Introduction
The Orange Economy covers a variety of cultural and creative sectors, playing an important role in the economic and social development of countries. Creative industries offer a platform for people to unleash their creativity and innovation, turning ideas into tangible economic value. It is strongly based on intellectual activity, where new technologies and discoveries in the field of various human activities play an important role.
The orange economy is rapidly gaining momentum around the world, becoming an important driver of GDP and employment growth. The UN estimates that cultural and creative industries account for 3.1% of global GDP and 6.2% of global employment. Creative economy industries generate more than $2 trillion in annual revenue and create nearly 50 million jobs worldwide. About half of those employed are women, and these industries employ more people aged 15–29 than any other sector.
In Central Asia, the creative industry is growing rapidly, having a significant impact on the local community and national economy. The top five sectors of the creative economy in Central Asia, which occupy a large market shareare: fashion, design and crafts – 38%; • contemporary art - 17.5%; television, radio, new media and digital culture – 15.5%; advertising, etc. – 13.5%; and shows and public events – 12.4%.
The orange economy in the Kyrgyz Republic
It is quite challenging to determine exactly how many people work in the orange economy, which can cover people as diverse as bloggers, illustrators, designers, presenters and artists. It can also include new forms of online creative industry. For example, last year, a children's educational channel on YouTube created by young Kyrgyz entrepreneurs called “D Billions” received a diamond button. Today it has more than 30 million subscribers and about 38 billion views.
Nevertheless, according to the Ministry of Economy and Commerce of the Kyrgyz Republic, creative industries account for 1% of the country's GDP, which is equivalent to about 140 million US dollars.
According to some sources, the orange economy employs about 50 thousand people, but approximately 50% of creative businesses in Kyrgyzstan operate in the shadows. This sector is seen as particularly important in a context where nearly 57% of population of the Kyrgyz Republic is under 30 years old.
The share of women employed in the creative industries sector is estimated at about 41% of the total number of employees. The highest percentage of women is observed in the “Arts, entertainment and recreation” sector (50%) and the lowest in the “Professional, scientific and technical activities” sector (35%).
The Ololo project and a more actively developing creative sector
The creative industries in the Kyrgyz Republic began to more actively develop in 2016. One of the key steps was the creation of the Creative Industries Alliance, whose goal is to support and develop creative initiatives and projects.
A particularly important initiative in this context was the Ololo project, founded by entrepreneur Daniyar Amanaliev in 2016. This notably supports the creation of creative hubswhich provide coworking spaces, co-living spaces, andcoworking resorts, striving to create innovative and supportive environments for creative professionals to develop their startups and creative projects.
Ololo is the largest network of creative hubs in Central Asia today, with ten such hubs in total. Today, Ololo not only brings together more than 500 creative professionals, but manages real estate assets measuring more than 40 thousand square metres and worth more than 40 million US dollars.
In addition to the hubs themselves, Ololo holds free eventsand collaborates with innovators, local brands and other businesses. To do this, they create and launch inter-related areas that form a common environment, including :
• ololoMedia - owns video and photo production for innovators and more;
• ololoEvents – the entity dealing only with events;
• OCIF (ololo creative impact fund) - a fund that primarily helps women and representatives of creative industries launch and scale projects;
• John Galt is the venture arm of the ololo group of companies that supports aspiring entrepreneurs and integrates them into the ololo startup city for digital nomads from Asia.
• Liberterra – a development company that professionally manages the owner’s real estate, in particular, by arranging spaces for innovators in these buildings.
Increasing political and legislative support
Recognising its importance, the government of the Kyrgyz Republic has striven to harness the significant potential of the creative economy for sustainable development and youth engagement. This is notably reflected in the country's strategic documents, such as the National Development Strategy for the period from 2018 to 2040 and the National Development Program of the Kyrgyz Republic until 2026.
The development of the creative industry in the Kyrgyz Republic has been given specific legal and political support in recent years, including the adoption of a number of legislative measures aimed at supporting and stimulating the sector. Additionally, various grant and subsidy programs for young creative entrepreneurs has been implemented, which has contributed to the emergence of many new startups and projects.
A Country Concept for the development of the creative economy for the period from 2022 to 2026 pays special attention to improving the monitoring and support system, updating educational programmes, creating creative spaces and platforms for cooperation, as well as promoting the national brand “Jaratman Kyrgyzstan” (“Creative Kyrgyzstan”).
In April 2022, President of the Kyrgyz Republic SadyrJaparov took a significant step by signing a decree “On measures to develop the creative economy and create conditions for progressive development.” This served to identify the creative industries as a political priority for the country and provided the basis for systemic support measures to create conditions for the development of the creative economy.
As a result, public and private investment in the creative industry has increased significantly in recent years. In 2022, approximately US$10 million was invested in various creative projects, which contributed to the creation of new jobs and infrastructure development.
The Kyrgyz Republic also actively participates in international projects and programmes aimed at supporting creative industries. Examples include collaboration with the UK Government (Innovation Policy Programme, funded by UK Aid), UNDP (CREATE4 programme), UNESCO, OSCE Office, Aga Khan Office and the European Union, which allows local creative entrepreneurs to access international markets and share experiences.
A Creative Industries Park as the start of a pioneering global initiative
In August 2022, the President signed the Law of the Kyrgyz Republic “On the Park of Creative Industries,” which was adopted by the Jogorku Kenesh on June 30 making it the first Central Asian country to adopt such a law. The purpose of this law is “to create a legal basis for the functioning of a special regime for the activities of entrepreneurs engaged in creative activities.”
By order of the Cabinet of Ministers, an Action Plan for the implementation of the Concept for the Development of the Creative Economy was approved. The Creative Industries Park will include 72 types of activities, provide the most favorable tax conditions, and also eliminate attachment to geography or location (ex-territorial status of the Parkresidents).
In order to support the creative economy, changes were made to the tax code. Industries that engage in the creative economy are exempt from paying 10% income tax and 12% VAT. They will pay a single tax of 0.5% on turnover until the end of 2023, and 0.5% will be added to it annually until 2027. As a result, residents of the Creative Industries Park will pay only 2%.
Accordingly, representatives of the creative industry of the Kyrgyz Republic are provided with a special tax regime aimed at providing state support for a range of creative activities, including architecture, landscape design, interior design, fine arts, media arts, music, cinema, video production, graphic design, crafts, industry fashion and others.
Challenges and perspectives
Despite its successes, the creative industry faces a number of challenges, such as a lack of funding and infrastructure, as well as limited opportunities for training and talent development. However, the potential for growth remains high through international collaboration and integration into global creative networks.
The creative industries in the Kyrgyz Republic demonstrate how culture and innovation can become powerful drivers of economic and social development. Support and further development of this sector could bring significant benefits not only to the Kyrgyz Republic, but across the entire Central Asian region.
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