CARICOM

Dr. Hilary Brown

CARICOM SECRETARIAT

Promoting CARIFORUM Creative Industries

Project Closing Workshop

September 2011

Strategic Policy Directions

proposed by the Regional Task

Force on Cultural Industries

TRENDS

More attention to culture by CARICOM

Governments, affirming the importance of

Cultural/Creative Industries to national and

regional development

More emphasis on developing services -

allocation for services under 10th EDF

Global recession, free trade have heightened

the need to seek alternatives sources of

income

Inclusion of culture in trade agreements with

Third States (EPA, Canada)

31st COTED (Dec 2010):

Agreed that the following Services would be

granted priority status in the development of the

Regional Plan for Services –

Financial Services

Information and Communication Technology

Professional Services

Tourism Services

Education Services

Health and Wellness

Recreational, Cultural and Sporting Services

BUILDING BLOCKS

Regional Cultural Policy (1994)

National Cultural Policies – Jamaica, St. Lucia,

Dominica; advanced in Suriname, Trinidad and

Tobago and the Bahamas

UNDP, Caribbean Export, IDB, UNESCO, EU

funded studies and projects (since 1990s )

Industry consultations – 2003 - 2007

CARIFESTA Strategic Plan (2004)

CRNM commissioned Study, funded by EU

Proinvest Facility – Cultural Industries in

CARICOM: Trade and Development Challenges

(2006) (Nurse et al)

CARICOM POLICY

Regional Task Force on Cultural Industries

Mandated by COTED-COHSOD, January 2008

Launched on October 2008, in Guyana

Funded by Hub and Spokes Trade Project and UNESCO

TASK FORCE COMPOSITION

TWENTY MEMBER TASK FORCE

Representatives from Ministries of Culture, Trade

and Finance (4)

Industry representatives (7) – music, AV, publishing,

festivals, IP, visual arts

Regional organisations – OECS, Caribbean Export,

OTN/ CARICOM Secretariat (7)

Private financial sector (1)

Educational institution – UWI (1)

Co-chaired by Private and Public Sector Reps –

Adrian Augier (St. Lucia), Sydney Bartley (Jamaica)

TASK FORCE MANDATE

Core mandate: propose “approaches to providing relief from tariffs and other duties and charges on products that are inputs to the cultural industries.”

Develop a Regional Development Strategy and Action Plan Incentives regime and financing mechanism

Data for inclusion in national registries of artists

Address financing needs of the Sector

TASK FORCE MANDATE

Regional Development Strategy and Action Plan to:

Resolve classification issues related to cultural products and services

Make recommendations to address challenges in free movement of artists under the CSME

Advise on the appropriate treatment of culture in trade negotiations and agreements

TASK FORCE ACTIONS

Three TF Meetings

Two Writing Retreats (Co-Chairs)

Four Major Studies (2009-2010)

International best practice in public policy

Ireland, Sweden, Brazil, UK, Singapore (Callender)

Incentive Schemes in Member States for

Cultural Industries and Disincentives for

Growth

Antigua & Barbuda, Barbados, St Lucia, Jamaica,

St Lucia, Trinidad and Tobago (Callender)

TASK FORCE ACTIONS

Educational Policy and Facilities for

Education in the Arts and Culture in Member

States (Callender)

The Design and Impact of an Exemptions

Regime for the CARICOM Cultural Industries

Antigua & Barbuda, Barbados, St Lucia, Jamaica,

St Lucia, Trinidad and Tobago

(Silva)

TASK FORCE ACTIONS

Draft Strategy in an advanced stage of

preparation

To be presented to

COTED (Trade Ministers)

COHSOD (Culture Ministers) – November 2011

COFAP (Finance Ministers)

POLICY CONTEXT

Culture and Development

Cultural identities, signifying systems,

world view and epistemic frameworks

shape our view of development (Nurse,

2006)

Takes account of the unique historical

and cultural context of development

Allows the voice and the expressions of

the dispossessed and marginalised to be

heard in the development process

POLICY CONTEXT

Promotes cultural diversity, social

cohesion and inclusiveness

Unifying force in regionalism

Catalyst for community and nation

building

Youth development

Economic value of culture

ISSUES TO ADDRESS

Vision, Guiding Principles, Objectives,

Targets

Definitions

What strategies and approaches best serve

as catalysts for wider sector development?

Which sectors to focus on?

Cross sectoral issues and needs?

Critical success factors?

Conceptualise and promote Caribbean

brand?

