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Culture and Local Development Katalin Erd_s
DIMETIC 2007 Strasbourg
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CULTURE AND LOCAL DEVELOPMENT
My name is Katalin Erd_s, and I am from Hungary. My field of interest is culture and local
development. I am still at the beginning of my research, so I do not have any spectacular
findings (hopefully yet). That is why I would like to present a possible research plan, as well
as my opinion about the Hungarian situation related to this field, especially about Pécs, where
I live, a city that will be the European Capital of Culture in 2010. Also, the ECC project is
closely related to the culture, so I will mention it several times, as an example, not least be-
cause this was my thesis, so I have some detailed information about it.
In my presentation I would like to draw your attention to the possible research fields of
this theme, not least to the possible difficulties that can occur during the research. In my
opinion we should make a difference between the developments and incomes, directly or indi-
rectly related to culture. The direct benefits and incomes are easier to measure and identify,
such as sold theatre tickets or other cultural products, whilst indirect benefits, such as higher
cooperation and better project-culture or attracting highly educated workers are more difficult
to measure and even to separate from other factors. There are also some overlaps between
these categories, which do not make the analysis easier. For example, cultural tourism is of
course closely related to a territory’s culture, to the atmosphere of it, which is hard to materi-
alize, but the tourism expenditures can be measured. The bought product will be the cultural
product itself, and also other related advantages and consumption will be realised during the
culture-motivated travel, but e.g. word of mouth advertisement of the city or the region
through the tourists is not easy to estimate. According to this I would like to regard some
categories, such as regional culture in the relation to business and labour force, cultural tour-
ism, and cultural products, and show their direct and indirect effects, and draw up the Hun-
garian situation the way I see it. But first of all I would like to present the definition of cul-
tural and creative industries. These are sometimes overlapping categories, and during my re-
searches I would like to create a system of possible grouping of culture-related benefits.
The definition of cultural and creative industries is not unified in the literature. In some
cases these mean the same, but in other cases there is a difference between them. In my opin-
ion the second approach is a little bit better, so in my work I use the definition of the British
DCMS (Department for Culture, Media and Sport), where the cultural industry is broader, and
creative industries are only part of it. According to this, cultural industry involves the arts,
creative industries, tourism, libraries, museums and galleries, sports. Creative industries con-
sist of several other components; advertising, architecture, art & antiques market, crafts, de-
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sign, designer fashion, video, film, music & photography, music and the visual and perform-
ing arts, publishing, interactive leisure software (i.e. computer games), software, electronic
publishing, radio and TV [DCMS, Creative Industries Factfile – Annex A 2002, in: Sadiq et
al. 2003, Annex 2.].
Another type of grouping is if we examine culture under other aspects, culture as immov-
able or movable product, and within these categories as final or intermediate consumption
good (Table 1.).
Table 1.
Source: Griffe et al., 2005As Table 1. clearly shows, even in this manner of grouping are some overlaps.
The culture of a territory can influence the local development many ways, and cultural in-
dustries are only one of them. If we regard culture as an influence factor of behaviour (as a
set of values, norms and benchmarks that guide and shape the behaviour of individuals and
communities), we can be engaged with the cooperation- and organisation modes among play-
ers for mobilising a territory’s resources, attitudes towards project- and activity-creation, and
Culture
Immoveableproduct
Final con-sumption
Intermediateconsumption
Moveableproduct
Temporary
Cultural in-dustriesFashionFurnishingsGraphic arts
Architecture
FairsBiennialsFestivalsExhibitions
Graphic artsVideoIndustrial de-sign
Final con-sumption
Intermediateconsumption
PermanentMonumentsMuseumsPerformingarts
Culture and Local Development Katalin Erd_s
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integrating excluded or marginalised individuals and communities, to promote sustainable de-
velopment [Griffe et al. 2005]. In the 21st century cooperation and clustering are very impor-
tant. This has several reasons, on the one hand the economies of scale, on the other hand also
the knowledge spill-over and other agglomeration externalities. In the cultural industries these
effects may be even more important than in the knowledge industries. Entrepreneurial and
business culture1 is very important, because it can enhance cooperation and trust among the
players, which are necessary for a good cooperation. Common projects and activities seem to
be unavoidable to development. After the EU-accession of Hungary, and also at the Pre-
accession Funds it become clear that the Hungarian entrepreneurs are very suspicious and co-
operation is not their strength. Although the EU programming principles require partnership
and publicity, the Hungarian project culture is still very crude, networks of cooperation are
rarely to find, and even among the existing ones there are several formal cooperations where
the players develop their own projects, and sign each other as partners, but also the imple-
mentation of the winning projects happen separately, even when the papers show it otherwise.
