Guidelines and Strategies of the Orange Economy in Colombia

National Council of the Orange Economy
Ministry of Culture
Ministry of Finance and Public Credit
Ministry of the Interior
Ministry of Labour
Ministry of Commerce, Industry and Tourism
Minister of National Education
National Planning Department
National Administrative Department of Statistics (DANE)
National Learning Service (SENA)
National Directorate of Copyright (DNDA)
Territorial Development Fund (FINDETER)
Describe the main features of the policy/measure: 

In compliance of Article 4 of Law 1834 of 2017, the Ministry of Culture began in 2019 the process of formulating a Comprehensive Orange Economy Policy through participatory exercises that involved different organizations and sectors of civil society. As a result, these preliminary inputs set out the conceptual bases of the policy, as well as the main strategies for its implementation. These inputs were presented and validated at a session of the National Council of the Orange Economy in December 2019. In this way, the consolidation of the official policy document that should be a roadmap for positioning culture and creativity at the forefront of the country's development agendas had a green light to proceed.

Notwithstanding the measures mentioned so far, there are still challenges in the design and effective implementation of actions for the promotion of the cultural and creative industries, specially on aspects related to the movement of cultural goods and services and the visibility of local and national expressions. Likewise, it is evident the need to continue promoting mechanisms for the evaluation and monitoring of public policies; for the strengthening of sectoral associations and the generation of spaces for public-private dialogue; for the consolidation of productive chains and the sustainability of creative and cultural initiatives. The foregoing indicates the urgency of paying attention not only to the stakeholders linked to the distribution of and access to cultural content, but to all agents involved in the value chain.

From this perspective, Law 1843 of 2017 defines the main areas of action for the design and implementation of a policy for the promotion of culture and creativity. These areas, the Seven "I's", that define the lines of action regarding the Orange Economy, communicate a comprehensive vision that seeks to address cultural processes as a whole, and understands the multiplicity of agents involved and the complexity of existing dynamics. The following table succinctly explains the seven lines of action and the responsibilities of government derived from each one of them, based on the content of Law 1843 of 2017.

Information "An adequate survey of constant, reliable and comparable information on the sectors of the creative economy will be promoted."

1. Information: "An adequate survey of constant, reliable and comparable information on the sectors of the creative economy will be promoted."
2. Institutions : "The institutional governance and coordination of the policy will allow for the involvement of the public, private, mixed and non-governmental sectors in order to adequately articulate the postulates of the creative economy. The articulation of public and private organizations at the regional level is also a requisite to create a fertile ground for the cultural and creative industries, especially in the departments, cities, districts and municipalities"
3. Industry : "The role, qualifications and standards of the creative industries will be strengthened, which will in turn promote and improve their contribution to the gross domestic product."
4. Infrastructure : "The necessary infrastructure will be developed so that, within the competencies of the national and local governments, investment in physical infrastructure and virtual infrastructure is privileged, as well as the inclusive access to both."
5. Integration "The necessary international instruments will be promoted so that the industries of the creative economy get an adequate access to the global markets, strengthening their export potential, without prejudice to those international treaties and obligations already subscribed and ratified by Colombia."
6. Inclusion "The creative industries will be protected and promoted as generators of jobs, economic growth and wellbeing, with a view to their becoming integration and resocialization vehicles. To this purpose, the independent circulation of all the arts will be strengthened through the recognition of cultural spaces and facilities. Through the dissemination of independent local content, circulation channels such as public and community radio, public TV, and local venues will be promoted."
7. Inspiration "Participation in local, virtual, national and international venues will be promoted in order to showcase national talent, introduce international talent, and inspire a participatory sense of culture, seeking to develop the Creative Economy in all its expressions."

What are the results achieved so far through the implementation of the policy/measure?: 

Enactment of Financing Law 1943/2018 - December 28, 2018

1. Article 79 of this law established the exemption from exempted income benefit for seven years, as an incentive to the creative economy. It was regulated through Decree 1669 of 2019. The law was in force until December 31, 2019 by judgment of non-enforceability from the Constitutional Court in October 16, 2019. In the Call of October 2019, 84 projects met the requirements and received the income exemption for seven years.

