In the era of information and global connectivity, the orange economy has emerged as a key sector in the economic development of multiple regions of the world. This term, coined by the British economist john howkinsrefers to the knowledge and creativity industry, where added value comes from the generation and exploitation of intangible assets.
It covers a wide range of creative and cultural fields, such as art, design, literature, music, film, and software development, among others. With its remarkable ability to deliver economic growth, employment opportunities, and innovation, the orange economy has garnered increasing attention around the world.
An industry that equals. The main assets are creativity and education. States that implement public policies that encourage this activity in all sectors of society will create opportunities for those citizens with fewer resources or those who do not have access to financing for their project.
growth engine
USA it has long been at the forefront of the orange economy, with its creative industries as the main engine of economic growth. Richard Caves, in his seminal work “Creative Industries: Contracts Between Art and Commerce,” explores the economic dynamics and impact of the creative sectors. The entertainment industry, including Hollywood, music and video games, has played a pivotal role in shaping the country’s orange economy. According to the US Bureau of Economic Analysis, the arts and culture sector contributed $919.7 billion to the US economy in 2019, representing 4.3% of GDP.
Europe It has been a pioneer in the development of the orange economy, recognizing its potential as a driver of sustainable growth. According to a report by the European Commission, in 2020, the cultural and creative sector represented 4.4% of the European Union’s GDP, generating more than 12 million jobs. Richard Florida “The Rise of the Creative Class” highlights the importance of this sector in attracting talent and driving innovation in cities such as Berlin, London and Barcelona, turning them into poles of entrepreneurship and creativity. France has also established itself as a leading country in this matter.
According to Eurostat, the cultural and creative sectors contributed 4.2% to the GDP of the European Union in 2019, which represents 643,000 million Euros.
Impact in Latin America
In Latin America, the orange economy has experienced significant growth in recent years. According to ECLAC, this sector represented 3.3% of the region’s GDP in 2019. Felipe Buitrago and ivan duke in their book “The Orange Economy: an infinite opportunity” they highlight the economic potential of the region’s creative industries. From Brazil’s vibrant film industry to Mexico’s thriving music scene, Latin America has become fertile ground for creative expression. The governments of the region have recognized the importance of nurturing creativity through support policies and initiatives, facilitating the sustainable growth of the orange economy.
In the Southern Cone of America, mainly in Argentina, Uruguay, Brazil and Paraguay, it has witnessed significant growth and development of the orange economy. Each country brings its unique cultural richness and entrepreneurial spirit to foster creative industries and fuel economic progress. Let’s individually explore the orange economy in these countries:
Argentina: a cultural power. It has a vibrant cultural scene and has made notable contributions to the orange economy.. Buenos Aires, the capital, has been recognized as a cultural center that nurtures various artistic expressions such as tango, literature, theater and visual arts. The country has produced renowned authors such as Jorge Luis Borges and Julio Cortazaras well as internationally famous filmmakers such as Juan Jose Campanella. According to the National Institute of Statistics and Censuses (INDEC), cultural activities contributed 3.4% to Argentina’s GDP in 2019, employing more than 400,000 people. The government has implemented policies to support the orange economy, including tax incentives, funding for cultural projects, and the establishment of creative districts. The private sphere has also struggled for public policies for the sector, for this purpose the main companies in the sector are grouped in ARGENCON.
Uruguay is without a doubt a creative oasis known for its progressive social policies, it has developed a thriving orange economy that embraces artistic expression. Montevideo has a vibrant music and film industry and hosts renowned festivals such as the Montevideo International Film Festival (MIFF). The country has also developed a powerful design and advertising sector. Uruguay’s commitment to cultural conservation is evident in the restoration of historic buildings and the creation of cultural spaces. The orange economy plays an important role in the Uruguayan economy, contributing approximately 2.2% of GDP, according to the Uruguayan Ministry of Economy and Finance. The government has launched initiatives to promote entrepreneurship, creativity and innovation, fostering the growth of creative industries.
BrazilWith its large size and cultural diversity, it represents fertile ground for the orange economy. The country has a flourishing film and television industry, and Brazilian productions enjoy international recognition. In addition, the Brazilian music scene, which encompasses genres such as samba, bossa nova and MPB (Música Popular Brasileira), has captivated audiences around the world. The Brazilian Institute of Geography and Statistics (IBGE) reports that cultural activities contributed 2.7% to Brazil’s GDP in 2019, employing some 870,000 people. The government has introduced programs to support cultural initiatives, such as tax incentives for the audiovisual sector and financing for cultural projects through the National Fund for Culture. Brazil’s creative industries continue to evolve and contribute significantly to the country’s economic growth.
From Bollywood to technological innovation
In IndiaIndia’s orange economy represents a unique blend of traditional art forms and technological innovation. Amitabh Kant, Director General of NITI Aayog, in his article “India’s Orange Economy: The Monetisation of Art and Culture”, highlights how India’s cultural diversity serves as a wellspring of creativity. Bollywood, the Indian film industry, has earned international recognition, contributing significantly to the country’s economy. Furthermore, the Indian software industry, fueled by skilled professionals and entrepreneurial spirit, has become a global power. According to the Ministry of Culture, India’s creative and cultural sectors witnessed a growth rate of 7.7% in 2019-2020, outpacing overall GDP growth. India’s ability to combine tradition with innovation positions it as a formidable player in the global orange economy.
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