundamental not only for strengthening the cultural capital of a community and the country, but also for restoring social capital in contexts often marked by the ravages of conflict or by the exclusion of the benefits of the economic system.  Its existence is, ultimately, essential for the reconstruction of society’s fabric.

Cultural festivals are a clear example of the complex network of factors that play in the sustainability of the non-profit organizations in charge and of the entire community involved.  At the center of festivals are the creators and carriers of heritage, who with their continuous work throughout the year shape the sounds, movements, figures, flavors, costumes and everything else that make the festivities possible. The health of the patrimonial capital that sustains festivals depends on their activity, from which

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they can rarely make a living throughout the year. The organizers, the community that hosts the festival and the visitors play in another sphere of relationships that determines the strength of social capital.  Political power, visibility, reputation, participation, representation and ability to influence decision-making are some of the factors at play before, during and after a festival. 

The economic dimension is another fundamental element of festivals: public resources, sponsorships and the money coming from ticket sales define the direct impact of a festival in its community.  The indirect impact —the expenses associated with accommodation, meals, drinks, shopping, transportation— mostly reach large companies that have the capacity to provide goods and services at scale, but also small and informal entrepreneurs who take advantage of the celebrations (Universidad EAN, 2012).  There are cultural, social, political and economic factors that come into play in the sustainable management of a festival. Such factors must be geared toward strengthening in an equitable way its different expressions and the multiple agents that make it possible.  Public policy has thus the responsibility of maintaining and optimizing support for valuable cultural manifestations, with a holistic vision of what is necessary to guarantee their sustainability.

Museums are another case that shows the complex demands of sustainable management. According to the diagnosis of the Colombian museum sector (2013), there are museums in more than 80 municipalities in the country; however, less than half are fully sustainable.  The challenges in their management  include weak strategic planning and the absence of good administrative practices; the need to strengthen capacities for the creation of relevant exhibitions and adoption of technical standards, in addition to the need of developing new audiences through the promotion and marketing of the heritage and cultural wealth they possess.

It is thus common for all these organizations to have to surmount great odds to achieve a sustainable activity, which is hindered as well by the very frequent shortage in the capacities of organizers and sponsors for the diversified management of financial, institutional, human and natural resources, and even the very heritage and cultural resources they protect. The sustainability of these organizations is also limited by regional and rural contexts where the provision of public goods and services is precarious: from the poor coverage of quality education, lack of connectivity and technological support, to the weak protection of human rights and scarce access to land and capital, the list of factors against the autonomy and security of these communities goes on and becomes an unavoidable challenge for their development.

Nevertheless, all non-profit cultural and creative initiatives can benefit from capacity building for the development of true sustainability strategies (Öztürk, 2013). More than reaching a profit horizon, the strategic use of management tools and capacities, as well as the strengthening of soft skills allow non-profit cultural organizations to transform their model, so that they may move from mere survival to viability and sustainability. Policies for the strengthening of non-profit cultural organizations should be ongoing and allow them not only to alleviate the risks they face, but also support the cultural riches and the social bond of the communities where they operate, which is indeed the ultimate horizon that inspires them.

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Case in pointCulture and the economy: Essential parts of LifeEncuentro de Alabaos, Gualíes y Levantamiento de Tumbas For the municipality of Medio San Juan or Andagoya in Chocó, the Encuentro de Alabaos, Gualíes y Levantamiento de Tumbas is an annual event that mainly fulfills a social function.  There, delegations from the region meet for three days to share and learn about their heritage, culture and artistic traditions.  In essence, this event promotes social relationships and a sense of belonging and appreciation for their practices, which keep alive the great spiritual wealth of the Afro-descendant culture. For the inhabitants of Chocó, the Encuentro incorporates another essential element: the territory, i.e., nature. The river has the greatest value for the locals as a means of communication and inter-ethnic rooting.

The context of this event is more community based, public and collective than business or entertainment oriented. Its purpose is not based on an economic desire for profits, however, its organization and implementation by the non-profit Andagoya Cultural Foundation depends on a good management capacity and requires resources in money or in kind to remunerate the artists, to produce and disseminate the activities and to adapt meeting spaces. Therefore, the Encuentro generates direct effects on the economy, such as temporary jobs and an influx of money from the sale of accommodation, food, beverages, transportation, shopping and touristic activities, all of which benefit the community as a whole and the municipality of Andagoya.

Independent cultural and creative start-ups

Mainly in urban locations around the country, there is a growing number of creative projects, start-ups and companies that can be classified as independent.  Despite their differences, there is a fundamental factor that characterizes these initiatives: they work with similar intensity to position the originality of their products and obtain economic profitability.  The utmost devotion to the quality of their work can be a priority for independent entrepreneurs, but the search for profitability is what allows them to have a lasting business model. As expressed by López Winne and Malumián (2016), “the lack of concern for the economic health of a cultural company should not be understood as a sign of independence (...) it is almost impossible to maintain creative autonomy if you do not have economic autonomy.”

The role of creative products and services in society, particularly those of independent origin, is to facilitate an exchange of “possible worlds”, to allow a multiplicity of perspectives and imaginations (Ibrus, 2019). Creative initiatives not only foster the encounter between different ideas to create completely new ones through innovation, but they also promote social and cultural cohesion, since the dialogues among them have the potential to bring about understanding and accords.

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Although it is debatable that creative innovation is always responsible for the dynamism of industries and economic growth in the long term, it is evident that creative start-ups bring diversity to the market and to society. To the extent that independent entrepreneurs take risks as an integral part of their activity, they are in charge of diversifying the range of symbols, messages, content and formats for the cultural and creative goods and services available to the public.  The sustainability of these startups is therefore essential for securing creative diversity as a fundamental value.

Independent startups, especially in their emergent stage, are perhaps the most vulnerable on the market and their sustainability faces numerous threats.  The entrepreneurial process requires the effective organization of people and resources to survive and grow over time. There is evidence that independent start-ups in Colombia are almost always led by enthusiastic creators that are unaware of the tools and strategies to manage a company, generate stable sources of income and a solid consumer base (Lado B, 2017).  Another aspect of independent creative entrepreneurship is the frequent self-management of the creation, production, distribution, circulation and public relations processes. In other words, these startups evidently do not coordinate with other intermediaries in the value chain that do the work of developing markets for new goods and services in a more specialized and effective way.  Therefore, many of these products do not find a market and the start-up fails.  Finally, entrepreneurs require seed capital to consolidate their business model.  Investments made in the early stages of creative entrepreneurship, risky by definition, usually do not see concrete returns before 10 years, but few mechanisms have been available to help address the creative and financial risk of independent creative entrepreneurs.

Case in pointCreative and economic independence. How to balance the scale?Tragaluz Editores (Publishing house)

For book lovers who believe that book production today looks all the same, independent publishers such as Tragaluz Editores unite the talents and expertise of their staff to create unique collectible pieces. This independent cultural endeavor, which has been in operation for more than 15 years, has positioned itself as a cultural intermediary that connects writers, consumers, knowledgeable readers who are sensitive to the editorial product, artists, designers and the publishing sector.

Tragaluz Editores is an inspiring case study for those who want to create exceptional goods and services while being sustainable. This undertaking has combined different management models, with the production of unique books that meet the needs of a demanding consumer; they have boosted the activity of small producers of paper, textiles and inks, and revitalized old lithographs. Their label, already known nationally and internationally for the consistent quality of their products, has generated brand loyalty, which has allowed them to keep their creative independence and the values of their work.

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 Creative start-ups: from emergence to consolidation

Not all creative start-ups have a social or independent nature.  Many companies rely on creativity to generate profits as a long-term business horizon.  Although there are no comprehensive studies on the business profile of the creative sector in Colombia, there is aggregated data on companies that can be useful.  According to the Single Business and Social Registry (RUES) of the Colombian Confederation of Chambers of Commerce (Confecámaras), in 2016, 94.7% of registered companies were micro-enterprises and only 4.9% were small and medium-sized businesses. According to the Ministry of Trade, Industry and Tourism, in the same year, these MSMEs generated around 81% of employment and contributed 45% of the GDP.  Despite their contribution to generation of income and especially employment, these companies face great challenges in their productivity. In the end, only four out of ten companies survive five years after their start (Confecámaras, 2017).

The Confecámaras study in Colombia and others conducted in Europe and the United States (OECD, 2019; Shane, 2009) agree in identifying the main challenges for the sustainability of MSMEs over time.  MSMEs have boosted employment growth in all regions; however, their productivity has been below the average for the economy, which shows productivity gaps between small and large companies at the aggregate level of business. This lower productivity leads to more, but less stable and lower paying jobs.

Although MSMEs are sometimes more innovative than large companies at the level of technological products and processes, as they grow, they struggle to achieve the skills required to manage a more complex portfolio of business lines. In fact, a shortage of skilled labor is common in creative MSMEs, especially management, marketing, soft skills, among other areas that are crucial for long-term viability (British Council, 2016).

For their part, MSMEs that operate in the information and communication technology sector are particularly well placed to reap the benefits of digitization. However, MSMEs not directly related to technology lag behind in adaptation to technological change.  Digital training tends to be lacking in smaller companies, and they face greater obstacles in making complementary investments in capacity development and the organizational changes necessary to adopt and benefit from technology.

Finally, the limitations in resources of their own and in access to funding may cause some MSMEs to resort to inadequate sources in order to make the necessary investments in the initial stage (Confecámaras, 2017). It is common for them to go to informal lenders who offer very short-term loans at high interest rates, sometimes compromising their family assets. When this happens, companies start their operations with an inadequate financial structure, which, in the absence of an immediate favorable market response, will increase their risk of bankruptcy.

Despite the aforementioned challenges, the fragmentation of production around the world has given smaller companies a significant room to compete in specialized segments of global value chains and to expand their activities abroad.  Global chains are also an important channel for MSMEs to access technology and knowledge and increase productivity and wages. Although MSMEs are the ones driving job growth, they need a greater investment in skill development, innovation and technology to increase productivity and their export potential.

Some policy proposals suggest that it is better to support a manageable number of business with high growth potential than support —without sufficient criteria— a large number of companies. Rather than simply believing that all entrepreneurship is good and

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developing policies to increase the number of average entrepreneurs, policies can focus on identifying those entrepreneurs who will actually generate innovation, create jobs, increase the competitiveness of markets, and enhance economic growth (Shane, 2009).

Case in pointLocal products for the whole world: Brainz video games

Brainz’s business model relies on innovative ideas to create intellectual property

products and services that reach all corners of the world. It is a prime example of a creative start-up that seeks profits but uses elements of culture to add value to its products.  The essence of their video games is that they have been conceived, produced and launched in Colombia, which gives them unique design characteristics. Brainz started with two investors who wanted to create a cutting-edge technology platform and offer the market genres that other companies did not have in their portfolios. Their commitment was visionary, and the brand has created networks to work with representative companies of the video games industry in Asia, Europe and the United States, further strengthening their positioning and sustainability.

The importance of established players

Some creative companies in the country have a long history, proven work methods and teams, a predominant market position, a loyal audience and considerable financial muscle. The size of these companies allows them to generate economies of scale in their processes of acquisition of physical and intangible inputs, production and marketing, among others.  In addition to increasing their profitability, their size allows them to maintain significant market power and provide added value and jobs to the economy.  Typically, this market power goes hand in hand with extensive management capabilities, enabling them to control costs and obtain maximum productivity from human capital. Therefore, they also have the potential to attract foreign investment, which often places them in the best position to expand their markets to the rest of the world through exports or their own investments in other regions.

Large companies are also important in the ecosystem of the creative sector since their success depends in large part on that of smaller companies and, not infrequently, of independent ones.  In general, large companies in the sector are buyers of products and services from small companies and entrepreneurs, and they manage to integrate the talent, creativity and technological innovation of the latter. It can be said that they work with small businesses to stay relevant in the market. To that extent, they co-finance in a way the risk of smaller companies. Although these investments and purchases may result in financial failures, large creative companies can afford them to gain reputation and market position, since the profitability of other lines allows that kind of cross-subsidy scheme within their portfolio.

In terms of public policy, the stability of regulatory frameworks, the easing of operating procedures for projects within legal frameworks, and the improvement of marketing and export infrastructure are all essential for large companies.

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 2.6. The cultural and creative sector as an ecosystemThe cultural and creative sector should be conceived as a system of agents and relationships that fulfill specific functions and add value.  In its simplest form, the orange economy value chain starts from an original idea that, as an input to other processes, manages to become a cultural good or service. This product then enters the distribution, circulation and marketing channels until, finally, it reaches the consumer.

However, several researchers (e.g. Flew, 2011; Fonseca, 2008; Klamer, 2011; Heam & Pace, 2006; Hearn, 2007; Potts, 2008) have argued that cultural and creative industries do not fit properly in the traditional industry-focused theoretical framework within which the notion of value chain has developed. There are at least three reasons for this. A fundamental reason is that cultural and creative industries do not necessarily act thinking about the management and sequential processing of existing resources in the market; rather, their challenge is generating new resources in each link of the value system. It is precisely for this reason that these industries are part of the innovation system of the economy.

On the other hand, the linear logic of the chain does not accurately reflect the addition of value amid the irruption of digital technologies that affects all stages of the creative chain.  Digital technologies have reduced costs in all production processes, introduced innovative funding methods, executed distribution strategies that avoid traditional intermediaries and developed new business models, while offering the potential to reach a global market (Kulesz, 2016).  Obviously, this has led to a non-linear rearrangement of value-adding processes in the production activities of the creative sector.

Finally, the linear chain does not correctly reflect the reality of the generation of value of most creative companies, especially social and independent small businesses whose sustainability depends largely on decentralized exchange networks and non-monetary transactions. As Ana Carla Fonseca writes:

Instead of following the traditional one-for-many model, (the creative industries) are deployed in a range of possibilities from many producers to many consumers (…) As a consequence, the more diverse their collaborators, the richer the networks of value that encompass companies of various sizes, investors and borrowers, creative industries and others, which benefit from them. It is this web of relationships and possibilities that is established, not only horizontally and vertically, but also in a network business structure, which characterizes the business model in the creative economy. (Fonseca, 2008)

Authors like Fonseca propose the model of an ecosystem or a network to understand the generation of value in the creative sectors.  Unlike the value chain, which presents a linear vision of the processes of creation, circulation and appropriation of cultural service goods, the concept of network or ecosystem leads to thinking of a “value creating ecology” (Throsby, 2014). This perspective allows us to recognize and understand flows that do not go in one way, it includes agents that participate in more than one sector, and shows the importance of recognizing new types of agents that participate in the production of value of cultural products.

The value ecosystem perspective is adequately complemented with the vision of cultural intermediation.  Cultural intermediaries are economic agents that produce symbolic and economic value throughout the processes of production, distribution and consumption of cultural goods and services (Side B, 2017).  In their study on the value chain of cultural products, De Propris & Mwaura (2013) find that the participation of cultural intermediaries

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occurs at three different moments in the value adding process, where they can either be creative intermediaries, mercantile intermediaries or consumer intermediaries; more than a place, they occupy defined roles in the creative ecosystem.

Creative intermediaries influence the transformation of an idea from the imagination into a unique product.  Not only do creators of the original idea participate in this transformation, but also performers, artisans, technicians, designers, producers and, in general, all creative workers who may use this idea as an initial input and allow it to become a product or service than can reach the market and be appropriated by society.

Mercantile intermediaries, for their part, are those in charge of taking a creative expression —already as a product— and distributing it so that it enters the market and becomes an effective part of the exchange processes.  They carry out the set of activities that make finished cultural products and services available to other intermediaries and consumer platforms. In addition to the fundamental task of representing products in the market, commercial intermediaries also take on other responsibilities in practice, such as making a first selection of content, making risk decisions to develop a market for those products, the search for consumer platforms consistent with the contents in their catalogs and facilitating the logistics involved in distribution.

Finally, consumer intermediaries connect creative products with final consumers and make it easier for the latter to appropriate messages, content and formats. This includes a variety of platforms: private, public or mixed; paid or free; physical or virtual. They function as one additional stage of selection and legitimation of content before reaching the market and society; they design content programming grids and have the express objective of developing audiences for them through strategies of segmentation, circulation, marketing and feedback, among others.

Cultural intermediaries not only foster an adequate connection between creative supply and demand, but also fill fundamental roles in the adding value process, both symbolic and economic, of the value ecosystem. Furthermore, the health of a creative ecosystem, and its sustainability in the long term depends on the vitality of all the intermediation processes and of their agents.

Graphic: The target of this document

DISTRIBUTION

CREATION AUDIENCES

VALUEECOSYSTEM CIRCULATIONPRODUCTION

SUPPLY

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2.7. Market failures and economic dynamics that justify a public policy for culture and creativityThe failures of cultural and creative markets make the intervention of a public policy particularly justified.  These markets have obvious collective benefits or positive externalities for society, but they have information and distribution failures and, in some cases, unusual cost structures.

There are at least four groups of arguments when it comes to supporting the externalities that the cultural and creative sector generates for society (Devesa, 2006). In the first place, many cultural goods, especially heritage assets, contain values that are not part of the effective demand, nor do they generate incentives for the private sector to adopt them and, therefore, cannot find a place in the market. The existence of historical centers and monuments, but also the diversity of intangible expressions, has evident value by itself and as a legacy for current and future generations, so public policy must seek mechanisms to ensure their survival and sustainability.

Second, culture and creativity are related to a country’s identity, defined as the set of attitudes, ways of life, shared values and convictions that define a nation and differentiate it from others (Throsby and Withers, 1979).  In the same way, social cohesion and understanding between people largely depend on the transmission of ideas, beliefs and values that culture allows.  Furthermore, culture and its products generate collective benefits derived from the national and international prestige that its creations confer on a country.

Culture not only unites, but is also an agent of change, confrontation and questioning of values; it helps to develop a critical, independent and innovative spirit in the individuals that make up a society. Experimentation and innovation have the character of a public good and their social benefits are greater than the private ones. They constitute a positive externality that public policy must support.

Finally, culture and its products directly affect people’s educational level and, therefore, make possible a better society, with greater cultural and social capital, stronger democratic and civic values, and a higher level of productivity.  Achieving all these benefits entails the design of fair and equitable mechanisms to strengthen cultural capital, so it does not become concentrated in the social classes with greater purchasing power.

Despite the undoubted impact of the externalities of culture on society and individuals, the desire for and understanding of its benefits only occur through prolonged contact, enjoyment and consumption, which are difficult to provide in a market that satisfies immediate needs, instead of building preferences. In this case, the social benefit of culture and creativity is undervalued and is not efficiently represented in the market. The foregoing is worsened in the presence of inequalities in the access to and participation in culture and its manifestations. These information gaps are a market failure that can be addressed by public policy through initiatives for the development of audiences, the strengthening of consumer intermediaries and appropriation, or with price reduction or elimination schemes.

