Culture, economy, policy: trends and developments

Geoforum 31 (2000) 385±390
www.elsevier.com/locate/geoforum
Introduction
Culture, economy, policy: trends and developments
Lily Kong
Department of Geography, National University of Singapore, 1 Arts Link, Singapore 117570, Singapore
Introduction
West. I will begin by taking the reader through some
attempts at characterising the relationships between
The important nexus between culture and economy is
culture, economy and policy as the world enters the 21st
by no means a recent development nor a novel inclusion
century, followed by an overview of how cultural eco-
on the social science agenda. As Harvey pointed out in
nomic policies have developed from the 1950s onwards,
his foreword to Zukin's (1988) Loft Living, the artist, as
particularly in the West. I will then provide an overview
one `representative' of the cultural class, has always
of the papers to follow, highlighting the common areas
shared a position in the market system, whether as ar-
of analyses and the distinctive contributions to the lit-
tisans or as ``cultural producers working to the com-
erature on culture, economy and policy.
mand of hegemonic class interest''. In the last two to
three decades, in the US and more lately, in western
Europe, cultural activities have become increasingly
On the relationships between culture, economy, policy
signi®cant in the economic regeneration strategies in
many cities. Geographers, however, have been slow to
Research that interrogates the mutually constitutive
analyse this integration of the cultural and economic in
relationship between culture and economy has grown
explicit terms, and it is only in recent years that a re-
mainly in recent years, a re¯ection no doubt of the
worked cultural geography (Cosgrove and Jackson,
conditions as we enter the 21st century. As Scott (1997,
1987; Kong, 1997) and a ``new'' economic geography
p. 323) points out,
(Thrift and Olds, 1996) has considered the constitutive
role played by culture in economic development and the
F F F capitalism itself is moving into a phase in which
way in which economic forces are in fact culturally en-
the cultural forms and meanings of its outputs be-
coded (see Ley, 1996 and the other papers in the special
come critical if not dominating elements of produc-
issue of Urban Geography, 1996). Often, this relation-
tive strategy, and in which the realm of human
ship between the cultural and economic is facilitated,
culture as a whole is increasingly subject to commo-
enhanced or hampered by policy. Yet, as in the idealist
di®cation, i.e. supplied through pro®t-making insti-
tradition, many more state cultural policies have been
tutions in decentralized markets. In other words, an
based on the notion of culture as a realm separate from,
ever-widening range of economic activity is con-
and often in opposition to, the realm of material pro-
cerned with producing and marketing goods and
duction and economic activity than is explicitly ac-
services that are infused in one way or another with
knowledged (Shuker, 1994, p. 54).
broadly aesthetic or semiotic attributes.
The ®ve papers that follow deal with various dimen-
sions of culture, economy and policy from a number of
distinct geographical, economic and socio-political
The relationship between culture and economy is dia-
contexts. As a prelude and backdrop to these speci®c
lectical, for while local cultures contribute to the nature
discussions, I will provide in this introductory review,
of economic activity, economic activity is also part of
the historical context within which to cast the ®ve con-
the culture-generating and innovation in particular
tributorsÕ contemporary discussions. Speci®cally, I will
places. While this connection is true for cultural as well
outline the trends and developments in the nexus be-
as non-cultural products, in cultural-products indus-
tween culture, economy and policy, drawn primarily
tries, the connection has special signi®cance because of
from the literature that exists on the experiences in the
the ``intensity of the recursive relations between the
cultural attribute of place and the logic of the local
production system'' (Scott, 1997, p. 325).
Increasingly, local and national governments have
E-mail address: lilykong@nus.edu.sg (L. Kong).
recognised this connection between the cultural and
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386
Introduction / Geoforum 31 (2000) 385±390
economic, and have sought to reap the bene®ts by de-
All things being equal, Wal-Mart is a better invest-
liberately formulating and implementing policies that
ment than Gucci, just as Michael Jackson is more
harness the linkage. Such ``cultural economic policy'', as
valuable as a cultural commodity (both in the literal
it is often called, has been the subject of increasing re-
sense of return on investment for those who under-
search attention although it is not always agreed what
write his recordings and tours and in terms of the
constitutes a cultural economy and a cultural economic
numbers of people throughout the world who are
policy.
