Establishment of a Multi-Donor Media Fund in Serbia: Feasibility Study
Establishment of a Multi-Donor Media Fund in Serbia:
Feasibility Study Serbia Media Assistance Program CA #169-A00-08-00101-A
December 5, 2012
Establishment of a Multi-Donor Media Fund in Serbia: Feasibility Study.
This Study was commissioned by USAID Serbia to explore
opportunities for establishment of a local, independent, permanent
multi-donor fund. For the purpose of data collection and processing,
IREX contracted IPSOS Strategic Marketing. IREX has performed a
thorough analysis of data and has compiled this report.
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Establishment of a Multi-Donor Media Fund in Serbia: Feasibility Study
Project manager and author: Dunja Latinovic, IREX SMAPCo-author and editing manager: Leon Morse, IREX
Data collection and processing: IPSOS Strategic Marketing Overall program supervision: Wes Burd, IREX SMAP
This feasibility study is made possible by the support of the American people through the United States
Agency for International Development (USAID).The contents are the responsibility of the authors and
do not necessarily reflect the views of USAID or the United States Government.
Table of Contents
Executive Summary .............................................................................................................. 4
1
Background.................................................................................................................... 5
1.1
2
3
4
Media Context......................................................................................................... 6
Fund Structure ............................................................................................................... 7
2.1
Recommended Activities......................................................................................... 8
2.2
Management Arrangements .................................................................................. 10
2.3
Start-Up Scenario ................................................................................................. 12
Feasibility and Risks .................................................................................................... 13
3.1
Feasibility .............................................................................................................. 13
3.2
Summary of Survey Findings ................................................................................ 17
3.3
Risk Analysis ........................................................................................................ 20
Methodology ................................................................................................................ 23
Annex 1 - Examples of Best Practice .................................................................................. 24
Annex 2 - Organizations, Institutions, Companies and Individuals Consulted ...................... 26
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Establishment of a Multi-Donor Media Fund in Serbia: Feasibility Study
3
Establishment of a Multi-Donor Media Fund in Serbia: Feasibility Study
Executive Summary
This Study explores the feasibility for a permanent multi-donor media support Fund in Serbia
to channel resources to independent media in the face of scaled-back donor funding for this
sector. The Study is a synthesis of desk-research, questionnaire analysis, and interviews
with relevant parties. Existing and past multi-donor media development initiatives provided
background and examples of best practices. Interviews with and questionnaires collected
from potential international and Serbian donors form a key component of the determination
of feasibility.
The guiding questions for this paper are:
1
2
3
4
5
6
7
What initiatives have been developed or are currently under exploration in Serbia
that are relevant to this study?
What are relevant models for such a fund in South East Europe (SEE)/Central East
Europe (CEE)
Is the establishment of a multi-donor fund feasible in consideration of potential
donors’ interest?
What are applicable best practices and possible foundations for potential future
efforts and what is the recommended course of action in terms of the Fund’s scope
and management arrangements?
If similar efforts have been tried before why did they not succeed?
What are possible challenges/issues that could impede full operational success of
the Fund, assuming the development of the Fund is feasible?
What is the notional timeline for establishing such fund, from development to
operational phase?
For purposes of this study “media development” is defined as efforts that foster
sustainability, independence, and professionalism of media required to provide the public
with useful, timely, and objective information. It is necessary, however, and particularly in
relation to the sustainability and professionalism parts of the definition, to consider the
possibility of overlapping with media for development efforts or, in other words, using media
for civil society development goals.
Potential donors who took part in the research all positively assessed the feasibility of a
multi-donor media fund. Most of respondents of this group agreed that the Fund should
finance media that have a track record of professionalism and independence. Projects
should be devoted to public interest themes and investigative journalism. There is a need to
encourage good quality and professional media to resist tabloidization and develop their
presence on alternative portals, thus extending their positive influence. Several respondents
think that the Fund should be open to all media and that they should compete on a project
basis for Fund resources.
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Establishment of a Multi-Donor Media Fund in Serbia: Feasibility Study
Key recommendations
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According to research results the idea of establishing a multi-donor fund for media
is feasible and there is a strong desire to proceed with its realization;
A flexible, multi-disciplinary approach to the Fund’s profile design is necessary.