However, it is not exclusively market failures that justify a public policy for culture and creativity. There are economic phenomena that challenge the development of a diverse, dynamic and sustainable sector. Some cultural and creative activities, such as those of the

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performing arts and museums, have increasing marginal costs compared to a productivity that does not grow at the same rate. The mismatch between costs and income means that without an incentive structure these activities are not financially viable.  Although this argument by itself may not be sufficient to justify public investment, when combined with the existence of positive externalities, public policy may decide to intervene and generate the necessary incentives to ensure the sustainability of the sector.

Although the range of external benefits that culture and creativity generate in society justifies for many authors the intervention of the public sector, for others this is not the case.  Some of the arguments against public sector intervention are the inefficiency and politicization of state bureaucracies, the risk of exclusion of private sector initiatives due to state competition, the transfer of subsidies to higher income population, among others.

In these cases, criticism is not aimed at the justification for the intervention but rather at the type of instruments employed by public policy.  For this reason, this document conscientiously associates the different types of mechanisms to the diverse needs of the sector and the different types of creative small businesses, and considers their effectiveness over time. There are at least three groups of policy instruments: regulation, which includes aspects such as guaranteeing freedom of expression, protection of copyright, restrictions on trade in historical heritage, among others;  taxes and all reductions and exemptions applicable to cultural and creative assets and initiatives;  and direct spending, through investment budgets and non-reimbursable funds for the promotion of creative activities and businesses.  In a complementary way, it is essential to consider the incidence of private actors in sponsoring creative activities and the design of mechanisms so that their investment produces both monetary and non-monetary returns for them.

2.8.  Why write about the conceptual bases of a policy for the cultural and creative economy?The preeminence of cultural rights, the understanding of the multiple values in culture, the recognition of different types of cultural agents, a broad and dynamic vision of the cultural and creative sector, and the response to the failures and opportunities of the market for sectoral development make up a set of criteria that underlie the action of a cultural and creative policy whose horizon is the sustainability of culture, its sector and, perhaps more decisively, a model of society for Colombia.

The strategies that are executed under these guidelines must have the capacity to strengthen the role of culture and creativity in the development of individuals and society. The policy tools conceived under these agreements must foster a greater number of opportunities for the multiplicity of agents that are directly and indirectly linked to culture and the orange sector, and allow them to define and perform freely and effectively their role in the ecosystem of value of culture and creativity.

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USEFUL CONCEPTS Market: A place where there is a purchase and sale associated with a specific product or service at a certain point in time.

The place where buyers (the demand) and the sellers (the offer) meet to make their transactions.

The market is wherever people exchange goods or services for money.It is made up of all the supply and demand for products and services.

Monetary Value: Provides only an economic perspective of the value of the goods and services associated with one or many activities, which can be easily quantified.

Non-monetary value: Provides a perspective of the value of goods and services beyond the economic one, integrating non-tangible attributes (symbolic value, traditions, knowledge and techniques that are part of the cultural heritage, among others) that are not easily quantifiable.

Positive externalities: Also called social benefits, they are external positive effects generated as a consequence of actions or in this case the production of goods and services. They occur indirectly and are not reflected in the monetary value of those goods and services. 

Multiplying effect: It is a term that is used to describe the impact that changes in an endogenous variable, action or intervention have on exogenous variables, actions, interventions.

Effective demand: It is the quantity of one or more goods or services that consumers or buyers are able and willing to buy at a given price at a specific time.

Value addition process: It is the value contribution of each stage of the production process in the final value of a good or service.

Economic agent: A person, group of people, institution or group of institutions that, through their rational decisions and actions, have some impact on the economy.

Cost structures: It is the composition of the goods and services required to obtain a final good or service.  The sum of each of the costs of the former constitutes the total cost of the latter.

Marginal costs: Is the increase in the total cost when producing an additional unit of the good or service.

Cultural capital: Set of resources, goods and values learned from traditions, lifestyles, and the distinct tangible and intangible features that characterize a society or a social group, including the arts, literature, languages and beliefs.

Cultural and creative industries: The cultural and creative industries (CCI) are content industries, which use creativity and human capital as their main input and link

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intellectual property rights to their production processes to generate in this way creative value, which contributes to economic development, job creation and cultural, artistic or patrimonial identity.

Those sectors of organized activity whose main objective is the production or reproduction, promotion, dissemination and / or commercialization of cultural goods, services and activities, artistic or patrimonial. (UNESCO, 2009). 

3.

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Y3.3.POLICY LINES

Info

rmat

ion

Line

1.3.

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3.1. LINE 1. INFORMATION

When speaking about the importance of information and knowledge for the development of a sector such as the cultural and creative one, some justifications could be called utilitarian.  One of them is to place the cultural sector at the macroeconomic level, by measuring its contribution to added value, foreign trade and employment in comparison with other economic sectors.  The relevance of this information lies in the fact that we want to know the characteristics of the cultural industries market to implement strategies that foster their consolidation.  In the same way, it justifies a more determined public intervention in favor of the cultural and creative industries, and allows to better understand the structure of creative supply and demand. Finally, it helps to conduct global analyses, comparisons and interpretations of the sector’s dynamics (UNESCO, 2010).

All the above is important. However, it has proven insufficient today. The information and knowledge necessary to understand the cultural dynamics in the sustainable development of a country and its inhabitants must recognize the social, environmental, economic and institutional context in which it is inscribed.  The diagnoses must include views and factors that were previously considered accessories, but which today are decisive, such as political culture, the organizational framework of the public sector and the economic system, and educational levels and values (UNESCO, 2010), among other fundamental elements to design sustainability strategies in culture and creativity. It would not be advisable to read these sustainability schemes only in a business or accounting sense, but it is necessary to introduce a perspective that recognizes the importance of culture in human development.

The concept of development has been moving from a definition derived from economic factors towards a multidimensional conception.  In this sense, the indicators that served initially to measure development were mostly associated with the satisfaction of basic needs or were of a purely economic nature such as GDP per-capita, employment, productivity, etc.  More recently, the United Nations Development Program has defined Human Development as “a development paradigm that goes far beyond increasing or decreasing a country’s income. It includes the creation of an environment in which people can develop their maximum potential and lead a productive and creative life in accordance with their needs and interests” (UNDP, 2019).

The same document states that “the objective is the freedom of the human being.  A freedom that is essential to develop skills and exercise rights. People must be free to make use of their alternatives and participate in making decisions that affect their lives” (UNDP, 2019). For its part, sustainable development can be assimilated to a process of progressive change in the quality of life of human beings, which are now center and primary focus of development. Consequently, culture in a broad sense becomes part of sustainability and human development as one of its fundamental values. As Jorge Orlando Melo points out, culture goes far beyond the book or the work of art: it has to do with the ways in which the members of a society communicate, how they transmit and create common meanings that allow them to recognize, tolerate and enjoy their habits, customs and ways of acting. This creation of meaning includes the recognition of each other’s traits: what does it mean to be Colombian, or to be a member of a region, or to participate in an indigenous or mestizo culture (Melo, 2003).

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That is why the strategy of information and knowledge to promote the orange economy seeks to go beyond those actions traditionally proposed from an economic analysis of culture. Rather, it aims to insert itself into an expanded logic of culture and development. All of the above is in line with a comprehensive developmental vision, which aims to transform Colombia culturally, socially, economically and environmentally, in accordance with the Sustainable Development Goals.

3.1.1. Some noteworthy precedentsAlmost 20 years have passed since the first initiatives of information and knowledge generation around the culture and creative economy in Colombia were carried out. At the beginning of the millennium, the Culture Area of the Andrés Bello Agreement (CAB) inaugurated a line of research and dissemination on issues of cultural economy that had important results. One of them was the congress Economy and Culture: The Third Side of the Coin (2001) that made intellectuals, economists and public officials share their thoughts about the relations between these two dimensions of society. One of the most relevant publications of the CAB was the Economic Impact of Cultural Industries in Colombia (2003), which was the result of an unprecedented exercise of identification, measurement and characterization of those businesses that at the time began to be recognized as cultural industries. Other publications that had special significance were Impact of the Film Sector on the Colombian Economy: Current Situation and Perspectives (2003), whose diagnosis helped to establish the mechanisms contemplated in the Film Law (Law 814 of 2003); and the studies Economic Diagnosis of Public Spectacles of the Performing Arts in Bogotá: Theater, Dance, Music and Circus (2006) and Proposal for Specific Taxation of Public Performances in the Capital District (2008), which were a key input for the design of the Public Shows Law.

Almost at the time, the British Council was carrying out the Mapping of Creative Industries in Bogotá and Soacha (2002). The project was structured in two stages: the first consisted of a diagnosis of the situation of the creative industries in the city of Bogotá, and the second, in the execution of specific projects that identified opportunities and strengths to contribute to the economic development of the region.

Since then, international organizations continued to support studies on the economy of culture and creativity in Colombia.  In 2008, the National Copyright Directorate (DNDA) applied the methodology designed by the World Intellectual Property Organization (WIPO) to measure the economic contribution of copyright and related rights industries in Colombia (2008).  The study focused on the identification of activities subject to copyright and their contribution to production, employment and foreign trade.  In 2014, the UNESCO Culture for Development Indicators (CDIS), based on 22 indicators grouped into seven thematic dimensions, were calculated for the country as an instrument for the promotion and evaluation of culture in development processes.  In 2016, the British Council conducted the study  Deficiencies and Lack of Capacities in the Cultural Sector in Colombia, which analyzed information from seven creative sectors in seven cities in order to identify training gaps in technical and management positions among creative companies. 

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3.1.2.  Information from the public sector for all agents of the cultural ecosystemIn this same period, the public sector also implemented initiatives to measure and characterize cultural industries. The National Administrative Department of Statistics (DANE), for example, began working on the Colombian Culture Satellite Account, which currently offers results for the 2005-2018 period. Its objective has been “to carry out a functional delimitation of the cultural field, based on a methodology that covers all its expressions, and that allows an economic assessment of its products and the activities that generate them” (DANE, 2019). The Culture Satellite Account - Bogotá (CSCB) has also been implemented; it measures several sectors of the orange economy for this city (2010-2017). The same entity conducts the Cultural Consumption Survey, which aims to characterize the cultural practices of the population of five years of age and older that resides in the urban centers of the Colombian territory.

The Directorate of Cinematography of the Ministry of Culture, for its part, implemented the Film Information and Registry System (Sirec).  The purpose of this tool, created by Law 814 of 2003, is to support the monitoring of policies and decision-making in the national film sector. The product of this registry, which collects information from producers, distributors and exhibitors in the country, is the Statistical Yearbook of Colombian Cinema, which gathers and discloses key information about its yearly offer, revenue, geographic coverage and infrastructure, among other factors. In 2009, the same entity commissioned the Census study of the audiovisual sector production companies to identify their training needs, which has informed decision-making related to labor training gaps in the sector. Another important study was the Diagnosis of the theatrical market, television, DVD and Blu-Ray, and digital VoD platforms in Latin America, the results of which were an important input for the design of the Latin American cinema streaming platform Retina Latina.

In 2011 the Entrepreneurship Group of the Ministry of Culture created the Observatory of Culture and Economy (OCE) to generate timely information and analysis to achieve greater efficiency and effectiveness in the decision-making of this entity.  Since then, several important studies have been published with the backing of the OCE:  Economic impact and cultural and social value of festivals in Colombia (2010-2018); Methodological characterization for an economic assessment of cultural heritage in Colombia (2015); Cultural intermediaries in the production chains of the cultural industries (2016), Strategy to promote the circulation of creative goods and services in Colombia (2017) and The publishing network in Colombia: compilation of research on the sector (2018). These studies, in addition to being inputs for the direction of policies to promote creative entrepreneurship in the country, have set  important milestones in the understanding of specific problems within the sector.  The OCE has also carried out periodical publications and open events with national and international guests who are experts in culture to disseminate knowledge about the sector in a wider audience.

For its part, the Ministry of Information and Communication Technologies (MinTIC) has launched an IT Observatory in partnership with Fedesoft that oversees consolidating relevant information about the performance of the country’s IT industry and sectoral ecosystem. The observatory makes available to the public studies relevant to the industry, performance indicators and reports. It is also important to highlight the measurement made by DANE in conjunction with the ICT satellite account. Likewise,

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the Ministry of Trade, Industry and Tourism (MinCIT) has developed, through Colombia Productiva, a series of sector diagnoses, some of which are related to the cultural and creative sector, such as the publishing and software industries.

Artesanías de Colombia has developed the Statistical Information System on Artisanal Activity (SIEAA) with the purpose of consolidating an information system on the value chain of the artisanal sector in Colombia, that is, on the socioeconomic, sociodemographic and work conditions of all agents in the value chain of Colombian handicrafts. One of the objectives of the SIEAA is to establish a baseline of all the actors that are integrated with the artisanal activity and the artisanal production units at the departmental level such as suppliers of raw materials, artisans who transform these raw materials into finished products, and marketers, in order to identify strengths, opportunities, threats and weaknesses of the sector at the local level and thus refine public policy to better address this issues.

The Superintendency of Industry and Commerce (SIC), for its part, has created the Center for Technological Information and Support for the Management of Industrial Property (CIGEPI), attached to the Delegation for Industrial Property, which, among other functions, is in charge of consolidating the information history of industrial property registration applications from 2000 to date.  The information is segmented according to technological sectors (in the case of new creations), to classes (in the case of distinctive signs) and to the applicant (whether they are residents or non-residents).

Finally, it is worth highlighting the work of the Secretariat of Culture, Recreation and Sports of Bogotá, which through the Observatory of Cultures has published biannually since 2001 the Biennial Survey of Cultures, an instrument that surveys the democratic, political, citizen and rights culture of the denizens of the 19 administrative divisions of Bogotá, as well as their consumer habits and their artistic, patrimonial and cultural practices. This survey was at the time a pioneer in its field+ and has become an international benchmark for measurements on issues related to civic culture and cultural rights. Also noteworthy is the recent “Characterization of Cultural and Creative Industries of Bogotá for the performing arts and spectacles, audiovisual and radio, visual arts, music, books and publishing and non-profit sectors” (2019).  This detailed assessment was conducted through 1,374 surveys of entrepreneurs and five focus groups that revealed the profile of managers, organizational structure, income, employment, strengths and weaknesses, communication and promotion activities, equipment and infrastructure and relation to intellectual property.

3.1.3. Information for decision-making in the private sector and the role of universities in generating sectoral knowledge Several business and trade associations in the creative sector have also produced information and analyses of sectoral dynamics during the same period.  The Colombian Book Chamber annually publishes the Statistics of the publishing sector in Colombia; this document, intended to aide its members to make business decisions, contains data since 2008 for variables such as employment, national book production, total sales, and imports and exports.  The study includes publishing companies and book importers in Colombia, whose main economic activity is the production and marketing of books.  CERLALC also produces valuable information on the sector, publishing continuously since 2006 Espacio iberoamericano del libro, a

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brochure that gives a yearly account of editorial production and foreign book trade in the region, among other areas.

Proimágenes Colombia and the National Council of Arts and Culture in Cinematography (CNACC), for their part, have been developing their own information system to evaluate the impact of their work and initiatives on the sector. Beyond the generation of key indicators, this system has been able to characterize the agents, processes and challenges of film production, distribution and exhibition.  Currently, the system is used to produce monitoring indicators and results at the internal institutional level and serve as an input for discussions around the promotion of the sector. Statistical and analytical bulletins on sector issues are also published and their results are displayed online.

In the cities, associations such as the Bogotá Chamber of Commerce measure and analyze the results of the creative clusters they promote.  One of these, launched in 2016, is the Observatory of the Economy of Music in Bogotá (OEMB). The OEMB is an information gathering and analysis system whose main objective is to strengthen the music sector in Bogotá and Colombia. The initiative to create it came from the Music Cluster of the Chamber of Commerce and the Secretariat of Culture, Recreation and Sports that, through the Bogotá, Creative City of Music agenda, have tried to close the gaps of information in the sector.  The purpose of the OEMB is to understand, study, diagnose and measure the city’s music sector, so the information gathered allows better decision-making in terms of fiscal and investment policies, public-private participation, and promotion and circulation policies, among others.

Another important initiative from the Bogotá Chamber of Commerce has been to measure the results of the markets and creative fairs that it organizes each year. Since its inception, it has evaluated the Bogotá Audiovisual Market (BAM), the Bogotá Music Market (BOmm), the Bogotá Fashion Week (BFW) and Bogotá’s International Art Fair (ARTBO). Although these results are not shared with the sector, they have improved the pairing of participating agents and the design of spaces for doing business. Other cities have also conducted their own analyses and measurements: Medellín, in the case of the Circulart market; Cali, with the Pacific Music Market; or San Andrés, with the Island Market of Cultural Expressions (MINEC).

Business and trade associations have also created reports worth of mention:  Asomedios and Andiarios publish quarterly results on advertising investment through communication; the Interactive advertising Bureau (IAB Colombia) gathers data on advertising investment in digital media; and the Colombian Union of Advertising Company (UCEP) reports annually on the performance of the advertising sector.

As for academia, it cannot be said that it has had the same impact on research and information related to creative industries that public and private entities continue to have. Although universities have not proposed a line of study on the orange economy, more than once they have been a platform for research initiatives coming from the Ministry of Culture and other public entities.  Beyond this, universities with cultural management programs, such as EAN University, Rosario University and El Bosque University, have published studies and conducted activities related to this area, with the purpose of generating practical inputs for entrepreneurs in the sector.  The University of Caldas, for its part, has played a relevant role in generating knowledge for

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the sector. The Cultural Entrepreneurship Group of the Ministry of Culture has worked with this institution on different publications and projects for several years.

A recent initiative that reflects the potential of joint work between the public sector and universities is the mapping of the creative and cultural sector, carried out in 2018 in association with several universities in the country at the request of the Ministry of Culture and Findeter. In this first stage, the cities of Barranquilla, Manizales, Montería and Bucaramanga were mapped. In later stages, the exercise will be extended to other cities in the country. The objective of these mappings is to know in detail the variables that encompass the sector, their development and interactions with other concerns within each territory, their incidence in the social, economic, political and cultural dynamics of the region, and their contribution to the local and national economy.

3.1.4.  The state of information and knowledge about the creative industriesIn less than two decades, building on the work of international organizations, public entities, business associations and universities, Colombia has gathered a large collection of data and analyses on the creative sector economy.  To a large extent, this has given a greater visibility to the sector as a generator of processes of creation, production, distribution, circulation and appropriation of goods and services, as well a promoter of employment and income. It has also made it possible to establish common economic base concepts among heterogeneous activities. With the consolidation of the Satellite Account of Culture and Orange Economy, a first objective is reached: showing the productive side of the orange economy and, with it, justifying a more determined public intervention for its development and growth.

