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Consultancy for the Development of a Regional Export Strategy for the Creative Industries Services

Terms of Reference

1. Background Information

1.1 Beneficiaries The beneficiaries of this assignment are CARIFORUM stakeholders in the Cultural Creative Industries1 more specifically creative industry goods such as jewellery, paintings, recorded music and film, etc., creative industry services such as fashion, music recording services, performance management services, film production and arts & crafts Contracting Authority: Caribbean Export Development Agency

1.2 Relevant Background: Caribbean Export Development Agency (Caribbean Export) is a regional export development and trade and investment promotion organization of the Forum of Caribbean States (CARIFORUM). Caribbean Export is also a beneficiary of funding assistance from the 10th European Development Fund (EDF), under which the Agency is responsible for implementing the Regional Private Sector Development Programme (RPSDP). The RPSDP has four specific objectives: a) Enhancing Competitiveness and Promoting Innovation among CARIFORUM’s Private Sector; b) Promoting Trade and Export Development among CARIFORUM States; c) Promoting stronger trade and investment relations among CARIFORUM and French Caribbean Outermost Regions (FCORs)2 as well as European Union (EU) Overseas Countries and Territories (OCTs) in the Caribbean; and d) Promoting stronger trade and investment cooperation between CARICOM and the Dominican Republic (DR). There is also a complementary objective of strengthening the institutional capacity of Caribbean Export to implement trade and investment promotion programs in the region through its export development programming and through support to the Caribbean Association of Investment Promotion Agencies (CAIPA).

1 Cultural industries is defined as industries that produce tangible and intangible artistic and creative outputs, and

which have a potential for wealth creation and income generation through the exploitation of cultural assets and the production of knowledge-based good and services (both traditional and contemporary). Also known as “creative” or sometimes “copyright-based” industries, cultural industries include a wide array of economic activities including: advertising; architecture; crafts and designer furniture; fashion clothing, film, video and other audiovisual production; graphic design; educational and leisure software; live and recorded music; performing arts and entertainments; television, radio and internet broadcasting; visual arts and antiques and writing and publishing. Statistics on Cultural Industries, Framework for the elaboration of national Data Capacity Projects. 2 Martinique, Guadeloupe and French Guyana

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The overall objective of the Regional Private Sector Development Programme is to contribute to the gradual integration of CARIFORUM States (Antigua and Barbuda, The Bahamas, Barbados, Belize, Dominica, Dominican Republic, Grenada, Guyana, Haiti, Jamaica, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Suriname and Trinidad and Tobago) into the World Economy and by so doing to enhance regional economic growth and by extension alleviate poverty. One of the specific objectives of the programme is to promote trade and export development among CARIFORUM States.

1.3 The Current State of Affairs Under the 10th EDF Regional Private Sector Development Program, Caribbean Export has a mandate for the development of a regional export strategy for CARIFORUM. At a regional consultation held in Barbados in early June 2014, stakeholders endorsed four sectors of export growth potential for CARIFORUM countries, and by extension the wider CARIFORUM region, and for which regional export strategies would be developed. This included:

1. Agro-processing: Main Sub-Sectors:

a. Specialty foods such as hot sauces and other sauces, jams & jellies, condiments and seasonings, etc.

b. Semi-processed products (intermediate products) – e.g. pepper mash, juice concentrates, etc.

c. Food & Beverage – canned food, juices and carbonated drinks, etc. d. Rum, spirits, and other alcoholic beverages

2. Education Services:

Main Sub-sectors: a. Higher Education Services – including post-secondary technical and

vocational education services; and b. Other higher education services (i.e. those leading to a university degree or

equivalent)

3. Creative Industries: Main Sub-sectors: a. Creative industry goods such as jewelry, paintings, recorded music and film,

etc. b. Creative industry services – music recording services, performance

management services, film production c. Arts & Crafts

4. Renewable Energy:

Main Sub-sectors: a. Hydro-electric power

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b. Biomass c. Geothermal energy d. Wind power e. Solar energy.

Stakeholders at the regional consultation also agreed that:

1. Any regional export strategies would initially be limited to the above mentioned four broad sectors;

2. A study be conducted to map the global value chain for the above mentioned four sectors, with a view to identifying the challenges and constraints faced by CARIFORUM firms as well as their potential to enter the global value chain of the respective sectors;

3. The regional strategy development process focus on addressing the challenges, constraints, opportunities and weaknesses exhibited by CARIFORUM firms in entering the value chains of the respective sectors under consideration.

