The Oscar’s race is a decade-long saga filled with obstacles and challenges for the Ibero-American cinema, much like the script of a movie where its protagonists are driven by vision and passion to, after great difficulties, reach their destination. For some years now, Latin American cinema has been growing steadily, and on the red carpets, our region’s directors, producers, actors, and actresses are becoming more frequent each year. Their presence represents countries that have seen cinema as a relevant player in economic development strategies.
“Society of the Snow,” one of the three Latin American films nominated for the Oscars this year, is an example of this. Although it is a film directed by a Spaniard, it is based on the novel of a Uruguayan writer that narrates the story of the airplane crash that shook the world. The success of this co-production demonstrates the impact that a film can have on the economy and the image of a country.
The audiovisual industry generates employment, drives economic growth, and fosters creativity and innovation. The sale of audiovisual services generates income for the country and promotes the development of the local industry, attracts foreign investment, and fosters international collaboration. Furthermore, its ability to tell stories and convey the culture and identity of a nation has a positive impact on the country’s brand and promotes interest in local culture and tourism.
In Latin America, countries like Argentina, Brazil, and Mexico lead the audiovisual industry with revenues of US$20 billion in 2021, of which US$3 billion comes from the movie industry.
During the pandemic, demand for the audiovisual sector in the region continued to grow. “The Society of the Snow” is an example of this. The film was shot in Uruguay during the lockdown months. Uruguay was the first country in the region to develop secure filming protocols and open shoots. In 2020, audiovisual services were exported for more than US$27 million, tripling to US$84 million in 2021, mainly to markets in the United States, Argentina, Mexico, and Spain. This demonstrated the benefits and the capacity of the country’s audiovisual sector and creative industries and generated bilateral co-production agreements.
Uruguay in Focus
The audiovisual sector employs between 5,000 and 6,000 people in Uruguay, nearly doubling if indirect employment is counted. In the case of “Society of the Snow,” produced in the country, between 350 and 400 technicians were hired, along with 400 extras on some days, thus employing around 800 people on certain days.
This production represented an investment of US$7 million for the country, of which, thanks to the Uruguay Audiovisual Program, the company received a return of US$1 million.
Uruguay is positioning itself as a filming destination and an innovation hub to attract investments and new companies to the local ecosystem. The Inter-American Development Bank (IDB) is working with the country on addressing aspects related to regulation, investment incentives, subsidies, tax incentives, innovation vouchers that promote links between creative sectors and traditional sectors, human capital formation, and systemic promotion policies. This will allow the Uruguayan innovative ecosystem and global services to take a qualitative leap, with greater internationalization, combining local development with the attraction of companies, entrepreneurs, and talent from the region and the world.
With this effort, the aim is to strengthen international positioning and accelerate innovation and digital transformation processes. The country’s audiovisual boom brings with it the need for training at the executive level, but also commercial, legal, and financial training, in order to strengthen the capacities of production companies. Bringing in prominent foreign specialists to firsthand experience the advantages of Uruguay and training Uruguayan professionals abroad will positively impact potential new partnerships, learning new formats, genres, narratives, and strengthening markets that will be the destination for their projects.
The Spill of the Snow
“Society of the Snow” has impacted Uruguay from various perspectives. The most notable is the spill-over effect of the sector. According to studies conducted by CPA Ferrere for the Cimarrón production company, “productions generate taxes between 1.3 and 2.5 times the amount received.” This makes the use of financial instruments and policies (such as tax incentives and cash rebates) an opportunity. According to Facundo Ponce de León, president of the Uruguayan Film and Audiovisual Agency (ACAU), the country does not yet have any systematized tool to regularly measure this spill-over.
The spill-over, beyond hard data, is incalculable because it is intangible. The lead actor, Enzo Vogrincic, saw how his life and that of his family were transformed by this experience. The survivors of the Andes tell the story, which is part of the country’s history, to audiences who never knew about them. People who were unaware of Uruguay and its context are interested in investing in that country and building new ventures that will eventually translate into new jobs.
The great challenge of public policies, according to Ponce de León, is how do we underline this intangible and what way do we have to talk about its spill-over. Today, Uruguay is at the center of audiovisuals thanks to “Society of the Snow.” What value does that have?
Another point highlighted by the ACAU president is being able to have spill-over data on the entire value chain and not just on production. The logic of shooting dominates the data, but what is the spill-over of a fund for the production of a script, what is the spill-over of archives, which is a great debt of this industry?
Possible strategies to develop the sector
In order to develop the sector, there are several short and medium-term strategies that would favor the growth and positioning of Uruguay as a center for film production in the region. Among other things, it requires:
1. Training in the skills needed by the film industry in Uruguay, with investment in programs that range from technical training to creative exploration. This is fundamental for its development and competitiveness in global markets. As the Uruguayan film industry continues to grow and diversify, the training of qualified professionals becomes imperative to ensure the quality and viability of productions.
2. Strengthening of policies and a public-private approach. Continuous support from the government, educational institutions, and the private sector is essential to ensure the sustainability and development of the film sector in the long term.
3. Identity. Spanish-language stories that reflect Latin American identity are of utmost importance in the world of cinema. These films offer a window into the cultural, historical, and social richness of Latin America, allowing the voices and experiences of the region to be heard and appreciated globally. Works like “The Snow Society” are a powerful tool for this. By showcasing the beauty and complexity of Latin American life, these films promote respect and appreciation for cultural diversity, as well as providing a platform to address relevant and urgent issues affecting the region.
Furthermore, Spanish-language cinema contributes to enriching the global cultural landscape by offering new perspectives and narratives. By being screened at international film festivals and distributed worldwide, these films allow international audiences access to a more comprehensive and authentic view of the Latin American experience. In this way, Spanish-language cinema fosters intercultural dialogue and promotes mutual understanding between different communities and countries.
For over a decade, the IDB has been working to include culture and creativity as an essential part of the development agenda in our region. This commitment is based on the power of creative industries as catalysts for social change and job creation, as demonstrated by the case of Society of the Snow in Uruguay. If you want to learn more examples of the IDB’s work to promote various sectors of the creative economy from an intersectoral approach, please visit this link.
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