the ad bomb
The government’s draft advertisment policies will police news content and stifle the Bhutanese media that supports around 1,000 families
Two brand new advertisement policies, one by the communication ministry and the other by the finance ministry, could threaten the existence of most media houses and allow government to dictate news content.
Though the policies aim to distribute government advertisements in a professional manner, the MoIC policy says that only media houses that ‘promote the values of gross national happiness will be given advertisments.
For the first time the policy also says that advertisement can be withheld when any media acts in disregard to ‘journalistic ethics.’ These include media that commit ‘factual errors’ and refuse to issue immediate corrigendum.
A newspaper writing “baseless, personalized, malicious” and obscene reports will also be blacklisted.
“But who is going to decide whether an article is malicious or not,” asked Bhutan Observer Editor Needrup Zangpo.
Media professionals, including those in this paper, say that these provisions could be misused by government officials unhappy with stories uncovering corruption or abuse of power to withhold advertisements as punishment. As a result these policies could give unprecedented financial powers to the government over media houses.
The six newspapers in the country Kuensel, Business Bhutan, Bhutan Times, Bhutan Observer, The Journalist and Bhutan Today depend on government for about 80% of their advertisement revenue. It is similar case for radio stations including Kuzoo Fm, Radio Valley, BBS and Centennial and other magazines.
The MoIC policy says that the Department of Information and Media will “monitor the tone and coverage of different Bhutanese media.”
News and entertainment magazines may soon have to close shop as the finance ministry recommends that government advertisements should not be given at all to any of the magazines like Drukpa, Druk Trowa,Bhutan Window, Tashi Delek, and Yeewong.
Another contentious point in both policies is the effort to ensure that more widely circulated papers get more advertisements. Critics say that due to market forces this is already happening. Kuensel, in addition to getting the maximum number of advertisements, also charges the highest rate than any other paper based on their reach. Smaller papers offer up to 50% discount.
Government advertisements are already being given on the basis of a April 2007 finance ministry circular that states advertisement should be distributed in an equitable manner but keeping in mind the reach of the media.
In a study on advertisement revenue by the MoF in the last four months it was found that, on an average, Kuensel got Nu 1.5mn, Bhutan Today Nu 0.78mn, Bhutan Times Nu 0.426mn and Bhutan Observor Nu 0.39mn in descending order indicating that Kuensel already has around 50% of the ad market compared to the three others papers who share the remaining 50%.
Though the forthcoming circulation audit of the papers will be conducted in September 2010, the finance ministry’s advertisment policy document in an unprecedented comment says “advertisement meant for nationwide coverage should be given to a newspaper with wide circulation for eg. Kuensel.”
Critics say it is highly irregular and unethical for a government policy to indicate a company’s name for procurement of services before even a tender is floated. Talking to Business Bhutan, Finance Secretary Lam Dorji said the present policy may not really mean cost-cutting but is an effort at being cost effective.
“We are looking at several cost cutting measures and advertisement is a big part of cost since a few years ago there was only Kuensel and now there are so many newspapers and we cannot have a situation where government is giving advertisement to all papers,” he said.
Under its cost-cutting measures the government is also planning to trim its advertisement budget which in the 2009-10 budget was at Nu 42.24mn amounting to 0.14% of the Nu 13,594.13mn current expenses.
The Nu 42.24mn budget sustains the fourth estate of the country consisting of BBS, six newspapers, five magazines and four radio stations employing around 1,000 people.
By contrast, the pay of the MPs after the pay hike would come to around Nu 70mn a year not including other benefits. The government’s entertainment budget for 2009-10 is Nu 82.73mn, and there are no policies to curtail it. So to police a Nu 42.24mn advertisement budget the finance ministry recommends the creation of a new office in every government agency called the Public Information Service which will collect advertisement from all sections in its agency and distribute it to identified media agencies. The finance ministry’s policy also suggests a weekly rotation of ads where only two newspapers get a certain advertisement in a week depriving the advertisement to the readers of other newspapers.
Talking to Business Bhutan, Information Secretary Dasho Kinley Dorji said the budgeted advertisement amount was often not enough and often overshot its mark.
“Both these draft policies will receive feedback from the media agencies. It has to be discussed in the committee of secretaries and the GNH Commission where the whole thing can also be overturned,” said Dasho Kinley Dorji.
In an early interview with Business Bhutan, Anya Schiffrin (wife of Jospeh Stiglitz) the Director of the School of International and Public Affairs and International Media at Columbia University said there can never be too many media outlets in Bhutan since diversity of views is really important as it can lead to better decision making in a democracy.
She also said economists found that too little advertisement by the government can be bad as media houses can then be dependant just on circulation and private advertisements leading them to become more sensational.
Media professionals say these policies would make private papers more dependent on private sector advertisements making them more vulnerable. But the communication secretary said, as a decision maker with public funds, he had to think of the media that reaches a certain message to the right audience.
He said his concern is “not the survival of newspapers and radio as there are other sources of funds for media development.”
“I cannot spend government funds to prop up the media and it is wrong of me to use those funds to build small newspapers and media houses,” said Dasho Kinley Dorji.
He said that from a policy point of view the government must help media to grow with infrastructure, equipments, printing houses, trainings etc.
The DPT government in its manifesto had highlighted support and growth for the fourth estate as one of their main priorities.
TENZING_LAMSANG in Business Bhutan