INDEX

2003 Eurasia and in Media Independent Sustainable of Development SUSTAINABILITY MEDIA

Media Sustainability Index 2003 IREX www.irex.org www.irex.org/msi/ Fax: (202) 628-8189 E-mail: [email protected] Phone: (202) 628-8188 Washington, DC 20037 Copyright © 2004 IREX by 2121 K Street, Suite 700 NW, 2121 Media Sustainability Index 2003 On the threshold of the [October 2004] presidential election the screws are put on, the loyal people appear on the scene and take up key posts, and in spite of strengthening in the market, it remains politically dependent,” said one participant.

Introduction he media situation in Ukraine is a contradictory one. The advertis- ing market is developing rapidly, with revenues doubling during 2003 and the outlook optimistic. In most regions of the country, there are stable, profitable newspapers that operate as media businesses, making their money through and circulation. But at the same time, most newspapers continue to be subsidized by politicians, governmen- tal bodies, or both. In the broadcast sector, government and political forces keep all national channels and many regional channels under tight rein. T Journalistic and ethical standards remain relatively low at most mass-media outlets, and the outlook for freedom of expression protec- tions is dire. It is in editorial practices, more so than in their business performance, that most media outlets fall short. But panelists noted that the strong—and, some said, increasing—control of the media by business and political interests has created problems on the business side as well for some outlets. And even when media outlets are pri- vately owned, the government and political powers are able to exercise significant influence over their operations. Panelists cited this as a lim- iting factor in the development of mass media as business enterprises. “On the threshold of the [October 2004] presidential election the screws are put on, the loyal people appear on the scene and take up key posts, and in spite of strengthening mass media in the market, it remains politically dependent,” said one participant in the 2003 Media Sustainability Index (MSI) panel. Thus, even the general strengthening of the market for mass media has not meant that the number of independent news outlets has grown or that the independent media have become much stronger. Still, there are positive developments, such as the maturing of professional associations and media-support nongovernmental orga- nizations (NGOs), and the improvement that comes as a byproduct of a general upswing in Ukraine’s economic performance, particularly in urban areas.

UKRAINE 169 Objective Scoring Indicator Scoring The averages of all the indicators are averaged to obtain a single, Each indicator is scored using the following system: overall score for each objective. Objective scores are averaged to provide 0 = Country does not meet indicator; government or social forces may actively an overall score for the country. IREX interprets the overall scores as follows: oppose its implementation 3 and above: Sustainable and free independent media 1 = Country minimally meets aspects of the indicator; forces may not actively oppose its implementation, but business environment may not support it 2–3: Independent media approaching sustainability and government or profession do not fully and actively support change 1–2: Significant progress remains to be made; 2 = Country has begun to meet many aspects of the indicator, but progress may society or government is not fully supportive be too recent to judge or still dependent on current government or political forces 0–1: Country meets few indicators; government and society actively oppose change 3 = Country meets most aspects of the indicator; implementation of the indica- tor has occurred over several years and/or through changes in government, indicating likely sustainability 4 = Country meets the aspects of the indicator; implementation has remained intact over multiple changes in government, economic fluctuations, changes in public opinion, and/or changing social conventions

170 MEDIA SUSTAINABILITY INDEX 2003 www.irex.org/msi/ Panelists noted that “Freedom of speech Objective 1: Free Speech journalists may only Ukraine Objective Score: 1.70/4.00 be able to protect is not valued in our their rights by filing society, and it doesn’t On paper, Ukraine’s Constitution, laws, and interna- lawsuits, but that tional agreements adequately guarantee freedom of they have little cause public outrage” speech and access to information. A law passed in 2003 expertise or ambi- when it is threatened, that outlaws government was cited by panel- tion in this area. ists as a positive step. Public apathy about one panelist said. Enforcement of those laws and actual protection of the plight of jour- those rights, however, depend on political will, and that nalists also is widespread, and numerous violations of is too often lacking in Ukraine. The public and journal- journalists’ rights, though widely publicized, have drawn ists have encountered many obstacles fighting for rights little public reaction. “ is not valued in that are, by law, guaranteed to them. In particular, there our society, and it doesn’t cause public outrage” when it is no access to the information that, according to the law, is threatened, one panelist said. should be readily available, and the government does Licensing of broadcasters continues not to be trans- not take seriously violations of journalists’ rights or hold parent. Panelists agreed that the procedures are competi- anybody accountable. tive but unfair, and that political factors are almost always At the same time, journalists and media outlets the most important in determining whether licenses are too often lackadaisical in asserting their own rights. are issued. The process also is tainted by hidden agree- ments between companies and authorities. For example, broadcasting company TRK Ukraina received a license Legal and social norms protect and promote in an astonishingly short time. But there was little doubt free speech and access to public information that this was due to the fact that the Cabinet of Ministers, ■ Legal/social protections of free speech exist which should have no influence in licensing decisions, had and are enforced. passed resolutions urging that the license be granted. The competition was a mere formality. ■ Licensing of broadcast media is fair, competitive, and apolitical. One panelist noted that the regional broadcast media outlets often are granted licenses after lobbying ■ Market entry and tax structure for media are fair the National Council for TV and Radio (NCTVR)—the and comparable to other industries. licensing body—and through the help of corrupt offi- ■ Crimes against journalists or media outlets are cials. The NCTVR’s members are appointed in equal prosecuted vigorously, but occurrences of such shares by the parliament and the president. While this crimes are rare. might seem to be a method for preventing either branch ■ State or public media do not receive preferential from gaining an upper hand, the reality has been that the legal treatment, and law guarantees editorial council has suffered constant internal turmoil and has independence. not been an effective, or objective, body. “Good market conditions are actually the only ■ Libel is a civil law issue; public officials are held to higher standards, and the offended party factor that allow mass media to develop,” said one panel- must prove falsity and malice. ist. But many media outlets do not, in fact, depend on the market for their survival: their journalists and managers ■ Public information is easily accessible; right of are much more interested in finding political or business access to information is equally enforced for all SPEECH INDICATORS SPEECH FREE media and journalists. sponsors, instead of developing sound business plans and practices, panelists said. This causes very uneven levels of ■ Media outlets have unrestricted access to infor- professionalism, on the editorial as well as business sides mation; this is equally enforced for all media of newspapers and broadcasters alike. and journalists. Media businesses are under the same taxation ■ Entry into the journalism profession is free, and structure as other businesses in Ukraine. There are no government imposes no licensing, restrictions, additional taxes, and, in fact, media businesses receive or special rights for journalists. some tax benefits, such as exemption from value-added

