UNCTAD 50th Event / Protocol of Cooperation / Launching of the Istanbul Creative Industries Network

Your Excellency, Mr. Nurettin Canikli, Minister of Trade and Customs
Mr. Hayri Baraçlì, Deputy Secretary General, Metropolitan City of Istanbul
Mr. Ibrahim Çaglar, President, Istanbul Chamber of Commerce
Professor Nazìm Ekren, Rector, Istanbul Commerce University

Distinguished guests,
Ladies and Gentleman,

Surfing the internet, one day I came across a quote attributed to Winston Churchill during the darkest days of World War II. The story goes that when Churchill was asked to cut arts funding in favour of the war effort, he replied: "Then what are we fighting for?".

Whether he did say it or not, it is still a good quote. My point today is that funding creativity, arts and culture is a good investment. And it is thus, my great pleasure to be here, in the vibrant city of Istanbul, on the occasion of the UNCTAD protocol ceremony with the Istanbul Commerce University and the announcement of the Istanbul Creative Industries Network.

This year UNCTAD celebrated its 50th anniversary, and our first decade of work since Creative Industries became part of UNCTAD's mandate. And it is a pleasure for us to work together with you in this promising area.

Let me thank our partners for the achievements reached since the setting up of the International Creative Economy, Cultural Industries and Creative Cities Applied Research Center in Istanbul. The protocol of cooperation between UNCTAD and the Istanbul Commerce University is a stepping stone for our joint activities in support of the creative and cultural industries in your wonderful city.

Istanbul's growing role as an economic, cultural and creative centre is globally recognized. This drives an increasingly important part of Istanbul's tourism. A significant share of this inflow is attracted not only by Istanbul's cultural heritage, but also by the creative environment it offers today: with music, festivals, art crafts, art galleries, biennales, cinema, cuisine, architecture, etc.

Istanbul is a world city and it should benefit from its regional and international position as a center for finance, logistics, culture, tourism and innovation to advance the creative economy.

The creative economy is based on a novel system of production and distribution primarily of intangibles, ideas and knowledge. And this new system requires a new set of skills and resources.

The creative economy is about reintegrating culture with production processes. And this is why innovation and entrepreneurship are essential in building such economy.

The creative economy is more than the latest phase in the development of the global economy. It has the potential to stimulate growth, create jobs, support innovation, foster entrepreneurship, exports and investment.

In fact, the creative industries significantly contribute to the economies of developed countries. For instance, creative industries represent 11% of the Gross Domestic Product of the United States, 11% in Korea and 6% in the United Kingdom.

According to consultants KPMG, technology and creative industries will drive London's growth in the next five years. Similarly, employment in the core creative industries in the 27 countries of the European Union was approximately 8.5 million in 2008 - some 3.8% of the total European workforce.

UNCTAD estimates that world demand for most creative products has grown and remained strong throughout the last decade, with the trend expected to continue.

But the creative industries face challenges. They are often undervalued because of the lack of clear information in the sectors, which further limits the ability of financial backers to recognize their potential. And problems persist with intellectual property rights, varying tax regimes, and mobility issues.

Thus the transformation from the creative industries to the creative economy will not just happen on its own. It requires the visible hand of the State, both at national and local levels, and articulated cooperation with the private sector.

Creative industries firms need to be supported in order to grow.

Let me share an example with you, based on our recent study on the creative economy in Korea. The Government of Korea developed the "Creative Economy Action Plan and Measures to Establish a Creative Economy Ecosystem". The Plan recognizes that the global economy is moving away from an industrial economy, based on labor and capital and a knowledge economy, based on information and knowledge, to a creative economy, based on innovation, technology and ideas. The attraction of Korean TV dramas, pop music (aka K-Pop) and cinema, or the admiration for top-class Korean gamers has continued to grow and attract investment.

Similarly, cities are increasingly adopting strategies to promote their creative economy as skills and capabilities for innovation tend to agglomerate there.

The multicultural metropolis of Istanbul has a great potential for economic development through the creative economy in the years to come. Creative industries like films and TV, fashion design, architectural design, industrial design, music, contemporary arts, and new media; are contributing jobs and income that are making Istanbul the vibrant and lively city it is. And some sectors have been showing remarkable growth, as in the case of Turkish TV series. Turkey has become the second-largest TV series exporting country in the world after the United States. And the number of audiences for Turkish cinema has surpassed the 2008 peak of 23 million to 29 million in 2013.

According to UNCTAD, Turkey's exports of creative goods amounted to $7.3 billion in 2012, with design goods exports accounting for the largest share of it.

Istanbul has very favourable conditions for enhancing its creative economy. It has a growing market, a population averaging 30 years of age, easy access to specialized labor force, supply companies and support services, and it is in a privileged geographical location, as a bridge between the east and the west. The youth loves devices, gadgets, fashion, technology and media, and will most likely drive domestic consumer demand in a huge market for the creative industries.

Creative industries necessarily imply market-based wealth creation. For this to happen, articulation among creative industries stakeholders, and public and private agents, technology transfer, industry-to-university linkages and access to international markets are essential.

And this brings me to the importance of our meeting today, for the launching of the Istanbul Creative Industries Network, which is supported by the Ministry of Trade and Customs, the Istanbul Metropolitan Municipality, the Istanbul Commerce University, the Istanbul Chamber of Commerce, the Yekon Creative Industries Council, the Istanbul Development Agency and UNCTAD.

A creative city is one that is globally integrated, innovative and entrepreneurial but also sustainable and inclusive. We have a shared responsibility to create jobs, especially for the youth and women. And we also have a shared responsibility to use their creativity and aspirations, which will bring positive impacts to the economy, culture and society as a whole.

We look forward to working together with all the members of this network. We will see later the web tool that was developed to link and facilitate the networking across the creative sectors for finding new ideas on how to support the sector and implement a joint action plan.

Finally, I would also like to mention that UNCTAD jointly with its partners in Istanbul prepared the study "Strengthening the creative economy in Istanbul" which for now is in its drafting stage, but that we hope to finalize by the end of the year.

I wish to conclude by extending my highest appreciation to the Hon. Minister of Trade and Customs Nurettin Canikli for his presence and for his most valuable support to this initiative, as well as to Professor Nazìm Ekren, Rector of the Istanbul Commerce University who has been the driving force for this collaboration to succeed.

Thank you very much.