a€ected by him) than Yitzhak Perlman or even such
As a starting point therefore, and to establish some
desperate popularizers as Luciano Pavarotti (Rie€,
common understanding for the speci®c papers to
1993, p. 76).
follow, it would be useful to brie¯y take stock of the
discussion on what constitutes a cultural economy and
This is an about-turn from many earlier positions in
a cultural economic policy. Lash and Urry (1994)
which popular culture was (and sometimes, still is)
characterise cultural industries as innovative, ¯exible,
constructed as commercial, inauthentic and so unworthy
creative, existing at the intersection of the local and
of government support, investment and encouragement,
global (e.g. global distribution networks which rely on
in opposition to `high culture' or `the arts' (Shuker,
local distinctiveness), and at the front of the post-in-
1994, p. 54).
dustrial, information and knowledge-based economy.
Cultural economic policies conceive of culture in the
Scott (1997, p. 333) suggests that particular production
language of economics, ``with the attendant measure-
relations and distribution methods characterise a cul-
ments applied to policy analysis: investment, leverage,
tural economy. In particular, cultural-products indus-
employment, direct and indirect income e€ects, social
tries can roughly be epitomised in terms of ®ve main
and spatial targeting and so forth'' (Booth and Boyle,
technological-organisational elements: considerable
1993, p. 22). Frith (1991, p. 140) identi®es three types of
amounts of human handiwork, complemented by
cultural industries policy: an industrial cultural policy
advanced ¯exible computer technologies; dense net-
which focuses on the local production of cultural goods
works of small- and medium-sized establishments that
to be consumed nationally or exported, such as elec-
are strongly dependent on one another for specialised
tronic goods (the radio, discman, etc.) and the mass
inputs and services (though large and relatively inte-
media; a tourist cultural policy which focuses on ``those
grated ®rms are also common); huge demands on local
cultural goods which can only be consumed locally ± the
labour markets and enormous demands on worker
consumers are the ÔimportsÕ, coming in to experience
skills; enjoyment of external economies, many of which
each cityÕs unique Ôaura''; and a cosmetic cultural policy,
bene®t from mutual learning and cultural synergies
in which culture is a sort of ``urban make-up, to be in-
made possible by the presence of many interrelated
vested in because it helps a place seem attractive not just
®rms and industries in one place; and the presence of
to tourists but to visitors who might decide to stay ±
institutional infrastructures that ease the functioning of
investors looking to locate new industries, new sorts of
the local economy.
white collar employees''.
Given these characteristics of cultural industries, the
type of cultural work that would fall under their purview
would include a whole range of activities, from ``the arts,
Development of cultural economic policies
the media, the crafts, fashion and design to sports,
recreation, architecture and townscape, heritage, tour-
Cultural economic policies are but one aspect of a
ism, eating and entertainment, local history, and the
larger set of policies broadly termed `cultural policies'.
characteristics of the cityÕs public realm and social life,
Bassett (1993), and Bianchini (1993a) for example, ex-
its identity and external image'' (Bianchini, 1993a,b,
amine the historical development of cultural policies in
p. 209; see also Wynne, 1992; Kearns and Philo, 1993;
Britain and Europe respectively, and illustrate how, in
Landry and Bianchini, 1995). This diverges from earlier
the 1950s and 1960s, cultural policies conceived of
conceptions of ``culture'' as referring purely to the ``high
`culture' narrowly as the ``pre-electronic Ôarts''' (Bian-
arts''. In fact, various authors have been careful to pose
chini, 1993a, p. 9), with little sense of how these cultural
reminders to governments of the need to seriously rec-
resources could be exploited for economic development
ognise the important contributions and impacts of
purposes.