UKRAINE 171 “Good market tax (VAT) for them. Virtually no case involving an attack on a journal- conditions are imported equip- ist or media office has been resolved fully. Ukrainian law ment. However, says that crimes against journalists should be investi- actually the only most of those tax gated just as those against the police would be. While factor that allow benefits will lapse that should afford some protection to journalists, it also in 2004. could cause public mistrust of the profession. “Journal- mass media to In response ism cannot be associated with the police in a democratic develop,” said to complaints about society,” said one panelist. politically moti- There are no reliable statistics on the number of one panelist. vated tax inspec- journalists killed because of their professional activi- tions in years past, ties. There have been a number of cases where the media the agreed that mass-media believed that this had occurred and asked for thorough businesses would not be subject to surprise inspections. investigations. Invariably, the president announced that Instead, media companies learn at the beginning of each the case would be under his personal supervision, as a year whether they are scheduled to be inspected during sign of the cases’ importance. But that has made some the year. But one panelist questioned the value of this journalists, and several panelists, uneasy. concession from the tax authorities, which only the media “It’s not comfortable to live in a country where the industry receives: “If you carry on a business, you should investigation of a man’s death depends on his profession. be prepared for tax inspection. In this situation, the state If something happened to a yard keeper, then it’s not nec- is saying to media companies, ‘We know that not every- essary to investigate it, but if he was a journalist, then it is thing is correct in your business and before the elections necessary? All of us have the right to life and to defend our we are not going to inspect you, but you have to be loyal lives, but journalists seem to be privileged, and such privi- and remember that.’” lege destroys the journalists’ reputation,” said one panelist. Having only scheduled tax inspections also By law, government-owned media do not receive makes it possible for politically loyal mass media to any preference in access to information, but in reality the cheat on tax payments. Thus, while the government can opposite is often true. In getting documents, interviews, point to its inspection policy as a sign that it supports and answers to questions at press conferences, state- , some independent media advo- owned or other “loyal” media often get preferential treat- cates consider it no more than a method for protect- ment. “When a journalist gets access to an official source ing favored media outlets and giving them free rein to of information, he has to be loyal, or otherwise the access practice unethical business policies. will be denied,” said one participant. And there often is The inspection policy notwithstanding, Ukrainian little effort to hide the favoritism—or punishment. For mass media tend not to criticize or investigate the tax example, one journalist, representing STB-TV news as authorities for fear of retaliation. Similarly, once even well as Agence France-Presse, was denied access to the a scheduled tax inspection does begin, more than one summit of the European Council in Yalta after she disre- media outlet suddenly has filled its pages or airtime with garded the “advice” of the president’s press secretary not positive articles and favorable comments about the tax to ask President a question regarding the bodies and their leaders. Russian-Ukrainian conflict over Tuzla Island. Crimes against journalists are rare in Ukraine, but Panelists also noted that journalists willing to certainly not unheard of. Those that have occurred— dig for information, or to file freedom-of-information particularly the beheading of Georgi Gongadze several requests, can get access to government information with- years ago—created fear among journalists and made out currying favor. Unfortunately, far too few journalists them more cautious. “After the Gongadze case, journal- are willing to make those efforts. ists keep their heads up,” a panelist said. Some journal- There is no such thing as “public” media in ists and media organizations are quick to label any crime Ukraine. There are many government-owned stations in which a journalist is victimized as a consequence of and newspapers, but they do not operate as public media professional activity although, as panelists pointed out, and have no independence. Rather, they are used as tools the true explanation may be much more mundane. by the government to maintain control and to dissemi- When crimes against journalists do occur, officials nate propaganda, and their editorial policies are tightly often voice concern but make little progress in solving controlled by the government.