A lot of Hungarian players want to be sure that they project-idea will not be stolen, so they do
not share it with the possible partners, they try to carry out it alone, and even the publicity is
often deficient, for similar reasons. There was a willingness in the South-Transdanubian Re-
gion to make a really bottom-up project-planning for the programming period a 2007–2013,
and a so called KEZDET homepage was launched where the possible project-owners could
send their ideas. For whatever reasons the results were under the expectations, both in quality
and quantity. Maybe because of the mistrust, but maybe because of the lack of creativity from
side of the players, but it can also occur that the main reason was the fact that the securing of
the self-sources is a big issue that for a lot of players, so they do not even think about projects,
because they think that they are unable to realise the possible benefits. To tell the truth, the
Hungarian competition system is not perfect, under some aspects it is stricter than in other EU
member states, and requires big administration. Maybe the reason for the less creative plan-
ning and lack of entrepreneurial and business culture is that in the socialism entrepreneurship
was not widespread, there was only a small stratum like e.g. craftsmen. In the socialist con-
trolled or planned economy everything was centralised, the plans and objectives were defined
at the national level, so planning and project-culture was not embedded in the everyday life.
1 Entrepreneurial culture: all those qualities and skills that make individuals, organisations, communities and so-cieties creative, flexible and able to adapt economic and social changes,Business culture: it has to do with all the rules that lead members of the business to produce good results [Griffeet al. 2005]
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Culture can also foster the integration of marginalised people and communities. Culture-
led urban regeneration, creating of cultural quarters by renovating old houses, or revival of
brown-field areas is another possible positive effect related to culture. Even in Pécs there is a
plan to fill old and slummed city-sides with new functions in the ECC project (concert hall
and animation studio, reconstruction of the porcelain-manufacture called Zsolnay) to renew,
and the reconstruction of public squares and parks is also important. Also, local residents
were asked to send their ideas. Creating cultural quarters is more or less a conscious process.
Another culture-related concept is cultural district, which is even spontaneous and relates to
the nature of the cultural products. In the cultural districts artists and other cultural employ-
ment can work together, enhancing information- and knowledge-flow. In these professions
know-how is very important, and the physical proximity of other artists can lead to coopera-
tion and knowledge spillover, the easier flow of tacit knowledge-elements. But to tell the truth
the expected benefits are not always realised, and in some cases also cultural districts will be
located at disadvantaged areas, because they have special needs, such as big and cheap build-
ings, which can be found in the peripheries.
