New Delhi: Digital transformation and AI are redefining the global cultural economy at a pace few policy frameworks are prepared for. That is the key finding of Re|Shaping Policies for Creativity 2026, Unesco’s comprehensive assessment to date of how governments are implementing the Convention on the Protection and Promotion of the Diversity of Cultural Expressions two decades after its adoption.
The report finds that digital revenues now account for 35% of creators’ income, up sharply from 17% in 2018, marking a structural shift in how cultural goods and services are produced, distributed and monetised. Yet this expansion has come with growing instability. Income volatility, intellectual property infringements and dependence on a handful of dominant global streaming platforms have intensified economic precarity for many creators. Market concentration and opaque algorithmic curation systems risk sidelining minority voices and smaller producers, reshaping media diversity in ways that raise concerns about pluralism and cultural representation.
Generative AI introduces an even more disruptive dimension. By 2028, the report projects global revenue losses of 24% for music creators and 21% for audio-visual creators as AI-generated outputs expand across markets. Questions around authorship, fair remuneration and cultural authenticity are rapidly moving to the centre of policy debates. At the same time, stark disparities in digital capability persist: essential digital skills are present among 67% of people in developed countries but only 28% in developing countries, reinforcing entrenched North-South divides. Despite the scale of change, only 48% of countries are developing statistical systems to monitor digital cultural consumption, limiting evidence-based policymaking.
Cultural Governance
Beyond the digital sphere, Re|Shaping Policies for Creativity 2026 presents a mixed picture of global cultural governance. Drawing on 133 quadrennial periodic reports and nearly 4,000 policy measures from 121 countries, the study documents significant institutional consolidation. All reporting countries now maintain ministries or agencies dedicated to culture, and inter-ministerial cooperation frameworks are widespread. Cultural and creative industries are referenced in national development plans in 85% of reporting states, signalling broad recognition of culture’s economic and social value.
However, this policy visibility contrasts sharply with funding realities. Direct public expenditure on culture remains below 0.6% of global GDP and continues to decline in many developed economies. Only 56% of reporting countries set specific cultural objectives within their development strategies, revealing a persistent gap between stated commitments and concrete action.
Global trade in cultural goods has doubled since 2005, reaching $254 billion in 2023. Developing countries now account for 46% of exports in this segment, with middle-income nations leading much of the expansion. Yet trade in cultural services — increasingly delivered digitally — remains dominated by developed economies.
Developing countries represent just over 20% of global cultural services trade, underscoring widening asymmetries as markets shift online. Foreign direct investment in cultural sectors is similarly concentrated in advanced economies, while preferential treatment provisions designed to support developing countries remain unevenly implemented.
Mobility barriers further compound inequality. Although 96% of developed countries support outward mobility for artists, only 38% facilitate inward mobility from developing nations. Visa restrictions continue to function as a structural obstacle to balanced cultural exchange, limiting opportunities for creators from less advantaged regions.
The report also flags mounting pressures on artistic freedom. While legal recognition of artistic freedom is nearly universal, only 61% of countries maintain independent monitoring bodies. Political instability, conflict and displacement expose cultural professionals to heightened risks, yet just 37% of countries report specific protection initiatives. Digital surveillance and algorithmic bias introduce new vulnerabilities, adding to longstanding threats such as censorship and economic insecurity.
Gender equality shows incremental progress but persistent disparities. Women’s leadership of national cultural institutions has risen from 31% in 2017 to 46% in 2024. However, women account for 64% of cultural leaders in developed countries compared with only 30% in developing countries. Horizontal and vertical segregation, pay gaps and technology-facilitated harassment remain systemic challenges, and in some regions policy momentum has slowed or reversed.
Culture’s integration into sustainable development frameworks is expanding, with local culture-led regeneration initiatives gaining traction. Yet monitoring of cultural outcomes remains limited, and the environmental footprint of cultural industries is rarely assessed. The report argues that culture’s potential contribution to climate action and resilience is still underutilized.
Across its findings, the report stresses that culture must be treated as a global public good essential to human rights, social cohesion and sustainable development. Institutional frameworks have matured and trade has expanded, but funding shortfalls, digital inequalities, restricted mobility and growing threats to artistic freedom expose deep structural vulnerabilities.
As AI and digital platforms reshape creative ecosystems, the challenge for governments and international bodies will be to ensure that innovation strengthens, rather than erodes, the diversity of cultural expressions worldwide.
(Cover photo by Hirzul Maulana on Unsplash)