popular culture in their cultural policies. Rie€ (1993,
The same neglect of the economic potential of cul-
p. 76), for example, pointedly expresses this when he
tural resources was carried into the 1970s and 1980s,
argues that the prestige and economic signi®cance of
when cultural policies served social and political agen-
high culture is waning, and increasingly, operas, sym-
das rather than economic ones. These decades were
phonies and even museums can only survive through
characterised by new urban social movements, which
state subsidy or private philanthropy. On the other
prompted politicians to give greater political and cul-
hand, he argues,
tural autonomy to the grassroots. As part of these

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Introduction / Geoforum 31 (2000) 385±390
387
movements, politicians began to adopt a wider de®ni-
the local urban context (Molotch, 1996). Marshall
tion of ``culture'' and to see cultural development as an
(1920) referred to this synergy between the cultural and
integral part of urban policy and politics. The goals were
the economic as the bene®cial e€ects of ÔatmosphereÕ in
to enable greater access to cultural facilities and activi-
19th century industrial districts. Further, Bassett (1993,
ties for all citizens, promote individual and group self-
p. 1783) points out how cultural economic policies
expression, encourage face-to-face interaction and pro-
would supplement tourist strategies, encouraging over-
mote community rebuilding, and counter trends towards
night stays and conference bookings. In addition, a high
domesticisation of cultural consumption (through the
cultural pro®le could swing a relocation decision by the
growing popularity of television and videos). In other
kind of company needed to attract highly skilled pro-
words, there was a reassertion of the city centre as a
fessionals. In that sense, cultural policies can be used as
``catalyst for civic identity and public sociability''
``symbols of modernity and innovations'' (Bianchini,
(Bianchini, 1993a, p. 10) and the primary goal of cul-
1993a, p. 15; Bassett, 1993, p. 1779). A signi®cant value
tural policy was to enhance community-building. Eco-
of a successful cultural economic policy is therefore the
nomic (re)construction through cultural resources was
image that it will create of a city, underscoring the rise of
not critically on the agenda.
the representational, the growing importance of image
However, from the mid-1980s especially, this em-
consciousness associated with modern economic for-
phasis on personal and community development and
mations, in which the image becomes a currency in and
participation, and the revitalisation of public social life
of itself (Thrift and Olds, 1996, p. 314; Burgess and
was replaced by ``a language highlighting cultural poli-
Wood, 1988; Watson, 1991). At the end of the day, while
cyÕs potential contribution to urban economic and
cultural facilities and resources may not be more im-
physical regeneration'' (Bianchini, 1993a, p. 13). Based
portant in ``determining a cityÕs appeal to investors than
on the experiences of cities such as London, Glasgow,
local educational and skills levels, the quality of local
Birmingham and Newcastle, mid-1980s to 1990s cultural
schooling and of the local environment'', they have,
economic policy may be characterised in four ways.
however, become ``increasingly important complemen-
First, there is growing investment in the infrastructure
tary factors in the competition between cities possessing
needed for cultural production, for example, studios,
similar advantages'' (Bianchini, 1993a, p. 18). Cultural
workshops, marketing and support organisations, and
activities could also attract people back to downtown
the planning of ``cultural districts''. Relatedly, there is
areas, making other consumer developments more
increasing support for new technology sectors, such as
pro®table (Bassett, 1993, p. 1779).
television (cable and video), ``central to the whole ®eld
Why did this emphasis on the economic potential
of popular culture'' (Bassett, 1993, p. 1775). Second,
rather than social and political role of cultural policies
there is the launching of ``¯agship'' development pro-
come about? Two main sets of conditions precipitated
jects for arts centres, theatres, and concert halls in inner-
the change, which are consumption and production re-
city areas and the launching of high pro®le events or
lated. First, Bassett (1993, p. 1775) argued that changes
festivals, often linked to local heritage themes, to en-
in cultural consumption and social class led to a general
courage cultural tourism. Third, there is investment in
rise in the consumption of cultural products. This, in
public art and sculpture and the revival of urban public
turn, was related to a decline in working time and an
spaces for multiple forms of activity (Bassett, 1993,
increase in the proportion of disposable income spent on
p. 1775). Fourth, there is growing partnership between
leisure activities (Bianchini, 1993a, p. 1). Second, the loss
business and public sector agencies, including develop-
of jobs in traditional industrial sectors with the collapse
ers, banks, and companies of national and international
of the industrial base in many cities, the need to adapt to
signi®cance (Bianchini, 1993a, p. 2).
