Economic Trends and the Arts By Teo Swee Shang The Asia-Pacific region remains one of the fastest growing and dynamic regions in the world today. It would be interesting to delve deeper into the relationship between current economic trends and the arts. We approached some AAPPAC CEOs for their views on this topic. Economic growth in the Asia Pacific has been very significant especially over the past five years. Although there has recently been a mild mid-cycle global economic slowdown in 2007, the region still remains as the growth engine of the world. Especially with newly emerging economies like China and India, the economic dynamics in the region have been positive. According to statistics from public sources and the various national Statistic Bureaus, many of the Asia Pacific countries like Hong Kong, Korea and Australia have been growing strong at 4% – 5.5%, with the strongest growth being experienced in China (10.7%), India (8.4%) and Singapore (7.2%). Moreover, with three big economies in Asia Pacific – China, India and Japan, making up 60% of Asia’s GDP, the region is expected to maintain good economic growth momentum even as the US economy slows down. What does this bode for the arts? Mr Rodney Phillips, Chief Executive of Perth Theatre Trust commented, “The economy of our region is on a strong upward trend and Western Australia is currently in the mega level of such growth, fuelled by the demand for minerals and raw product by Asia. The result is now beginning to be noticed quite markedly in strong growth of demand for artistic product.” Mr Qian Shi Jin, Artistic Director of Shanghai Grand Theatre opined, “Asia’s current economic development is quite similar to that of developed countries half a century ago. The middle-class is still growing. When the middle class rises to a considerable level, the cultural arts industry will be able to take on a promising and positive development trend.” Growth of Cultural Diversity With economic growth, there will be growth of cultural diversity. Economic growth fuels pride, and make people feel proud of where they come from and what they have achieved. At the same time, it opens them up to other cultural practices, and encourages assimilation and experiment. For instance, there is now more willingness to learn and experience different cultures. Transcending differences in race, ethnicity, age or creed, the arts help celebrate cultural diversity. “Cultural diversity is a beneficiary of strong economic growth with resultant benefits to the arts as well. We are noticeably experiencing exactly this diversity growth with more people having disposable income and a taste for more sophisticated arts, coupled with conspicuous consumption and a growth in materialism.” said Rodney Phillips. Globalisation and Growth of Tourism Most Asian airlines have continued to purchase planes, and expand their fleets notwithstanding the high oil prices. For perhaps the first time in history, geography is not the primary constraint on the limits of social and economic organization. With the ease and affordability of travel, there could also be a growth in arts tourism. Cultural and economic globalisation has facilitated the export of arts products, and has brought more options for the consumers. The affordability has made it possible for people to travel across countries to see and experience other cultures and arts programmes. The arts has been internationalised, as we now also see the interchange of ideas through more international arts markets, exhibitions, conferences, and also world tours. Appreciation of Life Hundreds of millions have joined, and continue to join, the middle class in Asia Pacific. Many people have become rich, while a lot of other people continue their aspirations. People are increasingly confident of their ability to become better, but at the same time, are also experiencing more stress, so the little indulgences in life are getting popular. With arts centres’ efforts in arts outreach and education programmes, efforts to involve families in activities like free weekend events and festivals etc, people are integrating the arts into their lives. We are seeing more involvement and visitorship to arts centres. In places like Australia, there is evidence that the arts across its broadest definition are being more integrated into people's lives as disposable incomes increase. The Arts versus The Economy Performing arts venues have been constructed at a rapid pace in the last ten years, with many receiving strong financial support from local governments. Does such expansion of the arts infrastructure reflect the growing emphasis on the economic benefits of the arts on the part of major financers and local and state governments? Many theatres, symphony halls, and all-purpose performing arts centres, for example, are financed by community development grants. With so much economic activity and growth in this region, the economic contributions of the arts and arts-related activities still rank among the lesser known and unheralded aspects of our contemporary society. Beyond the intrinsic benefits of the arts to enrich an individual’s life experiences and learning, does the arts play a crucial role in generating a significant level of economic growth? Mr Eui Joon KIM, CEO of LG Arts Center shared, “The arts industry in Korea is solely dependent on the nation’s economy. Most presenting venues in Korea are supported by central or municipal governments.“ Mr Qian Shi Jin remarked, ”China’s current economic development is still unbalanced. For bigger cities like Shanghai, the arts could have some contribution to the economic development, other places no.” He added, “But people still need to resolve their bread and butter issues, before being able to take an interest in the arts (of course there could also be exceptions), and integrate the arts into their lives.” Challenges for the Arts Amidst the apparent growth, greater economic integration, demographic and technological changes, social and environmental issues, are also impacting on the region's economic and cultural landscape. Rising income levels and changing leisure patterns can also be expected to affect the demand for the performing arts. Disposable incomes have risen with an increase in labour force participation, education levels, improvements in productivity, etc. As the economy grows, what are arts centres doing to ride the economic wave? Perhaps, these are opportunities for arts centres to respond and to further develop audiences. Disclaimer: The information contained in this article has been obtained from public sources believed to be reliable. This article is intended to reflect current views and observations only. The information herein is not intended to be promissory, and is solely for informational purposes only.