To a lesser extent, the information and research have also served to better understand the structure of the creative offer in the country and characterize the sustainability models of its agents. These initiatives, still insufficient, have served to provide information that allows public decision-makers to identify strengths and limitations in creative production and, in some cases, to propose measures to address them.

One of the challenges remaining ahead is that existing initiatives to generate information are scattered among the agents that produce this data and there are no platforms to cross-reference their results. Although some specific decision-making in public and private entities is done in an informed manner, it is not possible to say that the direction of sectoral development and public policy is fully influenced by a joint and judicious analysis of the existing information. Furthermore, there is not enough disaggregated information at the territorial level to prioritize productive bets that contribute to a sustainable sectoral development supported by the design of policies adjusted to the local reality. The actions and strategies of this line must be focused on gathering information at the territorial level and integrating existing systems.

Likewise, based on the groundwork of Colombia’s four-year report for the 2005 Convention on the Protection and Promotion of the Diversity of Cultural Expressions, several findings were made in terms of information and knowledge. One of those findings makes clear the need to generate information with a gender perspective, to account for the progress or gaps regarding gender equity, the digital environment, and the implementation of the SDGs and the 2030 agenda. These findings, according to the report, must be considered during the four years after the submission of the report.

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The information obtained has an emphasis on the analysis of creation and production in the creative sector.  Public and private entities have generally focused on the knowledge of the offer to the detriment of a comprehensive vision of the value system and the diversity of its agents and mediations.  Thus, there is some clarity on the structure of production, its agents and its problems, but there is less evidence on the processes of distribution, circulation and consumption and on the networks that make them possible.  It is important to highlight here the misunderstanding around the dynamics of demand and appropriation of creative goods and services. Insufficient knowledge of the audiences of creative products, of their practices and their appropriation processes, continues to be a sector liability.  Therefore, it is not always easy to have a complete vision of the limitations within the sector regarding its sustainability and dynamism.

Another factor is that this information comes mainly from the public sector and business associations. To that extent, at the macro level it responds to the needs of the policy and decision-making processes. In contrast, private initiatives seldom generate information for  decision-making at the micro level, given the budget constraints in most organizations and companies in the sector. Therefore, the absence of market and audience studies, of network diagnoses and analyses of barriers to market expansion, and, in general, of studies that enhance business sustainability is pervasive in the sector.

Finally, the strategies for the dissemination and appropriation of information and knowledge have been weak. The studies usually respond to specific institutional needs or are associated with specific consultancies whose results are restricted to officials. In this manner, being discussed and appropriated by a few agents in the sector, the information does not get to promote a widespread and strong understanding of the processes and challenges of sector development.

3.1.5.  From the economy of culture to cultural rights and human development

As can be surmised, most of the studies conducted so far have been closer to economic theory than to development perspectives. While this is true, said approach has united many researchers who have contributed with their analyses to the design of public policies for the support and promotion of the sector. It is also advisable to reflect on the absence of academics and theorists who delve into other nuances closer to human development. In this regard, when speaking about cultural rights and their link with human rights, Prieto de Pedro (2004) writes:

…it made a lot of progress in the early part of the 20th century, but it has stagnated ever since. The current need for change begins to modify this situation due to a concept of society that includes those sectors or groups that have the mission of advancing theories and the evolution of thought. That is, the intellectuals, theorists and specialists who have identified culture as the great factor of human development. This does not imply, in any way, that the concept was absent before, but it does imply that the reflection was less explicit, more tacit and the subject was hidden. (Prieto de Pedro, 2004)

The information and knowledge acquired through the aforementioned studies are derived from an approach that highlights an economic interpretation of culture. However, it is fitting to complement this economic analysis with a perspective

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from cultural rights —understood as those rights that guarantee the free, egalitarian and fraternal development of human beings (Prieto de Pedro, 2004)— that recognizes the inequality in access to cultural goods and services and related practices.

The role of the information and knowledge action line within the orange economy is not limited to the promotion of sustainability and the elaboration of indicators in an economic and business sense. Although it can be argued that these indicators also underlie a theoretical perspective of social development, this approach falls short of the debate on creative rights and freedoms as key factors in the enrichment of human life.  The orange economy, as a development tool, meets the standard described by Nancy Frazer: “a social policy today must consider the needs for redistribution, as well as the needs for recognition.  Human development is above all recognition: of hidden capacities, of invisible actors, of ongoing processes, of viable articulations that usually persist in the shadows and almost always in oblivion” (Rey, 2002).

In Colombia, as in other countries, this type of theoretical and academic debate on cultural rights has lagged behind the economic analyses that have distinguished the information strategy. In this regard, Prieto de Pedro (2004) states that “cultural rights are an underdeveloped category from a theoretical and academic point of view and have been considered, so to speak, the poor relative of human rights. Civil and political rights were built first;  then the economic and social ones;  and finally, cultural rights, the last to arrive at the human rights club”. This lag can be corrected with a new strategy that considers culture as a factor of human development, in line with theories that place cultural rights in a prominent place in this type of debate. In this way, the line of information and knowledge will have an interdisciplinary orientation, which will guide the debate by expanding existing research and measurement instruments and incorporating the issue of cultural rights.

Case in pointLunes Naranja: A meeting point for the orange community

Sharing stories of entrepreneurship led to Lunes Naranja or Orange Mondays, which started with the showcasing of projects and business ideas, personal development skills, art and orange economy on a YouTube channel and now receives sponsorships and offers a full array of goods and services to entrepreneurs.  This initiative, created in Barranquilla, has changed the perception that Mondays are boring. On Orange Mondays and Afternoons ideas, experiences and perspectives on market opportunities are shared with the audience.  Universities, the media and private companies have supported this initiative that takes place the last Monday of every month. The organizers of Orange Mondays finance these spaces selling tickets and with collaborative exchanges; in addition, they promote networking and encourage entrepreneurs to improve their skills to reach the public with their goods and services.

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Creole

Cultura: Kolchyor Derechos: RaitsDerechos culturales: Kolchyoral raitsEquidad: Ivenness

Libertades: Friidoms

Kolchyoral ekspreshan ahn manifestieshan

Información: Infarmeishan, manifestieshanConocimiento: Nalidge, skills ahn kno hauSaberes: Tradishanal nalidge ahn laan-ning

Tradición:Tradishan

Oficios: Trieds

Artesanías: AndikraafsAprendizaje: Laaning

Capacidades:

Transmisión de conocimiento: Transmishan af naledge

Kapacitiis, fakoltiis

Espacios culturales: Kolchyroal spieces

Economía: Ikonomy

Maloca o casa espiritual: Spiritual hause. church

Infraestructura: Infrastroktiu ahn trieningLugares de memoria:Plieces ah memoriProtección y cuidado del medio ambiente:Protekshan ahn kyer o kier ah di iinvironmental manigement

Trabajo:Emprendimiento: Entrepreneurship

Desarrollo: DiivelopmentColaboración: Kolaboreishan

Financiación: Fuos pah fainanshal, mekanizam

Expresiones y manifestaciones culturales:Work /werk,iimplayment

Edyukieshan

Educación:

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3.2. LINE 2. INSTITUTIONS“This economic activity has managed to change our lives in the arduous path of starting a business, since women have been considered a minority;  (our project) has become an alternative to produce with what we know, what identifies us and has been transmitted from generation to generation. This has given us the possibility of being recognized as a people with cultural riches who also can be empowered in a highly competitive market”.

Clotilde Henry, legal representative of the Asociación de Posadas Nativas (Association of Native Lodges) - Archipelago of San Andrés, Providencia and Santa Catalina.  Heritage and Cultural Tourism.

In 2012, a group of experts from countries of the European Union (EU) prepared a document of public policy guidelines, called “How can cultural and creative industries contribute to economic transformation through smart specialization?”. This document intends to guide the plans, actions and resources aimed at stimulating the potential of culture in local, regional and national development, as well as the effects that radiate beyond the economy.

According to the document, the framework for the development of cultural and creative industries (CCI) includes three main axes: A) the creation of favorable preconditions, B) strategies for strengthening CCIs, and C) the spillover effects of this growth that radiate to the rest of society and the economy. The following diagram illustrates the components of the three axes:

In accordance with the foregoing, the creation of preconditions for the development of the cultural and creative economy is directly associated with the formulation and

CREATINGPRECONDITIONS

Goal:

Favorable environmentfor the development

of CCIs

Awareness-raising

informationservices

Strategic alliances Institutional framework

Mappingstudies

StrengtheningCCIs

Competitive and exporting creative

companies

Network and clusters

Access tofinance

Creativebusiness

incubation

Physicalinfrastructure

Capacitybuilding

Spillovere�ects

Bridging CCIs with therest of society and

economy

Innovationand productivity

Tourism andbranding

Education andlifelong learning

Regionaldevelopment

Socialinnovation

and well-being

Environmental sustainability

StrategiesPolicies

Measures

Goal:

Goal:

CREATING PRECONDITIONS

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implementation of a robust and favorable institutional environment for the strengthening and promotion of said social and economic sectors. This objective presents at least three major challenges that will be explained in this line: (1) the  constitution and operation of formal institutions, (2) the development of financing instruments for cultural and creative industries, and (3) the generation of mechanisms, instances and strategies for organizational joint work.

3.2.1. The constitution and operation of formal institutionsThe first challenge consists in the design and operation of formal institutions, and of norms that recognize, adequately regulate and encourage cultural and creative activities.  According to the definition proposed by Douglass North (1993, 2003), institutions can be understood as the game rules in a society or, more formally, the limitations imposed by human beings that shape human interactions. These rules of the game include formal (laws, regulations, constitutions) and informal limitations associated with socially transmitted information and culture (routines, customs, traditions), as well as the corresponding application mechanisms, which can be cognitive, emotional, social or (para) legal (Abitbol, 2013).

In recent years, it has been proven that one of the decisive factors for development is the existence of inclusive political and economic institutions (Acemoglu and Robinson, 2012), just as democracy (especially in its participatory variant) is relevant for economic growth, being a kind of meta-institution to build good institutions, as it allows adding and processing local knowledge, which in turn facilitates higher quality economic growth (Rodrik, 2000). Likewise, authors such as Jordi Tena Sánchez (2009) argue for the importance of a good design of formal institutions in order to guide the behavior of people and organizations towards the common good, compliance and civic virtues.

In Colombia, after the 1991 Constitution, some laws have been issued and implemented (institutions of a formal nature) that have allowed progress in shaping a strong and stable regulatory environment for the development of the orange economy and the sustainability of culture-based processes. These norms include Law 98 of 1993 on the democratization and promotion of books;  Laws 814 of 2003 and 1556 of 2012 on the promotion of cinematographic activity and of the Colombian territory as a set for filming cinematographic works; Law 1379 of 2010 by means of which the national system of public libraries is organized and measures are dictated for its strengthening and financing; and Law 1493 of 2011 focused on the formalization and strengthening of public spectacles of the performing arts.

In this regard, Germán Rey (2017) argues that the Public Spectacles Law has had significant repercussions on the financing of culture and the success in the cinematographic field is largely due to the existence of the two film laws, public policies and CONPES decisions for the sector, as well as all the public and private institutions created under said norms and policies, which have done a good job in their development and implementation.

Law 1834 of 2017 or Orange Economy Law follows this tradition of norms that structure the culture sector, and its purpose is to provide the guidelines of a comprehensive policy for the orange economy, one that places creativity and culture at the center of a development agenda and the priorities of national public policy. This

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can be appreciated with the formation of the National Council of the Orange Economy, made up of seven ministries and five high-level entities of the National Government.

Although cultural regulation in Colombia is robust, it should also be noted that it is not exhaustive and can improve. It will always be a challenge to keep up with the changes in the dynamics of the cultural and creative economy in order to identify bottlenecks that limit the growth of its sectors and the technological innovation that demands the development of new regulations or the updating of existing ones, such as taxation and copyright in the digital ICT environment.

Another great challenge for Colombia is the development of institutional tools (formal and informal) that allow, in a consistent and systematic way, the “irrigation” and connection of the orange economy to the rest of society and other economic and social sectors.

3.2.2.  The importance of financing instruments in the cultural and creative industriesThe second major institutional challenge consists in designing financing instruments relevant to the needs and business or entrepreneurship models of the sector. Following Benavente and Grazzi (2017), we can say that in the cultural and creative industries there is a need that is not alien to any undertaking: to cover the different costs incurred in the creation and production of goods and services to make their operation and growth sustainable.  Particularly for the creative industries, this represents a greater challenge since the benefits of these types of entrepreneurship tend to be notably low (Adler, 2006; Rosen, 1981). In these situations, leverage is often provided through public assistance and private donations.

In the case of cultural companies and small businesses, it is important to mention that financing is closely linked to risk.  Creative industries involve a high level of uncertainty and consequently the degree of risk is often also high. The creative process depends on elusive aspects such as talent and consequently the returns on investment are relatively uncertain. Likewise, assigning the monetary value of a cultural good or service presents several drawbacks, which also increases the overall risk factor.

Additionally, it should be noted that cultural start-ups in earlier stages require their investors or the banking service to incur an additional cost in capital to start operations. We also have to consider that cultural goods and services are very different in nature from others available in the market, because in many cases they are of an intangible nature and can be modified to suit very specific consumer needs, which may imply storage and inventory problems along the way.

After the situation described above, it is easy to see why access to different conventional sources of financing is so difficult for this type of initiatives2 given that, on the one hand, financial institutions do not have the instruments to measure or quantify the value of cultural property, nor is it easy for them to calculate its fluctuations. On the other hand, cultural property is more susceptible to counterfeiting and illegal copying

2 This appraisal corresponds to access to traditional financial institutions. Some alternative funding methods have become more popular, such as crowdfunding and philanthropic donations. This is particularly important for the creative industry.

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and, consequently, returns may be diminished or negatively affected.  Therefore, investment in creative industries is significantly risky (Arnold et al., 2014);  (Skantze, 2014), especially if the companies or initiatives in question are new or highly innovative.

As a result of the foregoing, public policy is justified to intervene on the creative and cultural industries in different ways and through different actions. One of them is public financing for seed or risk capital, either directly or indirectly through private equity funds.  In essence, cultural goods and services do not respond to the logic of private financing, insofar as their status as public goods, their externalities, their level of uncertainty and type of risk, in addition to their cost structure, operate with different dynamics to those of other market goods. Thus, the public sector is usually invited to facilitate and complement private financing, through direct or indirect support instruments.

Direct support is generally given as allowances or other forms of financial aid aimed at natural and legal persons, for profit or nonprofits, from creative industries (Throsby, 2010).  It is easy to find examples of these grants that have conventionally been an effective policy instrument and are often classified as sector funds.

Given that budget constraints in terms of financing are significant for the most basic start-ups, it is particularly important to offer support to these emerging companies and initiatives through very specific policy instruments.  Meanwhile, indirect support is common in the cultural sector and in creative industries, so that support or leverage is granted through incentives or tax exemptions, in other words, through tax deductions, tax credits, or an integration of the two instruments with the purpose of increasing private donations. In more commercial creative industries, support can be in the form of a preferential tax regime for certain companies (Benavente, J. M, & Grazzi, M. 2017).

3.2.3. Scenarios and spaces for coordinationThe third great challenge to create a favorable environment for the orange economy entails the generation of mechanisms, strategies and opportunities for organizational coordination between the public and private sectors, both nationally and regionally. These mechanisms would seek an adequate institutional coordination that achieves greater efficiency in the execution of plans, programs and projects designed to strengthen the sector, as well as to create or strengthen financing tools and incentives, and promote their use, in a way that compels the various social agents that make up the ecosystem to increase production, investment, consumption, a favorable trade balance and the appropriation of cultural and creative manifestations.  Both aspects should contribute to generate sustainable development, better risk management, and mitigate market and coordination failures in the cultural and creative sector.

Coordination must take place between several spheres: cultural institutions of central government and those of local administrations; between ministries and specialized bodies that have inference in sectoral development, and in what has been called the triple helix relationship model between university, industry and government. According to González (2009), this model has proven to be fruitful as a scheme for innovation policies.  An appropriate implementation of public policy, its incentives and financing instruments implies the design of effective governance modes, an adequate institutional architecture that allows coordinated work and fosters capacity development in the different agents that are part of the sectoral ecosystem. This

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will allow actors from public culture bodies and civil society to take advantage of the existing institutional offer and use the regulatory framework established to strengthen and protect cultural production, increase access and guarantee the fulfillment of cultural rights.

In Colombia, several experiences show an institutional coordination that has allowed the generation of synergies at the public policy level to strengthen the sector. Since the creation of the Ministry of Culture in 1997, processes, projects and activities carried out in association with national entities such as the Ministry of Foreign Affairs, MinTIC, MinCIT, the Public Media System (RTVC), the National Television Authority, SENA and the DNDA, among others, have been strengthened.  The coordination between the central and territorial administration levels has also been strengthened through joint work with the municipal cultural entities and the Directorates of Populations, Regional Development, Arts, Cinematography and Communications, as well as the Groups of Cultural Entrepreneurship (currently merged with the Vice Ministry of Creativity and Orange Economy) and Infrastructure from the Ministry of Culture.

Other examples of coordination in the last decade are the joint work carried out through the sectoral tables of SENA in areas such as the audiovisual industry, performing arts, music and design, among others, to contribute to the identification of training and qualification needs of the sector; the calls of the Emprender-MinCultura Fund that for years have provided seed capital for business initiatives in the cultural and creative field; and the work carried out between the Group of Cultural Entrepreneurship of MinCultura and MinCIT through the Productive Transformation Program, which evaluated the inclusion of cultural sectors within world-class sectors. In turn, Bancóldex and the National Guarantee Fund have established lines of credit and specific guarantees for this sector.

In the private sector, several business associations have made important progress in the matter. For example, Fedesoft, has worked for more than 30 years to strengthen the national software industry to make it globally competitive and has established permanent spaces for dialogue with

MinTIC and other government institutions to draft guidelines for addressing the problems of the sector. The Colombian Association of Actors, ACA, created to defend and promote the interests of Colombian actresses and actors, has mediated the enactment of laws that ensure the labor rights of the union. Another important example is that of the audiovisual industry, where private agents and public institutions have agreed to issue laws, regulations and incentives that have benefited the sector and today are an example throughout the Latin American region. Although there is still work ahead in terms of strengthening the capacities of these associations, several of them have expanded their activity in recent years and have become important spaces for dialogue with the government.

These experiences constitute important advances in the coordinated work between the public and the private spheres. The scope of this coordination should be broadened in this new stage of strengthening of the cultural and creative industries, extending inter-institutional cooperation networks through the participation of a greater number of government entities, the strengthening of spaces for agreement and joint work with the private sector and the creation of other mechanisms that allow a structured execution of the policy.  Likewise, coordination in regions should be prioritized to

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broaden the pathways of inclusive and equitable local development, and to better respond to the financing needs of agents in the creative sector.

