5. A Political Context - Creativity and ‘Structural’ Change
CREATIVITY = CREATIVITY =
LIBERAL ARTS = CREATIVE INDUSTRIES =
RECTIFYING OBJECTS = CONSUMER GOODS =
WELFARE = SERVICES =
STATE RESPONSIBILITY MARKET DYNAMICS
6. A Political Context - Creativity and ‘Structural’ Change
• Erosion of the Welfare State
THE WELFARE STATE
Lord William Henry Beveridge, 1879-1963
Liberal Party – grew from Whigs
Influence of Fabian Socialism
Instrumental in policies of post-war Labour governments
in UK
http://cepa.newschool.edu/het/profiles/beveridge.htm
7. • Erosion of the Welfare State
THE IMPACT OF
TECHNOLOGICAL CHANGE
Schumpeter – “Creative destruction”
The opening up of new markets, foreign or
domestic, and the organizational development
from the craft shop and factory to such concerns
as U.S. Steel illustrate the same process of
industrial mutation–if I may use that biological
term–that incessantly revolutionizes the
economic structure from within, incessantly
destroying the old one, incessantly creating a new
one. This process of Creative Destruction is the
essential fact about capitalism. It is what
capitalism consists in and what every capitalist
concern has got to live in. . . .
Capitalism, Socialism and Democracy (New York: Harper, 1975) [orig. pub.
1942], p. 82
8. • Erosion of the Welfare State
Labour Market Evolution
Creative Destruction: Loss of jobs in wagon-building, increase of job in
automobile manufacture
Ubicomp – ubiquitous computing – the ‘IT revolution’ impacts on all
industries simultaneously and globally
The Job For Life ‘Portfolio careers’, part-time-, fractional- and contract-
employment.
9. • Erosion of the Welfare State
Scandinavian (‘Advanced Social-Democratic’) Model (Sweden)
- Government spending creates work in the public sector
‘Free Market’ Model (USA, UK) – Deregulation of wages and
conditions increases employment through lower costs for
employers (the emerging phenomenon of the ‘working poor’)
‘Hybrid’ Model (Australia) – ‘Change by negotiation’
Emergent Welfare State Models – Asia, Eastern Europe, South
America
After the Golden Age: The Future of the Welfare State in the New Global Order
United Nations Research Institute for Social Development
http://www.unrisd.org/engindex/publ/list/op/op7/op07-09.htm
10. • Erosion of the Welfare State
A new welfare settlement is needed, to show how we can
come together to protect one another against the risk and
turbulence inherent in the new economy. The task is not
simply to reform the welfare state but to create a welfare
society in which the state is one player, alongside new
mutual organisations, the family and the voluntary sector.
Charles Leadbeater, 2000, Living on Thin Air, Penguin
11. A Political Context - Creativity and ‘Structural’ Change
• Erosion of Liberal Arts
‘Liberal arts’ – term associated with subsidised and
sponsored ‘public’ arts
Derived from (and still related to) British values of
State philanthropy (Lord Shaftesbury – early 18 th C)
‘Liberal’ (‘Free’) arts, as distinct from artisanship or
‘commercial’ arts
The value of ‘recitifying objects’ (like the gallows)
19th C - Bentham’s ‘Panopticon’ (the State as all-
seeing eye)
Foucault, in Discipline and Punish and elsewhere –
state-funded prisons, schools, museums, barracks –
formalisations and instruments of state power
12. A Political Context - Creativity and ‘Structural’ Change
CREATIVITY = CREATIVITY =
LIBERAL ARTS = CREATIVE INDUSTRIES =
RECTIFYING OBJECTS = CONSUMER GOODS =
WELFARE = SERVICES =
STATE RESPONSIBILITY MARKET DYNAMICS
13. ?
“Social Democracy”
“The Welfare State”
Social entrepreneurs are people who use the techniques of business
to achieve positive social change’). Social Entrepreneurship
Network - www.sen.org.au
… there is an additional right and that is the right to a fair place in
the economy and this is what government and laws don't seem to be
able to deliver. A fair place in the economy seems to be something
that you have to take. It's a hill we have to climb. Noel Pearson,
address to Brisbane Institute, 2001
(http://www.brisinst.org.au/resources/pearson_noel_pbbook.html)
15. What's a company worth? If the books tell a story investors find
useful, then a company's market value should roughly (not
precisely, because the market looks forward and the books back)
correlate with the value accountants ascribe to it.