Analysis by sector - Results of granting the exemption in terms of projected investment by sector:
- Creative industries or functional creations (content software, design, advertising, fashion) $21,223,185,278
- Cultural industries (publishing, phonographic, audiovisual) $ 4,558,364,000
- Arts and heritage $ 160,000,000
- Total $ 25,941,549,278

Analysis by city - Results of granting the exemption in terms of impact of projected investment by city ( Investment and # companies))

- Bogota ($ 15,767,100,842) 43 companies.
- Medellin ($ 4,012,090,501) 21 companies
- Cali ($ 1,791,407,935) 5 companies
- Pasto ($ 1,390,000,000) 1 company
- Envigado ($ 655,000,000) 3 companies
- Villavicencio ($ 639,100,000) 2 companies
- Ibague ($ 390,000,000) 2 companies
- El Carmen de Viboral ($315,250,000) 1 company
- La Estrella ($ 192,000,000) 1 company
- Sabaneta ($180,600,000) 1 company
- Pereira ($ 155,000,000) 1 company
- Barranquilla ($ 152,000,000) 1 company
- Manizales ($151,000,000) 1 company
- Rionegro ($ 151,000,000) 1 company
- Total ( $ 25,941,549,278,00) 84 copanies

2. National Development Plan - Law 1955/19 (May):
Articles 177, 178, 179 and 180, in process of receiving regulatory decrees, contemplate the extension and creation of benefits, incentives and other mechanisms related to the promotion of the cultural and creative economies.

- Article: 177 Extends the validity of Law 1556 of 2012 and the Colombia Film Fund established therein, until July 9, 2032. The consideration offered by the Colombia Film Fund, as established in Law 1556 of 2012, can also be granted to other audiovisual genres produced in Colombia.
- Article: 178 National Development Plan, Creates the Audiovisual Investment Certificate in Colombia, deductible from income tax up to an amount equivalent to 35% of the value of the investment made in Colombia.
- Article: 179 "It defines the Orange Development Areas (ADN) and the guidelines for their creation by the territorial bodies. It regulates the scope of these areas whenever the investments made therein intend to resort to the tax incentive instrument established in article 180 of Law 1955 of 2019 for creative economy projects"
- Article 180 Tax benefit deduction of 165% in income for investment and donation, upon presentation to the Call of the Ministry of Culture.

On March 25, 2020, Decree 474 was issued, "Whereby Decree 1080 of 2015, Single Regulatory Decree of the Culture Sector, regulating article 177 of law 1955 of 2019, Law of the National Development Plan 2018 - 2022, A Pact for Colombia, A Pact for Equity, and Article 90 of Law 1556 of 2012, modified by Article 178 of Law 1955 of 2019, are added upon".

3. Installation and operation of Orange Economy Nodes
-23 departmental Orange Economy Nodes were installed, with the participation of 250 regional public and private entities, in the following municipalities: Barranquilla, Valledupar, Bucaramanga, Neiva, Cali, Cartagena, Medellin, Ibague, Bogota, Manizales, Armenia, Pereira , Pasto, Popayan, Cucuta, Santa Marta, Villavicencio, Riohacha, Buenaventura, Quibdo, Leticia, Mocoa and San Andres.
-Institutional concurrences of will were signed to strengthen the territorial ecosystems of the orange economy and as the basis for the formulation of creative agendas in eight municipalities that already have a node (Armenia, Ibague, Popayan, Valledupar, Pasto, Barranquilla, Cali and Bogota).
-9 diagnoses of the cultural industries were concluded through the implementation of mappings in Medellin, Cali, Barranquilla, Bucaramanga, Pereira, Pasto, Valledupar, Cartagena and Santa Marta.

4. Technical assistance strategy:
A comprehensive technical assistance strategy was implemented, with programs targeted to strengthen cultural and creative entrepreneurship according to the specific characteristics of the sector in each region.
- "Women Weavers of Life (Mujeres Tejedoras de Vida)" Strengthening of management skills and capacities for 17 community groups composed of 290 women in eight municipalities (Tumaco, Guapi, Quibdo, Nuqui, Maria la Baja, Pueblo Bello, Valledupar, Uribia).
- Diplomate Course on Project Design for Cultural Management and Entrepreneurship Agreement with the Jorge Tadeo Lozano University; 350 cultural agents are beneficiaries.
- Territorio Crea Programme Technical assistance to 200 entrepreneurs in 20 municipalities (Uribia, Quibdo, Mocoa, Apartado, Valledupar, Guapi, Yopal, Santa Marta, Villavicencio, Inirida, Pasto, Leticia, Buenaventura, Puerto Asis, Puerto Narino, Mongui, Sachica, Zipaquira, Sesquile, Leticia)
- Audiovisual training pilot Agreement with the District Cinematheque of Bogota: 58 beneficiaries of the offer of Workshops in film production assistance and online production

