The introduction of a policy for ‘making culture the foundation of development’ is a project that embraces a complex set of cultural, social and economic issues. There are, for example, many social challenges created in the relationship between the minority peoples for whom a culture is a way of life and those outside that culture who see it as a commercial object to be marketed for its economic value. The question arises whether this reinforces a sense of difference between the people of the culture and those who see it as a ‘curiosity’ or a consumption good, and whether this happens in ways that makes the relationship unequal. A related question is whether the act of developing cultural enterprises will lead to a renewed sense of value and vigor in the culture, or whether it will contribute to the undermining of the cultural values of the minority peoples. Such issues require sensitive and careful consideration both in the policy and in the cultural enterprises that emerge.

In economic terms, the issues involve both the macroeconomic policies of the government and methods of microeconomic management. In the following discussion, therefore, I shall focus on three main aspects. First, I shall discuss the general economic context for the policy at both the provincial and the national levels. Then, I shall comment on two particular issues, the nature of ownership and the impact of gender differences.

The Economic Context

Yunnan Province belongs to the poor, western part of China. Over the past 20 years, it has developed much more slowly than the eastern coast. As a result, it has fallen behind, and there is an increasing gap in income levels. While the cities of Yunnan may be modern and prosperous, the countryside, especially the remote mountain areas where many of the national minorities live, remains very poor. Rural per capita income is only slightly more than half the national average. Over 70 counties out of the province’s 122 are nationally designated poor counties, and around 3.5 million of the 41 million population are living at or below the poverty line. A high proportion of the minority areas is thus both remote and poor. In such areas, the relationship between culture, ecology and development is a fundamental issue of survival and not yet one of cultural conservation and tourism.

At the national level, the potential for cultural enterprises to evolve and grow also relates to general economic policies. In this respect, there are currently a number of features of economic policies in China that provide a positive environment for the promotion of development based on cultural diversity.

1) The emphasis now given by government at all levels to the need to reduce regional disparities and to support the development of the western region is contributing to regional development policies. It is also promoting a flow of capital and other resources to areas like Yunnan. The opportunities for distinctive patterns of local development are thus improving.

2) The steady growth in national incomes and the associated changes in consumption patterns across China are leading to renewed emphasis on the improvement of cultural life. People with higher incomes and more leisure are interested in visiting and learning about minority cultures. If managed in the right way this can both bring economic benefits to cultural enterprises and form the basis for a commitment to the values of a multicultural society.

3) Economic policies that have led to greater diversity in the rural economy and to the expansion of the tertiary sector provide a stimulus for the growth of cultural enterprises and tourism. There is also now broad support for a greater variety of types of ownership and encouragement for private entrepreneurs to develop their enterprises. This makes it easier for local communities and for the minority peoples to play a more active role in local development.

Nevertheless, there are also many challenges.

1) The implementation of national policies for regional development is sometimes very uneven, and the development funds for the regions and for poverty alleviation may be misappropriated or used in ways other than intended. As a result, some poor and backward areas may be slow to feel the benefits, and the local communities may not have much choice in how the funds are used.

2) Financial reform is now a crucial task, especially in the rural areas. The banking system faces many risks, and there is a greater shortage of capital, especially at the basic level in the countryside, where communities need the capital for cultural and environmental work. Until a more open financial market is developed in the countryside, it will be difficult for local people to compete with outsiders in the development of cultural enterprises and tourism.

3) The rapid growth of market forces has not been accompanied by a balanced development of laws and management processes. As a result, the focus of the reforms has been growth and efficiency. Problems of equity have often been set to one side, with the result that the needs of marginalized groups need more consideration.

These aspects tend to mitigate the benefits of the other features of the current economic situation discussed above.

Ownership

One issue that is of considerable importance in the development of the cultural policy is that of property rights and ownership. If culture becomes a commodity for tourism, it is necessary to create a situation where the ownership rights of the minorities are recognized and where they get a fair share of the benefits. If not, they will be reduced to passive objects.

Currently in China, the issue of property rights is still undergoing reform. In many cases these rights, especially intellectual and cultural property rights, are not clearly defined or protected by law. Furthermore, if a planned economy approach is taken and the government owns and operates cultural enterprises, the distinction between ownership and administration becomes confused. The government then has a vested interest in the economic returns and is less focussed on its role in nurturing culture and protecting the environment. The result is that many things that need to be done may be neglected.

Experience in other parts of the world has shown that minority cultures can easily be used by outsiders for profit, with little return to those belonging to the culture. Like intellectual property rights, there is a need to take account of the ‘cultural property rights’ of the people involved and to ensure that there is a mutual benefit for all. In other words, it is important to ensure that the ‘owners’ of a culture are central to the process of making decisions about its use. In this way, society can benefit from cultural diversity, and minority cultures can also maintain their integrity. Recognition should also be given to the cultural knowledge of minority peoples, and how that knowledge might contribute to issues such as local resource management and local development choices.

Gender Impact

Women create many cultural tourism products, yet the social system and the operation of the economy often means that women are the last to benefit from the income generated. Women are also least able to get access to credit to develop their own enterprises. Such issues may also be a feature of the culture itself. The question therefore arises of how to ensure that the process of economic growth will address this challenge and ensure that all members of the community share equally in the benefits.

An equitable policy urgently needs to address this issue.

Conclusion

In sum, while many features of current macroeconomic policy provide a positive environment for the cultural policy, there are complex issues of ownership, distribution of benefits, supply of capital, equity and gender equality that need addressing. The growth of tourism and the commercialization of culture are responses to the growing marketization of the economy. Yet care also needs to be taken in terms of the consequences of commercialization for the special nature of the local culture.