In a recent report on increasing the export of entertainment services3 it was stated that despite their relatively small size, CARIFORUM States have made a significant contribution to the global entertainment sector. Countries throughout the region have contributed to global culture in a wide range of fields such as dance, literature, music, film, carnival and cultural festivities. The European Union (EU) is the largest global market for services, and the export of cultural and entertainment services from the Caribbean could provide new earnings for cultural services providers.

The Creative Economy Report for 2010 stated that in 2008, the onset of the world financial and economic crisis caused a contraction in international trade by 12 percent, but world exports of creative goods and services continued to grow by an annual growth rate of approximately 14 percent over six consecutive years between 2002 and 2008. In addition a CARICOM Strategy on Culture was developed with several objectives including:

• Growing the Creative Economy by building more globally competitive cultural industries (increased employment); • Position the Region as a cultural mecca and preferred investment location; • Create an enabling environment for sustainable job and wealth creation, retention of jobs and wealth within the CARICOM Region; • Increase the sector’s contribution to sustainable national and regional development; • Identify priority areas for wealth creation and investment; • Improve competitiveness and productivity of the regional cultural industries; and • Optimising the contribution of cultural industries to economic development

3 Intellect Management Services Inc. 2013. Developing an Action Plan for Increasing the Export of Entertainment

Services to the EU Markets

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A review of Opportunities for doing Business between CARIFORUM States and French Caribbean Outermost Regions (FCORs) found that there is some trade in cultural goods and services between CARIFORUM countries and the FCORs and opportunities, however, a number of barriers were identified to be addressed. 2.0 Objective, Purpose and Expected Result 2.1 Overall Objective The objective of this assignment is to articulate a regional export strategy for CARIFORUM institutions for Cultural and Creative Industries. The sector strategy will be derived from an in-depth analysis and mapping of the value chain of specific subsectors of the Cultural and Creative Industries namely:

a. creative industry goods such as jewellery, paintings, recorded music and film, etc.; b. creative industry services such as fashion, music recording services, performance

management services, film production; and c. arts & crafts

The objective of the value chain analysis is:

(1) To give a realistic indication of the EU and international export potential for CARIFORUM Cultural and Creative Industries products;

(2) To give a realistic indication of the sustainable development potential (economic, social and environmental);

(3) Analysis of export potential of CARIFORUM Cultural and Creative Industries products and services;

(4) To map the value chain(s) in order to get a clearer understanding of the value chain(s), its prospects and constraints;

(5) To determine how cluster/consortia development can contribute significantly to export growth of Cultural and Creative Industries;

(6) To identify challenges and constraints faced by CARIFORUM Cultural and Creative Industries in entering the value chains and identify ways to strengthen and expand selected positions along the value chain and to articulate a sector focused strategy;

(7) to identifying opportunities/possible impact for the Caribbean private sector; In addition to providing the framework for development of the export strategy the value chain analysis should engage stakeholders and strengthen relationships and cooperation among them. The mapping exercise will include:

1. Review mapping exercises and other studies undertaken for the cultural and creative industries in CARIFORUM. Studies/reports including but not limited to:

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a. Towards a Regional Development Strategy for the Cultural/ Creative Industries: Key Issues and Priorities

b. Organising of a Study Tour in Europe for Caribbean Business People from the Cultural Industries Consultancy on Opportunities for Doing Business between CARIFORUM States and French Caribbean Outermost Regions (FCORs)

c. The Entertainment Sector in CARICOM: Key Challenges and Proposals for Action

d. Implementing Cultural Provisions of CARIFORUM-EU EPA: How do they benefit the Caribbean Cultural Sector challenges and opportunities

2. A comprehensive mapping of the value chain for Cultural and Creative Industries sector in selected EU Member States including, Denmark, France, Germany, Ireland, Italy, the Netherlands, Spain, Sweden and the United Kingdom, considering actors (i.e. service providers, exporters); enablers; drivers (public institutions and ministries); factors (buyers, consumers, quality/standards, legal requirements, trade agreements, transportation/logistics, trends, etc.); definition of the cultural industries value chain map; and a description of the cultural industries value chain process

