by John M. Eger

August 27, 2025

Globally, the creative sector is one of the fastest-growing industries in the world. 

This growth is not just measured in economic statistics—it is reflected in the transformative impact on communities around the globe. One of the most compelling examples is found in Santa Fe, New Mexico, at the International Folk Art Market (IFAM).

IFAM, co-founded by Tom Aageson, former Executive Director of the Museum of New Mexico, works with artisan communities from over 57 countries—many of them developing or less developed—to create sustainable economic opportunities. 

The message is clear: culture is no longer viewed merely as identity or entertainment—it is recognized as a strategic economic resource. For less developed nations, it is increasingly a pathway out of poverty. For global cities, it is a blueprint for resilience and innovation. Over the past decade alone, exports of creative goods and services nearly doubled globally, surpassing $60 billion. Today, the creative economy accounts for nearly 7% of global GDP, and forecasts suggest it will continue to expand at an impressive annual growth rate of 14%.

In Santa Fe alone, IFAM reported that artists from these less developed nations’ earnings since the event was established have exceeded $31 million and impacted more than one million lives in the communities. Participants gain global exposure, fair income, education, and support for infrastructure projects. According to IFAM, many artisans invest their earnings in wells, bridges, schools, and water treatment systems, transforming their communities for generations to come.

These artisans—hailing from countries such as Afghanistan, Algeria, Bangladesh, Bhutan, and Vietnam—bring a rich diversity of folk crafts, from ceramics and textiles to jewelry, leatherwork, and glasswork. Their goods often sell at premium prices, reflecting strong demand for authentic, high-quality cultural products.

Irina Bokova, former Director-General of the United Nations Educational, Scientific, and Cultural Organization (UNESCO), once said:

“Culture is what makes us who we are. It gives us strength; it is a wellspring of innovation and creativity; and it provides answers to many of the challenges we face today.”

Culture is a pathway to a Creative Economy, UNESCO says, and it put that belief into action by adopting the Universal Declaration on Cultural Diversity, declaring culture “a source of exchange, innovation, and creativity.”

This marked a turning point, especially for less developed nations.

For the first time, the global community formally recognized that creative and cultural expressions hold not only intrinsic value but also significant economic potential. UNESCO began targeting capacity-building programs in developing countries, helping them strengthen governance, shape policy, and build skills in creative sectors. Nations were encouraged to integrate the creative economy into their economic plans, education systems, and tourism strategies.

Many of these countries had long struggled to compete with larger economies. Cultural industries were often dismissed as marginal, poorly organized, and undervalued, sometimes even lacking basic data to prove their worth. Yet, by harnessing creativity, art, and culture, they could diversify their economies, create jobs, and stimulate social progress.

Other UN agencies soon followed UNESCO’s lead. The UN Conference on Trade and Development (UNCTAD) and the UN Development Program (UNDP) began supporting even the poorest nations in developing cultural industries. Both agencies recognized that increased cultural production—whether in goods or services—could become a key driver of growth.

One of UNESCO’s most influential initiatives was the creation of the Creative Cities Network. Cities that join pledge to place creativity—through arts, design, crafts, gastronomy, media, or heritage—at the heart of urban planning and economic development. As UNESCO notes, participating cities are “shaping their economic, social, and cultural planning around creative industries and cultural heritage, not just traditional infrastructure and commerce.”

Increasingly, governments, businesses, and communities recognize that culture is not just a reflection of identity—it is a powerful engine for creativity, innovation, and economic growth. And as UNESCO’s work shows, investing in culture is investing in the future.