172 MEDIA SUSTAINABILITY INDEX 2003 www.irex.org/msi/ Moreover, government officials or political powers information is not “When a journalist gets control the editorial policies of many private media. regularly published Because so many media outlets are used primarily to fur- or made available access to an official ther the business or political interests of owners, patrons, to the public. In source of information, or the government, editors or journalists seen as disloyal general, participants are fired and replaced. For example, at the privately estimated, only he has to be loyal, or owned newspaper , editor Oleg Nepadymka about 30 percent otherwise the access was replaced because the paper was not as strongly pro- of the decisions of presidential as its patrons would have liked. Editors and local government will be denied,” said journalists understand and accept this system, and there bodies are recorded one participant. is no outcry that such firings are unethical. publicly. Libel is a civil matter in Ukraine, but there have There is no been legislative proposals, most notably by the Commu- legal restriction on access to foreign media sources, and nist Party, to resurrect laws concerning criminal libel. foreign newspapers and magazines are available—though Panelists positively appraised changes in legisla- expensive—in larger cities. Local cable television usually tion to require politicians or public figures suing the includes some foreign channels, particularly from Russia, media to prove actual malice. “If in the past filing a Germany, and Poland. Russian-language versions of suit was an effective way to get even with disagreeable Western channels, such as EuroNews and the Discovery mass media, the mass media have now learned to work Channel, also are available via cable or satellite television. within the court system and effectively protect them- Internet access to foreign sites is not blocked; however, selves,” said one panelist. only a small percentage of Ukraine’s population has However, libel remains a huge problem in access to these sources because of their cost and because Ukraine—not in the courts, but in the form of libelous residents do not know languages other than Ukrainian material in the media. There have been cases in which and Russian. media were well paid to spread false information deliber- There has been sporadic government opposition ately. In such cases, once the political damage was done to local transmission of foreign broadcasters such as or another intended effect achieved, the statements were Deutsche Welle, BBC, and Radio Free Liberty/Radio retracted or else damages were paid by the deep-pocket Europe. Early in 2004, after the MSI panel met, there owners or patrons of the media outlet. In 2003, for were several disturbing occurrences regarding this. The example, a court ruled that national television channel local FM station in that had carried RFE/RL sud- 1+1 had knowingly spread false information about oppo- denly dropped the broadcasts after new managers took sition parties and leaders before the 2002 parliamentary over. Another FM station, long seen as an opposition elections. The television channel acknowledged its fault, stronghold, then agreed to pick up RFE/RL and within but only long after the elections. days had its transmission equipment confiscated, alleg- Access to government information remains prob- edly because of a licensing problem. That station, Radio lematic. This is partly because of the mindset of local Continent, also broadcast Deutsche Welle, VOA, and the officials, who find it preferable to deny information to BBC, all of which then went off the air. the public rather than face any possible consequences for Panelists noted another problem with foreign releasing information that may put their superiors or the media—the illegal use of copyrighted material by Ukrai- government in a bad light. But panelists also emphasized nian media. Many journalists believe that as long as they that journalists often are unwilling to look for informa- credit a report to its original source, there is no problem tion themselves, instead demanding that government in reprinting an entire article or photograph without officials and agencies do the research and compile data for obtaining permission from the copyright owner. them. “The possibility to have access to the information There are no special restrictions on who can be doesn’t mean that the officials have to provide the copies a journalist. In fact, there are even certain privileges in of all the materials to everybody who wants them and do some cases, particularly for journalists working for state- the journalist’s work,” emphasized one participant. owned media. Workers for state-owned media, for exam- Ukraine does have a law governing state secrets, ple, have the same status as other government employees and journalists, like everyone else, are subject to it. More for the purposes of social benefits and pensions, which problematic, though, is that most routine government are often better than the benefits available to non-state