The National Development Plan 2018-2022 assigns specific functions to the entities that make up the National Council of Orange Economy (CNEN) for the financing of the orange economy, the use of the state support offer for the development of creative industries and the promotion of the agendas of creative municipalities, cities and regions. For its part, the Law integrates the CNEN into the National Competitiveness and Innovation System, which will allow it to work hand in hand with the Regional Competitiveness and Innovation Commissions and the regional, departmental and territorial bodies coordinated by the National Commission.  It also establishes the possibility of making public-private alliances that guarantee the sustainability and use of assets of cultural interest.

3.2.3.1. Coordination with the territoriesTerritorial development requires processes of institutional change that modify the rules of the game and involve government actors, private and regional agents. With greater coordination comes less overlap and duplication of policies, greater efficiency in the offer of services, less expenditure of resources and increased trust between the various agents as more links are established between them (Fernández, 2017).  In Colombia, there are gaps in the territories in relation to the level of development of institutional capacities and the articulation of the sector.  The degree of progress in meeting the Sustainable Development Goals by 2030 is also different in each region, and in all of them the creative sector has decisive contributions to make. It is a challenge to produce a differentiated impact that responds to the needs of the ecosystem and takes advantage of the creative potential of each territory.

There are several previous experiences of territorial coordination that have had a positive but limited impact on local development.  One of the most interesting experiences is that of the Cultural Entrepreneurship Group and its Social Laboratories of Cultural Entrepreneurship (LASO) program (2010 – 2018), that aimed to energize and support creative and organizational processes in network for cultural entrepreneurship, and the production of content through the use of new technologies in different municipalities of the country.  It was carried out through the union of efforts between MinCultura, SENA, secretariats of culture, universities and social and cultural organizations.

More recently, the strategy Nodes of Cultural Entrepreneurship carried out in 13 municipalities and urban networks of the country until 2018, sought to consolidate a creative circuit in targeted areas.  Through these nodes, participatory planning exercises were motivated between agents of the sector and local institutions to identify needs and work routes for designing creative circuits (MinCultura, 2018).

The Chambers of Commerce and the Regional Competitiveness commissions formed clusters to establish spaces for dialogue between the public and private sectors, and that work has also been key for institutional coordination.  The management of the Creative Industries and Content Cluster of the Bogotá Chamber of Commerce stands out. Since 2012 it has created numerous spaces for

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networking and business strengthening. It is also worth mentioning PacifiTIC, the Colombian Pacific ICT Cluster, which has facilitated the development of industries and entities that use ICTs intensively in the region.  Other equally valuable and replicable experiences of coordination are those of AtlántiCocrea, an initiative that starts from the private sphere in order to strengthen collaborative innovation and technological development skills through specialized training, supported by the Government of Atlántico, Renata and Caribetic, among others.

This policy intends to help strengthen existing initiatives and complement these advances with the implementation of other differentiated territorial development strategies that articulate productive inclusion to the social integration of creative agents.  Some examples of the many strategies that can be carried out jointly to achieve the development of productive environments for the benefit of local creators, generating a positive social impact on the population have been explored: the increase in artisanal production adapted to climate change thanks to the support of international organizations; work between producers and the public sector for the development of local capacities for the export of local products on the basis of fair trade; and the joint work with educational institutions present in the territory for the identification, appropriation and valorization of local products.

3.2.4. Costs, productivity and innovation in the creative sectorThe three challenges described above allow us to address two issues around the orange economy associated with the particularities of productivity and innovation, on the one hand, and the characteristics of “high risks and long returns” of this type of activity, on the other.

Regarding the first issue, productivity is the measure of the level of performance of an agent when it tranforms inputs into products or services. The higher the productivity, the fewer inputs are required to obtain a given product or service. In turn, cost efficiency is defined as the relationship between the minimum feasible cost of production, given the technical and allocation efficiency, and the actual cost. A producer is said to be cost-efficient if he or she uses the best available technologies for production and productive inputs in optimal proportions (Taalas, 2011).

Due to the great diversity of products and services that exist in the cultural and creative sector, there are great differences in terms of cost management and productivity levels.  Various economic analyses find that some organizations in the sector, like museums, define socially optimal prices that cover their operating costs, but not capital costs.  For its part, the performing arts sector faces rising costs and stagnation in productivity because, by its very nature, it’s not possible to make the hourly output of a singer or a dancer, for example, more efficient. It is also the case of artisanal producers, whose productivity is limited by the ability of manual work. This characteristic is known as Baumol’s cost disease and is typical of activities that require a high component of human interaction and are not susceptible to mechanization.

Contrary to the aforementioned examples, Benavente and Grazzi (2018) point out how in sectors such as the audiovisual industry, technological improvements have profoundly modified the content production and viewing processes, making them

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more innovative and productive through the use of technologies.Likewise, there are creative sectors that produce innovation and higher productivity

within traditional industries.  Benavente and Grazzi also point out that in industries where the final product is functional, aesthetic inputs can be key components of the production process, because they define the functionality that final consumers experience.  In this sense, activities such as design are associated with significant improvements in productivity, innovation and sales in other sectors.  Furthermore, technologies developed by the creative industry can be used in other sectors of the economy to create new products.

According to Taalas (2011), there has been limited interest in the empirical analysis of cultural production systems due to the scarce data available on the production of goods and services in this sector to the inherent difficulty of finding appropriate analytical tools.  In the Colombian case, it has been shown that there is indeed incomplete information about cost and productivity structures in the creative sector, and that eventually this causes inefficiencies in the financial results of companies. In the film industry some advances have been made on this issue through research financed with public resources. For example, the study “Characterization of the viability schemes of Colombian films” released in 2016 (Side B for Proimágenes, 2017), assesses differentiated production and promotion costs of national commercial and art-house films, and their viability taking into account costs, financing strategies and profitability possibilities.  Other studies and analyzes have made it possible to determine that, in general, national organizations have difficulties when it comes to appropriating new technologies and optimizing production costs.  In the case of sectors that face the cost disease due to their characteristics, organizations might find obstacles for their sustainable management if they do not receive subsidies.

Through regulation and public policy, various strategies can be adopted in response to the particular conditions of costs and productivity in the creative sector. On the one hand, the meritorious nature of cultural manifestations is recognized, as well as the fact that although they cannot achieve cost efficiency due to their intrinsic characteristics, they are carriers of symbolic values and have a fundamental role in the construction of social identity and improvement of the population’s quality of life. To achieve this, they need to be targeted by specific policies that develop their potential as generators of economic and cultural wealth. Such is the case of the performing arts and cultural spaces such as museums, galleries, bookstores or other places where the encounter with the public can be strengthened. On the other hand, instruments can be developed to diversify the national economy by using the potential of sectors related to design, software and new media to promote innovation across the board.

3.2.5. High risks and long returns: a transversal featureIn Colombia, the cultural and creative sector is made up mostly of micro, small, and medium-sized companies and organizations with specific funding and support needs.  These needs vary according to factors such as the organization’s level of development, its subsector and its position in the value chain; its geographical location and the purchasing power of its target population. A company faces additional risks if it is not part of a consolidated value chain or a network of interested parties that facilitate and promote the hiring of qualified human talent, access to resources

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and the development of capacities that help protect its intellectual property, the circulation of its products and the interaction with an audience that values and is able to appropriate them.

Cultural and creative agents face different levels of competition and demand in fragmented markets, and they often tackle these challenges organically, guided more by their creative needs than by business strategies. Additionally, they have longer return on investment times in the development of goods and services that those of the rest of the economy. In general, they face obstacles in accessing funding through first-tier banks, as financial markets make their decisions based on the value of tangible assets, but not on intangible capital, which is often the most valuable asset that a creative company has. For all these reasons, organizations face a high risk in the development of their activities.

Additionally, according to the analysis and diagnosis of cultural activity in the cities where the Orange Nodes strategy operates, it was found that throughout the country it is necessary to link cultural activity with economic sustainability.  According to the diagnosis, there are several market niches where this can be applied: one of goods and services that is relatively large; and several alternative markets around different sectors of culture.  In the first niche, large events and sales of cultural goods and services for mass consumption take place, and, therefore, higher revenue is obtained there.  However, the number of companies or organizations that access this market is limited. On the other hand, alternative and emerging markets are small, and their offer, though diverse, consists of cultural products that sometimes have low demand and little diffusion (Side B, 2016).

The weaknesses in the supporting ecosystems, the lack of institutional coordination, the deficit of weak and soft cultural infrastructure and the difficulties in accessing financial resources or making use of incentives that attract greater investments are all factors that negatively impact the work of sectoral actors. Taking into consideration this situation, specific mechanisms are needed to reduce the risks associated with cultural and creative projects.

Case in pointThe Petronio Álvarez Pacific Music Festival

After 23 years of history, this festival, based in Cali, has achieved national and international recognition. It was born from the desire to strengthen the heritage of Afro-Colombian, Black, Raizal and Palenquero peoples, as well as their cultural and artistic manifestations. Since 2015 these manifestations have been recognized as part of the intangible cultural heritage of Colombia, and the music of marimba, traditional chants and dances from the Colombia South Pacific region was selected by UNESCO as an intangible heritage of humanity.  This festival is also a meeting place that brings together approximately 150,000 people for four days of celebration, where participants can get to know local traditions and buy goods where they are represented, such as beverages, traditional cuisine, handicrafts, beauty products,

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clothing and musical instruments. Those four days are an opportunity to showcase local productive units that connect traditions with creativity and innovation, while promoting and safeguarding their identity and culture.

Organizing and preparing the festival each year involves the continuous development of entrepreneurial capacities and improvement of the offer of products and services. This has given the Petronio Álvarez an enormous international reach, complemented by local activities and tours included by hotels in their packages, which attract even more tourists.

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Cultura:Embera Dayirayo

Derechos: Dayarebedeachubu

Derechos culturales: Dayarebedeachubu dayiraseburikiraka

Libertades: Nekaibeaita

Equidad:Abarika

Expresiones y manifestaciones culturales:Jaradaita kawabuta dayiseburukiraka

Información: Jarauribigaya

Conocimiento: Kauachubuta

Saberes:Kauabuuru

Tradición: Dayirabude

Oficios: Obe

Trabajo: Oibara

Artesanías: NekaTransmisión de conocimiento: Kauwachubuta jaradiaita

Educación: Jaradiaya

Capacidades: OsiabuaEspacios culturales: Dayiraseburukiraka de (Drua)

Maloca o casa espiritual: Jaidobada de

Economía: Dayaerbu

Infraestructura: Uraojirupanu

Lugares de memoria: Makenanapeada drua (de)

Protección y cuidado del medio ambiente: Kareba akudaya eujauru

Emprendimiento: Wanekawaita

Desarrollo: Biabeaita

Colaboración: KarebaFinanciación: Edakarebaya

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3. LINE 3. INFRASTRUCTURE“Finding yourself in situations of success and failure drives a clash of thoughts that leads to the conviction about the ability we have to face complex challenges and create productive communities around a business model. For our community of creatives, Dinámico represents an alternative means of productivity that allows them to take advantage of their skills from a sense of job independence.”

Juan Martín Arias, CEO of Dinámico Lab. Manizales, Caldas. Industrial design/Architecture (Industrial design, creation of dynamic architectural structures and furniture, product and interactive experience design).

The availability of a cultural and creative infrastructure that is aligned with the needs and cultural values of each territory fosters better conditions to guarantee its sustainability in the long term, because it promotes a broader and better enjoyment by the community. Furthermore, it uses the resources available for construction or adaptation in the best way, mitigating adverse effects on the environment. This policy recognizes the existence of different needs, interests and creative vocations in the territories and proposes them as the central axis for the design of creative agendas and the design and construction of both public and private cultural and creative infrastructure.

Although the development of cultural infrastructure and access to information technologies within the cultural and creative sector in Colombia has brought creators and their audiences more closely together, and has opened virtual and physical spaces to cultivate niche markets, access to these spaces is still restricted in many regions. In addition, other imbalances persist due to the lack of hard and soft infrastructure that provides enabling conditions to connect supply to demand. In this sense, one of the requirements for sustainable cultural development is to promote these conditions at the territorial level to stimulate the creation and circulation of cultural goods and services.

3.3.1. The social construction of territoriesTraditionally, the concept of territory had a predominantly physical and geographical meaning (Ortega, 1998).  It was associated with the “natural substrate” in which societies developed, so that a kind of equivalence was established between territory and nature. The territory also used to be understood as a geometric dimension, an area that could be measured, available to a greater or lesser degree for economic activities and social development needs.

Notwithstanding, in recent years there has been a growing consensus among social scientists that the territory is a manifestation of the society that builds it, that it arises “as a result of a social action that, in concrete and abstract ways, takes ownership of a space (both physically and symbolically)” (Flores, 2007: 36). In this sense, there are at least three central dimensions in the relations between culture and territory (Giménez, 1996).  In the first one, the territory is one of the forms of objectification of culture: “virgin” territories no longer properly exist, but rather they are deeply marked by the footprints of history, culture and human work.  This includes places, environmental assets and geographical features that are symbolic for a social group.

The second dimension refers to ethnographic culture, that is, the territory as a framework for the diffusion and representation of cultural practices (also forms of objectification of culture) that are spatially located, but, unlike the previous

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dimension, not intrinsically linked to a certain space; these can be rituals, dressing codes and cooking techniques, etc.  In a third dimension, “the territory can be subjectively appropriated as an object of representation and affective attachment, and above all as a symbol of socio-territorial belonging.  In this case the subjects (individual or collective) internalize the space, integrating it into their own cultural system” (Giménez, 1996: 15).

If we start from a general definition of infrastructure as the “set of elements, facilities or services necessary for the proper functioning of a country, a city or any organization” (RAE), we can understand cultural and creative infrastructure as the set of physical elements and functional services necessary to give the cultural and creative sector the concrete or material conditions that make it possible.  However, cultural and creative infrastructure is not only a means to carry out certain activities, but rather this definition identifies certain places with symbolic value given by their community, as can be clearly appreciated in museums, theaters, art galleries, libraries and other spaces of this nature.

From an economic perspective that acknowledges these dimensions, it is possible to say that local creative economies are diverse and multidimensional because they arise as a result of various historical factors and in different contexts, where different institutions, agents, and flows of people and resources shape different opportunities (UN, UNDP and UNESCO, 2014).  Creators, agents and intermediaries that are part of the cultural and creative sector have a set of specific skills and capacities that distinguish the production output of each territory, and provide comparative advantages to some of their products.  These knowledge and skills, together with public and private cultural facilities, technological infrastructure, and heritage and art collections are capital assets that allow for the development of productive activities based on culture and creativity in each territory. However, these factors do not generate wealth by themselves unless they are accompanied by strategies that make local economies competitive nationally and internationally.

3.3.2. The creative and productive vocations of the territories and their relationship with infrastructureAlthough policy interventions at the national level are important, identifying the creative vocation of each territory by understanding the particularities and interactions between institutional and private agents, the symbolic elements that each community grants to its cultural spaces, as well as the ways in which the economy cultural and creative can be fostered in each community, will allow to advance to a next stage of development based on the generation of knowledge and practices that promote positive and lasting changes in the local context, while facilitating the appropriation and use of available creative infrastructure.

According to the special edition of the UN, UNDP and UNESCO Creative Economy Report of 2013, cultural and creative occupations, despite subsisting in precarious conditions in the territories,

offer valuable flexibility in community contexts where cultural work can complement, rather than disrupt, other daily responsibilities and obligations, such as the maintenance of traditions, ongoing land management activities and participation in community decision-making. The cultural and creative industries can also deliver flexible environments for engagement with formal spheres of

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work, while substantially enhancing prospects for expression, wellbeing and intercultural dialogue in both rural and rapidly urbanizing parts of the developing world. 

Thus, in territories with strong traditions and cultural values, cultural products are constantly emerging that could fully develop their potential and make themselves known more widely both in and outside their territories and contribute more to sustainable development in their communities, if there were no restrictions on access to cultural and creative infrastructure.

According to the Diagnostic of cultural development in Colombia, published by the Ministry of Culture in 2013, cultural and creative manifestations are widely represented throughout the national territory.  For example, manifestations associated with intangible heritage such as traditional religious events of a collective nature and festive and recreational events are present in more than 90% of the municipalities; and traditional culinary culture and popular arts are present in more than 70% of the country.

The situation described above contrasts with the insufficient cultural and creative infrastructure of Colombia. According to information from the Ministry of Culture for 2017, about 70% of the municipalities had a culture house, 21.3% had theaters, 18.7% museums, and 5.7% at least one movie theater. However, a good part of artistic activities take place in non-conventional spaces or non-specialized public infrastructure, like schools (87.3%) and sports centers (70.6%) of all municipalities. Similarly, the country currently has 1,500 public libraries under the National Network of Public Libraries (RNBP).  However, rural population in remote regions have still restricted access to them, as only 10% of these libraries are in rural areas.

In addition to the construction and operation of creative facilities, their connectivity is currently a decisive issue for competitiveness, innovation, and the access to and guarantee of cultural and creative rights. Efforts to connect Colombia to the Internet date back to the 1980s and were initially led by universities, and later via a great state intervention (1994-2000), followed by a threefold effort of the government, companies and the education sector (2001-2007). In recent years social organizations and NGOs have also taken part of these effort to achieve connectivity (Barón and Gómez, 2012).

During this period, important advances have been made in regulation and public policy, ranging from CONPES 2739, “National Policy of Science and Technology 1994-1998,” to the recently approved Law 1978 of 2019, “By which the Sector of the Information and Communication Technologies (ICT) is modernized, competencies are assigned, a Single Regulator is created and other provisions are issued”. In its explanatory statement, this law claims that one of its purposes is “to allow citizens to connect and connect well, (…) an essential enabling element for the development of the Orange Economy, digital transformation and innovation and the fourth industrial revolution”.  Article 3 of this norm modifies and adds to article 2 of Law 1341 of 2009, establishing as guiding principles the priority of use of ICTs for the production of goods and services, under equal opportunity conditions of connectivity (paragraph 1); and access to ICTs with the proper equipment, for which the State “will ensure the deployment of infrastructure of telecommunications networks, open broadcast television and sound broadcasting services, in the territorial entities” (paragraph 10).

In any case, there still persist important challenges related with the technological and economic sustainability of spaces for the use of ICTs, provision of services in

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rural areas, the appropriation of ICTs and their relationship with development processes, citizenship and cultural and political integration, the access of ethnic groups to advances in the sector, as well as the definition of consistent impact indicators (Barón and Gómez, 2012).

Our country is a culturally diverse territory with the potential to foster sustainable development at the local level as long as it generates coordinated strategies that make local public and private actors responsible for the development of common agendas to promote productivity, and builds infrastructure that is compatible with the characteristics of the territory, therefore allowing a greater use and appropriation by the communities.

