Feds missing out on economic, geopolitical opportunities by not supporting arts sector, say cultural groups

From Margaret Atwood, to Heated Rivalry, Canada's cultural outputs could bring Ottawa 'soft power' across the globe, says John Degen, CEO of the Writers' Union of Canada. Various Canadian cultural organizations say they believe writing, music, and film could be among the country’s most economically valuable exports especially right now while Canada is in the midst of a nasty trade war with the United States, but are expressing concerns that stagnated public funding risks forfeiting Canada’s competitive advantage in the arts and culture industry. John Degen, CEO of the Writers’ Union of Canada, said the federal government has started viewing cultural expenditures as a suboptimal use of taxpayer dollars as opposed to a critical investment in a potential economic driver. “Cultural creativity is a wonderful thing for our culture, and building an understanding of ourselves,” said Degen, himself a novelist. “But it’s also a market and a resource.” “Canada’s economy is resource-based, so not investing in culture … is like not investing in all the other resources that we depend upon, I fully do not understand why.” Since its formation in 1957, government funding for the Canada Council for the Arts (CCA), the country’s primary public vehicle for financially supporting artists and cultural producers, has fluctuated. After accounting for inflation, the CCA’s parliamentary appropriation has nearly doubled since 1994-95, but the organization has also seen funding declines over each of the last three years (equivalent to a $215-million decrease since 2021-22). Additionally, specific government funding envelopes, like the Canada Book Fund, have remained static for more than two decades, leaving fewer resources for a growing pool of domestic writers. Prime Minister Mark Carney’s (Nepean, Ont.) most recent budget included a $6-million funding top-up for the CCA distributed over the next three years, as well as one-time boosts for organizations like Telefilm Canada ($150-million over three years) and the National Film Board ($26.1-million over three years), but advocacy groups have called the injections a “Band-Aid solution,” arguing that greater institutional support is needed moving forward to properly capitalize on the economic opportunity for Canadian cultural exports. “We expect Canadians to create these exports without the investment that’s required for it,” said Degen. “For example, the Canadian publishing sector has been unbelievably successful in building a book industry over the last 40 years, but it’s still working with a lower rate of investment, so it’s about playing catch up.” “The value of Canadian creativity is proven … but the problem is our government doesn’t seem to know that value or, at least, properly protect it and invest in it.” A 2022 study from Export Development Canada found cultural industries contribute approximately $59.1-billion to the national gross domestic product, though only seven per cent of participating businesses have access to export markets. The report, titled The Untapped Potential of Canada’s Cultural Exports, determined boosting government funding would “position creative industries for export and sales in foreign markets,” and could generate an additional $7-billion in annual exporting revenues, most of which would come from the United States and Europe. Similarly, analysis from the Canadian Chamber of Commerce (conducted in partnership with the CCA) suggested public funding for the arts sectors has declined in recent years, and introducing a more stable funding strategy represents “both an economic opportunity and a cultural imperative for maintaining Canada’s global competitiveness.” “The arts and culture sector generates $29 in economic activity for every dollar in federal investment—that’s an extraordinary return in addition to the social benefits that the sector generates,” wrote Andrew DiCapua, a principal economist at the chamber. “Yet we’re seeing concerning trends in both public and private funding. If we want to maintain Canada’s cultural competitiveness and harness this sector’s full economic potential, we need sustained, strategic investment.” Additionally, recent Canadian cultural outputs like the Crave television series Heated Rivalry have demonstrated the potential appeal of domestic content beyond the country’s borders, but stakeholders are still waiting on Ottawa to offer the commensurate policy support. In a statement, Michelle Chawla, CEO of the CCA, told The Hill Times that “the arts sector … is facing significant pressures and has come together to put forward a unified, compelling case for a greater and permanent investment in the Canada Council for the Arts by the government.” “ the arts can better realize its cultural, social and economic contributions for the benefit of Canadians and to strengthen Canadian sovereignty,” read the statement. Canadian Identity Minister Marc Miller’s (Ville-Marie–Le Sud-Ouest–Île-des-Sœurs, Que.) office did not immediately respond to a request for comment. The handmaid’s (cautionary) tale? According to Degen, Canada’s cultural sector already has a foothold in many international markets, but the room for growth is practically limitless. An an example, he suggested picturing a foggy, rugged landscape lined by haunting, leafless trees that rise above the mist—what part of the world do you envision, he asked? If the answer is Scandinavia, then