Another culture-related issue is the migration of highly educated labour force. European
surveys show that the cultural richness of a city can enhance the immigration of skilled work-
ers. Nowadays migration tendencies are influenced by factors such as beautiful environment,
safety and so on, while factors which were very important in the past, like the labour market,
have less impact. Some researches found that labour-force related factors have moderate and
decreasing importance (13–20%), social factors were the motivator at 30–40%, and only 20%
explained the moving-decision with the aim of changing environment [Garvill et al. 2000, in:
Wikhall 2002]. In some cases work is not only an effort, but rather a lifestyle [Copenhagen
Institute for Future Studies 1996, in: Wikhall 2002]. In my point of view such are e.g. exactly
the jobs related to the cultural industry. In my opinion among the Hungarian circumstances
the migration influence factors are a little bit different, labour force explained migration is
very high, which may be related to the high unemployment rate in the villages and country-
side cities, whereas the main immigration targets are the capital city, Budapest, and Middle-
Hungarian, as well in North-Transdanubian cities with higher level of industrial activities,
such as Székesfehérvár, Gy_r or Veszprém. Mainly the young graduates emigrate from the
countryside university-cities, because of the lack of workplaces. In this relation I would like
to speak about the universities and colleges as a culture influence factor. In my opinion there
is a synergy among them, since university students are big consumers of culture, and a flow-
ering cultural life of a city can be an advantage in comparison to other university cities, be-
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cause a lot of students like going to the cinema, theatre, concerts, festivals, museums and con-
ferences, and their purchase of other cultural goods (fashion goods, leisure software) also
fosters the cultural industry. Related to this, the integration of the local economy is very im-
portant, since all these goods should be produced in the area, otherwise the benefits are flow-
ing out of the city in form of import, which is not very fortuitous.
Production of cultural goods is another issue. Cultural goods are mainly high value
added, and the salaries and wages of this sector are usually above the average, and also the
related services are on a wide range. Cultural goods consumed outside the region where they
were produced can enhance the popularity of the regions and can generate tourism benefits, if
there are some for factories open to visitors. Hereby are cultural districts, as well as cultural
clusters again to mention, because it seems that the last ones are necessary to stay competitive
in the global and knowledge economy’s age. Clustering and networking are in the cultural in-
dustry because of the agglomeration externalities and important tacit knowledge-transfer.
Cultural goods are characteristic for the region, they are produced in, a lot of regions or cities
are popular because of their cultural industry (Paris - fashion).
Cultural tourism is a very complex question, and its generated benefits are sometimes
overestimated. Cultural events (festivals, biennials) and attractions (museums, monuments)
have of course spectacular impact, but we have to see clearly that mostly there is a need of
subsidy (state, local or maybe private grant) to meet the financial needs of them. Even at the
ECC was the financial result for 1/3 proportion surplus, deficit and zero. In my point of view
the real development impact of these is in other benefits, such as enhanced self-confidence
and awareness of local residence, the international knowledge of the city, developing entre-
preneurial culture and cooperation (even on international field), and of course the tourism re-
lated expenditures (accommodation, travel, insurance, bank services and so on). To realise the
most benefits I have to mention again the integration of the local economy, since if these
services are imported, the benefits will be realised out of the region. Also this is the case re-
lated to the ECC, which can improve the business image of the city, can generate capital in-
vestments. Capital investments should be planned very carefully, because buildings are not
only to be built, their maintenance also costs a lot of money, so if the city would like to avoid
bankruptcy, it is recommended to regard the maintenance capacity of the city or the region.
Related to cultural tourism there are measuring difficulties, it is hard to eliminate solely cul-
ture-motivated tourists from other, and even if it can be done, there is also the question how to
estimate their number. The airport data show only a part of the total visitor number, and tick-
ets sold for a festival also can be misleading, since there can be visitors who attend several of
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every one of the events. Also, accommodation data are not totally reliable, since one-day
visitors are not shown in them.
These were some possible research fields related to culture and local development. In my
opinion I manage to highlight the benefits as well the difficulties which can occur. In my
opinion this is a very interesting and future-oriented field, and nowadays very topical. In my
point of view there is a critical mass needed, and from the point it is a self-generating process,
and synergies became into effect; I mean hereby that cultural industries need consumers and
well-trained, highly educated labour force, as far as the highly educated require culture prod-
ucts and facilities. This is of course my opinion, and in my researches I would like to prove it,
if it is possible. According to my plans, I would examine some successful culture-regions or
cities in the world, whereby I hopefully can see the process of becoming a culture-region or
city. After that I would like to examine the Hungarian situation, so I maybe see where in this
process for example my city, Pécs is, and so I may be able to forecast the rest of the way, and
its stations. Of course this requires strong knowledge about this field, and I also like to make a
possible culture-research plan and methodology, using the already existing approaches, and
methods.