3.3.3.  Public goods, Orange Development Areas and sustainability of creative infrastructure

Economic theory defines public goods as those that are not excluding and non-rivalrous, that is, “it is not possible to prevent people from using the public good, nor will the use of this good by one person reduce the capacity of another to use it”.  (Mankiw, 1998: 218). For example, public lighting is a public good, since when a street is illuminated, someone cannot be prevented from benefiting from this lighting, and the fact that they do so does not prevent other people from benefiting as well.

Cultural infrastructure is often seen as a public good because it offers free-access spaces for all people, spaces that can energize communities and provide opportunities for learning and personal development.  Their construction, adaptation, endowment and especially their maintenance and operation cannot always be guaranteed by market dynamics, but their importance for the protection of cultural rights is such that it is common consensus that they should be provided in an inclusive way to all people, without distinction. In this regard, the National Government invests in the construction of cultural infrastructure exclusively with public money, but also seeks donations or alliances with the private sector that bring the necessary resources in exchange for the commercial exploitation of these spaces for a set period of time. This allows the private investor to recover his investment and receive profits for a specified period.

In recent years, government bodies have used Public-Private Partnerships (PPPs) to promote the cultural and creative economy.  A successful case is the Movistar Arena in the city of Bogotá, where private investment allowed the recovery of this venue and its reopening to the public with high technical standards and permanent cultural programming. In addition, this project was the beneficiary of the tax deduction for investments in infrastructure of the performing arts contained in article 4 of Law 1493 of 2011.

Regarding the Orange Development Areas (ADNs), known in most other countries as cultural or creative districts, in recent years the social and economic sciences have taken a growing interest in the analysis of territorial dynamics of culture and, particularly, their tendency to clustering (Ulldemolins y Zarlenga, 2014).  This has been coupled with the interest of various local and national governments to invest in cultural infrastructure and develop policies for the promotion and encouragement of companies that produce or provide cultural goods and services. This interest has taken the form of two main lines of action:

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Firstly, those whose goal is the development of economic sectors linked to the production of cultural goods coming from activities related to the so-called cultural or creative industries (film, radio, television), to design (web, textile , graphic, industrial), fashion, advertising, photography and architecture (…)  Secondly, those whose purpose is the generation of cultural services for touristic and commercial appeal through the recovery of the existing heritage of urban centers (urban regeneration), the creation of institutions and cultural facilities (such as museums and cultural centers ), the organization of events, etc.  (Ulldemolins y Zarlenga, 2014: 49)

In a recently published study, José Miguel Benavente and Matteo Grazzi, from the Inter-

American Development Bank, argue that the creative process is stimulated by the closeness of peers, suppliers, and consumers, since creativity tends to rely on tacit knowledge, which is difficult to transmit remotely:  “creative clusters include creative companies that take advantage of geographic concentration to improve collaboration that benefits all their members.  This collective action increases the innovation and productivity of companies, which can have access to better inputs in the form of workers, knowledge, technologies and new opportunities” (2017: 21).

The common conclusion is that concentration generates economic benefits due to the increase and density of exchanges between cultural agents (agglomeration economy), while in many cases that concentration is important to advance urban revitalization or renewal processes.  Authors such as Ulldemolins and Zarlenga (2014) insist that it is also necessary to consider the social dimension for understanding the processes of creation and innovation in cultural clusters.

Regarding economic benefit, Santagata states that within a creative district “the costs of using the market are lower than anywhere else, due to the intense creation of positive externalities, tacit knowledge, the high rate of innovation, easy networking and free dissemination of information” (2002: 4). It is also important to note that proximity alone does not generate the benefits of clustering.  Permanent contact between companies is required to establish cooperative relationships, including interdependence and trust, knowledge and information exchange, and function specialization.

Finally, cultural infrastructure must be sustainable, that is, it must have a sustainability plan and this implies that infrastructure is key for the sustainable development of cultural processes.  The sustainability of a cultural infrastructure is guaranteed if the economic, social and environmental aspects of the territory are previously considered, so that public policy responds to the needs of these areas without sacrificing future capacities and opportunities.

The foregoing means that infrastructure has the capacity to pay for its operation with a permanent flow of autonomous income or a public and private infusion of money. Sustainability also implies a synergy with the environment and society, optimizing resources in the long term.  In short, sustainable cultural infrastructure is a catalyst in the promotion of human development: this supposes an infrastructure designed and implemented to offer quality goods and services that promote the improvement of the living conditions of communities. As a fundamental condition, any project of sustainable cultural infrastructure must be articulated with the local development plans and the financial and operational plans of that territory; in other words, the infrastructure must act as a catalyst in solving problems of that particular location.

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Sustainable cultural infrastructure must satisfy the needs of communities without compromising, in the long term, the living conditions of the inhabitants of the territory. The latter must be understood as a social construction that houses various ethnic and cultural interactions and  manifestations. Specifically, the objectives of sustainable cultural infrastructures that make use of environmentally responsible inputs are summarized in the components of i)  economic  development  , ii) job creation, iii) flow of local goods and services, iv) increase in positive externalities, v) protection of the environment, vi) optimization of capital and available resources, vii) improvement in living conditions and viii) conformation of an axis of human development.

It is essential to remember that none of these objectives should be achieved at the expense of another. For example, all efforts aimed at environmental sustainability cannot be detrimental to the institutional or social approach. It is essential to remember that the sustainability of cultural infrastructure also implies the generation of wealth and value for the communities involved; it should promote inclusion and act as an agent that contributes to the reduction of inequality through the generation of productive chains, as well as ensuring normative and institutional strengthening. Finally, cultural infrastructure should be the guarantor of rights and create conducive conditions for the configuration of identity, both individual and collective, which in turn requires networks and the accumulation of social capital.

Case in pointCatatumbo dressmaking network. Opportunities for women

What began as a training strategy promoted by the Ministry of Culture, in partnership with USAID, became a network of women focused on making dance costumes, a productive network that also allows a region to transform itself through culture and instill in other women a craft that can help improve their quality of life. The network makes costumes for local dance schools among other projects.

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Palenquero

Derechos: Ma rerecho

Derechos culturales: Ma rerecho kutturá

Cultura:Equidad: Lomemo pa tó

Kuttura

Libertades: Suéto

Economía: Ekonomia

Expresiones y manifestaciones culturalesMa epresió ku manifetasió kutturáInformación: Infonmasió

Conocimiento: Konosimieto Saberes: Ma sabé

Tradición:

TrarisióTrabajo:Makaneo

Artesanías: Ma áttesania Educación: ErukasióAprendizaje: Plendisaje Capacidades: Ma kapasirá

Transmisión de conocimiento: Pasaera ri konosimieto

Espacios culturales: Ma epasio kutturá

Maloca o casa espiritual: Posá epirituáInfraestructura: Infraetrutura Emprendimiento: Empledimieto

Lugares de memoria: Ma pate ri sesoDesarrollo: Icha pa lande

Colaboración: Kolaborasió o nyulá

Financiación: Reponde ku burú

Protección y cuidado del medio ambiente:Prottesió ku kuirao ri merioambiente

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3.4. LINE 4. INDUSTRY“I am from Honda, Tolima, a town that lives off tourism and fishing.  And I did not go into either of those two sectors, but I was interested in telling the stories of my territory, and in video games I found a way to do it… I make cultural video games and that is how I play my own life story. And I have to say that entrepreneurship changed everything for me. I understood that, rather than looking for a degree, I had to go out to find a life purpose, and that is what I did with my company. Entrepreneurship allowed me to combine all the areas that interested me, such as art, acting and technology; so I found out how to put all this together in creating characters and making video games.”

 Holman Zarate, CEO and founder of Dinomotion Studios. Honda / Ibagué, Tolima. Digital Content / Multimedia (Developer of cultural videogames).

According to the Global Entrepreneurship Monitor, GEM (2018), Colombia is currently a country with an economy driven by innovation. Unlike factor economies, where extractive and agricultural activities predominate, and efficiency-driven economies, where the potential of economies of scale to drive development is harnessed, in this type of economy what carries the largest weight are elements directly associated with entrepreneurship and innovation, such as funding, government support programs, training in business creation and the existence of a commercial and legal infrastructure for entrepreneurship.

It is, therefore, a favorable moment for the development and implementation of policies aimed at strengthening cultural and creative entrepreneurial work. There is recognition by the National Government about the relevance of the sector as a pathway to achieve sustainable development. If a massive use of the institutional offer is reached, more opportunities will be generated for the consolidation of a business activity that has positive effects on production, employment, technological innovation and the reconstruction of the social fabric.  The coordination of government entities within the framework of public policy can empower regional entrepreneurship ecosystems to positively impact regional productivity through more employment, job formalization, raising levels of creativity and innovation, stronger production chains and greater knowledge exchange between economic sectors.

Similarly, all public policy instruments must promote the strengthening of capacities and enabling conditions that allow companies, entrepreneurs and other economic actors to compete in their chosen markets, as well as to generate value that positively impacts a region. In other words, regional competitiveness is understood as the economy’s ability to attract and maintain companies with stable market shares that help maintain or increase living standards for those who participate in it (Storper, 1997).

The definition of competitiveness is related to a high-performance path where regions compete by achieving greater levels of innovation and growth, rather than competing via the lowering of labor costs.  Competitiveness varies according to geographic space, and regions develop at different rates depending on their drivers of growth. In this sense, effective institutions and a culture of support for entrepreneurship enable sector agents to take advantage of emerging opportunities.  Similarly, the regions that measure the effectiveness of their policies and the development of their markets can increase their competitive advantage by attracting investment, skills and talent.

The instruments for promoting entrepreneurship in the creative and cultural industries must be articulated with other tools and incentives available throughout the public sector, following the proposal made by the Presidential Office for the Private Sector

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and Competitiveness. In this way, entrepreneurs and businessmen of the sector will be introduced to all the institutional offer available and access the instrument that best suits their needs. Consequently, sectoral agents will be able to create companies or organizations, operate them in a sustainable way and scale them up according to their growth potential.

The framework of this public policy considers the various stages that compose the business development process.  Entrepreneurship is not conceived only as the formation stage of an organization or company.  On the contrary, this universe includes activities that are carried out as part of the conception of the company or organization, its birth, its consolidation and its expansion, including stages of high growth, internationalization and the conception of new products.

The policy’s commitment is to develop business skills and entrepreneurship according to each stage of a company’s development to improve its position in the market. This implies developing a business oriented mentality, linked to cycles of accumulation of physical capital (tangible assets, installed capacity, etc.) and human capital (talent, R + D + i), and understand this capital accumulation regime to seek financial sustainability with a concrete accounting plan that allows it to evolve and become a consolidated company that contributes to the productivity of the country through the creation of formal jobs.

The impact that digital technologies have had in all the links of the sector’s value chain is also acknowledged by the policy, as the need to accompany startups in the generation  of business or management models that make use of these technologies in the production, distribution or circulation stages of cultural and creative goods and services. The appropriation of new tools will allow them to develop innovative products, achieve optimal cost structures, improve their operations, and bolster efficiency in their supply and distribution chains.

In Colombia there is an important background of support initiatives for the creation and management of cultural start-ups from within the public sector.  Between 2010 and 2018, the Ministry of Culture managed multiple training spaces through programs such as Luthiers Colombianos or Mujeres Tejedoras de Vida, which aimed to strengthen the traditional crafts of lutherie and weaving.  The creation and subsequent management of cultural and creative start-ups in different cities and municipalities of the country was supported with targeted actions, and capital was made available to the sector through programs such as the SENA’s Emprender Fund and Capital Naranja of iNNpulsa Colombia; special credit lines have also been opened for cultural and creative companies through Bancoldex, among other initiatives.

In this new stage, the scope of the programs that are already operating will be expanded as part of a network to support the entrepreneurial ecosystem and new ones will be created to upgrade the public sector offer in terms of technical assistance in business, financing, regulation, competition and management capacity, as well as the promotion of a culture of entrepreneurship.

3.4.1.  Motivations for entrepreneurship in the cultural and creative sector Traditionally, two types of entrepreneurship have been identified: necessity entrepreneurship and opportunity entrepreneurship.  The first type takes place when a business begins in response to the lack of other income options. In the

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second case, while having other alternatives, a possibility is identified of developing a product or service to satisfy one or more markets and derive economic gains from this endeavor, and this option is chosen because it is better compared to other income generating paths.

In Colombia, according to the 2018-2019 GEM report, entrepreneurship happens more out of opportunity than necessity.  On average, between 2013 and 2017, the opportunity-based entrepreneurship activity rate (TEA)3 was 16.8%, while the TEA for necessity entrepreneurship was 5.08%.  In other words, approximately 76% of Colombians who start a business do so out of opportunity and 24% out of necessity. It should be noted that this last figure is above the world average among the countries that participate in the GEM measurement, and that in this context there are a good number of self-employed workers and informal communities that live in a situation of precarious employment, a reality that has often been hidden in the discussions around creative industries. Such situation demands the adoption of policy measures so creators and managers have minimum health and safety conditions.

The creative sector in Colombia has been characterized as a space where a multiplicity of agents under very different circumstances coexist at the same time. Community and social organizations, and nonprofit organizations that carry out significant grassroots efforts with a positive impact in the repair of the social fabric and the creation of meeting spaces around culture in their communities contribute with their important work. Some of these organizations work discontinuously with the scarce resources they can muster and with the money they may obtain through project calls, while others have achieved sustainability in the long term thanks to the support of their communities, the sale of products and resources coming from a diversity of places: funds from public calls, subsidies, donations and international cooperation. All these organizations are motivated by the possibility of bringing positive social change and fostering a greater well-being and peaceful coexistence in their communities so that everyone can develop their life projects.

There are also for-profit startups and organizations that are formally constituted and expect to make a profit by offering innovative products and services.  According to Aageson (2008), these entrepreneurs are the missing link between creative talent and the market, and they are equally motivated by the possibility of generating income and developing their creative talent, which is why they are agents of change that take advantage of cultural innovation to create prosperous economic systems.  These are people whose goal is the development of their artistic careers and the simultaneous creation of financial wealth and cultural value (Snyder et al., 2010); they are entrepreneurs with a business sense who find reputational value in entrepreneurship and see it as a desirable life choice.  To the extent that one of their objectives is the generation of sustained income and the growth of their companies, their organizations tend to have greater stability and a better sustainability profile over time.

A subset of this type of organization that has recently emerged in the cultural and creative field in Colombia is the B corporations, managed by entrepreneurs

3 TEA is a measure that is defined as the percentage of individuals between 18 and 64 years of age who identify as emerging or new entrepreneurs.

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whose objective is to “generate economic solutions that can create integral value in society, promoting forms of organization that can be evaluated by the well-being of people, societies and the environment simultaneously, and with short and long-term considerations” (Sistema B Colombia, 2019). Law 1901 of 2018 established the possibility of creating Collective Benefit and Interest companies (BIC), and progress is currently being made in the process of regulating the law, which will strengthen the creation of orange companies under this modality. These hybrid organizations work by combining a social business model and a commercial approach.

To summarize, to start a business in the Colombian cultural and creative sector, economic motivations are not enough. Although certainly many cultural and creative start-ups have arisen due to the need to generate subsistence income in a short time, or because there are market opportunities for the commercialization of certain products, those who embark on the adventure of creative entrepreneurship do so because they are motivated to be agents of change, because they are willing to take risks in order to develop their artistic projects, enriching their communities socially and culturally and finding value in the transmission of disruptive, creative and diverse thinking. This enhances the prosperity in communities and territories throughout the country and creates cultural and symbolic value both for creators and for those who access and enjoy these manifestations.

3.4.2. Managing projects, managing companiesTwo vitally important elements that ensure the sustainability of start-ups are having qualified human capital and managers with skills that allow them to lead their companies in a sustainable way, with the ability to identify and take advantage of growth opportunities. For this purpose, the development of soft skills such as communication, teamwork and networking, decision-making, time management, motivation, negotiation, problem solving and critical thinking, plays a fundamental role (Doyle, 2019).

Another key element is that companies and organizations should be knowledgeable in finance, marketing, operations, strategy design and management technology, tools that managers and directors need to design business models and make decisions based on the analysis of the real conditions of a company and its environment.  Having clarity about the chain of exploitation of intellectual property and the copyright tools that allow better management of projects, grant adequate recognition for creators and remuneration for their work is also essential for the creative sector.

In recent years, Colombia has made advances in the strengthening of entrepreneurial and business management capacities among cultural and creative agents.  With the creation of the Program for Entrepreneurship and Cultural Industries and the Cultural Entrepreneurship Group in 2009, the Ministry of Culture began training programs in entrepreneurship and business skills in many municipalities in the country.  Between 2011 and 2014, with the support of Universidad Nacional de Colombia, Universidad de Antioquia, Universidad de los Andes and EAFIT, 251 training courses in cultural entrepreneurship were offered to  agents that are part of the different sectors of the cultural and creative field.  The beneficiaries of this nation-wide training strategy include more than 3,345 cultural organizations, 9,620 entrepreneurs or stakeholders from 115 municipalities and four indigenous reservations.

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These initiatives, and others arising from other public bodies, as well as from the private sector, such as the training processes carried out by the chambers of commerce and family compensation funds (Comfama and Comfandi), have created a base of businesspeople, cultural entrepreneurs and public sector officials who have both essential training in cultural and creative entrepreneurship and knowledge in management. Such human base constitutes an advantage for the use of tools available within the framework of this policy for strengthening the sector. However, it is necessary to broaden the scope of this training and provide permanent, specialized instruction with greater coverage, appropriate to each level of entrepreneurship, and to incorporate training programs targeted to subsectors in order to strengthen the business models and managerial capacity of emerging entrepreneurs.

It is also necessary to create capacities and knowledge networks at the territorial level so entrepreneurs in different regions can rely on a favorable ecosystem that allows them to promote local development and the sustainability of their initiatives, projects, startups and creative companies.  These actions on the territories imply devising processes for training educators and the constitution and strengthening of business associations.

3.4.3. Understanding the context, the market and its trendsSo far in the 21st century, the country has made progress in improving the living conditions of its population: the number of people living in poverty has decreased and the middle- and upper-income brackets have increased. The extreme poverty indicator went from 17.7% in 2002 to 7.4% in 2017 and moderate poverty fell from 47.9% to 26.9% in the same period (World Bank, 2018). For its part, the multidimensional poverty index, which incorporates the measurement of aspects such as long-term unemployment, education, access to basic services, illiteracy, access to health and child labor, fell from 30.4% in 2010 to 17% in 2017. Additionally, there is a healthy domestic market with a consolidated demand at the domestic level, with household spending having the greatest weight in GDP. A country with improving income levels, with more access to education and basic services, and a strong domestic market has favorable and basic, but not sufficient conditions to increase the circulation of cultural goods and services.