4 Satellite Account of Culture and Orange Report
- First assessment of the Culture and Orange Economy Satellite Account out (partially) and publication of the first Orange Report. These two publications had the participation of DANE and the Ministry of Culture as main sources of information and drafting committee.
- In September, the Culture and Orange Economy Satellite Account - CSCEN was published following the International Standard Industrial Classification, revision 4, adapted for Colombia (ISIC Rev. 4 BC). There you can see the 103 activities included, of which 34 are fully included, 67 are partially included and two do not yet have disaggregated information.
-Among the most relevant data from said research it was found that the contribution to the added value of the national economy was 28.4 billion pesos in 2018, which is made up of: 28.0% (7.95 billion) of Arts and Heritage, 25.8% (7.34 billion) from Cultural Industries and 46.2% (13.13 billion) from Functional Creations.
- In December 2019, the second Orange Report was published, which included data from the National Satellite Account, the Bogota Satellite Account, Artesanias de Colombia and Colciencias.
-The extension of the scope of the Cultural Satellite Account to the Culture and Orange Economy Satellite Account stands out as an achievement. Having the macroeconomic measurement of the cultural and creative sector as a whole has made it possible to comprehensively analyse the growth and economic importance of culture and creativity at the national level. This assessment was achieved in September 2019, when three categories were measured: Arts and Heritage, Cultural and Creative Industries. This is relevant because measurement methodologies ranging from UNESCO, through WIPO, the Andres Bello Convention and the WTO were combined. This measurement allowed having macroeconomic information of 34 total and 67 partial ISICs (for a series of 2014-2018p, which is established as the base line of the policy to promote the Orange Economy.

5 Orange Economy Summit
On September 9 and 10, 2019 in Medellin (Colombia), the National Government, the Mayor's Office of Medellin and the Advanced Leadership Foundation organized the First Orange Economy Summit. In preparation for the Summit, a public call was made that received more than 1,400 submissions, from which 343 participants were selected. During the meeting, selected leaders from various political, economic, creative and cultural sectors of the country participated in training sessions delivered by more than 55 experts from 17 countries: these guests shared their experiences, knowledge and lessons learned on creative economy, artificial intelligence, design, intellectual property, film, television, animation, music, creative districts, art, culture and education. This summit represented a historical platform for Colombia to showcase its progress in the field and receive the support of international experts who see our culturally diverse country as a land full of development opportunities.

General public: 1,808 participants (government authorities, businesspeople, directors of different public entities and leaders representing organizations, chambers of commerce, and associations)
Speakers: 55 experts from 17 countries
Leaders: 343 stakeholders trained during the summit

6. Decree 2106 of 2019 "Simplification of procedures"

On November 22, 2019, decree 2106 was issued "By which regulations are enacted to simplify, suppress and reform unnecessary procedures and paperwork in the public administration." In chapter XII of said decree, specific regulatory adjustments were included to facilitate the operation of the agents of the Orange Economy.

7. Issuance of the Economic Growth Law, Law 2010 of 2019 (December)

Article 91 establishes the benefit of exemption of income tax for seven years as an incentive to the creative economy. It is regulated through Decree 286 of 2020. Currently the call is open until March 31, 2020 with the following statistical results up to March 10:
- Companies registered in the Portal: 893
- Created projects: 58
- Sent projects: 3
- Projects being reviewed: 4
- Visits to the Income Tax exemption: 13,467

8. Declaration of Four Orange Development Areas:
In December 2019 the first Orange Development Areas were declared: the creative district "Perpetuo Socorro" in Medellin; "Barrio Abajo" in Barranquilla; and "Centro" y "Licorera" in Cali.

9 Progress made on the Comprehensive Policy of the Orange Economy

The preliminary policy document was completed and approved at a session of the National Council of the Orange Economy held on December 16, 2019. The document consists of:
- Infographic that presents the strategies for each of the policy lines
- Conceptual basis document
- Document that fully expands each strategy.

Creation of the Colombia Crea Corporation

In October 2019, the certificate of incorporation of Colombia Crea Corporation was signed; its founding partners are the Ministry of Culture, the Ministry of Commerce, Industry and Tourism, MinTIC, COMFAMA and the Bogota Chamber of Commerce. This entity's main objective is to promote the development of value chains - in terms of training, creation, production, distribution, circulation and citizen access - of the various creative sectors linked to the arts, entrepreneurship and culture. In 2020, the assembly and the board of directors of the corporation met and the action plan and roadmap were approved to implement the priority programs for 2020.

