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Brazil's Creative Cities – Self-Funding Partnerships

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Openworld Villages
Openworld Villages

This presentation – prepared for the May, 2019 Latin American Studies Association conference in Boston – explores how culturally innovative cities in Brazil can build self-funding partnerships across South America.

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Brazil’s Creative Cities New ways of funding cross-border partnerships Mark Frazier Startup Societies Foundation LASA19 Congress Boston, USA May 24, 2019
What we’ll explore – u Near term funding opportunities for Creative Cities u Lasting ways to sustain partnerships for creative endeavors across South America
Challenge: big disruptions are at hand
Opportunity: digital tools are leveling the playing field around the world for creative ventures New tools u Affordable telecommunications u Anytime/anywhere learning u Global freelance marketplaces u Online funding platforms Emerging creative economy – Billions now can learn, design, and co-create across borders Current economic system – National policies limit who can play – and determine who wins
On-demand learning is spreading skills for creative ventures Thousands of online courses from MIT, Harvard, Yale, and other leading universities are offered free of charge
Jobseekers can access billions of dollars in freelance projects through online markets u Globally, millions of freelance artists, photographers, musicians, writers and web designers have registered in free-to- join online markets for telework u Tens of thousands of Brazilian creative ventures are also now competing for online jobs.
Creative projects are attracting cross-border volunteers (who commit time and funds)
Arts and music projects in Brazil have discovered crowdfunding Portuguese language sites: Embolacha, Kickante, Catarse, Sibite
Brazilian creative ventures are earning income from online product sales
AirBnb’s online platform now promotes creative experiences, including cultural tours, art workshops, and music events
Tourism revenue can surge via creative ventures with AirBnbs
A near-term path to sustainability: grassroots groups can partner with AirBnbs • Local groups can propose public arts projects, music events, festivals, cleanup/fixups, and neighborhood safety campaigns to draw new visitors • AirBnb ventures, in return, can share part of their increased earnings with partnering groups as the area improves
What about long-term sustainability? Grassroots creative ventures can share in land value gains as neighborhoods improve
Vehicles for sharing the asset gains: land grants and Community Land Trusts Hundreds of universities worldwide have received land grants for sustainability… Thousands of Community Land Trusts let members enjoy affordable housing… Stanford’s Tech Park Joint Venture
Singapore, Hong Kong, and Macau are exemplars of a success-sharing land trust strategy Singapore Macau Hong Kong
How to supercharge land values: Offer “Special Economic Zone” incentives Zonamerica Free Zone (www.Zonamerica.com) Uruguay has introduced reforms surpassing those of Hong Kong and Singapore, transforming a cow pasture into some of the most valuable land in the Americas (with 10,000+ tech workers)
How Special Economic Zones sparked China’s takeoff In 1979, Shenzhen was a fishing village with a population of under 10,000. There China launched its experimental reforms, with Hong-style low tax and open trade policies. Today, it has become the world’s “Silicon Valley of Hardware,” with more than 11 million residents. Land values have risen more than 50-fold. Now China has more than 100 similar zones of liberalization.
Liberalized zones are mushrooming Example: a new $10 billion Chinese- funded Special Economic Zone is being launched in TanzaniaMore than 3500 Special Economic Zones exist today in 100+ countries
Endowment Zones: a lasting way to generate revenue for common benefit Endowment Zones are sites where Community Land Trusts benefit from investor-friendly reforms. With world class reforms, such as cutting taxes and red tape, 5x – 50x rises in property values are possible. Shenzhen, Hong Kong, Singapore, and Macau today operate on a land trust model, and are earning billions of dollars from long-term ground leases rather than from selling their land. Proceeds help fund education and social services, as well as “growth dividend” payments (in Macau) directly to residents. Endowment Zones can be a source of sustained funding source for Brazilian and South American Creative Cities initiatives.
Endowment Zones could be used to fund lasting Creative City partnerships A scenario for UNILA – the University for Latin America – to deal with budget cuts? The university could seek land grant endowments to support cultural linkages via the Conselho do Instituto Latino Americano de Arte, Cultura e História (CONSUNI-ILAACH). With added Special Economic Zone incentives, the land could grow in value – and lease revenues could help UNILA promote digital innovations for creative cities throughout the continent. Other beneficiaries of Endowment Zones could include UNIFACENS for Smart City outreach, Brazilian NGOs, associations of creative professionals, and online education/training providers.
A scenario for Brazilian universities to connect Creative Communities in South America u Seek private and public sector land grants on the model of North American land grant universities (Stanford, Duke, Cornell and 70+ others) u Secure targeted Special Economic Zone incentives (e.g. innovative anticorruption measures to improve the climate for investment, eGoverment fast approvals for investment, reduced taxes, and red tape) u Attract risk-taking private developers to develop the sites on a revenue- sharing basis u Commit shares of the annual ground lease income to fund annual scholarships and fellowships for Creative Cities initiatives u Help seed and spread Endowment Zones for creative industry initiatives throughout Brazil and the Americas
China’s Belt and Road Initiative – A New Partnering Opportunity? u China has pledged US$4-8 trillion for a global network of ports, roads, railways and Special Economic Zones. u This “New Silk Road” could fund Endowment Zones and infrastructure projects connecting Creative Cities across Brazil and other South America countries.
Initial projects already are moving in Brazil
Conclusion Brazil’s Creative Cities and universities can offer innovative models for inclusion, applicable across the continent. These models can deliver near-term revenues and lasting assets for all who seek opportunities in creative economy markets. contact: mark@startupsocieties.org

