It is not news that the creative industries – everything from film, television and gaming to fashion, design and the visual arts – are collectively thriving. According to a paper from the international development thinktank ODI Global, the sector, also known as the orange economy, generates US$4.3 trillion in revenue annually and supports 50 million jobs, not to mention an ability to ‘turn neglected areas into cultural hubs, attract investment and bring people together through art’.
Beyond the traditional powerhouses of London, New York and Paris, the orange economy is thriving in cities as diverse as Seoul, Lagos, Bandung and Cape Town. In these locations, it is, as the UN puts it, ‘increasingly finding new routes to markets, leading to radical transformations in the way people create, consume and enjoy cultural products’.
Cultural and historical travel accounts for 40% of all tourism globally
Driver for change
Since 2004, the UN has directly called on countries ‘to foster, protect and promote their creative industries’. Coined by former Colombian president Iván Duque Márquez and his former culture minister Felipe Buitrago in their 2013 publication The Orange Economy: An Infinite Opportunity, the term ‘orange economy’ reflects a distinctive response to that request.
What the political duo, and others since, recognised is that building the orange economy ‘requires more than talent alone’ as Lena Holmberg of EU cultural platform Ekip puts it. ‘Investment in education, digital and physical infrastructure, access to finance, strong intellectual property frameworks and supportive institutions are essential.’
Global action
It is a vision that increasingly informs government policies around the world. In February, Uzbekistan announced plans to increase the creative economy’s share of GPD to 5% by 2030.
In 2025, Guyana announced a US$3.7bn initiative to boost its creative sector. India’s Budget 2026/27 puts particular focus on employment opportunities in animation, visual effects, gaming and comics by developing content creator labs in 15,000 secondary schools and 5,000 colleges across the country.
‘We must insist on better evidence to design effective policy and secure investment’
There is evidence too of developments on the ground jumping far ahead of government planning. The Business Standard in Bangladesh reported in May that the country’s ‘orange economy is expanding at a pace that outperforms much of the broader economy, yet it remains almost invisible in policy’. It went on to ask: ‘Why is one of the fastest-growing economic segments still treated as culture, not commerce?’
Meanwhile the governor of the Central Bank of Barbados Kevin Greenidge says: ‘The creative sector cannot be an afterthought in national development.’ He also points to a systemic challenge that will resonate with policymakers and investors alike: ‘We must insist on better evidence. Without data, we cannot design effective policy, secure investment or advocate for resources. With data, we can do all three.’
History and culture
The spin-off benefits of a thriving orange economy are perhaps most visible in the hospitality sector. According to the World Economic Forum (WEF), cultural and historical travel accounts for 40% of all tourism globally, and 73% of millennials are interested in visiting cultural and historic places.
But there are risks in this, including overtourism and irreparable changes to the local environment. The WEF argues that ‘capitalising on tourism’s potential while preserving and enhancing history and culture is possible – and it is already being done in sites around the world’.
Ten years after the publication of his Infinite Opportunity manifesto, Buitrago addressed the consequences of success: ‘You cannot avoid gentrification, but you can manage it. You actually involve the community in evolution in the growing process of prosperity.’
‘To what extent does the orange economy generate quality jobs?’
In a 2022 research paper, Francisco Ferreiro Seoane of the University of Santiago de Compostela in Spain said there are questions around ‘jobs generated, quality, salaries and income distribution. To what extent does the orange economy generate quality jobs? What is the distribution of income like?’
The WEF recommends a panoply of measures for avoiding the downsides. They include: taking a holistic and coordinated approach to urban planning and regeneration, with guidance provided for investments; diversifying the economic base to avoid overreliance on a single driver; nurturing living heritage and local knowledge to create valuable economic assets; addressing the negative externalities of tourism so that the value created by tourism is shared; and empowering local communities to actively engage with their rich cultures.
Intangible value
And there are some less financially quantifiable upsides to consider. A 2025 paper by the Arts Council and Health Service Executive in Ireland explored value in terms of social prescribing (non-medical, community-based activities that help with health and wellbeing). It found that ‘arts and creativity have emerged as an important sector that provides a wide range of benefits for social prescribing participants’.
‘A music festival in Medellín, Colombia, reduced gang violence’
The final word on value goes to Buitrago, who tells the story of two rival gangs brought together by an innovative music festival in Medellín, Colombia. One gang favoured rap and the other reggaeton, and the festival allowed them to showcase their musical tastes as equals. ‘By sharing the spotlight, the gangs realised their mutual passion for music, that reggaeton and rap were not so different, and that they could co-exist. It reduced violence and helped them to start finding different ways to promote the development of the communities instead of trying to control them by fear.’
The orange economy may not have all the answers, but it can ask questions in unique ways.
The many shades of orange
Driver of progress
Encourages structural transformation, socio-economic progress and job creation
Big deal
Delivers around US$2.4 trillion a year from global trade in creative goods and services
Personal growth tool
Supports self-discovery and connection through arts, crafts, films, music and festivals
Urban boost
Enhances a city’s attractiveness, boosting tourism and related revenues, and contributing to national and city-level GDP
Bespoke tailoring
Provides a unique perspective on local demographics, culture and challenges, ensuring that policies are tailored to the specific needs of a city
Source: ODI Global
More information
Read the AB article Corporate case for cultural sponsorship