While it is true that certain basic conditions exist in Colombia for the expansion of cultural and creative markets, there is still an imbalance between supply and demand in the sector.  Many national creations fail to connect with a target audience or are scarcely consumed.  In this scenario, neither cultural creators can live exclusively from their artistic work, nor can the public benefit from the consumption of these manifestations.  Being able to connect supply to demand would  not only improve the living conditions of cultural creators, managers and intermediaries, but would also result in the creation of cultural capital, which helps individuals develop their creative potential, and, in the medium and long-term, obtain a higher income, secure the well-being of their community and propose innovative solutions to problems in their communities.

Although there are several factors that prevent creations from reaching their potential audiences, a key factor to ensure this happens is understanding

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the characteristics of the national economic context and the sociodemographic characteristics of the population, in order to identify market opportunities for cultural and creative products locally, nationally and internationally, and identify consumer trends for the development of new products. Similarly, greater knowledge of the tastes, needs and sociodemographic characteristics of audiences and communities fosters a more fluid dialogue between creators and cultural consumers, making the cultural and creative offer more widely known.

Case in pointRanchería Utta. A tourism experience based on Wayuu culture

This start-up, located in Cabo de la Vela, department of La Guajira, has hosted visitors for more than 25 years. Its portfolio offers the possibility of understanding and living the Wayuu culture in a traditional space.

Their business model follows a cultural tourism trend that encourages the recognition of diversity and difference.  The territory and the connection with its inhabitants are a fundamental input, for this reason the Ranchería Utta has launched La enramada cultural (the cultural arbor), a space where young and old people talk about their traditions, and locals and foreigners get to know and enjoy audiovisual productions created by the youth of the network in the language of the community. In addition, women and artisans find a space in the Ranchería to sell their products.

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Wayúu NaikiDerechos:Akuwaipaa

Economía: Washirüü

Cultura:Derechos culturales: Oulaana sünain nakuwaipa

Olotole´eria

Trabajo:A´yatawaa

Equidad: Wamawa sünain kojutaji´irawaa

Libertades: Oulaanaa sünain laülain nakuwaipa

Shi´iyatia sukuwaipa jee müsüja´a tü shi´inanajia akuwaipaakat

Expresiones y manifestaciones culturales:

Información: Ayaawatia sukuwaipa wanee kasa

Conocimiento: Ayaawata sa´u sukuwaipa wanee kasa

Saberes: Ayaawata sa´u sukuwaipa tü kama´itkat

Tradición: Tü a´innakat weinshi sulu´u akuwaipa

Oficio: A´yataanakat so´ukaiwai Artesanía: Akumajünakat süka´ ajapü

Educación: Atüjaa süpüle akuwaipa

Aprendizaje: Atüjaa sünainje ekirajünaa Espacios culturales: Eere a´innüin akuwaipa

Capacidades: Ayaawata sa´u tü atüjaakalü a´u wanee kasaTransmisión de conocimiento: Alatiraa tü atüjalaa sa´u wanee kasaEspacios culturales: Eere a´innüin akuwaipa

Maloca / casa espiritual: Shipiapala aseyuu Infraestructura: Süpülajatü wanee kasa a´innajatü

Lugares de memoria: Eere tü achikimaajatükatProtección y cuidado del medio ambiente: A´inmajaa oummain

Colaboración: A´yanaajirawa sünain wanee kasa Financiación: Akalinjia sukuwaipa wanee a´yatawaa

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3.5. LINE 5. INTEGRATION“Today I do not regret for a single minute having created M3 Music, and 10 years later I can say that we are a team that lives well and with dignity off music and with many projections ahead. During the last decade, the music industry has been growing rapidly in Colombia and this has generated many opportunities for expansion, especially for start-ups, since it was a very recent industry. I feel that today we can already speak of a solid market, which has a lot of projection and allows the entry of more start-ups in the industry. “

Camila Zarabia, CEO and CO Founder of M3 Music.  Bogotá, Cundinamarca.  Music (Artist Management Company).

Exchanges and interactions between cultures have the potential to strengthen cultural diversity.  As established by the Convention on the Protection and Promotion of the Diversity of Cultural Expressions (UNESCO, 2005), integration must foster mutually beneficial interactions between cultures, allow broad and balanced exchanges, build bridges between peoples and promote interculturality.  Integration must at the same time protect and promote the diversity of cultural expressions and raise awareness of their value at the local, national and international levels.  Indeed, integration is not reduced to a matter among countries, but involves regions within one country and different sectors in the same society.

However, creative exchanges occur primarily and increasingly —though not exclusively— in the market.  Globally, trade in cultural and creative goods amounted to USD 212.8 billion in 2013, almost twice the figure of 2004 (UNESCO, 2016).  These goods and services are called upon to compete in that market, but only some do it successfully. In practice, a small number of companies control most of the global markets for cultural and creative goods and services. In the absence of appropriate policy measures, a large number of countries are unable to place their creativity-based production in the market, either due to a lack of incentives for creators and producers, a weakness in the capacities necessary for intermediation and negotiation in markets, or the lack of mechanisms of promotion and market intelligence to understand the dynamics of demand and target audiences.

Not surprisingly, Colombia and 140 other states have ratified the 2005 Convention. Through this agreement, member states recognize the cultural and economic nature of cultural and creative expressions, to which both creators and other mediators add value. By recognizing the sovereign right of states to maintain, adopt, and apply policies to protect and promote the diversity of cultural expressions, both nationally and internationally, the Convention supports governments and civil society in the search for autonomous solutions to the challenges and opportunities of a globalized market.

3.5.1. Who makes integration possible?Cultural integration implies and requires a diverse group of agents of the creative value ecosystem. At the base of cultural integration are communities and their creators. The communities that participate and carry a cultural manifestation include all those that practice, transmit, create and recreate their heritage and culture (Mincultura, 2015).  More specifically, the creators within these communities are the ones who guide the transformation of an idea into a product, a service or a creative experience:  artisans, technicians, producers and workers of the diversity of creative trades, that is, those

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who turn ideas into something that can be appropriated by other members of the community, society and the market. The creative moment is, in itself, a first moment of cultural integration.

Beyond creative processes, integration is possible thanks to the range of mediators who provide cultural, social and economic value in the search for audiences and consumers for their content (Mincultura, Lado B, 2017).  Collectives, agents and distributors are in charge of taking goods, services and creative experiences and distributing them among other agents of society and the market; in that way they enable an additional exchange process.  When a cultural asset is destined to enter the market, the mediators perform a variety of functions related to the commercial representation of works: the selection of content catalogs, the structuring of strategies to develop markets, the search for platforms of consumption consistent with these catalogs and the logistics involved in distribution.

Other mediators committed to connecting the product, service or creative experience to communities, audiences and end consumers are also involved in attaining integration.  The value of their work in this process is that they make it easier for the latter to receive and appropriate messages, content and products effectively. They offer a fundamental stage of validation of cultural products before the market and society; they select and program content thinking of their audiences; they build audiences through discussion and conversation; and they structure strategies of circulation, segmentation and marketing when the context is the market.

Finally, society as a whole, including its diversity of audiences, constitute a fundamental space of integration: cultural participation and consumption.  Culture and the goods, services and experiences that comprise it play a fundamental role in the quality of life and well-being of individuals and communities.  Creativity-based consumption, as part of the cultural exercise, is not solely a market function,  it is an instance of the “creation, transmission and reinterpretation of the values, attitudes and convictions through which individuals and communities transmit the meaning they give to their lives and their own development” (UNESCO, 2005).  These values, attitudes and convictions associated with cultural products also determine the nature and quality of the social bond, and are a fundamental part of integration, not only of the market, but of society and its individuals.

3.5.2. Challenges for a lasting and meaningful integrationThere are still more than a few challenges left to achieve a true integration of Colombian creative goods and services with their target audiences, the general citizenry and internal and foreign markets (Mincultura, 2017).  A fundamental challenge has to do with creators and companies producing content of quality, value and interest to society. Cultural and creative goods, services and experiences of high quality and endowed with true meaning, circulate more easily and reach their public better: the starting point of the integration process is defined by the characteristics of the creative act itself.

However, as discussed in the chapter related to capacities in the creative sector, the country still lacks a robust educational pensum that develops the skills necessary to foster creativity. At the professional level, the training of most creators, performers and producers is informal and empirical.  If there are educational programs that touch

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on creativity, they almost always have an emphasis on canonical learning and find it difficult to incorporate different aesthetics, approaches and forms of practice.  On the other hand, the technical needs of the creative and representation processes are not satisfactorily resolved, affecting the final quality of goods and services. The set of shortcomings in creativity training in the country often leaves the quality of cultural goods and services at the mercy of individual flashes of talent, and they are rarely due to capacity building.

Another challenge for integration is to achieve an understanding and conceptual alignment in public institutions, and within the sector itself, about the cultural and economic values generated by the processes of cultural mediation, commercial representation and audience development.  The incentives that have been implemented to favor integration have traditionally been focused on subsidizing the mobility of agents in the creative sector and setting up relationships and business platforms, but they are not the same as structural policies for the dynamization of cultural intermediaries.  Currently, the promotion of creativity-based circulation does not follow the creative vocations of the communities, regions and sectors involved. This process has not sufficiently activated the networks of mediators that allow contact with audiences, nor has it received the input of market and audience intelligence studies that would allow the design of targeted strategies for the circulation of cultural and creative products based on different values and social uses, market segments and ways of appropriation.

There are several examples that reveal the state of affairs described above.  Dismissing the importance of “unconventional” spaces for the circulation of the visual and performing arts and music, and for the development of new and more diverse audiences, is one of them.  Public support mechanisms have almost always been designed for auditoriums and formal infrastructure, while hybrid spaces are not sufficiently covered by support mechanisms —despite their being essential for the viability of emerging proposals and the risks they take in their programming to create and retain new audiences. Another example of the above is the large financial support of traditional media products, such as feature films, to the detriment of other types of content and formats.  Today, short, compatible and convertible audiovisual products are viewed on mobile digital platforms or non-conventional spaces, and are promoted through digital or other community networks.  Faced with the emergence of new formats and content and the atomization of forms of consumption and appropriation, audiovisual policies have remained almost unchanged.

Another barrier to integration are weak support mechanisms for mediators of the value ecosystem, which is related to their low appreciation in the creative ecosystem.  These mediators include collective spaces for experimentation and reflection, publishing and music labels, ethnic and community communications groups, podcasts, independent bookstores and showrooms, bars and hybrid spaces, among many others. Mediators like these generate value in the careful and diverse selection and promotion of content, as well as in the development of new and more critical audiences.  However, they assume all risks by themselves.  Hard and soft public co-funding mechanisms do not usually cover them, and excessive fiscal and bureaucratic burdens only increase their financial risks, jeopardizing their sustainability over time.  Regarding their specific capabilities, there are also shortcomings.  The training

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system does not have mechanisms to reinforce, share and transfer knowledge and best practices between cultural intermediaries related to artistic representation, rights management, content programming or audience development, among other areas.

An additional challenge for integration is to enhance coordination between the agents of the creative value ecosystem through strategically designed connection platforms.  Many times, the sustainability of social small businesses, independent start-ups and even consolidated companies, depends both on monetary income and on weaving strong and functional exchange networks with allies.  The strengthening of networks allows convergence and enrichment in creative processes, optimization of costs, accessing more diverse sources of funding, and sharing and diversifying risks in projects and investments.  Networks also serve to develop markets and broaden potential audiences for creative projects.  Even at their early stages they serve to exchange knowledge and strategies, gain visibility for their members and for the entire sector. For all those reasons, it is necessary to strengthen and specialize the platforms that connect creative agents, based on the strategic improvement of the pairings between mediators in the same sector and, even, between agents from different creative sectors, in what can be called cross-ecosystem networking.

Furthermore, the information and knowledge that exist in the cultural and creative sector have not yet been put in line with the needs of cultural integration and market development.  In the different regions of the country, for example, initiatives for the identification of creative and productive vocations, for the mapping and characterization of the state of cultural manifestations and the agents that promote them, are just beginning to be implemented. Even fewer studies have been developed that allow understanding how this heritage-based and creative potential can be integrated with audiences from the same community, with those of other regions of the country and even the world.  This lack of knowledge is problematic, for example, in relation to heritage and cultural tourism, since the ignorance of who are the bearers of the heritage, about the health of the activities and processes associated with the manifestations, and the capacities of the communities to manage them, is detrimental to the sustainable development of its potential. The lack of information and knowledge about heritage processes makes them vulnerable to the growth of national and foreigner tourist flows. 

Information and strategy deficiencies not only affect communities and regions, but also sectors. The country’s creative platforms, as well as public strategies to promote Colombian art, music, audiovisual productions or designs abroad, still respond more to the desire to fill the needs of a market that is often European, sometimes North American, instead of focusing on the potential of different types of Colombian content to reach their regions of origin or consumer niches in other Spanish speaking countries. Market intelligence has still to be addressed in a policy for the circulation of cultural and creative goods and services in the country.

Finally, the cultural sector and public policy institutions tend to ignore the diversity and interests of the public.  Consumers are often seen as a unit, without a true understanding of and sensitivity towards the practices and interests of diverse and complex audiences and communities.  There is not enough information regarding the public that appropriates and consumes products, services and creative experiences.  This represents a difficulty for the integration and development of

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markets, since the fundamental tasks of those in charge of circulating cultural and creative content is to analyze the target market they want to reach and adapt the offer to the needs of specific audiences. Without knowledge of the public it is impossible to identify consumption niches and implement appropriate strategies to reach them. In this sense, a more elaborate and complete understanding of the ecosystem of cultural and creative consumption must be sought.

Case in pointNetwork of Colombian Luthiers

This network promotes the construction of handmade musical instruments in five regions of the country. It has launched four micro-franchises that strengthen economic development through the coordination of community productive projects in Bucaramanga, (Santander), Villavicencio (Meta), San Jacinto and San Basilio de Palenque (Bolívar). It includes cultural entrepreneurship strategies, stimulation of associativity, development of new products, incubation of lutherie businesses and the implementation of a virtual platform for the promotion and commercialization of musical instruments.

This initiative devises mechanisms that make Colombian musical instruments competitive in the national and international market and recognizes the artistic and artisanal skills of communities as differentiating cultural assets and promoters of well-being. Furthermore, vulnerable communities linked to lutherie are integrated into the national and international economic circuit through the promotion and preservation of their ancestral knowledge.

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IkunCultura:

Derechos: Enarizay nʉneyka

Derechos culturales: Kunsamʉse’ enarizay nʉneyka

Equidad: Díkin riwanamʉ

Libertades:

Kunsamʉ Tanʉzanamʉ

Expresiones y manifestaciones culturales:Kunsamʉsin achwinhási ʉndʉmanamʉ

Información: Ga’kʉnamʉ ɉwa’sʉkweyka

Conocimiento: Ɉwa’samʉ

Saberes:Migʉnkwamʉ

Conocimiento:Ɉwa’samʉ

Oficios: Nikamʉ, inʉ awamʉ

Artesanías: Inʉ isamʉ awiri gawamʉ

Educación: Riwiamʉ

Aprendizaje: Ʉnkʉriwiamʉ

Capacidades: Me’zanakwamʉ

Transmisión de conocimiento: Migʉnkwʉya ʉnkʉbasamʉ

Espacios culturales: Kunsámʉzey nari agachwanin

Maloca o casa espiritual: Kʉnkurwa Trabajo: Nikamʉ

Infraestructura: Agachwi du zakukumanin (urakʉ bunnin)

Lugares de memoria: Kʉzagichi zoya rigʉnchunhákumʉyʉn

Protección y cuidado del medio ambiente: Niwi ókʉna kwʉya chów a’chwamʉ

Emprendimiento: Nikamʉ iɉuna ʉmpesammʉ

Desarrollo: Ita’kumey diwʉn zanisi zoya

Colaboración: Zagunamʉsamʉ

Economía: Tanʉ zamʉ, inʉ mikʉnanamʉFinanciación: Ɉwisin twiré yamʉ Incl

usió

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3.6. LINE 6. INCLUSION“Entrepreneurship means building an economy around an idea.  In our case it has been to create a collaborative environment where skills become productive around creative challenges.  It is  about trusting the capabilities of those who make up the team and enhancing their capabilities to occupy a place in the market, to obtain the necessary recognition and make the start-up scalable.”

Juan Martín Arias, CEO of Dinámico Lab. Manizales, Caldas. Industrial design / Architecture (Industrial design, creation of dynamic architectural structures and furniture, product design and generation of interactive experiences).

Market economies have responded to the challenges of increasing production and income. However, many times they do not find equally satisfactory answers to the equitable distribution of wealth (Harari, 2014). In Colombia, the Gini coefficient is 0.53, which places the country as the second most unequal nation in Latin America after Honduras (0.537), and the seventh in the world, according to figures from the World Bank for 2017.

This raises questions about the possibilities available to people to individually develop their potentialities in a context marked by great differences in the access to goods and services that are associated with better standards of living. That is, about the real capacity that individuals in a society have, which will allow them to achieve their own goals, and at the same time contribute to the collective and comprehensive development of their communities.

   

Table 1. Gini index for the countries of the region 2010-2017Prepared by the Ministry of Culture. Source World Bank (2018).

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One answer to inequality and a potential source of inclusion is the development of education and skills associated with people’s quality of life. Capabilities not only designate what people can do in life, but what they can be (Nussbaum, 2011); they are related to what Amartya Sen calls the substantial freedoms of the human being. Capabilities can improve choice and freedom, and that is why Sen proposes that societies promote a set of opportunities for their members. According to Robeyns (2000), capabilities become opportunities for everyone, regardless of the lifestyle they choose. In other words, capabilities are competencies and conditions that people must have to effectively develop their life projects.

In his analysis of Amartya Sen’s Inequality Reexamined, Cívico (2006) concludes that agents can have the same access to goods and services, nevertheless, that seeming equality does not represent the wealth of a nation. What determines the growth and true potential of a country is fundamentally expressed in the equal access to these opportunities, otherwise a country cannot be considered rich. In other words, the emphasis on the development of human capabilities is a commitment to people’s self-fulfillment.

The capabilities do not depend on the congenital equipment of people;  rather, they develop through the interaction with family and the cultural, social, environmental, economic and institutional context.  For Nussbaum, one of the responsibilities of public policy is to promote the internal capabilities of human beings through education, care for physical and emotional health, and family environment, among others. However, this is not enough, and she states that social, political and economic conditions that allow internal capabilities to flourish must be equally promoted.

This approach encourages all human beings to reach and exceed a threshold of capabilities that materializes their substantial freedom to choose and act. That is why the commitment to human capabilities is much more than a commitment to make people work towards productivity or economic growth. The effort to ensure a threshold of capabilities is, ultimately, a commitment to human freedom as an intrinsic value.

This line of policy understands inclusion in its widest sense.  It assumes a differentiated approach in terms of age groups and ways of transmitting knowledge in culture and the arts.  It seeks to promote, through education, the development of capacities and creative thinking in all Colombians, as well as the generation of skills and competencies that harmoniously involve creators and agents of the cultural and creative sector in the value chain.