UKRAINE 173 employees. Panelists agreed that such privileges are a way daughter of U.S. “The more flexible the for the government to keep journalists quiescent and Vice President Dick journalist is, the more dependent on the authorities. Cheney had gone to In general, participants agreed that there is no Iraq to join human- possibilities he has to essential difference in legal support of the freedom of the shield protesters cover topics according press on national and regional levels. But there is a prob- and that the U.S. lem—at all levels—of journalists having poor knowledge government was to the editor’s policy,” of the legislation, their rights, and how to deal with legal covering this up. a participant said. issues pertaining to the media. Rather than check- ing the accuracy of the report before publication, the media outlets had to Objective 2: Professional Journalism run corrections later. Ukraine Objective Score: 1.25/4.00 According to one panelist, the editors of smaller, regional newspapers also now understand the need for The low level of professional and ethical standards—or, balance and for including multiple points of view in their in some cases, the complete absence of such stan- stories, but that understanding does not always make the dards—remains one of the main problems of Ukrainian leap from the theoretical to the practical. The partici- journalism. According to the panelists, this problem is pants also noted the difference in approach between the most prevalent among broadcast journalists. It is also private regional outlets working as media businesses typical for journalists to express their own opinions in and striving for balance and those newspapers that exist their reporting, rather than provide the range of views of primarily to serve political ends. “The aim of such news- the various participants in an issue or conflict. Journal- papers is to support the political order, and so they don’t ists also too often do not take the trouble to check the need to check the information and keep the balance,” accuracy of information they have received, even when said one participant. it appears dubious. For example, in the prelude to the The panel noted that respect for ethical standards war in Iraq, Ukrainian media widely reported that the at any media outlet depends on the publisher or manager and whether this person insists that rules be established and followed. “Kyiv-based journalists not only don’t Journalism meets professional standards of obey rules of ethics,” one panelist said, “they don’t even quality obey the laws.” According to the panel, journalists justify their lack of professionalism and ethics by referring to ■ Reporting is fair, objective, and well sourced. the “realities” of life in Ukraine, saying that in the cur- ■ Journalists follow recognized and accepted rent situation they cannot afford such niceties. “They just ethical standards. are not ready to take the responsibility for their actions,” ■ Journalists and editors do not practice said one participant. self-censorship. Self-censorship is ubiquitous, most often because INDICATORS journalists and editors fear prosecution or being cut off ■ Journalists cover key events and issues. from official information sources by vengeful govern- ■ Pay levels for journalists and other media ment officials. Virtually every newspaper, radio, and professionals are sufficiently high to discourage television station has its own list of topics to avoid. Most corruption. often, the list centers on investigations of or comments ■ Entertainment programming does not eclipse upon the work of the legal and judicial systems. It is news and information programming. common for reporters and editors to discuss openly just how far they can go in covering an issue. At some ■ Technical facilities and equipment for gathering, media outlets, a panelist said, journalists’ performance producing, and distributing news are modern and efficient. evaluations note their ability to identify touchy issues and willingness to steer clear of controversy and trouble. ■ Quality niche reporting and programming “The more flexible the journalist is, the more possibilities exists (investigative, economics/business, local, he has to cover topics according to the editor’s policy,” a

PROFESSIONAL JOURNALISM PROFESSIONAL political). participant said.

174 MEDIA SUSTAINABILITY INDEX 2003 www.irex.org/msi/ The salaries of journalists in privately owned be said on the air to “The aim of such media outlets are generally higher than those in state- potentially offend newspapers is to owned media. Salaries for broadcast journalists are powerful figures. higher than those for print journalists, and salaries in Rarely do stations support the Kyiv are much higher than those in the regions. Televi- get pressured for political order, and sion reporters make about three times as much as news- running entertain- paper reporters. According to one panelist, the average ment programming, so they don’t need to Kyiv newspaper reporter is paid $300 to $400 a month, which also is more check the information and a section editor receives $500 to $700. At a Kyiv profitable—one television station, junior reporters earn $500 or more reason why it is and keep the balance,” per month, and established, senior television journalists almost impossible make $1,000 or more. to find any news said one participant. Compared with the average Ukrainian worker, programming on journalists are well paid, but part of that income almost FM radio stations. always comes “under the table.” That means that Many media outlets are equipped with modern, although the additional money is tax free, it also pro- often state-of-the-art technical equipment. According to vides a publisher or station manager with an additional a survey of more than 1,000 journalists in 12 cities con- hold over staff members. If they quit or are fired, their ducted by the NGO Journalism Initiative, 91 percent of unemployment settlement is based only on the official, journalists use computers in their work. Internet and e- lower salary. mail are available to 70 percent of journalists, and mobile Relatively high salaries do not prevent corruption. communications to more than 50 percent. State-owned At many media outlets, journalists write and shoot sto- media tend to lag behind, with less-modern equipment. ries “ordered” by paying sources. Sometimes the orders And in some cases, panelists said, media outlets run as are placed through the newspaper or station, in which political tools or even money-laundering operations, case the reporter gets only a share of the income; in rather than businesses, and have no incentive to provide other cases, the reporter makes a deal directly and keeps technical improvements. the full fee. Such paid stories are commonplace, usually Niche journalism is not well developed in most easily recognized by readers, and have contributed to a areas, though there are papers that specialize in busi- sharp drop in the level of trust the public has in media. ness and sports news, as well as a plethora of magazines Some media outlets create strict rules aimed at devoted to specific topics of reader interest. But high- preventing corruption. These rules prohibit accepting quality beat coverage in most newspapers and broadcast gifts or writing articles for outside pay. One panelist stations remains the exception, rather than the norm. noted that it is not the level of salary that is the prime factor in considering whether corruption among journal- ists can be prevented, but the likelihood of punishment. Objective 3: Plurality of News Sources Thus, even among media outlets with low pay scales, Ukraine Objective Score: 1.60/4.00 strict rules against accepting outside money and punish- ments such as dismissal have been effective. According to data from Ukraine’s State Committee on The balance between informational and entertain- Radio and Television, more than 18,000 periodicals were ment programs differs greatly between Kyiv and outlying registered at the beginning of November 2003. Of those, areas, panel participants said. In the capital, television about 56 percent were distributed only in their local area, stations have been cutting news programs during 2003, while the rest have regional, national, or international removing them from prime time, or shortening their circulation. The local publications are overwhelmingly duration, a trend that has not begun at regional outlets. newspapers, while those with wider distribution are According to one panelist, managers of most channels evenly split between newspapers and magazines. There justify such policy by stating that the news programs were 255 periodicals registered as state-owned, and cause more trouble than benefit due to the high politi- another 1,185 owned by municipal or other local govern- cal risk. Panelists also pointed out that there has been a ments. sharp drop in the number of news or talk shows pre- Both Ukrainian- and Russian-language publica- sented live because of the unpredictability of what might tions exist in profusion, though Ukrainian has a slight

