Creative economy as a way for job creation and sustainable development

Yoo-Duk Kang*

19/10/2015

"Global economic slowdown is highly related to a weakening in demand for products and labor. From supply side, we produce more with less labor input, not only in developed countries, but also in large part of developing world. From demand side, consumer preferences experienced fundamental changes as well. We use to buy generic-local products produced by domestic producers, but our demand has been increasingly shifting to specific global products, often identified with brand names. Globalization has opened the door to a large pool of cheaper labor with foreign investment or outsourcing backed by increasing capital mobility. In addition to that, under globalization, trade boomed and exposed consumers to the same products found everywhere in the world. Cheaper and better made quality products made by multinationals quickly gained the hearts of consumers over generic products supplied by local manufacturers. Technological advancement, on the other hand, implied not only producing more advanced products but also at a lower cost through automation, less dependent on local capacity, and with less labor altogether..."

Creative economy as a way for job creation and sustainable development

*Head of Team, Europe
Korea Institute for International Economic Policy