Ukraine Media Assessment and Program Recommendations

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Ukraine Media Assessment and Program Recommendations UKRAINE MEDIA ASSESSMENT AND PROGRAM RECOMMENDATIONS VOLUME I FINAL REPORT June 2001 USAID Contract: AEP –I-00-00-00-00018-00 Management Systems International (MSI) Programme in Comparative Media Law & Policy, Oxford University Consultants: Dennis M. Chandler Daniel De Luce Elizabeth Tucker MANAGEMENT SYSTEMS INTERNATIONAL 600 Water Street, S.W. 202/484-7170 Washington, D.C. 20024 Fax: 202/488-0754 USA TABLE OF CONTENTS VOLUME I Acronyms and Glossary.................................................................................................................iii I. Executive Summary............................................................................................................... 1 II. Approach and Methodology .................................................................................................. 6 III. Findings.................................................................................................................................. 7 A. Overall Media Environment............................................................................................7 B. Print Media....................................................................................................................11 C. Broadcast Media............................................................................................................17 D. Internet...........................................................................................................................25 E. Business Practices .........................................................................................................26 F. Legal Issues ...................................................................................................................30 G. Gender ...........................................................................................................................35 IV. U.S. ASSISTANCE ............................................................................................................. 37 A. Background ...................................................................................................................37 B. USAID...........................................................................................................................37 B. Other U.S. Activities .....................................................................................................39 C. Private............................................................................................................................40 V. Other Donor Aid .................................................................................................................. 41 VI. Conclusions, Lessons Learned And Recommendations ...................................................... 43 A. Overall Media Situation ................................................................................................43 B. Shaping the Legal Enabling Environment.....................................................................44 C. Strengthening Constituencies for Reform .....................................................................45 D. Improving Business Viability........................................................................................46 E. Increasing Media Professionalism.................................................................................48 F. USAID Management.....................................................................................................51 G. Public Affairs Section and MDF ...................................................................................53 H. Other Donors .................................................................................................................55 VOLUME II VII. Appendices Appendix A Assessment Scope of Work...........................................................................1 Appendix B Partial List of Documents..............................................................................6 Appendix C Persons Contacted .........................................................................................9 Appendix D Data on Independent, Non-State Newspapers.............................................13 Appendix E Information on Private Television/Radio Stations ......................................51 H:\INCOMING\MSI-09-19-2001\UkraineRpt-Volume I.doc i Appendix F TV & Radio Company Backing ..................................................................58 Appendix G Ukraine On-Line Newspapers (no print version) ........................................61 Appendix H USAID Budget Tables/Charts .....................................................................62 H:\INCOMING\MSI-09-19-2001\UkraineRpt-Volume I.doc ii ACRONYMS AND GLOSSARY ABC Audit Bureau of Circulation AED Academy for Educational Development, USAID training implementer BBC British Broadcasting Corporation BIZPRO USAID-funded SME development project implemented by DAI CIDA Canada International Development Agency CME Central Media Enterprises DAI Development Alternatives, Inc., BIZPRO contractor DFID Department for International Development, the United Kingdom EBRD European Bank for Reconstruction and Development EIM European Institute for the Media EU European Union Euro European currency (Euro 1.00 = US $0.85, as of May 29, 2001) FY Fiscal Year IBRD International Bank for Reconstruction and Development, the World Bank IFC International Finance Corporation, the World Bank IBA Independent Broadcasting Association of Ukraine IFES International Foundation for Elections Supervision IR Intermediate Result IREX International Research & Exchanges Board, ProMedia implementer IRF International Renaissance Foundation, Soros Open Society Institute IRI International Republican Institute ISP Internet Service Provider KFW Federal Republic of Germany development loan agency MFB MicroCredit Finance Bank MDF Media Development Fund, managed by the U.S. Embassy/Kiev MMI Marketing and Media Index Company MSI Management Systems International MVF Media Viability Fund, the Eurasia Foundation NCTRB National Council for Television and Radio Broadcasting NDI National Democratic Institute NGO Non-Governmental Organization NIS Newly Independent States of the former Soviet Union Oblast Ukraine region OSCE Organization for Security and Cooperation in Europe PAS Public Affairs Section, American Embassy, Kiev PAUCI Poland-America-Ukraine Cooperation Initiative, USAID-funded PCMLP Programme in Comparative Media Law & Policy, Oxford University PSC Personal Services Contractor Rada Verkhovna Rada, the Ukrainian Parliament RFE/RL Radio Free Europe/Radio Liberty, USG-funded R-4 Results Review and Resource Request, USAID budget review SIDA Swedish International Development Agency SME Small and Medium Enterprise SO Strategic Objective H:\INCOMING\MSI-09-19-2001\UkraineRpt-Volume I.doc iii UAH Hryvna, Ukrainian currency (UAH 5.5 = US$ 1.00, as of May 29, 2001) UMREP Ukraine Market Reform Education Program, USAID-funded USAID U.S. Agency for International Development USG U.S. Government VOA Voice of America, USG-funded WNISEF Western NIS Enterprise Fund, USAID-funded H:\INCOMING\MSI-09-19-2001\UkraineRpt-Volume I.doc iv I. EXECUTIVE SUMMARY Independent news media are an essential pillar in any democratic, open market society. When the Ukrainian people opted for independence in 1991, the nation initially made significant strides towards more press freedom in both print and broadcast sectors. It appeared that Ukraine would thereby implement its new constitutional principles and allow greater freedom of expression in a more participatory government and economy. Some also thought that Ukraine would exercise greater independence from Russia and assume political and economic positions closer to those of Western European as it joins the global community. The legacy of the long years of communist rule, however, has proven to be profound. Old habits die hard, particularly those that have been deeply entrenched for so long in the minds of the people and in government practices, including the use of media as an extension of the state’s power apparatus. Indeed, many of the Soviet-style methods of running a government and doing business have simply continued in Ukraine, though under different arrangements. Just as importantly, as happened in Russia and elsewhere, massive and unbridled greed crept into Ukraine’s reorganized economy on a scale that was difficult to anticipate. The result is an increasingly corrupt power structure involving a dangerous alliance between government entities and a new breed of oligarchs or mafia clans that have, in many ways, replaced the communist party in strength and influence. In the process, the early, limited example of a more independent news media in Ukraine has been stunted and is now increasingly beleaguered. The U.S. Government, acting primarily through the U.S. Agency for International Development (USAID), has been an early and steady supporter of the independent news media in Ukraine. Over the past ten years since Ukraine’s independence, USAID has provided some $21 million in technical assistance, training, financing and limited commodities to foster the development of Ukraine’s independent print and broadcast media. Most of this aid has been channeled through U.S. non-governmental organizations (NGOs), especially IREX/ProMedia, which has concentrated on independent newspapers, and Internews, which has worked with the non-state radio and television industry. Both organizations are very
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