More Related Content

Brazil's Creative Cities – Self-Funding Partnerships

  • 1. Brazil’s Creative Cities New ways of funding cross-border partnerships Mark Frazier Startup Societies Foundation LASA19 Congress Boston, USA May 24, 2019
  • 2. What we’ll explore – u Near term funding opportunities for Creative Cities u Lasting ways to sustain partnerships for creative endeavors across South America
  • 4. Opportunity: digital tools are leveling the playing field around the world for creative ventures New tools u Affordable telecommunications u Anytime/anywhere learning u Global freelance marketplaces u Online funding platforms Emerging creative economy – Billions now can learn, design, and co-create across borders Current economic system – National policies limit who can play – and determine who wins
  • 5. On-demand learning is spreading skills for creative ventures Thousands of online courses from MIT, Harvard, Yale, and other leading universities are offered free of charge
  • 6. Jobseekers can access billions of dollars in freelance projects through online markets u Globally, millions of freelance artists, photographers, musicians, writers and web designers have registered in free-to- join online markets for telework u Tens of thousands of Brazilian creative ventures are also now competing for online jobs.
  • 7. Creative projects are attracting cross-border volunteers (who commit time and funds)
  • 8. Arts and music projects in Brazil have discovered crowdfunding Portuguese language sites: Embolacha, Kickante, Catarse, Sibite
  • 9. Brazilian creative ventures are earning income from online product sales
  • 10. AirBnb’s online platform now promotes creative experiences, including cultural tours, art workshops, and music events
  • 12. A near-term path to sustainability: grassroots groups can partner with AirBnbs • Local groups can propose public arts projects, music events, festivals, cleanup/fixups, and neighborhood safety campaigns to draw new visitors • AirBnb ventures, in return, can share part of their increased earnings with partnering groups as the area improves
  • 13. What about long-term sustainability? Grassroots creative ventures can share in land value gains as neighborhoods improve
  • 14. Vehicles for sharing the asset gains: land grants and Community Land Trusts Hundreds of universities worldwide have received land grants for sustainability… Thousands of Community Land Trusts let members enjoy affordable housing… Stanford’s Tech Park Joint Venture
  • 15. Singapore, Hong Kong, and Macau are exemplars of a success-sharing land trust strategy Singapore Macau Hong Kong
  • 16. How to supercharge land values: Offer “Special Economic Zone” incentives Zonamerica Free Zone (www.Zonamerica.com) Uruguay has introduced reforms surpassing those of Hong Kong and Singapore, transforming a cow pasture into some of the most valuable land in the Americas (with 10,000+ tech workers)
  • 17. How Special Economic Zones sparked China’s takeoff In 1979, Shenzhen was a fishing village with a population of under 10,000. There China launched its experimental reforms, with Hong-style low tax and open trade policies. Today, it has become the world’s “Silicon Valley of Hardware,” with more than 11 million residents. Land values have risen more than 50-fold. Now China has more than 100 similar zones of liberalization.
  • 18. Liberalized zones are mushrooming Example: a new $10 billion Chinese- funded Special Economic Zone is being launched in TanzaniaMore than 3500 Special Economic Zones exist today in 100+ countries
  • 19. Endowment Zones: a lasting way to generate revenue for common benefit Endowment Zones are sites where Community Land Trusts benefit from investor-friendly reforms. With world class reforms, such as cutting taxes and red tape, 5x – 50x rises in property values are possible. Shenzhen, Hong Kong, Singapore, and Macau today operate on a land trust model, and are earning billions of dollars from long-term ground leases rather than from selling their land. Proceeds help fund education and social services, as well as “growth dividend” payments (in Macau) directly to residents. Endowment Zones can be a source of sustained funding source for Brazilian and South American Creative Cities initiatives.
  • 20. Endowment Zones could be used to fund lasting Creative City partnerships A scenario for UNILA – the University for Latin America – to deal with budget cuts? The university could seek land grant endowments to support cultural linkages via the Conselho do Instituto Latino Americano de Arte, Cultura e História (CONSUNI-ILAACH). With added Special Economic Zone incentives, the land could grow in value – and lease revenues could help UNILA promote digital innovations for creative cities throughout the continent. Other beneficiaries of Endowment Zones could include UNIFACENS for Smart City outreach, Brazilian NGOs, associations of creative professionals, and online education/training providers.
  • 21. A scenario for Brazilian universities to connect Creative Communities in South America u Seek private and public sector land grants on the model of North American land grant universities (Stanford, Duke, Cornell and 70+ others) u Secure targeted Special Economic Zone incentives (e.g. innovative anticorruption measures to improve the climate for investment, eGoverment fast approvals for investment, reduced taxes, and red tape) u Attract risk-taking private developers to develop the sites on a revenue- sharing basis u Commit shares of the annual ground lease income to fund annual scholarships and fellowships for Creative Cities initiatives u Help seed and spread Endowment Zones for creative industry initiatives throughout Brazil and the Americas
  • 22. China’s Belt and Road Initiative – A New Partnering Opportunity? u China has pledged US$4-8 trillion for a global network of ports, roads, railways and Special Economic Zones. u This “New Silk Road” could fund Endowment Zones and infrastructure projects connecting Creative Cities across Brazil and other South America countries.
  • 23. Initial projects already are moving in Brazil
  • 24. Conclusion Brazil’s Creative Cities and universities can offer innovative models for inclusion, applicable across the continent. These models can deliver near-term revenues and lasting assets for all who seek opportunities in creative economy markets. contact: mark@startupsocieties.org