Home Banking Culture as an Engine for Growth and Jobs – The Voice of Heidie Calero

Culture as an Engine for Growth and Jobs – The Voice of Heidie Calero

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[Music] did you know that culture can be an engine of growth and of jobs don’t forget if you liked our economic capsule to go and give us a like in youtube under the voice of heidi kalero today as i said before we are going to talk about a very specific topic which is very close to my heart and it really could be an engine of growth and that is culture and we have to be careful how do you define it but unfortunately we do not have very specific statistics uh regarding that particular definition of culture but we are going to try our best to give you some documentation as i always like to do with our economic capsules the first graph that you see here just next to me it depicts columns those are from 19 fiscal 1992 through fiscal 2020 and those columns are the contribution of culture to gnp what do we define here as culture well in an income and product one of the national statistics in puerto rico they depict certain economic sectors one of them is entertainment and arts the other one is in terms of radio tv telecommunications museums so all that together we know it’s going to be underestimated but at least it gives you an idea of what we mean by culture as a percentage of gnp and notice that throughout all these years from 1992 through 2016 culture as defined as i said before grew eight percent annually and gnp in puerto rico also grew in um in nominal terms eight percent um the red line is the percentage of culture as a percentage of gnp so it could be in 1997 that it was 1.6 billion dollars in terms of culture and that accounted for 4.9 percent of gmb fast track to 2020 and over the past four years gnp and the contribution of culture to gnb has fallen has declined in fact it has been reduced by 14 annually over these past four years and um in terms of gnp well in nominal terms they grew 0.1 percent so very anemic in terms of all the recession that puerto rico has been undergoing since 2007 and we are still in real terms in an economic depression so i at the the peak in 2016 it accounted for 3.1 billion dollars or 4.4 so in other countries doing research for this economic capsule we have argentina and that accounted for 4.1 percent of gdp and 3.5 percent of jobs in brazil 6.7 of gdp colombia 2 in the u.s 7.8 and these are all studies maybe seven or eight years ago so i don’t have more recent data but it just depicts the contribution of culture as an engine for growth and we need more growth more engines that will propel puerto rico out of this economic recession the second graph that you’re seeing again next to me is jobs the number of jobs blue line is the number of jobs in culture again in the same sectors that i measured for gnp that is art entertainment museums radio telecommunications uh tv all that and uh it’s uh they accounted in 1992 for 10 159 jobs not a despicable number of jobs back in 2020 that’s um about two years ago we are now in fiscal 2022. it accounted for 10 282 jobs or almost 0.9 of total employment in puerto rico so interesting contribution to gnp interesting contribution in terms of jobs can it really i think it’s underestimated but at least you have some idea that it does contribute to uh growth in terms of jobs and gmp and then the last capsule which is the one that really stimulated me into talking about this topic is what has been happening in terms of these austerity measures imposed by the fiscal oversight board better known as promesa in puerto rico that has been fiscally overseeing puerto rico since 2016 and it’s it’s still going strong in terms of its uh um it’s the realm of austerity measures and the latest fiscal budget that we have for the general fund as well as the overall combined uh budget is um depicts that in 2019 through 2022 which are the columns that you see there divided by very specific agencies that we have determined our proxies for culture again i understand they’re going to be underestimated but it gives you an idea and the institute of culture is the segment the blue segment in those bars the musical arts where our symphonic orchestra is is the orange segment the green segment is the fine arts the center for fine arts and the mustard color is the conservatory of music where students go and practice and learn about music in 2019 the budget was combined budget all these uh for agencies was 37 million dollars and in 2020 it was 38 million that’s a 5 increase all of the segments had positive increases according to this budget 20 21 compared with 2020 there was an overall increase of eight percent but certain segments did uh suffer uh sufficient in uh declines like three percent for the conservatory of music and uh 21 for musical arts where our symphonic orchestra is two segments had double digit increases and that was the institute of culture 20 and uh 32 for the um fine arts uh center however fast track to 2022 which is a fiscal budget that has been approved recently approved it’s uh it’s a decline of 14 from 42 million dollars in 2021 now it’s 36 million dollars for this proxy of culture so instead of stimulating uh this engine of growth we are reducing the stimulus for these uh segments and uh all sectors except maybe tiny teeny-weeny uh five percent increase in musical arts not enough for our symphonic orchestra to survive after the decline that it suffered uh back in 2021 we see declines in uh the conservatory of music two percent 34 percent in terms of fine arts and 18 percent institute of culture so overall a 14 decline whereas before from 2019 through 2021 the fiscal budget at least had increased as seven percent growth so it’s as if wiping out 2022 all those increases that they were given before they were wiped out certainly it gives you uh pause to think where is the fiscal oversight board where is the puerto rico legislature in terms of those options that we have for an engine of growth such as culture until the next one don’t forget to give us a like in our economic capsules stay safe you


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Culture as an Engine for Growth and Jobs - The Voice of Heidie Calero
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