Creating

Creative Christchurch
The main purpose of this thesis is to support changing Christchurch from a manufacturing economy based on an industrial society to a post-industrial knowledge society based on a creative economy: focusing specifically on the role of education in this transformation process (refer to figure below). This change is important to make if New Zealand is going to compete in a global economy, as the countries that boast the most successes (as measured by an increase in GDP, industrial output, economic growth) do not rely on exploitation of natural resources and primary manufacture, rather they rely on value added goods and services. Google, Microsoft, Samsung and Apple to name a few economically significant companies, all rely on the commercialisation of high value creative outputs. New Zealanders have always relied on their natural resources and fertile land to feul the economy. Even today exports are dominated by the agricultural and dairy sectors whereas minor contributions are made from high value manufacture and other such high value sectors. As a result the country as a whole has been unable to be globally competitive with regards to its economy. Subsequently, the quality of life and standards of living (relative to other OECD countries) in New Zealand has been declining since its peak in the 1970s. In 1976, New Zealand's gross domestic product (GDP) per capita was ranked 12th out of 30 OECD (Organisation for Economic Co-operation and Development) countries; by 2006, this ranking had fallen to 22nd. Whats more, the dairy and agricultural industries, while major contributors to the economy, have a high environmental cost. The damage these industries do to the pristine lakes and rivers, which we as a country pride ourselves in, compromise New Zealands image of being clean and green. It is this very image that attracts businesses, immigrants and tourists to New Zealand, so damage to it could have long term consequences if not addressed.

The focus of this thesis is to aims to promote outlets and growth for the intellectual capital and creative minds which area already present in the city. This thesis also aims to go further by finding ways of attracting and retaining the creative class in order to increase the economic capacity of the city, which in turn will have direct benefits on the quality of life. In order for

Praveen Karunasinghe | DRAFT THESIS STATEMENT | 21.05.2012

Christchurch to transition from manufacturing and agricultural industries, a shift in education is needed where one moves to a more creative based education. This requires a paradigm shift in the way people perceive the importance of education as well as a significant change in the way education is provided. There are several innovative examples of alternative means of learning that are already showing great successes and are readily available. Institutions like the Khan Academy and the European Association of Distance Education Universities have implemented alternative systems of learning and qualification aimed at extending the reach of education. These systems are free of charge and open to the access of anyone. By extending the outreach of education, a critical mass of better educated, higher skilled workers can be established in the city. This increase in intellectual capital will be an integral part of the creation of new jobs and solving the economic problems the city faces. The inadequacies of our education system as it exists today have ripples of consequences exhibited in socio-economic development. As mentioned before, the lack of high skilled workers increases the region's reliance on manufacturing and primary industry as sources for employment and regional revenue. Currently, the deficit of employment opportunities for a relative minority of educated individuals will drive them elsewhere leading to the "brain drain" phenomenon. In the past decade, a third of New Zealands doctoral graduates (PhD students) have left the country. At a more local scale, over the same period of time, 64% of Christchurchs high skill workers left the city while the arrivals only amounted to 56% (a net loss of 8%). Compare this with the high skill departure rate of Auckland at 50% while having an arrival rate at 59% (a net growth of 9%). This means manufacture heavy regions of the country like Christchurch will not be able to retain the students studying in its schools, universities and polytechnic colleges. Meanwhile, the industrial output coming about as a product of its low skill primary production will not effectively stimulate the growth of the GRP (gross regional product). The stagnant growth of the GRP will hinder the region's quality of life with little or no investment going into public amenities (parks, reserves, libraries, waterfront developments etc). The lower quality of life will have a further devastating effect on the attraction and retention of educated individuals: the creative class. Without the creative class, opportunities for high value manufacturing, professional services and innovation based employment will be severely restricted. This restarts the cycle of heavy reliance on primary industry and unskilled jobs. As it is now, workers will labour long hours yielding low value manufacture products. Thus allowing the viscous cycle of an uneconomic-economy to continue (refer to figure above). Education holds the key to break this cycle and furthermore reverse these negative growth patterns. If educated individuals were no longer a minority and the creative class remained in the region, the amount of high skill employment opportunities will increase. In many cases, practices and firms are started up by recent graduates. This will begin to establish a critical mass where an increasing number of high value manufacture, goods and services based businesses will be attracted to a more knowledge based city. Therefore, as Bill Gates said in the movie Waiting for Superman, the only way to grow a creative and innovative economy is through an educated workforce. Christchurch could learn from the Finnish city of Lahti, by investing in education as a catalyst to economic growth. Lahti rose from the economic slump of the early nineties recession by prioritizing education as the primary foundation of economic revival. At its worst, the manufacturing based city saw the rise of unemployment from 3.8% in 1990 to 26.8% by 1994 (605% increase in 4 years). Following its knowledge revolution, the city saw the rates of tertiary qualifications grow by 307% in 17 years. This allowed the GRP to grow by 254% in that space of time. The civic leaders of Lahti better integrated education, employment and learning as a lifestyle in order to reverse significant brain drain statistics. These creative educated individuals
Praveen Karunasinghe | DRAFT THESIS STATEMENT | 21.05.2012

stirred the economy through their creativity and innovation, created jobs and improved the city's quality of life. Lahti's change in perception of education allowed it to move from an industrial society based on a manufacturing economy to a knowledge society based on a creative economy. As the case with the Finnish example, Christchurch is in a position to use education as an economic driver. Its heavy reliance on natural resources and low value manufacture has led to a decline in relative growth of the citys economy, population and quality of life. The city can be allowed to grow its economy by having a better educated and higher skilled work force. With less reliance on low skill and low earning jobs, and a stronger focus on high value manufacture, goods and services, the region will grow its stagnant GRP. Moreover this will begin to positively affect the economy of the country and reverse New Zealands declining position in the OECD. Unlike current industrial-economic growth, this smart growth can be allowed to happen without compromising our clean and green brand. Thus the country can continue to attract businesses tourists and immigrants in a more effective manner. These changes cannot happen without a revolution in the way we deliver education. Thus education is the key to change Christchurch from an industrial society based on a manufacturing economy to a knowledge society based on a creative economy.

Praveen Karunasinghe | DRAFT THESIS STATEMENT | 21.05.2012