3. Identification of the market opportunities and potential for CARIFORUM Cultural and Creative Industries service providers to take advantage of the opportunities, in particular the demand for certain cultural goods and services and the customers in the markets

4. A road map for enhancing the competitiveness of Cultural and Creative Industries in entering the value chain in relevant markets of export interest and potential to CARIFORUM;

a. International best practices; b. where are the niches c. labour and environmental compliance d. input sourcing – tariffs and duties (using trade agreements) e. innovation f. Intellectual property g. identification of manufacturing options h. Partnerships (co-production, twinning, etc.) i. strategy for competitiveness

2. Review of the current Cultural and Creative Industries market and future trends 3. Stakeholder mapping and positioning of the different CARIFORUM providers of

Cultural and Creative service with a view to determining their engagement, supply capacity, relevance, and position in each aspect of the value chain;

4. Detailed strategies for addressing the challenges and constraints that CARIFORUM the Cultural and Creative Industries face on entry into each value chain, including

a. Products; b. marketing

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c. branding d. technology used; e. link with drivers f. education and skills

g. business model development h. infrastructure i. possible regional and international investment j. management and strategic planning

2.2 Project Deliverables The consultant is expected to deliver the following results; 1. An inception report describing the methodology to be undertaken in completing the

assignment and recommendations concerning market opportunities based on supply and demand analyses. In this report the consultant should identify a list of potential export products and services;

2. Identification of the demand in potential target countries and the opportunities these markets hold for companies within the Cultural and Creative Industries value chain for the identified industries. This includes, at least:

a. Volume of current demand for the (quality of) products and services in the value chain

b. Opportunities for growth, and conditions for export growth c. Requirements for the products and services to realise export growth.

3. Identification of the number of potential participating companies and individuals and their experience with exporting, level of quality standards, and interest in exporting to the US, EU and other high potential markets;

4. Identification of the main bottlenecks (incl. finance and investment, market entry requirements) along the export value chain that hinders exports. In other words: why export currently is not reaching its full potential

5. A listing of service provider(s) or institution(s) which are in the position and/or show the potential capacity to remove the bottleneck(s)

6. Listing of the opportunities that exist in the chain(s), in terms of possible improvements that lead to significant increases in export volume and/or prices. This should relate to the demand in the market on the one hand, and the possibilities that exist within the chain(s) on the other hand.

7. Assessment of possible joint ventures between and among CARIFORUM and European

Cultural and Creative Industries providers to facilitate Cultural and Creative Industries

services exporting:

a. Recommendations on twinning arrangements and exchange programmes for

services offerings;

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b. Recommendations on possible marketing strategies Enhance visibility within

European markets

c. Identification of potential partners

8. Inventory of developments actions and or programmes planned and under implementation by national, regional and international donors/organisations to address constraints;

9. Stakeholder Analysis Report 10. Baseline data regarding the planned outcomes in order to assess the results of the

implementation of the strategy in addition to the outputs of the strategy. 11. Identification of specific market opportunities in the value chain for Cultural and

Creative Industries within CARIFORUM. In addition recommendations should be made regarding business support services and IP management systems that must be in place;

12. Identification of the business models to be developed for the different sub-sectors of the cultural and creative industries;

13. Recommend best clustering to penetrate the value chain; 14. Identify the human resource and technological needs that must be enhanced to meet

international demands. 15. Review and recommend enhancement of Cultural and Creative Industries offerings

within CARIFORUM including how to improve their capacity to offer cultural services via flexible delivery methods;

16. Detailed value chain maps for Cultural and Creative Industries sector in selected EU Member States including, Denmark, France, Germany, Ireland, Italy, the Netherlands, Spain, Sweden and the United Kingdom, showing who are the chain stakeholders including actors (i.e. service providers, exporters); enablers; drivers (public institutions and ministries, business support organisations and associations); and factors (buyers, consumers, quality/standards, trade agreements, transportation/logistics, trends, etc.) in each selected market. The value chain maps should also clearly identify stakeholder positioning including their engagement, supply capacity, relevance, and position in each of the respective value chains; the value-chain maps should look at national, intra-regional and international value chains;

17. Assess and provide recommendations to: a. enhance data collection for assessment and evaluation of potential and

interventions (competitiveness) b. identify what sub-sectors or interventions will add value to the sector; c. identify festivals that will add the greatest value to participate in;

18. A list of all CARIFORUM Cultural and Creative Industries providers and their currently levels of engagement in international value chains in the Cultural and Creative Industries sector;

19. A draft road map for enhancing the competitiveness of CARIFORUM Cultural and Creative Industries in entering the value chain for the Cultural and Creative sector in selected markets of export interest and potential to CARIFORUM;

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a. A marketing strategy that complements the road map including strategic partnerships with global actors.

