This is the first of several items I am passing along from economists’ for
your reading pleasure.  kwc


Economic Scene

Some Countries Remain Resistant to American Cultural Exports
By TYLER COWEN, New York Times, Feb. 22, 2007

Tyler Cowen is a professor of economics at George Mason University and
co-author of a blog at www.marginalrevolution.com
<http://www.marginalrevolution.com/> .

American movies and music have done very well in some countries like Sweden
and less well in others like India. This may sound like a simple difference
in human tastes, but decisions to consume culture have an economic aspect.

Loyalties to cultural goods and services — be it heavy metal music or the
opera — are about social networking and choosing an identity and an
aspiration. That is, we use culture to connect with other people and to
define ourselves; both are, to some extent, economic decisions. The
continuing and indeed growing relevance of local economic connections
suggests that cultural imperialism will not prove to be the dominant trend.

Local culture commands loyalty when people are involved in networks of
status and caste, and they pursue religious and communal markers of
identity. Those individuals use local cultural products to signal their
place in hierarchies.

An Indian Muslim might listen to religious Qawwali music to set himself
apart from local Hindus, or a native of Calcutta might favor songs from
Bengali cinema. The Indian music market is 96% domestic in origin, in part
because India is such a large and multifaceted society. Omar Lizardo, an
assistant professor of sociology at the Univ. of Notre Dame, explains this
logic in his recent paper “Globalization and Culture: A Sociological
Perspective.” <http://www.nd.edu/%7Eolizardo/papers/globcultsoc.pdf>

Today, economic growth is booming in countries where American popular
culture does not dominate, namely India and China. Population growth is
strong in many Islamic countries, which typically prefer local music and get
their news from sources like the satellite broadcaster Al Jazeera.

The combination of these trends means that American entertainment, for
largely economic reasons, will lose relative standing in the global
marketplace. In fact, Western culture often creates its own rivals by
bringing creative technologies like the recording studio or the printing
press to foreign lands.

American popular culture tends to be popular when people interact with
others from around the world and seek markers of global identity. My
stepdaughter spent last summer studying French in Nice, with students from
many other countries. They ate and hung out at McDonald’s, a name and symbol
they all share, even though it was not everyone’s favorite meal.

Globalization is most likely to damage local culture in regions like
Scandinavia that are lightly populated, not very hierarchical and looking
for new global cultural symbols. But the rest of the world’s population is
in countries — China and India, of course, but also Brazil, Mexico, Egypt
and Indonesia — that do not fit that description.

“American” cultural products rely increasing on non-American talent and
international symbols and settings. “Babel,” which won this year’s Golden
Globe for best drama, has a Mexican director, and is set in Morocco, Japan
and Mexico, mostly with non-English dialogue.

Hollywood movies are popular in Europe in part because of the successes of
European welfare states and of European economic integration. Western Europe
has become more equal in its treatment of citizens, it has moved away from
an aristocratic class society, and it has strong global connections. All
those factors favor an interest in American and global popular culture;
Hollywood movies often capture 70 percent or more of a typical European
cinematic market. Social democracy, which the Europeans often hold up in
opposition to the American model, in fact aided this cultural invasion by
making Europe more egalitarian.

Many smaller countries have been less welcoming of cultural imports. It is
common in Central America for domestically produced music to command up to
70% of market share. In Ghana, domestic music has captured 71% of the
market, according to Unesco
<http://topics.nytimes.com/top/reference/timestopics/organizations/u/united_
nations_educational_scientific_and_cultural_organization/index.html?inline=n
yt-org>  figures. Critics of cultural imperialism charge that rich cultures
dominate poor ones. But the data supplied by Professor Lizardo show that the
poorer a country, the more likely it will buy and listen to its own domestic
music. This makes sense given that music is a form of social networking and
the relevant networks are primarily local.

That said, the poorest countries don’t produce many of the films they watch.
Making a movie costs much more than cutting an album. So as the world
becomes richer, the relative market share of Hollywood movies will probably
fall more than the relative market share of American popular music.
Furthermore, moviegoers are starting to look to Bollywood films, or other
Asian productions, rather than Hollywood, for their markers of global
identity.

The complaint of “cultural imperialism” is looking increasingly implausible.
As I argued in ”Creative Destruction: How Globalization Is Changing the
World’s Cultures,”
<http://books.google.com/books?id=c3--j8bRfREC&dq=%22Cowen%22+%22Creative+de
struction%22+>  the funk of James Brown helped shape the music of West
Africa; Indian authors draw upon Charles Dickens; and Arabic pop is centered
in France and Belgium. Western cultural exports are as likely to refresh
foreign art forms as to destroy them. Western technologies — from the metal
carving knife to acrylic paint to digital filmmaking — have spurred
creativity worldwide.

Culture is not a zero-sum game, so the greater reach of one culture does not
necessarily mean diminished stature for others. In the broad sweep of
history, many different traditions have grown together and flourished.
American popular culture will continue to make money, but the 21st century
will bring a broad mélange of influences, with no clear world cultural
leader.

http://www.nytimes.com/2007/02/22/business/22scene.html
<http://www.nytimes.com/2007/02/22/business/22scene.html>


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