the processes of economic restructuring of the 1970s and
If e€ectively implemented, cities can derive multiple
early 1980s, and growing competition in the new post-
bene®ts from cultural economic policies. Myerscough
industrial service economy prompted governments to
and John (1988) highlights how direct employment for a
reexamine their cultural policies and mine the potential
signi®cant proportion of the population can be gained
role of cultures for economic gain. Indeed, as cities
through the growth of ®rms in the cultural industries
compete for scarce new investment, the competition to
sector, how growth in ancillary industries may be stim-
use cultural policy to guide ``place marketing'' (Kearns
ulated, how urban renewal processes could result cata-
and Philo, 1993) has become increasingly important and
lytically, how the image of a region could be improved,
necessary to construct images of new post-Fordist, con-
and how a place could be made better to live and work
sumption-oriented cities to attract investors, promising a
in. The development of cultural industries in cities could
good quality of life for executives and other mobile
also give rise to intra-urban cultural synergies. This is
skilled international personnel (Bassett, 1993, p. 1779;
because these sectors transact with each other inten-
Bianchini, 1993a, p. 1). In this sense then, cultural policy
sively and draw on similar labour and material re-
of the 1980s and 1990s has become a response to the
sources, as well as design cultures and images rooted in
globalisation of capital (Booth and Boyle, 1993, p. 22).

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388
Introduction / Geoforum 31 (2000) 385±390
While useful, some cautionary words must neverthe-
spheres in the 1980s, linked as they were with the
less be sounded about the implementation of cultural
``selling of places'', in the late 1990s and beyond, Bian-
economic policies. First, Bianchini (1993a, p. 15) has
chini (1993b, p. 211) suggests that policies on culture
indicated that the direct impact of such policies on the
will have to be linked with policies on education,
creation of wealth and employment is often actually
training, research and development. This is because the
relatively small. In fact, Bassett (1993, p. 1785) indicates
economic success of cities will depend on advanced in-
that many of the jobs in the sector are likely to be low-
dustries and services, which make intensive use of high-
paid service jobs. Many small ®rms in cultural industries
quality human resources with specialised skills and
also have high failure rates. Furthermore, not many
knowledge. To be truly e€ective therefore, cultural
cities can achieve success as major cultural centres.
policies should not be measured purely by income or
There are threshold levels in the provision of various
employment generated but should contribute towards
forms of high art. Smaller cities will ®nd it dicult to
improvement in the quality of life, social cohesion and
compete, while larger cities will bene®t from linkages
community development. The really important mission,
and feedback e€ects between artistic sectors. A possible
according to Bianchini (1993b, p. 212) is to develop a
strategy that small cities can adopt is to cooperate with
cultural planning perspective that is ``rooted in an un-
neighbouring cities in cultural specialisation and joint
derstanding of local cultural resources and of cities as
marketing (Bassett, 1993, p. 1785). More crucially,
cultural entities ± as places where people meet, talk,
however, there are tensions and contradictions within
share ideas and desires, and where identities and life-
many a cultural policy, tensions which Bianchini (1993a,
styles are formed''. To do so requires that there is ``an
p. 3) has characterised as di€erences between ``old and
explicit commitment to revitalise the cultural, social and
new, social and economic, community and elite-orient-
political life of local residents'' and this should ``precede
ed'' policies. In particular, there is, ®rst, a divergence
and sustain the formulation of physical and economic
between policies, which encourage exclusive high culture
regeneration strategies'' (Bianchini, 1993b, p. 212). This
and those more populist which seek to encourage pop-
argument is made by other writers in various guises.
ular access to them. Second, there is a tension between
Wynne (1992) calls for the arts to be made a daily part
developing elite ¯agship programmes to enhance urban
of peopleÕs lives, socially and economically, and argues
competitiveness as opposed to decentralised, communi-
that only then will they ``reside within the wider com-
ty-based provision of more popular cultural activities,
munity associated with that everyday life, rather than
targeted particularly at low income and marginalised
existing as an appendage to it ± in some exclusive arena
social groups. Third, there is a con¯ict between cultural
outside of everyday experience''. This, he argues, makes
policy as an internationalisation strategy emphasising
for the arts as a form of investment (providing both
growth and property development versus the need to
economic returns and quality of life) rather than subsi-
protect and develop indigenous local and regional
dy.
