Successful economic development is characterized by widespread coordination. Toward this end, the development of a free media is critical for shifting games of conflict to games of coordination. We can therefore put forth some general guidelines for the achievement of a free media toward the ends of successful economic development
1. Privatize all aspects of media industry – Media companies, whether print or broadcast, --as well as any complementary industries –must be completely privatized in order to be effective. Any government involvement will compromise the credibility of the media and provide potential for political influence of coverage.
2. Open borders to foreign investment and media – We provided several examples of the importance of foreign investment in helping recently privatized media sources develop. In addition to investment, developing media firms in other countries. Moreover, granting access to foreign media firms provides yet another source of information to the populace and serves as an example for, and a check on, developing domestic media sources.
3. Consumer demand is critical – Even if the media is relatively free in a country, a lack of consumer demand will render it largely ineffective as a mechanism for coordinating around norms and policies that lead to economic development. When the populace demands ‘good’ policies from politicians, and is willing to punish them for diverging from these policies, a free media can serve as a source of transparency and an ultimate check on the progress in meeting these demands. In this regard, allowing for diverse coverage of topics and sources – both domestic and foreign – that can introduce consumers to new perspectives and provide them with the information they demand is key.
As economics and history teaches us, these guidelines give the best chance for media to serve as a coordination-enhancing mechanism in achieving sustainable economic development.
Successful economic development is characterized by widespread coordination. Toward this end, the development of a free media is critical for shifting games of conflict to games of coordination. We can therefore put forth some general guidelines for the achievement of a free media toward the ends of successful economic development
1. Privatize all aspects of media industry – Media companies, whether print or broadcast, --as well as any complementary industries –must be completely privatized in order to be effective. Any government involvement will compromise the credibility of the media and provide potential for political influence of coverage.
2. Open borders to foreign investment and media – We provided several examples of the importance of foreign investment in helping recently privatized media sources develop. In addition to investment, developing media firms in other countries. Moreover, granting access to foreign media firms provides yet another source of information to the populace and serves as an example for, and a check on, developing domestic media sources.
3. Consumer demand is critical – Even if the media is relatively free in a country, a lack of consumer demand will render it largely ineffective as a mechanism for coordinating around norms and policies that lead to economic development. When the populace demands ‘good’ policies from politicians, and is willing to punish them for diverging from these policies, a free media can serve as a source of transparency and an ultimate check on the progress in meeting these demands. In this regard, allowing for diverse coverage of topics and sources – both domestic and foreign – that can introduce consumers to new perspectives and provide them with the information they demand is key.
As economics and history teaches us, these guidelines give the best chance for media to serve as a coordination-enhancing mechanism in achieving sustainable economic development.
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