If we start treating music and the creative economy as infrastructure, the potential benefits to our economic and social well-being are endless.
The world is undergoing a process of rethinking the way it invests in human capital and infrastructure development. This year, the World Bank Group’s International Development Association (IDA) is holding a meeting called the Replenishment to determine the budget for the next three years. This is a basic fund provided to 77 countries with a proposed budget of US$120 billion to support their development. These discussions, which have taken place throughout the year, will conclude in Seoul on December 5th and 6th, but the challenges these investments will address are enormous. Last year, only 18% of funds were raised globally to address crisis areas. The pandemic has erased much of the historic gains in reducing extreme poverty. Moreover, developing countries are facing deep debt crises and are spending more money on interest payments than on investing in their people, even as the climate crisis continues to worsen.
How these funds are deployed and what impact they have on addressing these challenges is therefore as urgent as ever. Making the most of them to reduce extreme poverty and create sustainable non-exploitative jobs is not just about refilling the pot. It is about expanding the scope and means of how it can be implemented. One opportunity is to consider additional asset classes that can provide this return for both recipients and funders. One sector that has the potential to do just that, if treated and invested in, is the creative and cultural industries. And with its potential to drive economic growth, music is a great place to start.
TOPSHOT – Belgian pop singer Paul Van Haver, aka Stromae, performs in Kigali on October 17, 2015. … [+] The Belgian multi-platinum artist, singer, songwriter and producer wowed an enthusiastic audience at Kigali’s ULK Stadium today. The final stop on his African tour was Rwanda, where his late father was murdered, and it held great symbolism for both him and his fans. 1994 genocide. AFP PHOTO/Tony KARUMBA (Photo by TONY KARUMBA / AFP) (Photo by TONY KARUMBA/AFP via Getty Images)
AFP (via Getty Images)
Despite music’s ubiquity and low barriers to access for both creators and consumers, it is rarely invested in as a development finance asset. This is because in many countries where music is part of everyday life, music is seen as a practical rather than an economic good. Music, whether played, relaxing to music, or using music to unite a community, is not the core idea behind the infrastructure itself, but rather after a place is developed and the infrastructure is in place. will be born. As a result, music is all around us, but the systems and infrastructure requirements are not in place for it to provide a pathway to jobs, skills and development. Many of the basic economic requirements necessary for music to function as an economy include mandatory copyright regulation, education, and the availability and access of physical infrastructure to develop industrial capacity and skills. Nothing exists more than a country. This limits the economic ability to make money from music and other art forms: producing, selling, performing live music, or owning copyrighted works. And without the infrastructure to support an economy, economic profits cannot be generated.
However, the data shows that music is emerging as a growing, sustainable, and profitable development tool. The total value of records rose 10.2% last year to $41.5 billion, and collections (the amount paid to songwriters and composers) rose 7.6% to 13 billion euros ($14 billion) in 2023. The fastest growing listener bases (and perhaps creators too) are also emerging markets in Africa and Latin America, which correlates with countries where a majority of the population is under 30 years old. But there is a background to this. Most of the revenue generated by African music leaves the continent. If development finance systems are designed to address these infrastructure challenges, supporting the creation locally of these foundations, music, or other creative industries based on the dissemination of intellectual property will be , can be a strong infrastructure investment and generate development returns. Rather, these infrastructures remain inefficient, amplifying the risks of investing in markets that lack the systems for them to exist.
There’s music everywhere. There is culture everywhere. As a result, economic opportunities through music and culture exist everywhere. But this is our creative and cultural investment position. We may recognize the inherent value of music and other creative activities in our lives. But we don’t take advantage of them. We listen, but we don’t really listen.
Policies and the money that goes with them are changing. Music and the creative economy were included in the signing of the Abidjan Accord, which calls for G20 countries to fully fund IDA with $120 billion. There are also several examples that are attracting attention from investment banks and global capital providers. For example, Afreximbank’s ground-breaking $2 billion facility for the creative economy is investing heavily in film, audiovisual and, increasingly, music. However, this is still the exception, not the norm. Now is the time to change common sense.
The benefits of incorporating music into infrastructure spending are clear. The development of Kigali’s BK Arena, as part of a broader sports and entertainment masterplan that includes the development of a new national stadium, has established a base for African and international artists to visit Kigali while on tour . Kendrick Lamar’s performance as part of the Move Africa program stands alongside the arena’s impact on the country’s basketball economy and its ability to host meetings and gatherings such as last year’s Commonwealth Heads of Government Meeting (CHOGM). And this is one example.
NAIROBI, KENYA – APRIL 29: (LR back row) Ndidi Nweneri, Sera Bogonko, James Mwangi, Nir Bar Dia… [+] Hugh Evans, CEO of Bridgewater Associates, CEO of Global Citizen (LR front row) Samia Suluhu Hassan, President of Tanzania, Andry Rajoelina, President of Madagascar, Hassan Sheikh Mohamud, President of Somalia, Julius Maada Bio, President of Sierra Leone, President of Comoro Azali Assoman, Ajayi Banga, President of the World Bank, His Excellency William Ruto, President of Kenya, Mohamed Ould Ghazouani, President of Mauritania, Yoweri Museveni, President of Uganda, Faustin Archange Touadera, Central African Republic. The President of the Republic, President Akufo-Addo of Nanana Ghana, President Evaristo Ndayishimiye of Burundi and President Lazarus Chakwera of Malawi will attend the Organization for African Development (IDA) Summit in Nairobi, Kenya on April 29, 2024. do. (Photo by Patrick Meinhardt/Getty Images for Global Citizen)
Getty Images for Global Citizen
To promote sustainable development everywhere, we need to place greater emphasis on what we all share: creativity, and develop systems that leverage its potential value everywhere. If the IDA is replenished, it should also be accompanied by a commitment to diversify what is eligible for development spending, and the music, creative and cultural industries should be added to that list. We need to improve the way we address and solve the big problems we face. Creativity is a great place to start. It’s one of the limitless resources we all have.