UKRAINE 175 Multiple news sources provide citizens with Ukraine has: reliable and objective news ■ Three national television networks that are used for broadcasting by the National TV Company of Ukraine ■ A plurality of affordable public and private news (channel UT-1, which covers 96 percent of the terri- sources (e.g., print, broadcast, Internet) exists. tory of Ukraine), Studio 1+1 (channel UT-2, which ■ Citizens’ access to domestic or international covers 86 percent of Ukraine), and independent televi- media is not restricted. sion corporation Inter (channel UT-3, which covers 64 percent of the territory of Ukraine);

INDICATORS ■ State or public media reflect the views of the ■ Three national radio networks (UR-1, covering 90 entire political spectrum, are nonpartisan, and serve the public interest. percent of the territory of Ukraine; UR-2, covering 76 percent of Ukraine; and UR-3, covering 62 percent); ■ Independent news agencies gather and distrib- ■ Regional television networks that broadcast television ute news for print and broadcast media. programs to more than two regions of Ukraine (ICTV, ■ Independent broadcast media produce their own Novi Kanal, STB, NBM, TV 1 (OTV), Tonis Center, news programs. Ukraina, TET, Tonis South, M-1) and 10 regional radio networks (NBM, NART, Klas, Leader, Nashe Radio, ■ Transparency of media ownership allows consumers to judge objectivity of news; Dovira, Gala-Radio, Radio Rox, Utar, Radio Lux); media ownership is not concentrated in a ■ Regional television networks (25 state-owned and few conglomerates. four private); ■ Regional radio networks (25 state-owned and two ■ A broad spectrum of social interests are reflected and represented in the media, includ- private; 328 television channels and 193 radio fre-

PLURALITY OF NEWS SOURCES NEWS OF PLURALITY ing minority-language information sources. quencies that provide local broadcasting and represent 21 percent of all the channels and radio frequencies in edge in terms of the number of titles published in that operation, but only 6 percent of the total amount of language. Hundreds of publications have both Ukrai- broadcasting). nian and Russian editions, or, more commonly, mix the Panelists noted that virtually all national televi- two languages in one edition. A handful of publications sion channels are under control of government officials exist in other languages, such as Hungarian, Romanian, or oligarchs aligned with the presidential administration. Polish, German, According to the newspaper Stolichniye Novosti, the tele- “None of the state- Tatar, and English. vision channels Inter and 1+1 are controlled by the Social According Democratic Party of Ukraine (United) (SDPU(U)), owned mass media to the Chamber whose leader is Viktor Medvedchuk, head of the presi- serve the interests of of Publications of dential administration. The newspaper said ICTV, Ukraine, newspa- STB, and Novi Kanal are controlled by Viktor Pinchuk, the society,” said one per circulation in President Kuchma’s son-in-law. As a result, panelists panelist. “The only Ukraine is 1,807 said, the diversity of informational sources on television copies per 1,000 is significantly limited. good thing about it people, a number The situation with radio stations is similar. is that the reading that has been According to Stolichniye Novosti, nine of the 25 largest climbing steadily in FM stations in Kyiv are controlled by Pinchuk, and six of audience for these recent years. these nine are networks that also cover other parts of the papers is so small.” According country. Various presidential allies also control most of to the NCTVR, the national newspapers, according to the panelists. Ukraine has 791 broadcasting outlets, with 931 licenses Readers in the regions place more trust in local issued. Among them are 28 state-owned outlets, 250 and regional newspapers than in the national editions, municipal outlets, and 513 commercial outlets. They and the circulations reflect that. In regional cities, one transmit an aggregate of 8,366 hours of programming a panelist said, most people can afford to buy and read day. Most of the stations are broadcasters, but there also a privately owned newspaper. In rural areas, however, are 380 cable operators. Of those, only 85 have licenses the widest circulation is for newspapers owned by local and operate legally. governments and sold at very low prices.

