The ROC government announced recently it will invest over NT$33 billion (US$1.05 billion) to help develop the cultural and creative industry of Taiwan. The announcement is a sign the government is beginning to take the industry more seriously, something further evidenced when the Cabinet-level Council for Cultural Affairs said it will hold a fair in November to help the nation’s cultural and creative industry break into the mainland Chinese market.
Judged by the standards of the petrochemical or the information technology sector, NT$33 billion is a very small sum indeed. Still, if this funding is delivered as promised, it will provide a significant boost to the industry as a whole. Without doubt, this policy deserves the support of the public.
In the last few years, Taiwan has shown tremendous potential when it comes to creativity and innovation, as seen by the awards its citizens routinely win in international competitions, or by the affection that many Chinese-speaking communities have for its TV programs, music and other forms of popular entertainment. These facts are a testimony that the soft power of Taiwan cannot be ignored.
At the same time, however, the nation’s cultural and creative industry suffers from two problems. First, due to a lack of funds, a competitive cultural and creative industry has never been developed. Second, the size of the Taiwan market is simply too small. In such a market, investors are unwilling to risk large sums of money, and as a result not many quality products are made.
With regards to these two problems, the first could be alleviated by government investment, while the second could be overcome if the November fair helps Taiwan make inroads into the mainland Chinese market. Thus on the whole a prosperous future for the cultural and creative industry can be expected.
In spite of all this, the government’s policy is still far from perfect. It can be improved in a number of ways.
To begin with, the cultural and creative industry needs to be defined more clearly. The government has to identify which sectors within the industry it will support, and how. The cultural and creative industry is obviously very diffuse: it could include movies, television, animation, theater and drama, handicrafts, designs and so on. If every business that could be conceivably defined as part of the cultural and creative industry wants a share of the NT$33 billion pie, there simply will not be enough money to go around. What must be avoided is the current practice as exemplified by the Government Information Office, where it has supported filmmakers for many years, but has had no effect on the movie industry.
Second, tensions within the funding application system need to be resolved. Reports indicate that projects above NT$100 million will be evaluated by the National Development Fund, whereas those under this sum will be reviewed by the CCA. Under such an arrangement, chances of success for the government’s initiative will be much lower, especially if the NDF and the CCA end up squabbling over influence. Far better to create a system whereby the NDF and the CCA review all applications jointly.
Then there is the issue that only certain groups are allowed to apply for funding: venture capital firms, investment departments within financial institutions and development companies. As for cultural organizations or individual artists, it appears that their fate is to be incorporated by one of these three types of companies. In such a system, there is the danger that the company type will come to override creative content. A better way that takes into account the interests of all parties must be found. At the same time, cultural groups and individual artists should also consider how they can change with the times.
Finally, the CCA has said it will establish an Office for the Cultural and Creative Industry whose goal will be to create a financing platform for interested parties. This office will try to set up 10 new cultural and creative venture capital firms within a year. While this is a laudable goal, the CCA should also try to help existing cultural groups make the transformation to a more businesslike model. (HZW)
(This commentary originally appeared in the Commercial Times Sept. 23.)
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