20. A detailed strategy and action plan for addressing the challenges and constraints CARIFORUM Cultural and Creative Industries providers face on entry into the value chain addressing areas including:

a. Products; b. Marketing c. Human resource d. branding e. technology used; f. business model development g. management and strategic planning

21. A final report presenting findings on the research conducted and including the final

versions of the value chain maps, and a detailed strategy and action plan (regional export strategy) including estimated costs to implement same.

22. Complete list and contact details of institutions/key contacts consulted.

3.0. Assumptions and Risks

3.1 Assumptions underlying the project The consultant hired can successfully and effectively deliver the scope of works outline in this TOR within the stipulated timeframe and that successfully meets CE’s expectations. The time frame allocation for the assignment is sufficient to complete the assignment for each of the four sectors. Adequate data and information is available to undertake the research in the specified time period. 3.2 Risks The general risk includes delays with data collection resulting from reluctance of the relevant stakeholders to share information or to complete the assessment exercise; or delays resulting from other causes.

4.0 Scope of the Work

4.1. General 4.2. Specific Activities

To achieve the expected results, the Consultant will, at a minimum, do the following:

(a) Undertake desk research including research into the supply and demand side of the export value chain for products and services Listed above. The Consultant will

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collect/access all relevant studies and materials already produced by donors, NGOs and research institutions in the recent past, including:

Towards a Regional Development Strategy for the Cultural/ Creative Industries: Key Issues and Priorities

Organising of a Study Tour in Europe for Caribbean Business People from the Cultural Industries Consultancy on Opportunities for Doing Business between CARIFORUM States and French Caribbean Outermost Regions (FCORs)

The Entertainment Sector in CARICOM: Key Challenges and Proposals for Action Implementing Cultural Provisions of CARIFORUM-EU EPA: How do they benefit the

Caribbean Cultural Sector challenges and opportunities and detail the outcomes of these studies, as a starting point to map the value chain and to identify the main constraints.

(b) Participate in briefing meetings with the Caribbean Export team to define, clarify, and agree on project parameters and expectations, including timelines, reporting, etc.

(c) Summarise the results of the desk review and the initial discussions with the key stakeholders in a brief inception report, which should also include a detailed work plan for the conduct of the assignment and terms of reference for any local experts who will be required to support data collection in the field.

(d) Support the recruitment of the local experts as required. The local experts will be primarily required to conduct fieldwork to collect missing data, assess the specific situation and engage with potential stakeholders, recording their views. The Consultant’s primary role is to coordinate the data collection of the local experts to ensure that the right information is gathered. Once all the necessary information is collected, the Consultant visits the various, countries and regions compares the value chains and analyses the market potential for the export of the cultural and creative subsectors identified. The fieldwork comprises:

Identification of the key chain actors and the conduct of interviews with those

actors; (The interviewer should record the sex of the respondent)

Interviews with the target individuals, companies (exporters); assessing their current

exporting efforts, why they are currently not exporting (sustainable products) and

what the constraints in their exporting business are. Their needs (for BSO services or

internal skills) will then be the basis for the rest of the interviews with other chain

actors and stakeholders.

Interviews with importers in high potential markets in order to have a clear

understanding about (sustainable) demand

Interviews with other chain stakeholders such as BSOs and ministries, financial

institutions, universities, donor organisations

Baseline data collection; statistics on number of chain actors, current exports,

employment, market trends, sustainability standards etc.

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(e) Prepare a draft final value chain analysis report following the Table of Contents provided

as Annex 1. Based upon the results of the field visits, the preliminary export study

prepared at the completion of the desk research will be further developed into a more

comprehensive study.

(f) Once the draft final value chain analysis report has been accepted by Caribbean Export,

facilitate at least one (1) workshop with the identified key stakeholders to validate the

value chain analysis.

