Creative economy: Winning formula for Sri Lanka

Sri Lankans are celebrating the traditional New Year, and we can see that despite many obstacles people wanted to move back to their normal lives. The country has suffered three different blows––the Easter Sunday attack, Covid-19, and the economic crisis. They have caused many hardships for the general public. There has been no policy plan for the country for the last four or five decades. Anyway, now the time has come for an economic paradigm shift.

Traditionally, we celebrate the Sinhala and Tamil New Year also with a time of renewal and rejuvenation, and many people use this occasion to reflect on their lives and think about new beginnings.

IMF and Reflections

This is the seventeenth time we have sought the IMF rescue programme. There is a need for policymakers to study this and have a proper analysis of the loans taken by Sri Lanka for the last five decades––foreign debt and market borrowings––and outcome. This study would give experts about the so-called “debt trap” and its implications for the future.

There should be proper Key Performance Indicators (KPIs) for loans taken and for the utilisation of same. Sri Lanka needs to learn lessons from the past by analysing numbers. There should be a separate independent body comprising experts in eco-nomics, business management, accounting, and finance to make decisions on taking loans and utilisation aligning with a sustainable competitive advantage. Anyway, it is worth noting that having loans with a dependent mentality is not driving any country for the future. Hence, we can propose the entrepreneurial model with a creative economy for the country.

Creative Economy

In Sri Lanka, we are still concentrating on traditional exports like tea, rubber, and coconut with garments and something out of the box is required to compete in the world market – even if it will utilise the resources at full capacity. This article focuses on how the concept of a ‘creative economy’ can be used as a new strategy for the country in order to achieve sus-tainable economic development.

The concept of a ‘creative economy’ is not a new one at all. It is better to discuss the creative economy with an example of “Nollywood”. The Emergence of ‘Nollywood’ is remarkable and it came into the world picture within 20 years. According to PwC.com. “The Nigerian Film Industry (Nollywood) is globally recognised as the second largest film producer in the world. The industry is a significant part of the Arts, Entertainment and Recreation Sector which contributed 2.3 per cent (NGN239biliion) to Nigeria’s Gross Domestic Product (GDP) in 2016. It is one of the priority sectors identified in the Eco-nomic Recovery and Growth Plan of the Federal Government of Nigeria with a planned $1billion in export revenue by 2020”.

We have to study the success story of ‘Nollywood’ to see whether we can apply that to our Ranminithenna Film Village. University undergraduates in Sri Lanka can conduct a study on ‘Nollywood’ and see the Key Successive Factors (KSF) and uniqueness in the film industry. We can then see how we can apply these models (with some modifications) in the Sri Lankan context with Ranminithenna.

It is worthwhile to understand the meaning and implications of the creative economy (sometimes referred to as the crea-tive industry). John Howkins, the author of ‘The Creative Economy: How People Make Money from Ideas,’ refers to a range of economic activities that are concerned with the generation or exploitation of knowledge and information. Howkins di-vides the creative economy into fifteen sectors, which are: 1) Advertising; 2) Architecture; 3) Art; 4) Crafts; 5) Design; 6) Fashion; 7) Film; 8) Music; 9) Performing Arts; 10) Publishing; 11) Research and Development; 12) Software; 13) Toys and Games; 14) TV and Radio; 15) Video Games

According to Landry & Bianchini , “The industries of the twenty-first century will depend increasingly on the generation of knowledge through creativity and innovation.” Human capital can be considered important and KSA factors – namely, knowledge, skills and attitude – as prime factors that will govern the world economy at this moment.As the United Nations Conference on Trade and Development (UNCAD) “significant 3 per cent contribution to global gross domestic product (GDP) makes the creative economy a powerful emerging economic sector that is being strengthened by a surge in digitali-sation and services.” So, the effect of the creative economy on any country cannot be underestimated.

Creative Economy and Yohani

We have recently witnessed the success story of viral marketing in Sri Lanka with the glocalisation of the Song of Manike Mage Hithe.

The Manike Mage Hithe cover by Yohani and Satheeshan has attracted 239 million views and is trending mainly in India and the globe by translating the same into Hindi, Malayalam, Urdu and Tamil. This can be considered one of the historical events in the music industry in Sri Lanka. If you need to “go global” we need to understand the global trends and all envi-ronmental factors. If we really analyze trendy songs such as Manike Mage Hithe most of the time they can be seen target-ing the new generation/s (Y, Z and Gen A). One decade back from India we can see a song of Kolaveri D which was success-ful at that time in the globe. Unlike Sri Lanka, at that time it can be seen that the Indian Higher Education sector took that as one of the success stories in Viral marketing.

The Indian Institutes of Management (IIMs) ranked amongst the topmost business schools in India and Asia conducted some discussions on this with some own case studies. Even in IIM Ahmedabad there was an hour-long discussion between the professor and students of that class. Most of the Professors of IIMs – Bangalore, Rohtak and Lucknow – have played the song in class and reflected on the strategies played including viral marketing. Furthermore, the marketing club of IIM Ranchi organised a seminar on campus to study the strategy that has turned the song Why This Kolaveri “into an overnight rage. The popularity of songs such as Manike Mage Hithe and Why This Kolaveri Di in social media can be considered a message reiterating the power of creativity and innovation with the essence of new technology.

The Island