176 MEDIA SUSTAINABILITY INDEX 2003 www.irex.org/msi/ There is no access restriction to foreign news, but leader’s appear- “There is a mistaken most people use no foreign news sources other than ance was marred by Russian ones because of the language barrier. In western attacks on his sup- belief that there are Ukraine, there is a significant use of media from Poland. porters and logisti- many informational Estimates say that about 8 percent of Ukraine’s cal roadblocks by population uses the Internet regularly, but the number is local authorities), agencies in the media growing rapidly throughout the country. Most users— it shows that all the market and the market and Internet infrastructure—are in cities, with rural agencies did their areas lagging badly. work poorly and is full,” said one Internet access to information has exacerbated one the way the events panelist. “But if you problem: Mass media, almost without exception, illegally were covered was reprint articles and other materials from foreign news very much oriented consider the coverage agencies and outlets. Most Ukrainian papers and broad- in favor of the casters do not have their own correspondents abroad, so government.” of what happened to they simply lift material from websites or foreign broad- It would be Viktor Yushchenko in casts, often presenting it as their own material without impossible for a acknowledging the source. Newspapers are more likely mass-media outlet Donetsk (when the to acknowledge the source, but still think nothing of to be able to get an popular opposition reprinting without permission. objective picture The state-owned mass media work as party out- of such politically leader’s appearance lets, receiving tasks from the government and serving charged events was marred by attacks the interests of those in power. “None of the state-owned by relying only mass media serve the interests of the society,” said one on information on his supporters and panelist. “The only good thing about it is that the read- from one news logistical roadblocks ing audience for these papers is so small.” It has become agency. At the same routine for broadcasters to bar coverage of opposition time, Ukraine has by local authorities), political powers completely. The news about them is not numerous websites it shows that all the slanted; it simply does not exist. that serve as de State-owned channels continue to broadcast facto news agencies. agencies did their many hours of programming devoted to cultural and They fill informa- work poorly and the educational issues, though the quality of these programs tion gaps created remains low, as does their viewership. by the agencies way the events were Regional television and radio stations generally and are much freer produce their own news programs, but these programs from government covered was very are usually heavily focused on government actions and influence. However, much oriented in favor personalities. The tone of the news on television depends their political spon- on the owner’s attitude toward the power structures. sors and supporters of the government.” Today there are several large-scale informational are rarely made agencies in Ukraine, all of them under the influence of clear, and users of these sites have no guarantee that the authorities. One, DINAU, is state-owned; its news is the information is accurate or fair. Nonetheless, these distributed to state-owned outlets, creating unfair com- sites are regularly used, and cited, by regional media— petition on the media market. The DINAU reports usu- sometimes not because they are better than the paid ally contain official information about the work of the agencies, but because the information on them is free. authorities. The other two agencies—privately owned It is virtually impossible to tell who owns a media and UNIAN—also are not always unbiased in outlet. The staff of Telekritika, a website supported by presenting information. “There is a mistaken belief that international donors that covers media developments in there are many informational agencies in the media Ukraine, sought information about the owners of televi- market and the market is full,” said one panelist. “But if sion channels from the NCTVR. The request was denied, you consider the coverage of what happened to Viktor with the council saying that by law such information can Yushchenko in Donetsk (when the popular opposition be given only when ordered by a court.

UKRAINE 177 Ukrainian law requires that information about even under their “Ukraine appears to the founders of a media outlet be public, but the found- own ownership. be at the stage where ers and the owners are not always the same. In addi- “Ukraine appears tion, many owners are simply placeholders for powerful to be at the stage newspapers create interests working behind the scenes. Panelists describe where newspapers their own structures the national as essentially a create their own monopoly, although not through direct ownership. This structures of print- of printing and is less true in the regional mass media, where the owners ing and distribu- distribution. That of most papers and stations are known. tion. That often Mass media in minority languages (except Rus- happens when pub- often happens when sian) concentrate mostly on issues relevant primarily to lishers buy presses their particular ethnic audience. Most such media are and all of them publishers buy presses owned or supported financially by the government, and become profitable,” and all of them the quality tends to be very low. said one panelist. Russian-language media is the exception. Two large- become profitable,” Although it is not an official language—only Ukrainian scale operators con- said one panelist. has that status—panelists pointed out that for Ukraine as trol most newspaper a whole, the circulation of newspapers in Russian exceeds distribution in Ukraine: , the post office, that of newspapers published in Ukrainian. delivers subscriptions to home mailboxes, and Ukrdruk In late 2003, the parliament passed a law saying controls kiosks that handle sales of newspapers. that all advertising must be published in Ukrainian. Ukrposhta has 15,000 post offices and 50,000 mail carri- After an international outcry, the law was repealed in ers, and delivers 15.4 million copies of newspapers—but early 2004, never having been enforced. often not well. Daily newspapers may be delivered a day or two late, and sometimes subscribers receive an entire week’s worth of papers at the same time the follow- Objective 4: Business Management ing week. Newspapers also are unhappy with the prices Ukraine Objective Score: 1.99/4.00

