This presentation – prepared for the May, 2019 Latin American Studies Association conference in Boston – explores how culturally innovative cities in Brazil can build self-funding partnerships across South America.

1. Brazil’s
Creative
Cities
New ways of funding
cross-border partnerships
Mark Frazier
Startup Societies Foundation
LASA19 Congress
Boston, USA
May 24, 2019

2. What we’ll explore –
u Near term funding
opportunities for
Creative Cities
u Lasting ways to sustain
partnerships for
creative endeavors
across South America

3. Challenge: big disruptions are at hand

4. Opportunity: digital tools are leveling the playing
field around the world for creative ventures
New tools
u Affordable
telecommunications
u Anytime/anywhere
learning
u Global freelance
marketplaces
u Online funding platforms
Emerging creative
economy –
Billions now can learn,
design, and co-create
across borders
Current economic
system –
National policies limit
who can play – and
determine who wins

5. On-demand learning is spreading skills for
creative ventures
Thousands of online
courses from MIT,
Harvard, Yale, and
other leading
universities are
offered free of
charge

6. Jobseekers can access billions of dollars in
freelance projects through online markets
u Globally, millions of
freelance artists,
photographers, musicians,
writers and web designers
have registered in free-to-
join online markets for
telework
u Tens of thousands of
Brazilian creative ventures
are also now competing for
online jobs.

7. Creative projects are attracting cross-border
volunteers (who commit time and funds)

8. Arts and music projects in Brazil have
discovered crowdfunding
Portuguese language sites: Embolacha, Kickante, Catarse, Sibite

9. Brazilian creative ventures are earning
income from online product sales

10. AirBnb’s online platform now promotes
creative experiences, including cultural
tours, art workshops, and music events

11. Tourism
revenue can
surge via
creative
ventures
with AirBnbs

12. A near-term path to sustainability:
grassroots groups can partner with AirBnbs
• Local groups can propose public arts projects, music events,
festivals, cleanup/fixups, and neighborhood safety campaigns to
draw new visitors
• AirBnb ventures, in return, can share part of their increased
earnings with partnering groups as the area improves

13. What about long-term sustainability?
Grassroots creative ventures can share
in land value gains as neighborhoods improve

14. Vehicles for sharing the asset gains:
land grants and Community Land Trusts
Hundreds of universities worldwide have
received land grants for sustainability… Thousands of Community Land
Trusts let members enjoy
affordable housing…
Stanford’s Tech Park Joint Venture

15. Singapore, Hong Kong, and Macau are exemplars
of a success-sharing land trust strategy
Singapore
Macau
Hong Kong

16. How to supercharge land values:
Offer “Special Economic Zone” incentives
Zonamerica Free Zone
(www.Zonamerica.com)
Uruguay has introduced reforms surpassing those of Hong Kong and
Singapore, transforming a cow pasture into some of the most valuable land
in the Americas (with 10,000+ tech workers)

17. How Special Economic Zones sparked
China’s takeoff
In 1979, Shenzhen was a
fishing village with a
population of under 10,000.
There China launched its
experimental reforms, with
Hong-style low tax and open
trade policies.
Today, it has become the
world’s “Silicon Valley of
Hardware,” with more than 11
million residents. Land values
have risen more than 50-fold.
Now China has more than 100
similar zones of liberalization.

18. Liberalized zones are mushrooming
Example: a new $10 billion Chinese-
funded Special Economic Zone is
being launched in TanzaniaMore than 3500 Special Economic
Zones exist today in 100+ countries

19. Endowment Zones: a lasting way to
generate revenue for common benefit
Endowment Zones are sites where Community Land
Trusts benefit from investor-friendly reforms.
With world class reforms, such as cutting taxes and red
tape, 5x – 50x rises in property values are possible.
Shenzhen, Hong Kong, Singapore, and Macau today
operate on a land trust model, and are earning billions of
dollars from long-term ground leases rather than from
selling their land.
Proceeds help fund education and social services, as well
as “growth dividend” payments (in Macau) directly to
residents.
Endowment Zones can be a source of sustained funding
source for Brazilian and South American Creative Cities
initiatives.

20. Endowment Zones could be used to fund
lasting Creative City partnerships
A scenario for UNILA – the University for Latin
America – to deal with budget cuts?
The university could seek land grant endowments
to support cultural linkages via the Conselho do
Instituto Latino Americano de Arte, Cultura e
História (CONSUNI-ILAACH).
With added Special Economic Zone incentives,
the land could grow in value – and lease revenues
could help UNILA promote digital innovations for
creative cities throughout the continent.
Other beneficiaries of Endowment Zones could include UNIFACENS
for Smart City outreach, Brazilian NGOs, associations of creative
professionals, and online education/training providers.

21. A scenario for Brazilian universities to connect
Creative Communities in South America
u Seek private and public sector land grants on the model of North American
land grant universities (Stanford, Duke, Cornell and 70+ others)
u Secure targeted Special Economic Zone incentives (e.g. innovative
anticorruption measures to improve the climate for investment, eGoverment
fast approvals for investment, reduced taxes, and red tape)
u Attract risk-taking private developers to develop the sites on a revenue-
sharing basis
u Commit shares of the annual ground lease income to fund annual scholarships
and fellowships for Creative Cities initiatives
u Help seed and spread Endowment Zones for creative industry initiatives
throughout Brazil and the Americas

22. China’s Belt and Road Initiative –
A New Partnering Opportunity?
u China has pledged US$4-8 trillion for a global
network of ports, roads, railways and Special
Economic Zones.
u This “New Silk Road” could fund Endowment Zones
and infrastructure projects connecting Creative
Cities across Brazil and other South America
countries.

23. Initial projects already
are moving in Brazil

24. Conclusion
Brazil’s Creative Cities and universities can offer
innovative models for inclusion, applicable across
the continent.
These models can deliver near-term revenues and
lasting assets for all who seek opportunities in
creative economy markets.
contact:
mark@startupsocieties.org