Donors should be given an option to support those lines that match their own
strategies and priorities. The same goes for companies and corporations willing to
participate in their corporate social responsibility capacity;
A wide range of topics of public interest in addition to sustainability and economic
viability of media and capacity-building projects should all be considered as the
Fund’s core schemes;
Although support for projects through grants is the preferred option, a loan-based
approach could be explored during a Pilot Phase of the operation;
The Fund should be implemented by a professional organization for an interim
period, transitioning to a locally owned facility;
Detailed decision-making processes need to be carefully designed so as not to
leave space for political, business, corporate, or any other influence;
Basic principles of the Fund’s operation need to be agreed among all donors;
Monitoring and evaluation processes to track the Fund’s programming are
necessary. Internal and external financial audits should be planned, as well;
The Fund should provide assistance and guidance for the applicants in project
design, implementation, and close out phases.
The initial openness of potential donors interviewed for the purpose of this Study to pursue
the idea further requires an elaborated and detailed plan and strategy to match their current
individual efforts. The state’s participation in the Fund would improve transparency of public
expenditures while at the same time largely contributing to development of the media scene
in Serbia.
Long-term analysis results obtained from the IREX Media Sustainability Index (hereinafter:
the MSI), European Journalism Centre, Reporters without Borders, Freedom House, South
East Europe Media Organisation and domestic and foreign analysts indicate that the Serbian
media environment has been persistently deteriorating. Political pressures and lack of
sufficient income are endangering independent media. Economic independence is a precondition for editorial independence and media professionalism. It would be important for the
future of Serbian media to create conditions that will enable their fair positioning on the
market, improve their economic position and consequently, their professionalism and
competitiveness. Establishment of a Fund devoted to providing support to media operations
and development could be an adequate answer to these pressing needs of the Serbian
media scene.
1
Background
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Establishment of a Multi-Donor Media Fund in Serbia: Feasibility Study
1.1
Media Context
The economic situation of commercial, local and regional media continues to deteriorate due
to decreased advertising sales and other revenue sources as well as limited and/or
unavailable state and donor support. The media remain vulnerable to political and economic
pressures. Since 2008, the Serbian advertising market has experienced a continual slide,
dropping from $268 million to $224 million in 2011, a loss of 16.5%. Advertising revenues in
2012 are expected to be similar to 2011 revenues. According to the EU Serbia 2012
Progress Report, “Access to advertising in the media remains under the control of a few
economic and political actors, entailing a significant risk of influence on the media and of
self-censorship. Transparency of media ownership has yet to be ensured.”
Following both the adoption of the Media Strategy in September 2011 as well as the release
of the Anti-Corruption Council report on control of the media in Serbia, the former
government’s and the Parliament’s first actions raised immediate concern and distrust. The
2012 budget proposed that the government allocates $4.5 million for the direct financing of
media owned by the state (primarily TANJUG) rather than funding coverage of issues of
public interest on a project basis, as suggested by the Media Coalition.
Today, unclear media ownership, preferential treatment, and politicized advertising budgets
severely disrupt the position and performance of local and regional commercial media in the
market.
The previous Ministry of Culture, with support from USAID and OSCE, drafted a new Law on
Electronic Media aiming to bring Serbian media legislation in line with EU’s Audiovisual
Media Services Directive. Through a less transparent procedure the Ministry also drafted the
new Law on Public Information and Law on Public Service Broadcasting. The new Ministry
confirmed that these drafts together with the draft Law on Accreditation of Foreign
Journalists and draft Law on Ownership Transparency and Media Concentration would serve
as working drafts in the further development of the laws regulating media.
In general, media representatives mostly react in an ad hoc manner to proposed legal
changes. Further, there is insufficient ongoing analysis of both current legislation, proposed
amendments, and drafts of new laws. In the near future, according to many observers, the
state needs to increase regulation over the public financing of media with the aim to bring it
in line with the EU’s Acquis Communautaire.
