Measuring Culture Contribution to Development Effectiveness

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1 Measuring Culture Contribution to Development Effectiveness Stefania Abakerli Economics of Uniqueness: Cultural Heritage Assets and Historic Cities as Public Goods The World Bank Washington, DC May 2-3, 2011 H building th Street, NW background possible routes cases 1

2 background Since the 1990s wider recognition of the role of culture in development Numerous attempts to identify if indicators: International UNESCO UNRISD 1997 Towards a World Report on Culture and Development: Constructing Cultural Statistics and Indicators OCDE 2007 International Measurement of the Economic and Social Importance of Culture Regional UNRISD 1997 Towards a World Report on Culture and Development: Constructing Cultural Statistics and Indicators Africa UNESCO 2004 Task Force on Cultural Indicators of Human Development in Africa National challenges Too theoretical lack of proper assessments; no data collected to construct indicators; no participation p of key stakeholders in defining indicators Statistics not indicators often statistics collected do not provide relevant on the ground information Idi t ti p f f b ilth it li i Indicators notion preference for built heritage versus living culture; for iconic monuments versus vernacular; quantifiable aspects in detriment to collections and scientific research and knowledge 2

3 challenges 2 Weak institutional capacity and sectoral governance patrimony not inventoried and classified (hard to measure what is not well counted); lack of clear priorities and systems; institutional fragmentation Nature of artistic and cultural activities active and dynamic; human experiences and interpretations; timing of causal relationships of impacts Nature of development actions sectoral; project cycle oriented; short to medium-term vision; orientation to services provision for poverty reduction advances Eurobarometer survey on cultural values World Values Survey Classification Systems s on employment e AICS: North American Industry Classification System ANZSCI: Australian and New Zealand Standard Industrial Classification NACE: Economic Activities in the European Community NAPCS: The North American Product Classification System Human Rights and Indigenous Populations State of the World s Minorities and Indigenous People g worlds-minorities-and-indigenous-peoples-2009.html OECD report on education OSCE report on integration Eurydice reports alysis/en/frameset_analysis.html 3

4 possible routes 4

5 the geography of poverty Historic cities, sites and areas often rich in historic assets and monuments are also pockets of entrenched poverty Fes, Morocco 36% of poverty incidence among medina populations (7.6% nationwide ) 48% population below poverty threshold Low living standards No opportunities to new businesses the multidimensional aspects of poverty Poverty is not only low consumption of market commodities by a household. One of the few assets the poor possess Peoples choices and capacity to break intergenerational poverty cycles Matrix of shared collective identity, y, at community level /larger societal context Collective capacities and aspirations of the poor 5

6 poverty-related impacts Improved management of cultural assets can yield distinct and incremental development benefits Positive economic impacts Additional national and local employment levels Additional household income Value added to the economy output Foreign exchange earnings Beneficial noneconomic impacts Educational levels and identity strengthening Social cohesion, inclusion and social capital Quality of living spaces and well-being Safeguarding and sustainably conveying the heritage to future generations entry points for measurement A potential to foster local economic development thus to generate and expand employment and income generation opportunities for residents and locally-owned businesses It strengthens local governance through improved municipal planning and management, expanding tax revenue base and tax collection capacity, and development of a long-term public investment strategy containing poverty reduction measures It improves living environments and cities sense of uniqueness 6

7 entry points for measuring contribution It builds dynamic knowledge-based societies and promotes creativity It enhances identity, social inclusion and cohesion through participation, empowerment and collective decision making It provides more effective targeting and meaningful services It improves protection of assets and heritage from neglect or improper uses as well as through adoption of cleaner technologies St. Petersburg, Russia Objective: to address the main obstacles faced by St. Petersburg to realize its cultural tourism potential Inputs: US$ 31 million loan + TA + institutional strengthening Completed strategic social, economic and urban planning for the city Enhanced federal cultural institutions ability to generate non-budgetary revenues Increased tax revenues Improved streetscape and public infrastructure on Nevsky Prospect Renewed sense of local pride 7

