Think Pad Thai, and you may assume it’s a staple of Thai tradition. However, it didn’t exist until the 1930s. This iconic dish, as well as the global proliferation of Thai restaurants, was part of a concerted effort by the Thai government to promote its culture.
More than a culinary anecdote, it’s a lesson in cultural capital. Indeed, Cultural and Creative Industries (CCIs) now represent 3% of the global economy. They also serve as a canvas for countries to author their own identities domestically and on the world stage. In few places is this as evident as Southeast Asia, where diverse narratives are interwoven into the region’s rich cultural tapestry. Southeast Asian countries are increasingly recognising and investing in their cultural capital, not only to preserve their heritage but also as a serious contributor to economic growth, a means to foster national pride, and a vehicle to exert international influence. While Thailand is a notable example of successful policymaking, others in the region can and should do more.
Cultural economy encapsulates a wide range of activities and industries, from traditional arts such as painting, music, crafts, to modern mediums like film, digital media, and apparel. It is the confluence of tradition, creativity, and commerce. It communicates complex narratives. It holds potential to create jobs, boost tourism, and expand exports. It also means enhancing geopolitical soft power and preserving invaluable cultural heritage.
More than two decades since Thailand enacted its policy of gastrodiplomacy, “Thai Kitchen To The World,” Thai cuisine currently charts 4th on most popular ethnic cuisines. Thailand is also amongst the top 15 exporters of primary ingredients in the world. In addition, the country’s National Strategy and 20-Year Creative Economy Development Plan prioritise industries such as film, fashion, gaming, digital content, music, and cultural tourism as sectors for international investment. Creativity is prioritised as a cornerstone for competitiveness, with policy focus shifting more towards innovation, sustainability, and cultural branding.
Crucially, Thailand understands the importance of cross-sectoral collaboration between government agencies, private sector players, and international partners. Public organisations like the Creative Economy Agency (CEA) act as facilitators for developing creative ecosystems and fostering competitiveness.
Vietnam is another cultural bright spot. The fourth largest economy in ASEAN, Vietnam’s National Strategy for the Development of Cultural Industries exemplifies its commitment. The plan set time-bound milestones, aiming to increase Vietnamese CCI’s contribution to the national GDP to 3% by 2020 (which was surpassed in 2018), and 8% by 2030.
The Vietnamese National Assembly allocated $4.8 billion to cultural development over ten years. The programme focuses on fostering skilled personnel and enhancing cultural infrastructure and development. It also aims to establish cultural centres in countries like the United States, Japan, Russia, China, and Cambodia, leveraging Vietnam’s cultural soft power and its diaspora. Uniquely, the programme seeks to capitalise on Vietnamese history by restoring 2,542 national relics by 2030.
What, then, of Southeast Asia’s largest economy?
Indonesia to date has under-utilised its vast cultural assets. This is evident in the fact that, despite its uniquely rich heritage, Indonesia’s culture hasn’t received the same degree of attention when compared to its regional counterparts. Recently, the government inaugurated a $300 million investment fund for the creative economy to finance local talent development, content production, technology integration, and infrastructure projects. However, a dearth of fiscal stability, economic constraints, and undervaluation of its bio-cultural diversity have all contributed to stifling Indonesia’s culture economy.
For instance, the problematic implementation of its tax reform initiatives led to reduced tax revenues, affecting government expenditure on cultural initiatives. Broader economic challenges, including rising living costs, inflationary pressures, and the middle-class crunch have constrained consumer spending. The concomitant reduction in domestic demand limits market growth for cultural products and creative services. Therefore, the culture economy is often relegated to being an accessory to traditional industrial and material economic activity.
This stands in stark contrast to Vietnam and Thailand, both of which recognise the economic potential of a thriving culture economy and have successfully leveraged it despite at times suffering from weak governance. With frequent changes in administration, Thailand struggled to sustain long-term creative economy policies. Likewise, Vietnamese policies suffered from regulatory gaps regarding intellectual property protection, tax incentives, and market regulation.
Indonesia’s challenges present a unique opportunity for the private sector. Savvy investors can lead a fresh wave of private-public collaboration and help tap into a potential $80 billion market. Likewise, large state resources such as the Danantara Sovereign Wealth Fund can offer strategically aligned investment opportunities in community-based cultural development.
In a world in danger of homogenisation, cultural capital offers an alternative path. Countries gain a compelling platform for self-expression, cultural preservation and advancement, and increased revenue; investors gain an alternative market with socially beneficial outcomes. Indonesia is foremost amongst nations who stand to benefit, not least due to its rich bio-cultural capital. Ultimately, tapping the full potential of Southeast Asia’s rich cultural tapestry requires proactive policies, formulated with a clear vision, and sustained by investment and cross-sectoral collaboration.
Auhom is a Programme and Content Associate at GIFT Hong Kong, where he is involved in programme management, research, and converting insights into impactful content.
