Brazil: Return On Investment In Carnival Exceeds That Of Industrial Sector
By Lucas Pordeus Leon
The economic return for every real invested in culture and the arts - including Carnival - is higher than that of some traditional industrial sectors, such as the automotive industry. In an interview with Agência Brasil during her visit to Brazil to study the creative economy surrounding the festivities, Italian-American economist Mariana Mazzucato highlighted the power of the country’s biggest festival.
“Public investment in the arts and culture contributes far more to the economy than much of the traditional manufacturing industry,” said Mazzucato.
“However, governments continue to invest more in these traditional industrial sectors, even though the evidence exists. It’s not true that we lack evidence,” she added.
In Brazil, while one real invested in culture can generate BRL 7.59 in return for society through jobs and income, one real invested in the automotive and trucking sector has a multiplier effect of BRL 3.76, according to studies by the Getúlio Vargas Foundation and the Brazilian Industrial Development Agency.
One of the world’s most influential economists and the author of The Entrepreneurial State added that Carnival brings social, well-being, and mental health benefits to many communities, including those that are vulnerable.
“More than just about the food, drinks, hotels, and tourism during Carnival, it’s about the social impact - the skills, schools, networks, the value of social cohesion, and the sense of identity and heritage.”
Mazzucato visited Rio de Janeiro and Salvador to learn about the economy behind the festivities and plans to visit Recife on her next trip.
The economist leads research at University College London (UCL), in collaboration with the United Nations Educational, Scientific and Cultural Organization (UNESCO), on the role of arts and culture in a country’s economic development.
The creative economy behind Carnival
While in Brasília for meetings with federal public managers, Mazzucato argued that Carnival should be the centerpiece of a platform to expand Brazil’s creative economy. This economy is a business model based on intellectual and cultural capital, as well as creativity, to generate employment and income.
The economist also questioned the thesis that “there is no money” for investments in culture, noted that the sector helps reduce crime, and warned of the risks of Carnival generating greater income concentration.
“We must always remember that power relations exist. Who has access [to Carnival]? Is it becoming too commercial? Where does the money go? Are sponsorships, for example, being reinvested in the communities and the ecosystem that create this incredible creativity?” she asked.
Her visit to Brazil is part of a partnership with the Ministry of Culture to develop economic indicators that will help the government design public policies to boost the economy around Carnival, culture, and the arts.