It doesn't: Arthur Andersen consultants Richard Boulton, Barry
Libert, and Steve Samek compared market value with book value
for 3,500 U.S. companies over a period of two decades. At the
beginning, in 1978, the two were pretty well matched: Book value
was 95% of market value …
Twenty years later, book value was just 28% of market value.
Investors simply don't value what accountants count.
FORTUNE 500
Accounting Gets Radical
Thomas A. Stewart
Mon Apr 16 00:00:00 EDT 2001
16. The Value of Assets
To measure knowledge capital, Baruch Lev assigns proxy returns to various types of
assets, as shown below. The returns themselves are an indication of where companies
can best allocate resources.
Type of Asset
Financial
(Ten-year average return on U.S. Treasury bonds)
4.5%
Physical
(Average ROE for all companies with physical assets and inventories)
7.0%
Intellectual
(Average expected return on equity for biotech and software industries)
10.5%
http://pages.stern.nyu.edu/~blev/
17. I.P. Patents
Copyrights
Circuit Layouts
Plant Breeders' Rights
Trade Secrets /
Confidential Information
18. KEY
SITES
http://www.wipo.int
World Intellectual Property Organisation
http://www.ipaustralia.gov.au
IP Australia
http://www.copyright.org.au
Australian Copyright Council
20. The Future of Creative Work
(Creative industries) deal in value and values,
signs and symbols; they are multi-skilled and
fluid; they move between niches and create
hybrids; they are multi-national and they thrive
on the margins of economic activity; they mix up
making money and making meaning. The
challenge of the creative industries is the challenge
of a new form of economic understanding - they
are not 'catching up' with serious, mainstream
industries, they are setting the templates which
these industries will follow.
Manchester Institute for Popular Culture - http://www.mmu.ac.uk/h-ss/mipc/foci/mission.htm
21. The Future of Creative Work
‘Creative industries are the service industries of the new
knowledge economy. Indeed, once the term is understood in
relation to the existing ‘content’ industries, such as media,
publishing, interactive software etc., it can be extended to any
enterprise whose business is the ‘application’ of creativity.
Thus ‘creativity’ becomes a service sector, supplying high value-
added inputs to other enterprises, including education, finance,
tourism … The list of creative industries is not endless, but it is
not resticted to existing arts and media entertainment. It extends
wherever creative content is required’
Cunningham, Hartley, From Blue Poles to Fat Pipes
http://www.creativeindustries.qut.edu.au/cirac/readingroom/CunninghamHartley.pdf
22. The Future of Creative Work
LESSONS FOR CREATIVES
Don't be romantic. Stop thinking about 'art' as something you're born to do, that
is somehow privileged or special (as in 'liberal arts')
Don't think the world owes you a living because you're creative
Understand history, economics and politics - you need the context
Understand and use new technologies, and keep up to date
Develop a portfolio career
Understand and use financial planning
Get off your bum, become entrepreneurial
Accept nothing, embrace change, stay on your toes.
(Gandhi) Be the change you want to be.
24. The KaosPilots is a modern value based education for
project leaders. Our work builds upon our 6 core
values which are; Playfulness, Real world, Streetwise,
Risk-taking, Balance and Compassion.
The arena in which we operate in practice is the
common ground shared by the arts, culture and
business.
25. Course design and methodology
The course at The KaosPilots is generally
based around assignments set by external
organisations/businesses.
· Project and business design - What is
it?
· Creativity and innovation - can you make
a system for it?
· Branding and telling a story -
everybody’s talking about it...why?
· Communication and press strategy - how
do you get your message out?
· Event and campaign organisation and
implementation - how do you organise
and implement as professionally and
effectively as possible?
· Understanding finances and budgets - how
do you ensure viability?
· Collaboration between culture, the arts
and business – where is the synergy?
· Stakeholder-thinking and ethical bottom-
lines - when are we selling out?