ISSUES TO ADDRESS

Mapping – diversity, tools, business models

Institution building

Innovation and value chain approach

International best practice in public policy

How to make funding more directly available

to and managed by the industry

Paradigm shift in thinking at all levels: Culture

is our business

OBJECTIVES

Growing the Creative Economy: building

more competitive creative industries

Positioning the Region as a cultural mecca

and preferred investment location

Job and wealth creation

Contributing to sustainable national and

regional development

Identity, diversity, inclusion

SECTORS

Music

Audio Visuals (incl. Digital Media &

Animation)

Publishing

Visual Arts

Festivals

Fashion

Performing Arts

Craft

CROSS CUTTING ISSUES

Investment and Financing

Intellectual Property Management

Industry Associations

Business Support Services

Trade and Export Facilitation

Marketing and Distribution

Human Resource Development – training etc.

R&D and Data Collection

Cultural Districts

Policy, Legislation and Incentives

Intersectoral Linkages

CULTURAL EXEMPTIONS REGIME

Consultations in five CARICOM States (Antigua &

Barbuda, Barbados, St Lucia, Jamaica, St Lucia,

Trinidad and Tobago)

Sample captured States more dependent on revenue

from import duties; those with high charges on

cultural inputs; those with some incentives in place

Meeting with Ministries of Finance, Trade & Culture;

Customs

Analysis based on 126 cultural inputs (“Task Force

List”)

The Study :( a) examined current regimes in MS; (b)

proposes a CARICOM-wide exemptions regime; (c)

estimated the fiscal impact on Member States

CURRENT INCENTIVE REGIMES

No MS has a comprehensive exemptions

regime, backed by appropriate legislation

Where regime exists: (a) only covers a few

areas (e.g. film + music); (b) few links to wider

national initiatives on culture; (c) wide

variations in statutory backing; (d) low

utilization rate (33 in TT; 19 in ANB; 20 in JAM)

In many instances the Tariffs and ODCs serve

as a disincentives to growth

CURRENT REGIMES

Inconsistency and differences across MS in

application of the tariff and ODCs

Digital video camera for high end film

production

Duties, ODCs range 61.5% in St. Lucia ; 45% Antigua ;

38.8% Jamaica ; 35% TT; 36% Barbados; 35%

Grenada

Electronic amplifier for sound production

65% in Grenada; 61.5% Barbados; 55% in Antigua;

51.5% in St. Lucia; 48.8% in Jamaica

PROPOSED REGIME

Regime applies to:

Music (live and recorded)

Publishing and printing (book, newspaper,

magazine)

Audio-visual / media (broadcast, news, film, video)

Performing Arts (dance, theatre)

Visual Arts

Festivals and carnivals

Glamour/fashion industry

PROPOSED REGIME

Elements:

A CARICOM Registry of bona fide artists and

cultural entrepreneurs administered at national

level with mutual regional recognition

A CET- level list of cultural inputs eligible for

exemptions, going beyond tools of trade

Adequate financial incentive by exemption from

internal taxes, import duties and ODCs

Enactment of appropriate legislation

Ensuring freedom of movement throughout

CARICOM

Ease of use for the cultural sector

Flexible and adaptable – pilot, regular review

PROPOSED REGIME

Defining the beneficiaries

Stronger role for Ministry of Culture and

industry associations

Discussed at 32nd Meeting of Council for

Trade and Economic Development in May

2011, and

Meeting of the Customs Committee of

COTED in Sept 2011

National consultations ongoing

FISCAL IMPACT

Methodology involved assigning scenarios, based on

likelihood of use in the cultural sector

Assumed differing percentages (1%, 2%, 5%) of

total imports as used by cultural sector

Tariff lines (24) clearly for sole use of cultural sector

(e.g. instruments) – model removed all tariffs/ODCs

Tariff lines (122) largely used by other

sectors/consumers (e.g. paints, audio-visual) –

Impact of trade agreements (e.g. EPA) taken into

account

Varying accuracy based on availability of

disaggregated tax information

FISCAL IMPACT

Results

Depending on scenario, annual loss by a single MS is

between US$115,000 (ANB) and $2 million (JAM)

Overall impact CARICOM: 1.7M (1%); 3.4M (2%); 8.6M

(5%)

Due to data constraints, estimates should be treated

with caution

The Hon. Rex Nettleford, OM, OCC

“Inward Stretch Outward Reach: A Voice From the Caribbean”

“…that it is only by reaching deep into ourselves – that inward stretch - and coming to terms with who we are, and drawing on our inner strength, and our innate talents and abilities, that we will be able to make the “outward reach” beyond the confines our region and our many vulnerabilities, to gain maximum global impact and bring prosperity to our people. This is what our cultural industries represent to us.” H. E. Edwin Carrington, SG

THANK YOU