Verbal and physical attacks on journalists and pressures on media continue, contributing
heavily to an atmosphere of fear and self-censorship. Political and economic pressures
against the media intensify during elections in particular. The 2012 Serbia Progress Report
states, “…violence and threats against journalists remain of concern, although their
frequency has decreased slightly. The Serbian authorities have continued to provide police
protection for journalists and media outlets that have received threats. Investigations into
murders of journalists dating back to the late 1990s/early 2000s and into recurring threats
against journalists have so far failed to identify the perpetrators. A more comprehensive and
proactive approach by the police and the judiciary remains essential.” The assassinations of
Slavko Ćuruvija, Dada Vujasinović, Milan Pantić, and an attempted assassination of Dejan
Anastasijević remain unsolved. In September 2012, the new government passed a decision
to form an international commission to investigate these murders.
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Establishment of a Multi-Donor Media Fund in Serbia: Feasibility Study
In such a context, professional journalism mostly falls far short of minimum standards. The
2012 Media Sustainability Index reported: “Regarding professional standards in journalism,
Lukić commented, ‘Journalists often base a story on a single source, miss chances to
conduct background research, and produce confusing content.’ Furthermore, in broadcast
interviews, the apparent lack of knowledge and preparation by journalists conducting
interviews sometimes creates verbal conflict and exhibitionism with the guests. As Lukić
described, ‘...journalists are not aware of the normal standards in democratic societies, and
accept attitudes that collide directly with elementary democratic norms. The so-called
popular and sensational approach to serious themes, like family violence, discrimination, and
liability... is not so rare.’”
All considered, media organizations and journalists in Serbia require continued support in
the process of democratization and on the country’s path to EU membership.
2
Fund Structure
In this section, IREX provides recommendations for possible activities for the Fund to
support. Also included are one possibility for the structure and management of the Fund and
a scenario for Fund startup. Further justification for these recommendations can be found in
the next section, Feasibility and Risks.
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Establishment of a Multi-Donor Media Fund in Serbia: Feasibility Study
2.1
Recommended Activities
The goal of the Fund would be supporting the critical media sector functions of serving as a
watchdog over government and business sectors, providing reliable information that meets
citizens’ needs, and facilitating the ability of citizens to have their voices heard in the public
sphere. To further this goal, research for the Study showed 11 possible topic areas for the
fund to support using three different approaches. Some topics are specific to media, while
others have broader appeal to donors (e.g., youth) and their participation in the Fund would
be reliant on media beneficiaries covering such topics or otherwise including them in their
media-related work or training. Further, preferences expressed by possible beneficiaries and
donors alike pointed to the use of grant making by the Fund as the chief and likely exclusive
means of supporting development in the topical areas. There were no expressions of
willingness from surveyed potential donors to support a loan fund.
Topics identified by research to support through activities by media outlets and media
support institutions include:
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Minorities and marginal groups
Youth
Investigative reporting
New media and new technologies
Citizen empowerment and civil society
EU integration
Media legislation and policy
Media management and market research
Economy
Education
Based upon feedback from respondents, proposals from prospective beneficiaries would fall
into three types of approaches:

Content production: grants to institutions and individuals involved in media production
(for print, radio, television and internet)
 Capacity building: grants to support coaching, mentorships, exchanges, and
networking
 Media advocacy: grants to support monitoring and analysis of the media legal
framework, media advocacy initiatives, and monitoring and analysis of the media
market
Below are examples of how these topic areas and implementation approaches could result
in successful projects that benefit both the media beneficiaries and the mission of the Fund’s
donors.
Media literacy combines elements that benefit youth, education and civil society with media
training. Media literacy efforts aim to create a society that is better able to analyze and
evaluate news content in all its varieties. The BBC has, for instance, had a “behind-the
scenes” segment for their programming to demystify the process of sourcing, verifying, and
producing news. Media and journalists should be encouraged to educate society (e.g.,
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Establishment of a Multi-Donor Media Fund in Serbia: Feasibility Study
schools and CSOs) on processes of providing relevant, timely, and objective information in
addition to producing such content. Over time, such efforts will create participatory and
active citizens who are able to identify, or at least question, censorship, propaganda and
bias. Project proposals could incorporate content production and capacity building. Further,
media literacy initiatives can support media advocacy by highlighting the role media play in
society.
