The Jordanian economy
has long suffered from jobless growth rates, where the economy grows while high
unemployment rates are hardly ever affected. More absurdly, in certain years,
the economy grew and with it the unemployment rate. Furthermore, the high
unemployment rates among women and youth have placed these two significant
groups among the most economically vulnerable in Jordan.
اضافة اعلان
One solution may
lie in the promotion and development of the orange economy in Jordan. The term
is used interchangeably with cultural industries, leisure industries,
entertainment industries, cultural economy, and creative economy.
According to
UNESCO, creative economy includes 18 sectors: advertising, books, newspapers,
visual arts, film, magazines, architecture, gaming, music, radio, TV, dance,
crafts, fashion, cultural tourism, design, software, and photography. A
distinguishing feature of these sectors is that their products rely on talent,
creativity, and intellectual assets as key inputs. Globally, these industries
contribute about 30 million jobs, with visual arts being top employer, followed
by music and books.
In the Middle East
and Africa, creative industries employ about 2.4 million people. Statistical
research reveals that the lower the income of the country the more youth and
women are involved in creative industries. Hence, in countries, such as Jordan,
where there are high unemployment rates among women and youths, the orange
economy would be a viable driver for additional jobs, better paying jobs, and
more sustainable jobs.
According to the
recent World Bank study “Orange Economy: As a Driver of Jobs for Youth”, in
order for a country to develop its creative industries, it has to have many
interventions in several areas: nurture human capital; provide access to
finance; expand access to markets; harness digital technology; and build
networks and clusters. Under each of these categories there is a set of
specific interventions. For example, regarding provision of access to finance,
the following is entailed: provision of grants, early-stage loan/venture
capital fund, microloans, guarantees, crowd funding, and tax subsidies.
One nascent
component of the creative economy that has shown real promise in Jordan so far
is the film industry. In addition to several globally successful movies being
shot in Jordan (which also provided Jordan with millions of dollars in free
advertising), there are many Jordanian films that were recently produced,
directed and shot in the country that have gained fame and accolade, to Jordan
as well, in international film festivals and ceremonies.
However, many
facets of the film industry require support if this industry is to become
globally competitive and a major source of employment and revenue generation in
Jordan.
… in order for a country to develop its creative industries, it has to have many interventions in several areas: nurture human capital; provide access to finance; expand access to markets; harness digital technology; and build networks and clusters.
A foremost
component of this support is financing. While a film may receive some financial
support from the Royal Film Commission, it is difficult for producers to secure
financing from a private bank. Moreover, because of the movie admission ticket
price, attendance at movie theatres in Jordan is dismal. The price of an
admission ticket to a movie theater in Jordan (around $10 per ticket) is
extremely high relative to income. It is equivalent to $214 per ticket in the
US; were this the case in the US, no one would go to watch a movie in a movie
theatre.
Also, the price of
a ticket is almost identical at all movie theatres, which prevents price
competition. But these are only two challenges the sector faces; others include
training of lawyers on contracts for films, and completing the infrastructure
for film production.
Moreover, the film
industry is facing increasing competition from the Gulf economies, which, being
flush with cash, can provide many more incentives to foreign and domestic film
productions there. Therefore, Jordan should strategize and move with a valid
and applicable intent to grow this and other sectors in the creative economy.
Other sectors of
the orange economy need a significant amount of support as well if we are to
address unemployment among women and youth.
Jordan enjoyed
periods of unprecedented growth in the past that did not decrease unemployment
in a sustainable manner. The orange economy can be a vehicle for better paying
and more sustainable jobs.
Yusuf Mansur is CEO of the Envision Consulting Group and
former minister of state for economic affairs.
Read more Opinion and Analysis
Jordan News
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