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REFERENCES
Copenhagen Institute for Future Studies, Five Mega Trends and Nine Wild Cards (1996)
(Copenhagen: Report to be presented at Copenhagen Wild Cards – a music seminar for the
future, 1996), in: Wikhall, Maria (2002): Culture as Regional Attraction: Migration Decisions
o f H i g h l y E d u c a t e d i n a S w e d i s h c o n t e x t –
http://www.raumplanung.uni.dortmund.de/rwp/ersa2002/cd-rom/papers/318.pdf – Download:
21.02.2005.
DCMS Creative Industries Factfile – Annex A (2002), in: Sadiq, K. – Walker, H. – Hutton, S.
– Artis, H. (2003): European Capital of Culture 2008. Socio-Economic Impact Assessment of
Liverpool’s Bid, ERM Economics
Garvill, Jörgen – Malmberg, Gunnar – Westin, Kerstin (2000): Värdet av att flytta och
lisvärden. Stockholm, Rapport 2 från regionalpolitiska utredingen, SOU 2000; 36, 2000, in:
Wikhall, Maria (2002): Culture as Regional Attraction: Migration Decisions of Highly
Educated in a Swedish context – http://www.raumplanung.uni.dortmund.de/rwp/ersa2002/cd-
rom/papers/318.pdf – Download: 21.02.2005.
Griffe, X. – Pflieger, Sylvie – Noya, Antonella (2005): Culture and Local Development,
OECD
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CULTURE AND LOCALDEVELOPMENT
Katalin Erd_s
DIMETIC 2007 Strasbourg
• Cultural and creative industry
• Culture
• Production of cultural goods
• Cultural tourism
• ECC
DIMETIC 2007 Strasbourg
Cultural and creative industriesDCMS definition
Cultural industry• Arts• Creative industries• Tourism• Libraries• Museums and galleries• Sports
Creative industry• Advertising• Architecture• Art & antiques market• Crafts• Design• Designer fashion• Video• Film• Music & photography• Music and the visual and
performing arts• Publishing• Interactive leisure software• Software• Electronic publishing• Radio and TV
DIMETIC 2007 Strasbourg
Cultural and creative industries
Culture
Immoveableproduct
Finalconsumption
Intermediateconsumption
Moveableproduct
Temporary
CulturalindustriesFashionFurnishingsGraphic arts
Architecture
FairsBiennialsFestivalsExhibitions
Graphic artsVideoIndustrialdesign
Finalconsumption
Intermediateconsumption
PermanentMonumentsMuseumsPerformingarts
Source: Greffe et al., 2005
DIMETIC 2007 Strasbourg
Culture
• influence factor of behaviour (as a set of values,norms and benchmarks that guide and shapethe behaviour of individuals and communities)
• the cooperation- and organisation modes amongplayers for mobilising a territory’s resources,attitudes towards project- and activity-creation,and integrating excluded or marginalisedindividuals and communities, to promotesustainable development [Greffe et al. 2005]
DIMETIC 2007 Strasbourg
Culture
• cooperation and clustering
• entrepreneurial and business culture
• partnership
• integration of marginalised people andcommunities
• cultural quarters
• cultural district
• the migration of highly educated labour force
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Production of cultural goods
• characteristic for the given region
• enhances the popularity of the region
• cultural quarters and districts
• networking and clustering
• tacit knowledge transfer
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Cultural tourism
• enhanced self-confidence and awarenessof local residence
• developing entrepreneurial culture andcooperation
• tourism related expenditures (TSA)
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European Capital of Culture
“Culture, art and creativity are not lessimportant I than technology, commerceand the economy.”
Melina Mercouri, 1983
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Robert Palmer (2004): European Cities and Capitals of Culture
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Palmer, 2004
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Overall outcome
Palmer, 2004
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Change in overnight visitors toECC-s 1995-2003
Palmer, 2004
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Change in overnight stays in ECCcompared with other European Cities
Palmer, 2004
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Thank you for your attention!