“We are committed to boosting the Orange Economy so that our actors, artists, producers, musicians, designers, publicists, jewelers, playwrights, photographers and digital animators conquer markets, improve their incomes, undertake successfully, position their talent and attract the eyes of the world.” With this statement in his inaugural speech, Colombian president Ivan Duque made it clear that during his administration he wants to boost companies in the creative sector.
But what exactly is the definition of the Orange Economy? The term results from the fact that this color is always associated with culture, creativity and identity. Duque has been one of the drivers of this term since his time at the Inter-American Development Bank (IDB). He even co-authored the book ‘The Orange Economy: An Infinite Opportunity’. This economic model, also known as ‘Creative Economy’, is based on the generation of wealth through “talent, connectivity and cultural heritage” (Blum, 2019).
The Orange Economy can be divided into three main categories:
1) Cultural industries that provide goods and/or services that can be mass reproduced and disseminated (books, newspapers, magazines, libraries, film, television, photography, radio),
2) Visual arts (dance, opera, fashion, design, museums, architecture, gastronomy).
3) New media and content software (video games, software creation, advertising, video games, software creation, advertising).
Foreign software companies looking to establish an offshore location in Latin America could fall in the third category. Colombia offers very attractive conditions to those companies, thanks to low labour costs and a large pool of young and motivated talent, as I have described in a previous article (Why should international software developers consider Colombia as an offshore location?).