The Orange Economy, also known as the Creative Economy, refers to economic activities that transform ideas, creativity, and cultural heritage into goods and services, often protected by intellectual property. Coined by Felipe Buitrago and Iván Duque in their 2013 book "The Orange Economy: An Infinite Opportunity" (published by the Inter-American Development Bank), the term highlights the economic potential of sectors rooted in culture, innovation, and talent. The color orange symbolizes creativity, historically linked to cultural expression since ancient times.

The Orange Economy encompasses industries such as:

Arts and Culture: Visual and performing arts, music, theater, crafts, and literature.

Media and Technology: Film, television, video games, software, and digital content creation.

Design and Innovation: Fashion, architecture, advertising, and product design.

Heritage and Tourism: Gastronomy, cultural tourism, historical sites, and festivals.

Newer Sectors: Influencers, streaming, and culinary arts, driven by digital platforms.

According to UNESCO, these industries focus on producing, promoting, and commercializing goods and services with cultural or artistic content. The United Nations Conference on Trade and Development (UNCTAD) defines them as cycles of production relying on creativity and intellectual capital, categorized into heritage, art, media, and functional creations.

The Orange Economy is characterized by:

Intellectual Property: Value derived from innovation and originality.

Cultural and Commercial Value: Blending tradition with market-driven outputs.

Diversity of Sectors: From traditional crafts to cutting-edge tech like robotics and coding.

Global Scale: In 2011, the creative economy was estimated at $4.3 trillion, roughly 6.1% of global GDP, outpacing economies like Germany's. Between 2002 and 2015, international trade in creative goods doubled to $509 billion.

Job Creation: It employs around 30 million people worldwide, with a significant share of youth and women, particularly in low- and middle-income countries. For example, in Pakistan, nearly one-third of creative sector workers are under 24.

Regional Contributions: In Latin America and the Caribbean, it generates $124 billion, or 2.2% of GDP, with countries like Peru (2.7%) and Colombia aiming for growth to 10% of GDP.

Jordan Case Study: From 2011 to 2018, Jordan's Orange Economy doubled its value-added, reaching 2.4% of GDP and employing 3% of the workforce, showing its labor-intensive potential.

Recent Developments

Digital Transformation: The rise of digital platforms has expanded the Orange Economy, creating roles like influencers, streamers, and community managers. Apps for gastronomy (e.g., restaurant reservations) and gaming have surged, with the Middle East and North Africa seeing growth in game development.

Policy Support: Governments are investing heavily:

Colombia: Established 17 Orange Economy nodes across cities like Bogota and Medellin to foster creative ecosystems, backed by public-private partnerships. Former President Duque issued $124 million in “orange bonds” to fund creative industries.

India: In 2025, PM Narendra Modi highlighted the Orange Economy at the WAVES 2025 Summit, emphasizing content, creativity, and culture in music, films, gaming, and animation.

Ethiopia and Indonesia: Ethiopia's Jobs Creation Commission and Indonesia's Creative Economy Agency (BEKRAF) are promoting creative sectors for job creation and poverty alleviation.

Social Impact: The Orange Economy fosters peace and inclusion. In Medellin, Colombia, a rap and reggaeton festival reduced gang violence by uniting rival groups through music.

Sustainability and SDGs: Recognized as a tool for achieving the UN's Sustainable Development Goals (SDGs), it promotes economic growth, cultural diversity, and social cohesion, though empirical evidence on its sustainability is still limited.

Challenges:

Piracy: In Peru, a 40% rise in movie piracy by 2023 highlights the need for stronger intellectual property protections.

Measurement: Lack of standardized methodologies hinders accurate quantification, as seen in Jordan's outdated UNCTAD data.

Informality: Many creative jobs are gig-based, lacking stable income, especially for self-employed artists.

The Orange Economy is a growing driver of economic and social progress, particularly in developing nations with rich cultural heritage. Its reliance on technology and low entry barriers make it accessible to youth and women, while digital advancements open global markets. However, challenges like piracy, informal employment, and data gaps require robust policies, legal frameworks, and investment in skills development. Initiatives like Colombia's Orange Districts and India's focus on creative sectors signal a global shift toward recognizing creativity as a core economic asset