(g) Prepare a final value chain analysis report that reflects the comments and suggestions

provided by the stakeholders.

(h) Based on the value chain analysis report prepare a comprehensive Cultural and Creative

Industries export strategy and action plan

(i) Prepare a document highlighting recommendations, where Caribbean Export can

address any of the bottlenecks identified in the value chain analysis within the medium

term.

(j) Finalize the industry strategy and action plan based on comments and feedback

received from stakeholders.

4.3. Project Management

4.3.1. Responsible body

The Caribbean Export Development Agency will be responsible for the management and coordination of this project.

4.3.2. Management The Services Specialist will retain overall responsibility for the project and will report the performance of the project to the Executive Director.

5. Logistics and Timing

5.1. Location The assignment is commissioned from Barbados but does not necessarily require physical presence in that country to execute the assignment. 5.2. Duration The assignment is allocated sixty (60) billable days per regional export strategy.

5.3. Commencement Date and Period of Implementation Work is expected to commence by 15th September, 2014 and should be completed by 5th December, 2014.

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6. Requirements

6.1. Personnel 6.1.1 Qualifications and Experience Required

A postgraduate degree in international trade, international business, international development, social science/culture/economics or a related field.

Demonstrable track record in global value chains and sector development similar to those outlined in TORs.

Sound knowledge of the trade and development issues facing the Caribbean, in particular the export challenges for institutions within the region in the Cultural and Creative Industries sector.

At least 5 years of practical European and or North-American import-related experience in one or more of the sub-sectors comprising the Cultural and Creative Industries sector;

A network among American and European importers of cultural and creative industries products and services;

Experience working in development of export potential and capacities.

Excellent presentation and communication (oral and written) skills;

Outstanding inter-cultural communication, networking and coordination skills;

Fluent in English, however ability to speak Spanish, French and/or Dutch would be an asset.

Applicants must be nationals of or have a firm registered in an ACP (African, Caribbean and Pacific) country or in the European Union.

6.2. Required Documentation The Applicant will at a minimum submit the following;

1. Examples of previous work done in this area 2. Proposal submitted which should include, at a minimum; company profile,

understanding of the project and methodology, available experts and qualifications, timetable/ Gantt chart for activities and a detailed proposed budget

3. Proof of citizenship in the case of an individual or company registration if a firm.

7. Reports 7.1. Reporting Requirements 7.1.1. Consultant will submit the following reports

Inception Report: Presented within one week of contract signing and including an inception meeting with Caribbean Export to discuss the Report. This report will clearly outline the approach and methodology necessary for completing the assignment and any changes or suggestions agreed with Caribbean Export as relevant for successful completion of the assignment.

Draft value chain map of the Cultural and Creative Industries Services sector identified above and including actors (i.e. service providers, exporters); enablers; drivers (public institutions and ministries); and factors (buyers, consumers, quality/standards, trade

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agreements, transportation/logistics, trends, etc.). The value chain maps should also clearly identify stakeholder positioning including their engagement, supply capacity, relevance, and position in each of the respective value chains;

A draft road map for enhancing the competitiveness of CARIFORUM institutions in entering the value chain for the respective sector in relevant markets of export interest and potential to CARIFORUM;

A draft strategy and action plan for addressing the challenges and constraints CARIFORUM institutions face on entry into each of the respective value chains for the identified sector;

A Final Report presenting findings on the research conducted and including the final versions of the value chain maps, and a detailed strategy and action plan (regional export strategy) including costs, as well as a list of all CARIFORUM institutions currently engaged in the value chains in the respective sectors in consideration.

7.2. Submission & approval of reports 7.2.1. The reports and deliverables as referred to above must be submitted to the

Services Specialist. All reports must be submitted in English in electronic format (Microsoft Word). The final report must be submitted in electronic format along with two (2) hard copies.

7.2.2. The Services Specialist is responsible for communicating the approval of the draft and final reports/strategies/action plans.

8. Monitoring and Evaluation

8.1. Definition of indicators Performance on the project will be measured by satisfactory completion and timely submission of the deliverables outlined in Section 4.2 and as outlined within the work plan. Feedback, other than acceptance, on each submitted Progress Report is not a requirement for the continuation of the project. The Contracting Authority will provide feedback to the consultant within five (5) working days of receipt of the final report. 8.2. Special requirements None