identities and the cultures of socially and economically
disadvantaged immigrant communities especially
(Bianchini, 1993a, p. 19), particularly, where community
What the papers o€er F F F
self-development and self-expression are of concern
(Bassett, 1993, p. 1785). More radical critiques of cul-
The ®ve papers that follow address various aspects of
tural economic policies are that they are a ``carnival
the issues raised above. In some way, all ®ve papers
mask'' because they allow politicians to ``conceal
attempt to draw together the economic and the social
growing social inequality, polarisation and con¯ict
and/or political relations in cultural policy and activity,
within cities'' or ``optimistically, as a `social glue' for
re¯ecting the growing recognition of the integral rela-
integrating new immigrants, encouraging social cohe-
tionship between these spheres of life (Thrift and Olds,
sion and shaping new civic identities'' (Harvey, 1989a,
1996). Coe's paper, for instance, highlights the signi®-
quoted in Bianchini, 1993a, p. 14). This critique of cul-
cance of these relationships at the interpersonal level,
tural policy is further emphasised in the rejection of
aiding in obtaining ®nance and securing distribution
culture in urban regeneration as ``mobilisation of the
while Lovatt et al. discuss how risk in cultural industries
spectacle'', a crude way of trying to ``justify and repay
are minimised through the use of existing social net-
contemporary urban lifestyles'' because the gentri®ed
works such as regulars and friends. Speci®cally, CoeÕs
city that is often close to the central business district
analysis of the indigenous ®lm industry in Vancouver
needs the urban spectacle to reinforce residential choice
addresses the issue of how economic actions and social
(Harvey, 1989b, cited in Booth and Boyle, 1993, p. 22).
relations are inseparable. He illustrates the ways in
As cities see out the 1990s and enter the 21st century,
which interpersonal ties and social networks contribute
re¯ections on comprehensive holistic cultural planning
to enhanced economic opportunities, for example, in
that is truly regenerative have emerged. While cultural
obtaining ®nancing for ®lms and distribution outlets. He
policies were innovative in the symbolic and economic
therefore argues for attention to be paid particularly to

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Introduction / Geoforum 31 (2000) 385±390
389
the embeddedness and embodiment of these relations in
industries. This is nowhere more evident than in Pratt's
key actors at the level of individuals, shifting the anal-
argument against the assertions of technological
ysis from current literature which focuses on the em-
reductionism and aspatiality in the literature on new
beddedness of organisations and institutions. Similarly,
media industries, and his account of the spatiality of
Lovatt et al. in addressing issues of risk and trust, draw
new media. Using his case example of Silicon Alley,
from their work on Micro and Small Enterprises within
New York, Pratt argues that in the new media indus-
Manchester, England, and illustrate how the blurring of
tries, place and product are mutually constituted and
work and leisure became a way of reducing risk in the
co-constructed.
high-risk cultural industry. Speci®cally, living a full so-
This theme section o€ers both theoretical reformu-
cial life was identi®ed as a strategy for knowing one's
lations as well as speci®c empirical case analyses cover-
market and picking up work opportunities. At the same
ing a range of cultural industries ± ®lm, music, fashion,
time, trust within the industry is often developed in in-
and new media. While addressing a range of issues
formal, social ways, with starting out ®rms seeking out
central to any analysis of cultural industries, a host of
`mentors' and trustworthy, knowledgeable individuals
other issues remain to be interrogated elsewhere. I
who could o€er advice, contacts, market information
highlight but three here as a way of pushing the agenda
and so forth. As with Coe, social relations, at the level of
further. First, there is need to engage debates over
the interpersonal, is emphasised here.
government economic intervention in the market place
Unlike Coe and Lovatt et al., who emphasise the
versus the operation of the free market (see Shuker,
intersection between the social and cultural, Kong draws
1994, for example). Second, contradictions in state
attention to the intersection between the cultural and
policy between wanting to develop cultural industries
political, highlighting political and ideological interests
but simultaneously wanting to keep out cultural in¯u-
in the construction of state cultural policies, and its
ences must be addressed. Cultural policy, as illustrated
emphasis on cultural industries for economic develop-
by Kong (this volume), then becomes a thin line to walk
ment. In turn, the responses of cultural practitioners to
between social regulation and economic development.
such ideological constructions in Singapore are also
Third, the issue of whether cultural industries and the
examined. This explicit focus on the role of state policy
coterie of policies surrounding them are in fact a largely
in the development of cultural industries is paralleled in
developed world phenomenon deserve some attention.
Brown et al.'s paper on the music policy of two English
The challenge is as much the attainment of an under-
cities ± Manchester and Sheeld. They seek to situate
standing of the processes involved and the successful
the place of music policy within the wider development
and sensitive implementation of cultural policies in dif-
of cultural policy and urban regeneration over the last
ferent contexts.
ten years. They examine the development of cultural
quarters (fringe geographically de®ned areas of city
centres where local authorities have sought to concen-
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