Financial resources allocated to the policy/measure in USD: 

TOTAL: 2.865.647*
*programs such as: Territorio Crea Programme, Women and Weavers of Life are explain further in the text, so their budget it is not include here

Partner(s) engaged in the implementation of the measure: 
Name of partnerType of entity
National Council of the Orange Economy.
Public Sector
Ministry of Culture.
Public Sector
Ministry of the Interior
Public Sector
Ministry of Finance and Public Credit
Public Sector
Ministry of Labour
Public Sector
Ministry of Commerce, Industry and Tourism
Public Sector
Minister of National Education
Public Sector
National Planning Department
Public Sector
National Administrative Department of Statistics (DANE)
Public Sector
National Learning Service (SENA)
Public Sector
National Directorate of Copyright (DNDA)
Public Sector
Territorial Development Fund (FINDETER)
Public Sector
Ministry of Science, Technology and Innovation
Public Sector
Has the implementation of the policy/measure been evaluated?: 
If yes, what are the main conclusions/recommendations?: 

Currently, the Orange Economy is considered as one the key sectors for the transformation of the country. For this reason, a transformational indicator was defined to assess the degree of progress of this national policy. The indicator represents the real growth of the added value of the Orange Economy generated by the subsectors of the cultural and creative field at the national level, year by year, as well as the employment associated with said sectors. These data are published annually as part of the results of the Culture and Orange Economy Satellite Account. This indicator is result-based and is classified as transformational because it shows the result and impact of the Public Policy for the Promotion of the Orange Economy, which combines the seven lines of action: information, institutions, industry, infrastructure, integration, inclusion and inspiration. Likewise, the indicator is applicable to the SDGs: according to the National Development Plan, it is related to SDG 8 sustainable economic growth and decent Work SDG 9 Industry, Innovation and Infrastructure.
Real growth in the added value, over the last four years, of the sectors of the orange economy. The growth in the added value of all the sectors of the cultural and creative industries is measured year by year, as well as their employment, through the Culture and Orange Economy Satellite Account.
Value of exports associated with the economic activities of the cultural and creative industries, gathered from the report of the companies benefited by the country's promotion strategies implemented abroad by Procolombia.
Direct jobs generated through the seed programme Emprender Fund in activities belonging to the Orange Economy.

It is important to clarify that although the policy is being measured with a transformational indicator, it is necessary to create other indicators that complement the assessment through results derived from the execution of the policy, and allow its follow up:

1. The creation of Orange Development Areas (ADN) is related to SDG 11 Sustainable cities and communities, SDG 8 Decent work and sustainable economic growth and SDG 9 Industry, Innovation and Infrastructure.
The implementation of regional creative agendas is related to SDG 9.

3. The value of the foreign direct investment projects belonging to the orange economy advised by Procolombia is related to SDG 8 Decent work and sustainable economic growth and SDG 9 Industry, Innovation and Infrastructure. Procolombia gives advice and accompaniment to potential investors from different countries about investing in sectors such as Software, Information Technology (IT), Audiovisual and Digital Content.
Entrepreneurs and companies belonging to the Orange Economy benefited from technical assistance programs. This is related to SDG 8 Decent work and sustainable economic growth and SDG 9 Industry, Innovation and Infrastructure. It aims for more companies and ventures receiving specialized advice on product/service development and betterment, financial topics, business models, commercial strategies and access to new markets, among others.
The technical assistance provided in the field of Copyright and Related Rights points to SDG 8 Decent work and sustainable economic growth and SDG 9 Industry, Innovation and Infrastructure. The objective is to give participants a comprehensive overview of copyright issues; this is achieved through a virtual platform, seminars and conferences, such as Basic Aspects of Copyright, Contractual Situations, Collective Management, Work Registration Workshop, Civil and Criminal Aspects, the Internet and Software Copyright, Copyright in the Creative Industries, Copyright in the University Area.
The approved registration of works, acts and contracts granted by the National Directorate of Copyright is related to SDG 8 Decent work and sustainable economic growth and SDG 9 Industry, Innovation and Infrastructure. The aim is to increase the number of registrations of works, acts and contracts in the National Registry of Copyright.
Companies created through the Emprender Fund belonging to the activities of the orange economy. This is related to SDG 8 Decent work and sustainable economic growth. Its objective is to open calls for the approval of business initiatives belonging to orange economy sectors.

Objetivo(s) de la Convención 2005 de la UNESCO
Cultural Domain(s)