One of the most important flags in the former president’s administration ivan duke It was the so-called “orange economy” or creative economy that encompassed all sectors of the cultural industry.
According to data from the Unesco – United Nations Educational, Scientific and Cultural Organization – the creative economy represents 3% of global GDP -gross domestic product- and employs more than 30 million people worldwide. For this reason, the former president decided to bet on this sector to improve the productivity And competitiveness from the country.
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The president took office on August 7, 2022 Gustavus Petro and from then on the orange economy, promoted in previous years, seems to be in the background. Even Daniel Rojas, who was coordinator of the connection, pointed out at the time that “the orange economy is a concept that we don’t fully understand; we’ve tried to do it in four years and we still haven’t succeeded”.
Moreover, the aim of the current administration was to change the approach to those policies that Petro’s predecessor had promoted.
For the time being, the cultural sector seems dissatisfied with the president. In recent weeks, more than 100 representatives of the cultural sector have sent a letter to President Petro asking for more support and direction from the Ministry of Culture.
From this perspective, the economist Camilo Herrera Mora, an expert in strategic consumer issues and who has carried out several works on the subject for the Inter-American Development Bank (IDB), has shown with data why it would be a mistake if the country did not care about this industry , which is part of the orange economy.
What about the #orangeeconomy it worked?
Government @IvanDuque had placed a big bet on a simple concept: cultural, recreational, design and digital activities could be the future of Colombia…
What does the data show? @DANE_Colombia and from @RADDARCKG? pic.twitter.com/q97N8ZueNy
— Camilo Herrera Mora (@consumido) May 30, 2023
“The government of ivan duke had placed a big bet on a simple concept: cultural, recreational, design and digital activities can be the future of Colombia,” he said in an extensive thread on the subject.
According to him, the name was not the most appropriate and several experts even agreed, but he emphasized that working for the cultural, creative and entertainment industries is “a good bet for the Colombian economy”.
He pointed out that Duque was right in setting out this strategic line and promoting it as an industrial policy, as this sector increases productivity and competitiveness in the country, as he stressed.
“We can produce culture, entertainment and creativity as a strategic industry for the country because we know how to do it, we are good at it, and that generates employment, foreign exchange and increases productivity and competitiveness,” he said. compare that the same policy was promoted by different countries such as India, Greece and the United States (California in particular).
Regarding the contribution this policy made to the Colombian economy, the expert claimed that “in the government of Iván Duque, GDP grew by 12.19% and the GDP of “Orange” grew by 60.46%.
According to the satellite account that Dane designed after implementing this policy to measure the contribution of the creative industries sector to the economy, in 2021 this sector represented 2.61% of the gross domestic product (GDP), that is, just over $27.75 billion.
This share has remained relatively constant in recent years: 3% of GDP in 2019 ($28.78 for that year), and in 2020, when the pandemic hit, it reached 2.64% ($23.90 trillion).
In May 2022, when the government was shut down, the then Minister of Culture, Angélica María Mayolo, explained in an interview with the newspaper La República how the orange economy was able to create jobs in the country. “The cultural and creative industries have accounted for about 3% of GDP over the past four years, and they generate 522,000 jobs, according to figures from the Dane Orange Economy and Culture satellite account,” he said.
At the time, the current former minister stressed that “Colombia has one of the best tax incentives in the world and in Latin America to attract foreign investment in audiovisual production.”
In 2021, according to official statistics, the number of people employed in culture and the orange economy (600,918) showed a growth of 11.3% in 2021. This is due to the increase in the employed population in the three areas: cultural industries (17, 0 %), art and heritage (12.5%) and functional creations (8.2%).
Similarly, the Duque government emphasized the creation of audiovisual investment certificates to strengthen tax incentives in the audiovisual sector, a security equivalent to 35% of the total expenditure that an international production company develops in Colombia. According to the former minister, the minimum cost of these producers to access these certificates should be $ 475,000, as explained in an interview with La República.
In case you’re interested: ‘Orange Economy’ industries created over 530,000 jobs: Dane
“This has enabled us to realize 53 audiovisual projects in Colombia since 2019, enabling us to make a historic $1.1 billion investment in audiovisual production, which has created more than 20,000 jobs,” he said. This made it possible for giant producers such as Netflix, HBO, Disney, among others, to work hand in hand with national producers and have a positive impact on the Colombian economy.
This growth and impact, according to economist Herrera Mora, is due to three factors: “People around the world are spending more and more on this; there was a government policy focused on the industry and costs rose little.”
“The cultural world (“orange”) today represents 3.76% of GDP and 2.72% of household expenditure, with the result that there is a lot of “cultural” production that households can access without paying and there are exports ,” he said. .
In this sense, the expert on the subject confirmed that the good should continue, since “the future of the Colombian economy goes through this sector”.
Source: El heraldo
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