you’ve just proven his point. “I’m currently looking at the spookiest, eeriest northern landscape you can imagine,” said Degen while driving to Sudbury, Ont. “But Scandinavian writing and publishing has cornered that market for storytelling.” “We’re talking about massive amounts of money that Scandinavian writing and publishing has earned by creating that northern noir look for television, movies and books. It’s a huge market, Canada should own that market.” Degen also said Canada could view the domestic cultural sector as an avenue for increasing international influence, citing the global impact of acclaimed Canadian artists and writers, like Margaret Atwood. “Look at massive influence on American thinking over the past few decades,” Degen said of The Handmaid’s Tale author. “Think about the soft power in the 1970s and 1980s that Canadian writing and publishing had after producing a Margaret Atwood.” “We are not investing to the same level and with the intensity needed to create the next few generations of Margaret Atwoods who could go out there and be that soft power for Canada.” For Rodney Sharman, a Vancouver-based composer, investment in the Canadian arts could be especially timely, given the ongoing rift in Canada-U.S. relations. “It is a very interesting time Canadian culture has become more essential in terms of distinguishing us from other countries and the United States, in particular,” said Sharman, whose music has been performed in more than 40 countries. “It would be wonderful to have more government support for the arts when Canadian artists are so successful internationally as a way of forging and maintaining an identity.” His comments come as the Liberal government prepares for a multilateral review of North America’s free trade deal in July, during which American officials are expected to target cultural supports in legislation like the Online Streaming Act and Online News Act. However, in an interview with The Hill Times, Sharman emphasized that the burden doesn’t solely lie with Ottawa as other levels of government and private investors can help facilitate the conditions needed for Canadian artists to find success. “Another thing is the importance of having the actual infrastructure of where art happens,” he said. “Ottawa has the National Arts Centre, where there were all these upgrades … and Toronto has transformed since the creation of the Four Seasons Centre.” “But, there’s also towns like Kelowna … which has a terrible concert hall. People there could benefit enormously and the culture would change completely, if there were a better place for the art to happen.” La belle province? Sharman also said Ottawa should draw inspiration from close by, noting that Quebec’s provincial government offers a stronger funding regime for writers, artists, and other cultural producers, which he suggested was backed by a foundational difference in how Quebecers interact with art. “I had a friend who used to say the talk of Quebec separation was ,” Sharman said. “They said that Canada should join Quebec, where arts funding and culture is supported with pride, but also a feeling that it’s a necessity.” “I would love to see that for the rest of the country.” Jack Illingworth, executive director of the Association of Canadian Publishers, said Quebec’s cultural policy has a “level of sophistication” that doesn’t exist in the other 12 provinces and territories. “I put Canada somewhere in the middle of the pack in terms of cultural investment,” said Illingworth. “But Quebec understands the importance of its cultural industries, and it understands those industries are essential to its cultural sovereignty and cultural survival.” “That’s reflected in government policy, but it’s also reflected in how the Quebec public engages with their cultural products.” As an example, Illingworth said Quebec organizes provincial book export initiatives, allowing it to deal directly with other countries, while still participating in broader Canadian trade missions. Relative to the rest of Canada, Illingworth suggested the perception of French Canada’s cultural influence around the globe is “very strong.” Last year, the Quebec government’s budget included funding boosts for the Conseil des arts et des lettres du Québec (the provincial equivalent of the CCA), as well as the Société de Développement des Entreprises Culturelles, a government agency that aims to promote Québécois culture domestically and abroad. The province has also committed to increasing annual cultural funding to $1-billion by the 2029-2030 fiscal year. dlegree@hilltimes.com This story has been cross-published with The Hill Times.

Feds missing out on economic, geopolitical opportunities by not supporting arts sector, say cultural groups

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By Davis Legree
|January 13, 2026

From Margaret Atwood, to Heated Rivalry, Canada’s cultural outputs could bring Ottawa ‘soft power’ across the globe, says John Degen, CEO of the Writers’ Union of Canada.

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Feds missing out on economic, geopolitical opportunities by not supporting arts sector, say cultural groups

Broadcast | By Davis Legree |January 13, 2026

From Margaret Atwood, to Heated Rivalry, Canada’s cultural outputs could bring Ottawa ‘soft power’ across the globe, says John Degen, CEO of the Writers’ Union of Canada.

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By Davis Legree
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