Beyond Culture vs. Commerce: Decentralizing Cultural Protection to Promote Diversity Through Trade

Sean Andrew Pager, Michigan State University College of Law

Abstract

Do culture and commerce conflict? The assumption that trade is incompatible with cultural diversity has disrupted economic liberalization, distorted world trade law, and damaged Europe’s film industry. A new wave of cultural protectionism now threatens to engulf e-commerce. Yet, as American appeals to fully liberalize audiovisual markets continue to fall on deaf ears, the real question is not whether to protect culture, but how. European protectionism has failed. South Korea shows there is a better way. Eschewing Europe’s top-down patronage model, Korean policy-makers have pursued a decentralized approach to develop their audiovisual industries. Deploying indirect subsidies ranging from tax incentives to infrastructural investment backed by a resuscitated screen quota set in motion the remarkable flowering of audiovisual expression known as the “Korean Wave.” Moreover, in developing export markets critical to harnessing economies of scale, Korea has exploited an untapped global market for diverse content. South Korea’s experience is bolstered by case studies from India, Hong Kong, and Nigeria, which provide further evidence that tapping into global markets can drive cultural vitality. These audiovisual success stories, combined with the promise of digital technologies, argue strongly for a reconceptualization of cultural protection. This Article describes the essential components of a decentralized paradigm for cultural protection that strives to realize diversity through trade. In support of such export-oriented policies, the Article proposes an innovative “diversity quota” regime that would expand global markets for diverse filmmaking.