3.6.1. Creativity as a fundamental capacityWhat are the fundamental capacities or capabilities needed for a society to achieve a minimum of justice and dignity for its members? Nussbaum proposes a set of core capabilities that, managed in an articulated way, can ensure a threshold for human freedom.  The list begins with life-related capabilities, such as health and physical integrity.  It continues with those derived from relationships with others, such as emotions, affiliation with other human beings, and even with other species.  What is also significant is that she invokes a group of complementary capabilities closely related to creativity: the senses, imagination and thought.

Being able to use the senses, imagination and reasoning together, enriched by an adequate and comprehensive education, is a fundamental capacity for the development and freedom of a human being. It is important to highlight that there is no separation

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between the different instances of knowledge;  being able to use imagination and thought for experimentation and the production of spiritual and creative works goes hand in hand with the use of the mind and reason.  As mentioned by Gaviria (2019) citing Steven Pinker:

So for all the flaws in human nature, it contains the seeds of its own improvement, as long as it comes up with norms and institutions that channel parochial interests into universal benefits. Among those norms are free speech, nonviolence, cooperation, cosmopolitanism, human rights, and an acknowledgment of human fallibility, and among the institutions are science, education, media, democratic government, international organizations, and markets…

Following Gaviria’s and Pinker’s words, in can be said that being able to enjoy pleasant experiences, such as games, recreation and laughter is also a capacity.  Therefore, creativity, in its broadest and most comprehensive sense, is configured as a fundamental condition of human development. How, then, to promote creativity among those who are part of society as a whole? Also, how to do it for those who decide to get involved in the cultural and creative sector as a way of life?

3.6.2. Creativity in childhood and youthCreativity takes place when different functions4 are combined and there is a wide spectrum of opportunities (options and appropriate conditions) to act. In this sense, it is clear that education is a fundamental capacity to be able to carry out various functions and expand the universe of options (London y Formichella, 2006), which is why it is the unreplaceable setting for the development of creativity.

In principle, it would be expected that in formal preschool, primary and secondary school there would be training spaces (subjects, in the most traditional model) that would list the development of creativity as one of their objectives. Consequently, the inclusion of arts education5 as a fundamental and compulsory area (Cf. Art. 23 of Law 115 of 1994) should not be questioned, nor the subject be displaced by other “more important” areas within the school curriculum.  On the other hand, the presence of subjects related to arts and culture does not strictly guarantee the strengthening of creativity in the education of children.

The lack of opportunities and options in childhood, according to Sen (2009), affects the development in adulthood. The gaps opened at an early age are difficult to close. Therefore, creativity, as a capacity, is not only linked to the schooling of infants. If we adopt the concept of learning environment, we will understand that education is not a matter of the formal status of educational institutions in society. Girls and boys live in a permanent educational environment, and school —as a physical place— is a space where education happens in an intentional, normalized and standardized way. But girls and boys permanently live in the learning environment that is their closest social surrounding. In this sense, the possibility of expanding their creativity must be

4 Nussbaum speaks of functioning, as “the active realization of one or more capabilities” (2011: 44).5 Article 65 of Law 397 of 1997, General Law of Culture, modifies the aforementioned article of Law 115 and changes the name of the area to Arts and Cultural Education, understanding what that implies for the purposes of an education with an approach based on difference, diversity and interculturality, and targeted to the population and territory where it is deployed.

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linked to people’s general conditions and opportunities, through different means and mediations, not only those provided by public institutions via formal school. Education happens permanently throughout life, which means that from gestation a person must have access to opportunities (must have the capacity) for creativity.

Early childhood policies are a recent ‘invention’ in the legislation of the countries of the region.  However, their impact is significant in comparison with educational policies for childhood and adolescence, especially regarding the stimulation of early aesthetic experiences through sensibility and affectivity training, which provide the basis for creativity.  At this educational level there is no specific education in artistic areas, but rather learning spaces where the world is experienced through play. As an approach and methodology, there is undoubtedly progress, but there is still a long way to go to create the conditions of general access to this educational experience through programs and projects. Likewise, it is necessary to break the vicious circle, so that adults, caregivers and parents have the creative capacity to be able to generate in everyday life the conditions that foster creativity in infants.

A significant part of the school curricula in the country does not have a clear focus on creativity (Vargas, Universidad de Antioquia, 2009). When it exists, it is usually found in private institutions, which does not facilitate access for a large part of low-income or vulnerable population.  Therefore, it is essential to remember that schools must become fundamental spaces in the social sphere that reproduce practices, values and imaginaries that underlie equal opportunities and freedoms, and not, as Bourdieu (1997) fears, a place where differences are strengthened. Kaztman (2001) also reminds us that “if the rich go to schools for the rich, if the middle class go to schools for the middle class and the poor go to schools for the poor, it seems clear that the educational system can do little to promote social integration and avoid marginalization, despite its efforts to improve educational opportunities for those with fewer resources”.  If creativity training takes place, it is to help students in the construction of their identity, but not yet to propose imaginative solutions to problems related to the family and the social, technological or scientific contexts.  In other words, it is often a training effort disconnected from the remaining areas of life and knowledge.

In keeping with 2019 recommendations of the Misión de Sabios (Mission of “Wise Men”), the school should be a place of artistic creation and practice.  For these experts, artistic practice at different levels of education must be central, rather than complementary or accessory, because it is a form of knowledge production that develops basic skills that are not present in other type of learning, such as scientific or mathematical subjects. In addition, arts education in school has cognitive effects that prepare students for life, namely, in the development of skills such as analysis, reflection, critical judgment and what is sometimes called holistic thinking. Arts and cultural education are essential for the development of skills such as sensitivity, aesthetic appreciation and communication (MEN, 2010). In this respect, creative education in children and young people allows total brain and multiple intelligences development (Gardner, 2011), as well as meaningful, quality learning. But, as noted earlier, quality learning requires creative capacity to be at the center of the educational model, in teachers and in society as a whole. Moreover, Arts and Cultural Education in the school must be permanent and complemented by other strategies: houses of culture, municipal schools of arts and cultural training, creation of media and virtual content, etc.

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The generation of capacities from an early age favors not only the achievement of transformational goals of the country based on inclusion, the commitment to a knowledge-based society, the promotion of creative capacities and the reduction of social gaps;  it also facilitates the generation of social and cultural capital as the first catalyst for a healthy, dynamic, participatory and open cultural ecosystem that expects to generate a greater willingness to appreciate, use, enjoy and consume diverse cultural and creative expressions, goods and services in the future.

Thus, working toward the implementation of a creativity-based education model as an integral part of the school curriculum could benefit the development of broader, more diverse and critical audiences, with an active role in cultural life. These approaches allow us to be consistent with the role of prosumer citizens, who are an active part of content creation and consumption and promote the appearance of innovative products that recognize the needs of users and in turn are capable of fostering social and economic innovation.

The key role of training in promoting innovative creation is undeniable.  Building training processes from a creativity-based approach could bolster the creation of products with added value and unique characteristics based on knowledge and skills that are generally acquired in training stages, be it under a formal pensum or under education for work and human development.

It is worth clarifying that making education an integral part of a value ecosystem entails the implementation of vast strategies through which access to and experimentation with diverse kinds of content, as well as strengthening the active role of students, are promoted. This is an ambitious commitment to the transformation of the country. The CONPES document “Guidelines for the generation of opportunities for young people” (173 of 2014) recommends to strengthen all elements related to what the IDB (2012) calls non-cognitive skills training, which includes creative and critical thinking, and management of emotions, among others, that have a significant impact, as they are key to quality of life and, in association with the cognitive skills, also for their future work performance and productivity.

Finally, and from a complementary point of view, the development and sustainability of the creative sector requires citizens capable of understanding creative content with a critical perspective.  Citizens with creative capacities ensure, in fact, the appropriation and consumption of broad, diverse and critical content, which in turn bolsters the sustainability of a diversified and vigorous creative ecosystem.

3.6.3.  Creativity and professional training in the cultural and creative fieldThe different pathways of learning in the field of education should have an articulating principle.  The preschool, primary and secondary school system must provide diverse options regarding arts and culture education: mere enjoyment of it; practice of arts as a hobby; participation in traditional spaces and rites; learning and appropriating customs and traditional production techniques; the recognition and enjoyment of heritage, among others. Furthermore, education must provide the opportunities and

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conditions to access specialized training processes in creative fields such as the visual and media arts and design.

Despite the existing educational offer in universities and other training centers targeted to the creative sector, the stakeholders of the sector feel that there is lack of sufficiently qualified, skilled and experienced workers to satisfy their needs. According to the survey contained in the study by the British Council and Lado B (2016), for almost eight out of ten positions in the creative sector, Colombia suffers from a shortage of appropriately qualified and experienced professionals.  According to the aforementioned diagnosis and data from the Ministry of Education, both the educational and job offer around creativity are concentrated in the main cities and are almost totally absent in small cities and rural areas, precisely where there is a larger presence of intangible cultural heritage manifestations.

We are faced with the concentration of specialized undergraduate and postgraduate programs in arts and creativity in a few higher education institutions, located in capital cities and some intermediate ones. In creativity related fields we find design, architecture, advertising, among others; in the arts there are mainly undergraduate programs (teaching degrees) in visual arts, some areas related to design and a few to cultural education (intercultural, ethnic education).  There are also technical and technological education programs associated with arts and culture.  Those coming from this last segment, except if they have bachelor’s degrees, are the least likely to have formal jobs, as they usually become independent creators or performers; and the creation of cultural and creative businesses is not traditionally one of their strengths.

This shortage of qualifications has a fundamental downside in relation to artists and creators. There is overwhelming evidence both in cities —mainly intermediate ones— and in rural areas that the training of many creators, performers and entrepreneurs is informal and empirical.  Consequently, there is a shortage of agents with a solid professional training that helps them to find better jobs or

develop their own sustainable endeavors. In cities there is a host of initiatives and institutions of higher education that are not sufficiently articulated around professional and specialized skills training processes.

At the same time, according to the Misión de Sabios, in Colombia “professional artistic training has been characterized by its rigidity and normative spirit, centered on the knowledge of a canon.” For them, artistic training is called upon to incorporate different aesthetics, approaches and forms of practice if it really wants to contribute to the quality, quantity and diversity of content, without which no marketing or entrepreneurship initiative has a chance of finding its own economic viability and be appropriated by the public. Despite the existence of training programs in the cultural sector, it is not clear how many of these programs relate to management, leadership and communication skills, and to other characteristics required for an entrepreneurial commitment.

According to the report submitted by Colombia in 2017 to the Convention for the Promotion and Protection of Cultural Expressions, gaps have also been identified in technical and professional training in positions related to management, commercialization, marketing and dissemination of cultural contents, because in Colombia these roles are often assumed by the creators or artists themselves, which

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limits the specialization of that occupation, the relationship among the agents of the value chain and, subsequently, the opening of new niches of territorial circulation and the creation of new models that add value to the activities of different sectors.

According to article 64 of the General Law of Culture, which deals with the National System of Artistic and Cultural Training, SINFAC, the Ministry of Culture is responsible for guiding, coordinating and promoting non-formal artistic and cultural education as a social development factor, as well as determining policies, plans and strategies for its expansion. The SINFAC was launched with the purpose of stimulating the creation, research, development, training, and transmission of artistic and cultural knowledge.

3.6.4.  Education for work and human development and the creative capacity (ETDH)In principle, this type of education emphasizes the training of qualified labor in trades and occupations of a technical nature. However, the regulations suggest that academic training should be addressed too, targeting softer fields, including art and culture.

It might be a common preconception that the language of technical labor training is not adequate to convey the universe of arts and culture. However, many activities associated with art, such as support for production, circulation, staging and consumption are technical in nature and offer options for job and productive development to a large number people. This does not happen with the ‘disciplinary’ fields of the arts and some heritage-related trades that resist, by their nature, the logic of standardization. Considering the above, certain conditions have to be put in place to define and structure training in a way that meaningfully reflects the name “human development”.

In any case, ETDH, as part of the educational system and as an option for lifelong learning, must provide opportunities and options to strengthen the creative capacity, beyond the methodological and normative discussions about the proper place of creation and creativity at different training levels.  Educating for work and human development means expanding the set or repertoire of functions that guarantee the exercise of skills. In turn, creating more opportunities by enhancing functions through training expands capacities.  ETDH is one of the paths for comprehensive human development and therefore it must be strengthened; this means creating the conditions for technical jobs to be socially valued and better paid.  Currently, Article 194 of the National Development Plan Law implements the National Qualifications Framework and the Work Training Subsystem, of which the ETDH is part; it is necessary for the cultural and creative sector to join this commitment. To this end, the results of the analysis of supply, demand, region characteristics and identified geographical marginalities of the culture sector must be addressed in the National Qualifications Framework and in the competencies of the Subsystem of Standardization.

3.6.5. Creative capacity and informal educationInformal education is one that is not subject to specific regulations and standards for its operation and offer, and it may take place spontaneously in different social, but also institutional, settings.

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Law 115 of 1994 defines it as “all freely and spontaneously acquired knowledge, coming from people, entities, mass media, print media, traditions, customs, social and other unstructured behaviors.”  However, there are regulations that establish certain requirements for an educational process to be considered informal, namely, not to exceed 160 hours of training.  These courses and programs, offered by entities such as compensation funds, university extension and continuing education areas, arts or sports training schools, etc., do not bring a degree, but only a certification of attendance. Schools, workshops and organizations that offer courses in this modality are required to comply with regulations applicable to the commercial sector rather than the educational sector regarding sanitation, adequate infrastructure, land use, etc.

Despite being defined as informal, much of the specific training in artistic and cultural areas in the country comes from such spaces. The  Ministry of Culture has supported and strengthened processes aimed at schools of artistic and cultural training in the municipalities, through teacher training, guidelines, infrastructure and endowments, among others. As a result, informal education is going, in practice, through a process of formalization, structuring and ‘normalization’.  With different levels of success, schools and cultural organizations offering these services are improving their curricular structures, training methodologies, programs and management.

The specialized literature accepts the classification “formal, non-formal, informal” as a matter left to the normative order of national education systems, product of debates from the sixties.  But it is clear that in practice this subdivision is diffuse and what exists is different levels of formalization of the training offer. In this regard, it is important to define the real place of informal processes in artistic and cultural training in the country.  The offer is abundant and its quality can vary from highly structured projects to others lacking any rigor, and this is only evaluating the training offer of institutions and other organizations.

So far, we have not addressed the roles that media, and, above all, virtual platforms are playing in this matter. Colombian audiences are heavily influenced by the content that circulates on the Internet, from the interaction offered by social networks, to tutorials and cultural content of all types, music, cinema, video, etc.  Not necessarily everything that circulates in the media and the internet has a place in formal education spaces. In fact, those platforms are often forbidden, denied or seen as something alien to the lives of children and young people, but it is in this sort of informality where innovative re-elaborations of content can appear. This is where, for example, the whole hip hop movement is taking place.

And what about the traditional, intergenerational knowledge transmission that still takes place in the regions, but also in cities? Parents, grandparents, uncles, aunts, who pass on their expertise to children and grandchildren.  This process is informal and not independent from formalization schemes, but it must be addressed or else traditional and ancestral practices are at risk.  The Ministry of Culture is called to broaden its support of informal education not only through the heritage policy, but also from the field of artistic and cultural training. Creativity is not only linked to innovative production processes for the market. As a capacity for human development it is found in the possibility of keeping alive the knowledge embedded in the collective memory of peoples, what we call intangible heritage.

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Finally, informal education is the scenario that most urgently requires systems and mechanisms that allow the recognition of prior learning.  That is, the social, cultural, political and economic valuation of the trades and heritage practices, collective knowledge and traditions, the knowhow and skills acquired in processes defined as informal.

3.6.6.  Crafts, roles and occupations related to the arts and cultural heritageIn Colombia, those who work in crafts and occupations in the culture sector are lagging in the productive development of their activities.  This weakness, which affects their social development as well, is a consequence, first and more importantly, of the low social and political valuation given to their work;  the second cause is an imbalance of perception around knowledge and work:  those who have had access to higher education receive most of the social recognition and appreciation in the country, while those who practice a craft or trade rarely are acknowledged.

To address this imbalance, the Ministry of Culture is currently implementing the Policy for the strengthening of crafts and occupations from the cultural sector in Colombia6, which claims that trades related to culture should receive the same social recognition as other professions; furthermore, that their training processes should be supported by the same political will that recognizes learning in formal institutions. This policy sees in education and training in different learning environments a unique opportunity to promote and safeguard the knowledge base associated with cultural heritage and the trades related to the arts. Redressing this imbalance in education will result in reducing the segmentation and inequality in access to work in the cultural sector, and it will allow to take full advantage of the wealth of knowledge the country houses, improving the quality of life both of the carriers and the learners.

The cultural and creative sector policies hope that young people will find job options that also adapt to the new needs of the labor market in Colombia; they aim to facilitate the reach of the information and support of the National Government, who is also willing to regulate and legislate on the cultural field, recognizing all sector agents and offering better sources of funding, so those who carry out these trades can constitute their cultural startups and strengthen those that already exist. On the other hand, these policies also contribute to the research on and recovery of local consumption, and the creation of productive units that facilitate young people and adults to work and pursue a trade in their cities of origin, since they recognize the particularities of each territory and the characteristics of the goods and services produced there.

Every day it becomes more evident that crafts and occupations articulate the relationships among culture and the productive sector, the educational system, security needs, citizen coexistence and media. Culture must be more deeply integrated into the policies, plans, programs and projects of other ministries of the National Government, as well as in the territorial development agendas of departments and municipalities,

6 The complete policy can be found in the following link: http://www.mincultura.gov.co/areas/artes/publicaciones/Documents/Pol%C3%ADtica%20de%20fortalecimiento%20de%20los%20oficios%20del%20sector%20de%20la%20cultura%20en%20 Colombia%202018.pdf

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since only the cultural sector can promote the exercise of citizenship and cultural freedoms that involve the access to cultural goods and services, among other aspects (Parias et al., 2013). In this sense, the strengthening of crafts and occupations related to culture and heritage will in turn feed in the design of strategies that generate better networks, relationships and circuits among agents, institutions and organizations.

Associativity and collaborative work should guide the strengthening of trades related to arts and heritage.  This aspect must be based on the strengthening of the bonds of trust among agents, organizations and public and private institutions.  Business associations and trade unions help those agents to transform their activity into companies or productive units that can have a significant impact on the sector and contribute to the social, economic and cultural development of agents and communities in general. On the other hand, by organizing themselves, the agents of the trades will achieve representativeness and small entrepreneurs will be able to get results that would be out of their reach if they worked individually. (Mincultura. 2018)

3.6.7. Skill development as expansion of the creative capacityThe education and training of people directly impacts their capacities to be themselves and exercise their rights and freedoms.  The functions, as said before, and the ways they come together, expand those capacities, which will be supported by skills when it comes to doing, knowing and being in the real world.