Printing newspapers in Ukraine is a complex business Independent media are well-managed involving hundreds of companies, both private and gov- businesses, allowing editorial independence ernment-owned. Most papers continue to be printed on ■ Media outlets and supporting firms operate as state-owned presses. The state is loath to give up control efficient, professional, and profit-generating over printing, and during a recent , control businesses. over 19 printing plants was given to the state-owned company Ukrizdatpoligrafiya. ■ Media receive revenue from a multitude of sources. According to the State Committee for TV and Radio, Ukrainian printing presses are being used at 42 ■ Advertising agencies and related industries INDICATORS percent of capacity, mostly to publish papers receiving support an advertising market. subsidies from the budgets of different levels of govern- ■ Advertising revenue as a percentage of total ment. This creates a difference in the cost of printing for revenue is in line with accepted standards at private and state-owned media. Government officials commercial outlets. who control the budgets for the state-owned presses can ■ Independent media do not receive government pressure those printing plants not to work with opposi- subsidies. tion media. In recent years, however, the number of high- ■ Market research is used to formulate strategic quality, privately owned presses has climbed dramati- plans, enhance advertising revenue, and tailor products to the needs and interests of cally, and they now can be found in Kyiv and in most audiences. regions of the country. Newspaper staffs that once had to travel hundreds of kilometers to find a private MANAGEMENT BUSINESS ■ Broadcast ratings and circulation figures are printer now often have one in their own city—or reliably and independently produced.

178 MEDIA SUSTAINABILITY INDEX 2003 www.irex.org/msi/ charged by the monopoly Ukrposhta, and with the pers are using research to help them identify audiences post office’s unwillingness to share subscriber informa- and target content appropriately. tion with the newspapers. All this has spurred regional Circulation numbers are unreliable. Newspapers newspapers to create their own distribution systems. self-report their circulations, but virtually all overstate Many already have developed or are finishing creating the numbers. There is no audit bureau of circulation or such systems, but none has a nationwide reach. “This is other organization to verify circulation figures. Some one of the reasons why there is no national large-scale media outlets publish weekly or monthly circulation and high-quality daily newspaper in Ukraine,” said one figures, instead of the numbers for each issue, which panelist. Indeed, one of the newspapers with the largest deceives both readers and advertisers. nationwide circulation, Fakti, uses several printing plants across the country and relies primarily on street sales. Privately owned newspapers for the most part get Objective 5: Supporting Institutions revenue from advertising, subscriptions, and retail sales. Ukraine Objective Score: 1.90/4.00 Although these private newspapers do not receive sub- sidies from state budgets, some do receive money when Associations of independent media companies have been local governments pay them for placement of official operating in Ukraine for several years and are continuing information as advertising. State-owned papers generally to expand their activities. Among them are the Ukrainian have relied largely on disbursements from government Newspaper Publishers Association (UNPA), which unites budgets. Now, however, many local governments have nearly 50 publishers of more than 100 newspapers and left their newspapers to survive on the market, retaining magazines with a weekly circulation of more than 5 mil- ownership so that they can exert control in critical peri- lion copies; the Ukrainian Association of TV Broadcasters, ods, such as during election campaigns. A third category which includes about 120 regional broadcast outlets; and of newspapers rely on political or business sponsors and the Union of Cable Broadcasters, which brings together generally are not run primarily as media businesses. more than 100 cable-television companies. Those media outlets that are run as businesses have The panelists noted that the associations effec- much to look forward to. “The outlook for the advertis- tively serve the interests of their members. But despite ing market is enormous,” one panelist said. “According the rapid growth of the associations, they represent only to the experts, there are 2,100 businesses in Kyiv that are advertising in the print media. But there are about Supporting institutions function in the 100,000 businesses. That means that only 2.1 percent of professional interests of independent media businesses are currently advertising in print media.” From 2002 to 2003, the print-media advertising ■ Trade associations represent the interests of market in Ukraine doubled, from $28 million to $60 private media owners and provide member million. According to the Ukrainian Advertising Asso- services. ciation, it is expected to climb to $80 million in 2004. ■ Professional associations work to protect Advertising revenue on television increased from journalists’ rights.

$85 million to $130 million from 2002 to 2003. National INDICATORS channels and other large-scale players account for about ■ NGOs support free speech and independent media. 75 percent of the advertising revenue on television, while regional outlets receive rather paltry revenues from ads. ■ Quality journalism degree programs that provide Market research and mass media research are substantial practical experience exist. developed industries in Ukraine, especially in the larg- ■ Short-term training and in-service training est cities. “It’s become standard that all TV advertising programs allow journalists to upgrade skills or is sold on the basis of ratings,” one panelist said. How- acquire new skills. ever, media managers do not always heed the results of ■ Sources of newsprint and printing facilities are market research when they make editorial and pro- private, apolitical, and unrestricted. gramming decisions. Regional electronic media are less likely to have a ■ Channels of media distribution (kiosks, trans- good idea of who their audience is because of the lack of mitters, Internet) are private, apolitical, and SUPPORTING INSTITUTIONS SUPPORTING unrestricted. good research. At the same time, more regional newspa-

