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The Vested Interests Behind Romanian Media

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The Vested Interests Behind Romanian Media Romanian Academic Society – www.sar.org.ro POLICY BRIEF #65 – NOVEMBER 2014 The Game of Influences: The Vested Interests Behind Romanian Media This policy brief presents and analyzes the recent case study that illustrates a perfect current state of the Romanian media, and example of Romanian “free press” raises important questions about the shortcomings is presented to provide readers commonly held notion that the press in with an example of how false information is Romania is actually “free”. The report spread through media channels, often to evaluates the overall level of independence of benefit a particular agenda or interest group. the Romanian media by looking at the The report concludes with several following: 1) the different “pathologies” and recommendations aimed at disrupting the common practices that plague media seemingly endless series of bad practices that organizations, disallowing them from have degraded trust in media organizations in operating at a high (and journalistically sound) recent years. These solutions can be level 2) a list of central media owners and implemented at all levels, thus involving not shareholders 3) insolvency situation from only the media organizations themselves, but within the central press 4) media also the government, regulatory bodies, civil owner/media personality judicial problems 5) society, and even ordinary citizens, providing the public advertising situation in Romania. A a holistic solution to a very important issue. 1 Romanian Academic Society – www.sar.org.ro I. The Independent Media as a Key Player Romania’s independent media score followed the same negative pattern, dropping from A free and independent media is vital for 3.75 to 4.25 over the past six years. As can be facilitating good governance and ensuring observed in Figure 1, Romania’s 2014 score is governmental transparency and the lowest when compared to other E.U. accountability, by enabling the population’s member states, and is within the range of access to unbiased context-relevant non-E.U. Balkan countries (with the exception information. The art of journalism brings, in of Croatia, who joined in 2013, yet still holds a its pure form, objective materials up for better independent media score than debate in the public arena, providing the Romania). This report will investigate the opportunity for all involved stakeholders to different pathologies that have led to such a cast viewpoints on the matter, and does not drop in Romania’s independent media score, support any particular agenda aside from that and have undermined the country’s of truth seeking. A country benefiting from democratic processes. Sections will include a such a free and independent media will also comprehensive list of all owners and profit from having an informed population, a stakeholders from the various central media gold standard in any well-operating outlets, various accumulated debts and democratic society. insolvencies by the same outlets, and judicial problems related to the central press. A case Twenty-five years after the collapse of study by Professor Alina Mungiu-Pippidi will communist regimes in Eastern Europe, most also be presented to illustrate how the countries in the region have succeeded in Romanian media is used to support hidden consolidating operational democratic agendas, at the expense of a misinformed institutions, as well as creating effective population through fabricated stories and a protection for both civil society and the complete absence of journalistic integrity. The media1. Though progress has been made, the report will end with a number of danger of regressing remains, as the recommendations that aim toward a free and economically weakening media sectors raise independent Romanian media, at the same doubts regarding the permanence of recent time strengthening the democratic system of democratic gains. There is growing pressure checks and balances that would ensure on independent media throughout EU increased levels of governmental member states, as most countries’ media transparency and accountability. rating scores have declined over the last decade (as can be observed below in Figure 1, where higher scores represent worsening conditions), with the quality and dependability of investigative journalism and reporting compromised by vested interests stemming from various economic and political 2 pressures . 