The importance of technical skills

The training centers of large Colombian cities graduate artists and creators who often fail to meet the specific technical needs of creative companies and organizations (Lado B, British Council, 2016).  At the same time, these centers rarely have agreements with the productive sector that allow students to apply their knowledge to the needs of a real company, which widens the gap between creation and the technical needs of the market.

Therefore, there is a mismatch between the current needs of the creative industry and the training offer.  It is very common for companies to design and implement their own training programs with the workers they hire, which demands time and money. Although these are jobs that are sometimes better paid than creative ones, in Colombia the status of technical training is lower than that of a professional degree.

However, in an increasingly specialized sector, characterized by highly diverse and qualified consumption of local and foreign content, empirically trained workers cover less and less the needs of the most demanding creative productions. Some of the areas that reveal the most deficiencies in technical capacities are the performing arts (scenography, stage management, live sound production, lighting); film and audiovisual (production coordination, field production, location management);  the publishing sector (creation and edition of digital content); design (product development); visual arts and museums (exhibition management).

Skills for cultural and creative management

The set of capacities of human beings should allow individuals to have a significant degree of control over their own environment.  People must be able to actively participate in decisions that govern their lives and their projects. For this purpose,

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it is necessary to integrate a group of skills and competencies related to the management of projects, organizations and companies that are complementary to the creative capacities.

Management skills are crucial in many ways; the first among them is capacity to structure sustainable projects and companies.  It is common for workers in the creative sector in Colombia to get involved in specific, short-term projects, and only a few become formal employees of companies and organizations.  In any case, specific administrative and managerial skills are fundamental to be able to instill sustainability strategies to these projects over time: financial structuring, marketing, development of audiences, harmonization in the territory, with the environment and with the economic practices of the communities, among others. For community and social initiatives, the capacity to implement sustainable business models that are aware of the context and of the multiplicity of sources of financial and non-financial aid is a rather rare skill.

Added to this is the difficulty creators and producers have in recognizing the needs of the context, which is related to their limited appraisal of the different instances of value in the creative ecosystem. It could be said that the shortage of specialized and competent cultural and creative mediators —managers, sales agents, programmers, critics, i.e., those who allow content to effectively connect with their audiences— is both a cause and a consequence of the misunderstanding and suspicion that surrounds those who carry out commercial and market development tasks in the creative sector. But these dynamics puts the sustainability of those very endeavors at stake, which is why starting capacity development processes for mediators in the creative sector is a priority.

On the other hand, there is a notorious lack of on-the-job training for public officials in charge of making key decisions for the sector, especially outside the main cities. For this reason, it is necessary that the specific skills required for these positions are strengthened: knowledge of regulations, design of mechanisms for the implementation of policies and programs, evaluation of projects, among other fundamental elements for the public management of the cultural sector.

Basic and soft skills

A final set of crucial skills for the development of the sector and its members is made up of soft skills. Complementary to other skills that can be understood as “hard” (technical, managerial, etc.), soft skills are necessary for establishing  relationships between people and involve a fundamental socio-emotional ingredient; they include working in a team, helping others, having effective verbal communication, transmitting ideas and knowledge, being responsible, and being able to adapt to change, among others.

Soft skills are essential in personal development, social participation and the good performance of any type of organization. These skills can be learned and developed as a complement to the other sets of skills and competences and, in a country that has shown the breakdown of the social ties of its communities, they have a fundamental role in repairing the social fabric, as well as in securing the sustainability of other processes around culture and creativity.

 

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Case in pointCommunication as a safeguarding strategy of the Kuchá Suto cultural heritage

The arrival of new technologies in San Basilio de Palenque made it easier for this media collective to generate strategies to safeguard the intangible cultural heritage of the township through the recorded registry of the stories of its elders. This project, that began at school and went on to community radio, has been on the air for over 20 years: Kuchá Suto, which means “listen to us” in the Palenquero language, is now recognized as a peace building initiative. Music, ritual, language and traditions are the pillars of the communications effort of the collective. This project is funded with resources from the consumption tax and from public institutions; they also offer goal is to keep the memory of this community alive for generations to come.

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Creole

Cultura: Kolchyor Derechos: RaitsDerechos culturales: Kolchyoral raitsEquidad: Ivenness

Libertades: Friidoms

Kolchyoral ekspreshan ahn manifestieshan

Información: Infarmeishan, manifestieshanConocimiento: Nalidge, skills ahn kno hauSaberes: Tradishanal nalidge ahn laan-ning

Tradición:Tradishan

Oficios: Trieds

Artesanías: AndikraafsAprendizaje: Laaning

Capacidades:

Transmisión de conocimiento: Transmishan af naledge

Kapacitiis, fakoltiis

Espacios culturales: Kolchyroal spieces

Economía: Ikonomy

Maloca o casa espiritual: Spiritual hause. church

Infraestructura: Infrastroktiu ahn trieningLugares de memoria:Plieces ah memoriProtección y cuidado del medio ambiente:Protekshan ahn kyer o kier ah di iinvironmental manigement

Trabajo:Emprendimiento: Entrepreneurship

Desarrollo: DiivelopmentColaboración: Kolaboreishan

Financiación: Fuos pah fainanshal, mekanizam

Expresiones y manifestaciones culturales:Work /werk,iimplayment

Edyukieshan

Educación:

Insp

irat

ion

Line

7.

Creole

Cultura: Kolchyor Derechos: RaitsDerechos culturales: Kolchyoral raitsEquidad: Ivenness

Libertades: Friidoms

Kolchyoral ekspreshan ahn manifestieshan

Información: Infarmeishan, manifestieshanConocimiento: Nalidge, skills ahn kno hauSaberes: Tradishanal nalidge ahn laan-ning

Tradición:Tradishan

Oficios: Trieds

Artesanías: AndikraafsAprendizaje: Laaning

Capacidades:

Transmisión de conocimiento: Transmishan af naledge

Kapacitiis, fakoltiis

Espacios culturales: Kolchyroal spieces

Economía: Ikonomy

Maloca o casa espiritual: Spiritual hause. church

Infraestructura: Infrastroktiu ahn trieningLugares de memoria:Plieces ah memoriProtección y cuidado del medio ambiente:Protekshan ahn kyer o kier ah di iinvironmental manigement

Trabajo:Emprendimiento: Entrepreneurship

Desarrollo: DiivelopmentColaboración: Kolaboreishan

Financiación: Fuos pah fainanshal, mekanizam

Expresiones y manifestaciones culturales:Work /werk,iimplayment

Edyukieshan

Educación:

Insp

irat

ion

Line

7.

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3.7. LINE 7. INSPIRATION

Creativity and its products“Being entrepreneurs has been a successful challenge, which has helped us organize community projects in our context; it has allowed us to manage and showcase the culture, ideas and businesses that in our own communities are committed to peace building and the life projects of the young people of our territory”.

Rodolfo Palomino Cassiano, director of Kuchá Suto Collective.  San Basilio de Palenque, Bolívar. Heritage / Media and Information (Center for Media and Historical Documentation).

As the Misión de Sabios (2019) has explicitly stated, the cultural and creative industries represent only one part of a broader cycle of cultural production, “which includes popular and traditional manifestations, ways of life and understanding of the world”. This cultural production has a fundamental symbolic value that, at the same time, constitutes the main source of value for cultural and creative goods and services. For them, the economic value of these products is closely related to the symbolic value emerging from a “fluid and permanent dialogue with ‘non-industrial’ forms of cultural production”.  The economic potential of these industries is thus closely related to the health of the cultural and creative capital of the country.

In turn, the health of this cultural capital in a country like Colombia depends on the health of the patrimonial and cultural capital of the different human groups that inhabit it —ethnic groups, towns, urban communities, political actors, creative sectors. Therefore, cultural diversity, understood as the “plurality of ways of understanding the world, representing it and relating to it”, and the diversity of content explored in multiple narratives, formats, approaches and languages, are both fundamental in the strategy that aims for the sustainability and vitality of the country’s cultural and creative production.

3.7.1. The vitality of creativity and its productsThere are several signs of the creative dynamism present in Colombia.  Although the figures are insufficient, there is data that shows that artisanal production is vital and widespread in Colombian regions.  Artesanías de Colombia carried out in 1998 the National Economic Census of the Artisanal Sector, which registered 58,821 people who, on average, allocated more than 70% of their activity to the production of handicrafts.  Likewise, since 2014, in response to the need to have up-to-date figures on the artisanal activity in Colombia, the information gathering process led by Artesanías de Colombia has continued to grow and the Statistical Information System of Artisanal Activity (SIEAA) was launched.  As of June 2019, the System has 31,003 registered artisans in 29 departments, characterized in three groups of variables: socio-economic, socio-demographic and those associated with a craft or trade. Although it is a fairly representative sample, drawn up with a data collection methodology endorsed by DANE, it is currently necessary to complete this data set, adding new variables such as location, occupation and population group or community to which these artisans belong.

For their part, the Workshop Schools —an initiative led by the Heritage Directorate of the Ministry of Culture since 2009— have trained more than 24,000 young people

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between the ages of 15 and 30 in traditional trades related to cultural heritage in 10 municipalities of the country (Barichara, Bogotá, Tunja, Buenaventura, Cali, Cartagena, Quibdó, Mompox, Popayán, Tumaco). The objective of the program is that, at the end of their training cycle, graduates become entrepreneurs who transform cultural heritage into a source of local development.

In the cultural industries sectors, there is evidence that shows the dynamism of cultural goods and services production over the last two decades. In 2017, for example, the number of Colombian films produced and premiered reached a historical record, going from 12 in 2009, to 44 in that year (Proimágenes, 2018), a clear effect of the financing mechanisms of Law 814 of 2003. Regarding the publishing sector, the total number of titles registered in the ISBN in 2015 in Colombia was 17,759, a figure that in 2000 was 6,465, which implies that in 15 years the number of titles registered in the country tripled, according to the study “The publishing network in Colombia: a compilation of research on the sector” (Mincultura, Side B, 2018). As for the recording industry, this sector has accumulated five years of continuous growth and reached USD 40.5 million in revenue in 2017. This growth has recently been spurred by streaming services, which are already responsible for 57% of all sector income in Colombia. But the revenue coming from the performance of live music is far greater than that from recorded music. Only in Bogotá, the revenue generated from concerts and other musical events reached USD 78 million in 2017. Both forms of consumption are perceived as complementary and have been growing concurrently for several years, according to the study The music economy in Colombia and Bogotá. Summary of the main findings of 2018 (Chamber of Commerce of Bogotá, Side B, 2018).

Regarding the sectors that produce functional creations, we find a contradictory dynamic in the Colombian fashion industry. The DANE figures on the current situation in the textile-clothing sector, a primary input producer for fashion design, highlight the difficult time this industry is going through. In June 2017, the real production of the spinning, weaving and textile product lines registered a fall of 19%, compared to the same month of 2016, while in clothing the decline was of 13%. For this reason, employment on these lines also fell, according to DANE 8.8% and 5.3%, respectively. However, the rise of platforms such as Colombiamoda, B Capital, Plataforma K, among others, bear witness to a sector that is committed to growth based on high added value design, projection in opening markets and development of a more qualified workforce. In sum, it is creativity and innovation that can allow this sector to resume a path of growth that does not rely on mass-produced homogeneous creations.

3.7.2. Protection of creations based on intellectual propertyA fundamental aspect for the sustainable development of the cultural and creative ecosystem is the adequate protection of intellectual Property (IP) and the understanding by both authors and consumers of the rights and duties they have regarding their use or exploitation. To date, Colombia is a member of most international treaties related to this matter.

Several advances have been made in updating and modernizing IP regulatory frameworks so that they are in line with the reality of the sector and recognize the technological changes that have occurred in the last three decades, which in turn have changed the forms of creation and content distribution.  Colombia updated

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its Copyright law (Law 1915 of 2019) which exceeds international standards and is in line with the digital environment, allowing various forms of marketing and distribution. There are also advances made by the Intellectual Property and Handicrafts program in the last 10 years. Since 2008 Artesanías de Colombia and MinCIT carry out the project “Implementation of the intellectual property rights of the emblematic crafts of Colombia” for the development of strategies that promote the application of intellectual property rights to Colombian handicrafts as a nation-wide policy, to contribute to raising the levels of competitiveness of handicraft production.

In the 2010-2019 period, more than 80 artisan communities have attended workshops about intellectual property rights and their potential when applied to handicrafts. Eleven artisanal product lines, such as the weaving from the Wayuu people and the pottery from Ráquira (Tejeduría Wayuu, Cerámica de Ráquira), obtained their denominations of origin after meeting the requirements of a geographical origin, and natural and human factors that give them their unique characteristics. To date, Colombia has fourteen such denominations, eleven for artisanal products and three for typical food staples, and continues to have the highest number in Latin America. There is also progress in the registration of collective trademarks and individual artisan trademarks, and, in an agreement between Artesanías de Colombia and the National Directorate of Copyright (DNDA), for the free registration of artisan creations.

On the other hand, the recognition in Colombia of the industrial property rights of products derived from the intangible heritage is still in early stages. In other countries measures have been adapted to a cultural and patrimonial reality in order to give a fair recognition to the work of bearers of traditional knowledge, while in Colombia they still face obstacles to have the rights over their creations recognized. Nor have technical and sanitary standards been established that recognize and approve traditional modes of production and transformation. Although the Ministry of Culture and INVIMA have begun to deal with these issues, it is necessary to advance in the next few years in developing a normative body that makes it possible to increase traditional production under standards recognized by law.

Despite progress, it is still necessary to strengthen the entities that are dedicated to the design, administration and execution of government policies on intellectual property and that ensure the protection of creators’ rights. As long as there is ignorance among the agents of the cultural and creative sector about the concatenation of property rights, there is no transparency in the economic exploitation of works and in the contracts between creators and the companies that demand their services. There are authors who are still unaware of registration procedures before the DNDA or the SIC. For all this, it is necessary to strengthen training efforts around the management of intellectual property.  The institutional arrangement of collective management organizations is difficult for public authorities to understand and there are tensions between partners, users and the organizations themselves.

3.7.3. The concentration of production and consumption as a challengeWith all the dynamism the creative sector is experiencing in Colombia, one of the most important challenges lies in the concentration of the production of messages, symbols, content and products.  The available evidence shows that it is concentrated in large cities, in a few entrepreneurs, and it is appropriated by very specific segments of the population.  To break this trend, the measures aimed at making equality of

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opportunities for creativity possible, increasing the capacities of all sector agents, and developing audiences are essential.

In contrast to the extraordinary panorama of growth in theatrical attendance, infrastructure and national cinema production, the market share of Colombian cinema has been very uneven over the last few years.  Between 2009 and 2016, the share of national cinema viewers has oscillated between a minimum of 4.5% (2010) and a maximum of 8.2% (2012). It is also clear that box office numbers for Colombian films has been highly dependent on a few blockbusters. Between 2010 and 2014, only 26% of the films released had more than 100,000 viewers, while 31% had between 10,000 and 100,000 viewers and 43% had fewer than 10,000 viewers. These figures reflect the situation of Colombian cinema, a sector currently discussing the necessary mechanisms to better connect to audiences that are mostly attracted by a few commercial titles.

The book production ecosystem also shows concentration in more than one regard. The generation of content is highly concentrated in Bogotá. The inequality of ISBN registrations in geographical terms is quite pronounced: less than 20% of the country’s cities make up for 88% of registrations, and just Bogotá accounted for 70% of these. For the same period, 40% of the publishers are responsible for about 70% of registrations. The content is mainly driven by the demand of the education sector, and the registration of other topics, like Colombian, foreign or children’s literature is minimal.

Regarding live music, the major rock and pop shows in Bogotá and Medellín are responsible for most of the revenue of this sector and of performing arts in general. Other types of entertainment, other musical genres and other municipalities have a much lower participation in the overall revenue.  At the same time, the production of live music shows is in the hands of a few producers, as 2% of these account for 62% of the total revenue.

3.7.4. Proposals, quality and innovationQuantity is not equal to a valid proposal, or to quality and innovation.  The music ecosystem of Bogotá is a good case study.  Of all the musical groups in the city, only 30% offer the market an entirely original repertoire and more than a third of the groups surveyed depend heavily on covers for public performances, especially songs in English (Idartes, 2018). In the film sector the question remains to what degree the lack of appropriation of national cinema by the Colombian public is due to a perceived lesser technical and narrative quality of national productions. Nowadays it is still a challenge for the different artistic and cultural expressions of the Colombian creative sector to become known, but also to connect with, move and impact their audiences, leading to a real societal appropriation of art, culture and heritage as common values.

According to the Misión de Sabios (2019), it is necessary to know in depth and strengthen the artistic and cultural practices of the population and understand the context in which they are developed in order to facilitate the conversion of cultural goods and services into economic value.  For the experts “it is essential to aim for a sophisticated and comprehensive structuring of the system of relationships, devices, mediations and links that configures the network that connects nodes, agents, disciplines, technologies and services that make it possible for a cultural practice, an

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event, an object or an artistic or cultural service to be available”. Another fundamental mainspring for innovation is to make use of heritage, both tangible and intangible, to create new products and content.

Case in pointDinámico Lab. “Dynamic Architecture. Collective creation projects”

The essence of this brand is creativity, to which is added a network of people with different knowledge and endeavors who are willing to work collaboratively and share ideas in order to design and manufacture products and temporary spaces. The design products of Dinámico Lab are based on experimentation, on the articulation of human talent, knowledge, new materials and techniques to make unconventional objects. Completed projects finance those in process.

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Nasa Yuwe

Cultura: Peetx fxi'zenxi

Equidad:

Libertades:Peetx u'junxi

Educación: Kapiyanxji

Derechos: Ew fxi'zewa knaynxi

Oficios:Vxitnxii

Trabajo: mjinxi

Derechos culturales: Peetx fxi'zenxi's knaynxi

Aprendizaje: Piyanxi

Expresiones y manifestaciones culturales:Peetx fxi'zenxi's we'wna txhîiçx kajiyu'n

Información: Jxukatx kajiyu'nxji Economía: Vxu vitnxi

Conocimiento: Jiyunxi Saberes: Yaçujx jiyunxiTradición: Maantey yunxi Artesanías: Kuseju umnxi

Capacidades: Kih vitya' evunxi

Transmición de conocimientos: Jiyunxitxis kapiya'n

Maloca o casa espiritual: Êkthê wa' meeçxa' yat

Infraestructura: Kukwe çxida

Protección y cuidados del medio ambiente:

Desarrollo: Vxitnxi

Kiwe çeya's phuphna

Colaboración: Pu'çxnxi Financiación: Puypu'çxnx

Puyja'da

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