UKRAINE 179 “The publishers are not a small fraction of NGOs supporting media exist in the form of media interested in the idea of the nation’s mass clubs and monitoring committees, but the panelists dis- media outlets. There missed them as largely inconsequential. “They exist as an trade unions, because if also are some local element of the civil society, but in truth, they exist only the journalists unite it or regional associa- because of donors’ generosity. It is impossible to buy free- tions of publishers dom with other people’s money,” said one participant. will raise the questions or broadcasters, but “Besides, these organizations mainly practice petition of signing the collective their development is drives, which means their assistance is limited to protests in the early stages. rather than effective legal or professional help.” agreement, developing One panel There also are several international media-assis- member pointed tance organizations that are active in Ukraine, including model agreements, and out that political IREX, Internews, Reporters Sans Frontières, and BBC ending under-the-table powers also have World Training Service. started to create Several resource centers for journalists have salary payments, which associations of pub- developed in Ukraine and mainly provide training, would create a financial lishers and broad- information resources, and legal assistance. They include casters from media the European Commission-funded TOP-Media Center burden for employers,” outlets under their in Odessa; the Crimean Press Center, which receives a panelist said. control. Whether grants from several donors, including IREX; Internews- that is because they Ukraine, which seek to counter the is supported by independent association or because they understand the “The mass-media various donors; and importance and effectiveness of professional associations outlets find it others. One of the is an open question. panelists said that The relatively new trade union of journalists also disadvantageous to while journalists has chapters in several areas of Ukraine, as well as a hire and retrain these have not been very national organization in Kyiv. But it has received little supportive of the recognition from owners of media outlets, and is not unqualified graduates,” trade union, the strong enough to effectively represent the interests of all one panelist said. “It’s work of these orga- journalists, or even of members. Still, it is an alternative nizations could be to the Soviet-era Union of Journalists, which tends to often easier to teach very effective. For best represent journalists at state-owned media outlets the ones who are not example, lawyers and retirees who are much more concerned about their from Internews- pension rights than about modernizing the mass media. spoiled with a classic Ukraine helped Panelists said that there had been resistance to the journalism education.” journalists block an trade union from political powers, as has been the case attempt to impose a in recent years for unions in other industries in Ukraine. labor contract that According to one panelist, the journalists working for would have seriously infringed upon their rights. successful publications also do not throw their sup- All of the panelists deplored the low level of port behind the trade union because they do not see it journalism instruction in the universities. They also as necessary to protect them. And publishers are not noted the continuing growth in the number of journal- welcoming the trade union with open arms, either. “The ism departments in regional universities and institutes, publishers are not interested in the idea of trade unions, without any control over quality. Two main problems are because if the journalists unite it will raise the ques- a lack of good instructors and a lack of good textbooks. tions of signing the collective agreement, developing The curriculum in the universities remains largely model agreements, and ending under-the-table salary unchanged since Soviet times, and the university admin- payments, which would create a financial burden for istration objects to any substantive updates. New jour- employers,” a panelist said. “They (publishers) will have nalism departments have to accept the existing national to set aside money for pension and social-security funds curriculum in order to be accredited. There has been from their own money.” a change in the elective courses offered, with those in

180 MEDIA SUSTAINABILITY INDEX 2003 www.irex.org/msi/ public relations and advertising now being very popular. to acquire new skills. There also is a new and growing But newspapers and broadcasters are in no hurry to hire cadre of who are, on a commercial basis, graduates of these journalism programs. “The mass- offering their skills as trainers and consultants. More media outlets find it disadvantageous to hire and retrain and more media outlets are finding that it is worth the these unqualified graduates,” one panelist said. “It’s often expense to hire such people to improve the skills of their easier to teach the ones who are not spoiled with a classic staff. Media outlets are more interested in training in journalism education.” business and management fields because of the potential Both local and international NGOs, as well as pro- to improve their bottom line. But panelists said jour- fessional associations, conduct short-term courses that nalism education workshops also are essential and that allow both new and seasoned journalists and managers having more of them would benefit Ukraine.

UKRAINE 181 Panel Participants Alexander Chovgan, president, RIA Corporation, and newspaper publisher, Vinnitsa

Oleksandr Klishch, Public Affairs Section, US Embassy, Kyiv

Oksana Lysenko, reporter, Telekritika, Kyiv

Natalia Petrova, senior media law expert, TOP-Media Center, Odessa

Mykhaylo Veysberg, president, Ukrainian Newspaper Publishers Association, Kyiv

Vasyl Zorya, foreign news editor, Novy Channel, Kyiv

Moderator Oleg Khomenok, IREX U-Media Observers Tim O’Connor, resident advisor, IREX U-Media

Victoria Marchenko, Office of Democracy and Social Transition, USAID/Kyiv

Sue Folger, chief of party, U-Media, Internews Network

182 MEDIA SUSTAINABILITY INDEX 2003 www.irex.org/msi/