1 Habdank-Kolaczkowska, S., Zselyke, C., Roylance, T., Puddington, A. (2014). Nations in Transit 2014: Euroasia’s Rupture with Democracy. Freedom House. Washington D.C. http://www.freedomhouse.org/sites/default/files/NIT20 14%20booklet_WEBSITE.pdf 2 Habdank-Kolaczkowska, S., Zselyke, C., Roylance, T., Puddington, A. (2014). Nations in Transit 2014: Euroasia’s Rupture with Democracy. Freedom House. Washington D.C. http://www.freedomhouse.org/sites/default/files/NIT20 14%20booklet_WEBSITE.pdf 2 Romanian Academic Society – www.sar.org.ro Figure 1: Nations in Transit rating history for “Independent Media” category (2005-2014) 4,5 4 Bulgaria 3,5 Czech Republic 3 Estonia Hungary 2,5 Latvia 2 NIT Rating Lithuania 1,5 Poland Slovakia 1 Slovenia 0,5 Croatia 0 Romania 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Year Note: Countries are rated on a scale from 1 (highest level of democratic progress) to 7 (lowest level of democratic progress). Source: Nations in Transit ratings history for “Independent Media” category from 2005 to 2014 in Central-Eastern Europe, available at http://www.freedomhouse.org/sites/default/files/NIT2014%20booklet_WEBSITE.pdf a hand-out in the form of a particular contract II. The Pathologies (through more or less transparent methods) to buy ads directly from the friendly newspaper, The main reasons for the underperforming media instead of declaring campaign contributions to sector in Romania were very well categorized and presented by Professor Mungiu-Pippidi in a recent the Accounts Court. The following two issues article3. It is important to note that a low-degree of could result from this exchange of favours: transparency in public disclosure of media 1. the system in place for monitoring campaign organization funding sources helps in masking the contributions is illegally sidestepped negative cumulative effects of the system (Accounts Court); shortcomings described below. 2. the benefiting newspaper/media outlet gets sponsored by a political entity, ensuring a The following list also provides the means through which political influence is exerted, directly and biased source of news and challenging the indirectly, limiting the independence of the free notion of a free and independent media. press. Entrustment of middlemen or intermediaries - a Exchange of favours - it is rather common political figure does not need to exert direct practice for a businessman who benefitted from control over a media organization, as middlemen are another common sight in the Romanian media scene. A perfect example of 3 Mungiu-Pippidi, A. (2014). The Freedom of the Press, A this is the RTV (Romania TV) majority owner, Mr. National Fraud (II). Clean Romania. http://romaniacurata.ro/wp- content/uploads/2014/10/The-Freedom-of-the-Press-a- Dan Mihai Tronaru, a close high-school friend of National-Fraud-II.pdf Sebastian Ghiță, who was entrusted by Ghiță 3 Romanian Academic Society – www.sar.org.ro with full control over the TV station (Mr. Luxembourg, Cyprus, and Lichtenstein. This Tronaru’s wife also happens to be the contact makes it remotely difficult to figure out the person in Mr. Ghiță’s parliamentary office). composition of its shareholders, leaving open Given the lack of objectivity that is often evident the possibility of questionable ownership by during RTV shows, as well as their political, and politically-motivated figures (that unquestionable support for governing coalition even so often remain anonymous). talking points (Sebastian Ghiță is an MP from the PSD side, while PSD makes up a significant Undercover agents within the media – the recent portion of the governing alliance), it seems case of Robert Turcescu, a journalist that justified to assume the presence of at least some admitted on national television to having political influence in RTV viewpoints (though worked as an undercover agent in the media recent trends indicate a high degree of influence created a wave of discussions about the role of is present). secret agents in the press and the damage that could arise from this practice. While agencies Media ownership acquisition (excluding ads) by would argue that the placement of such agents PR companies or their main shareholders- is important for the collection of relevant Evenimentul Zilei is such an example, where the information in the name of national security, the majority owner of the newspaper is also a issue of whether control and how much of it is shareholder in two PR firms (majority exerted over the information presented in the shareholder in one). More instances that are press by agencies remains. similar can be found in the Annex: Shareholders The media situation in Romania is further of the Romanian media organizations. complicated by a sometimes unresponsive CNA Repeated bankruptcy - for this underhanded (National Audio-visual Council), the regulator that scheme to work operations normally move emits all radio and television broadcasting licenses, toward new companies with obscure and as such should be privy to all relevant shareholders, leaving the debt with the insolvent information regarding the license holders. The firms. Proceeds from PR favours and
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