Culture big contributor to Canada's GDP, study says

Globe and Mail Update

August 26, 2008 at 2:25 PM EDT

Canada's arts community has been given a big boost in its fight against government funding cutbacks in a form of a new economic report arguing that culture is a major contributor to national wealth and prestige.

The 60-page study from the Conference Board of Canada, a private sector think-tank that did the study in collaboration with the federal government, argues that culture generated $84.6-billion in direct and indirect economic benefits last year, or 7.4 per cent of total gross domestic product.

The report couldn't have come at a better time for Canada's arts community, which has been battling the federal government's decision to cut $20-million in funding to seven arts programs effective next April.

The Conference Board does not refer to the government cuts, but makes clear it considers culture a major contributor to the economic and social well-being of the country.

“Traditionally, the culture sector has been recognized for its multi-faceted role in contributing to individual and community development, social cohesion, and quality of life,” writes report author Michael Bloom.

“However, in recent decades there has been growing understanding and examination of the substantial economic contribution of arts and cultural industries and of their central role in the creative economy.”

The arts and culture sectors employed 616,000 people in 2003, the report says.

In 2007, it estimates the sectors represented $46-billion of the overall economy, or about 3.8 per cent of GDP.

But once indirect benefits are calculated, the contribution to GDP is almost doubled and a total of about 1.1 million jobs are affected.

The report cautions that culture's overall economic impact is difficult to quantify because indirect benefits are difficult to measure.

But it argues strongly that creativity in the arts is to be valued because it involves the use of new technologies, such as the Internet, and new industries that strengthen Canada's competitiveness.

“Countries around the world, as well as many cities and regions, recognize that a dynamic culture sector plays a key role as a magnet for talent, enhances economic output, and acts as a catalyst for prosperity,” Mr. Bloom said.

The research study was conducted in collaboration with the Department of Canadian Heritage.