8 Copan, Honduras Objective : to promote inclusive development in the country s poorest region based on the wealth of its Mayan heritage Inputs: US$ 12 million loan + TA + institutional strengthening Long-term tourism strategy developed and implemented, resulting in 11.3 % increase in visitors to the country during Project implementation Enhanced governance capacity to manage cultural heritage Improved protection of Maya heritage Strengthened ecological management Improved local economy and revenues to women 250% increase in average expenditures by tourists; 8% annual increase in jobs created (4.7 % nationwide ); 60% increase in local SMEs; 70% enterprises stated a monthly salary of US$ 291 for individuals (US$ 131 nationwide) Higher visitor satisfaction with service received in the parks Increased local pride areas of improvement Ex-ante screening, scoping, and onsite inspection of physical and intangible cultural resources are critical to inform adequate protection and management provisions in investments design Economic and financial analysis need improvements in costeffectiveness analysis to properly assess economic and noneconomic benefits Social and environmental assessments investments need to involve exante, in-depth social and environmental assessments tailored to the sector. Risk analysis investments need to identify, preempt and mitigate not only general risks but also risks specific to the nature of these investments as well as risks of inequitable distribution of benefits 8

9 constitutive elements of the sector 1. Assets: cultural patrimony endowments; knowledge 2. Productive activities and chain: creative industries, traditional artisanal enterprises 3. Enterprises: formal and informal markets for culturally related artifacts 4. Organizations: organized structures for facilitating public access to heritage, such as museums, libraries, i theaters, t and cultural l tourism agencies 5. Institutions: state and nongovernmental organizations dedicated to patrimony conservation and management 9

10 transversal content Urban development projects Support rehabilitation work in historic centers and neighborhoods to achieve a triple impactadded jobs, improved services and living standards, and safeguarding assets under threat Improve road networks around assets and service roads inside id old towns to facilitate economic revitalization Relocate out of those areas the polluting industries that adversely affect the inhabitants and damage assets Agricultural and rural development projects Preserve assets in rural zones, thus stimulating nonagricultural employment Support community-driven initiatives such as community-based museums and visitation sites Assist in integrating rural heritage areas into touristic circuits, opening up opportunities for incubating small businesses and reducing rural poverty Industry and microcredit projects Support the handicraft industry, based on cultural traditions Help reorient the culture-based handicraft industry away from cheap, low-quality products toward high labor inputs and high-quality, high-value items, thus absorbing more employment and increasing marketability Enable the establishment of new SME-size cultural enterprises in the private sector transversal content 2 Tourism projects Promote cross-sectoral linkages between cultural tourism and all related cultural enterprises (handicrafts) Increase communities benefits from culture-based tourism in and around those communities Help build institutional capacity specialized in organizing cultural tourism Education projects Incorporate knowledge about the national patrimony into school curricula and instilling a culture of heritage custodianship; cultivating public awareness and helping create social stewardship for patrimony protection Promote formal functional linkages between schools, museums, and archaeological sites, for using the latter as educational platforms Environment projects Safeguard historic cultural assets from imminent natural hazards; help relocate polluting industries that damage patrimony assets Support establishment of parks for unique cultural and biosphere sites 10

11 Mostar, Bosnia Herzegovina Objective: to preserve the Old Town s historic character through a series of neighborhood initiatives and the adoption of architectural guidelines Inputs: US$ 4 million loan + TA + institutional strengthening Action plan, sensitive to the historic context, developed for the historic neighborhood encircling the old bridge Stari Grad Agency formally established and ratified for management and maintenance of the historic preservation of the old city Twenty-fold increased tourist arrivals, reaching 700,000 in 2006 Several llocally-based SMEs created Rebuilt of the Mostar bridge (World Heritage Site), promoting reconciliation among social and ethnic group Broad refurbishment of the old town infrastructure 11

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