Projects focusing on social media bring together new technology and traditional journalism
practices. Today, news often appears first on social networks (news about the Costa Rica
earthquake, for instance, first appeared on Twitter). However, social media can often be
misinterpreted and misused, as can any other source. Incorrect information is widespread. It
is important to continue educating journalists, editors, and organizations on how to draw
authentic voices out of the social media noise, how to verify those voices and best distribute
them and finally, how to successfully manage their social media activity.
According to the Balkan Investigative Reporting Network report “Media Financing from Local
Self-Governments’ Budget Funds,” there is a major imbalance between financing of public
companies and privately owned media. Despite the fact that privately owned media
individually receive much less allocated funds than public media, more than 70% of all
earmarked funds are spent on subsidizing the latter. In such a particularly difficult position,
networking, capacity building, and quality production assistance for local commercial media
would be of particular significance given their role in grassroots development of a more
democratic society.
To advance the sustainability of independent investigative journalism it is important to
continue the training of journalists to ensure that quality content is produced, is visible and
distributed across multiple platforms. This could be achieved by providing continued and
balanced support for training, publishing, and developing the technical skills of journalists,
editors, and news desks. To ensure visibility and impact of investigative stories, support for
publishing platforms (online, television, and radio) to carry produced content would be
exceptionally important as well.
With digitalization scheduled for 2015, Serbian local commercial and independent television
stations are facing a significant hurdle due to high costs of the transition; some within the
industry fear the transition could spell the end for many. The Fund could earmark resources
for assisting select media in their conversion transition, or successful proposals for content
generation could help improve the finances of such stations.
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Establishment of a Multi-Donor Media Fund in Serbia: Feasibility Study
‘We should focus on creating community media. In light of digitalization, if
civil society does not advocate for community media in the Frequency Plan the
state will distribute those frequencies to commercial broadcasters.’ Dragan
Kremer, interview quote
The Media Coalition (Association of Independent Electronic Media, Independent Journalists’
Association of Serbia, Journalists’ Association of Serbia, Independent Association of
Journalists of Vojvodina and Lokal pres) has been investing in significant advocacy efforts
for the implementation of the Media Strategy that the government passed in 2011. The
Media Coalition has been closely monitoring the legislative framework, with the goal of
ensuring basic principles of media freedoms. Further support for strengthening the Media
Coalition in their capacity building and advocacy endeavors would be strategically important
for overall media development in Serbia.
‘We lack official information in particular. We still do not know how much
money is spent on the media, who gives it and in what way, and this would be
a very important datum for us.’ Dragana Nikolic Solomon, Head of OSCE
Media Department
2.2
Management Arrangements
USAID or a consortium of donors could facilitate the development of a multi-donor media
fund through capacity building of local CSOs, foundations, or networks of such groups to
strengthen their operations and ability to interact with multiple donors. In time, such a group
could, if conditions are suitable, assume control of the Fund. However, in the short term an
implementing organization (an international NGO or firm) would be best suited to manage
the Fund’s administrative functions such as finance and monitoring grantee performance.
The implementing organization could also be charged with creating capacity for the local
partner to subsequently take a lead and ownership of the Fund.
The role played by fund managers varies. In the case of the Rapid Fund Envelope for
HIV/AIDS Tanzania—a partnership between the Tanzania Commission for AIDS, the
Zanzibar AIDS Commission, nine bilateral donors including USAID, and one private
foundation, Deloitte oversees fund administration. In the case of the International
Management Group for the Norwegian Embassy Civil Society Fund in Kosovo, the
implementing organization provides both technical assistance and administration. The role of
the implementing organization includes securing additional donor buy-in.
Although managed by intermediaries, donors may continue to have influence on the Fund
through their presence on a donor coordination board or advisory board.
Donors’ selection of an implementing organization reflects, among other qualifications, their
management capacity, credibility, and ability to provide capacity building support to CSOs.
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Establishment of a Multi-Donor Media Fund in Serbia: Feasibility Study
Another option to be considered is core funding to a well-regarded local CSO to build up
their capacity in management of large multi-donor projects. One example of such an initiative
is the Ghana Research Advocacy Programme (G-RAP) that supports the development of
research and advocacy organizations. G-RAP is jointly financed by the UK, Canada,
Denmark, and the Netherlands, who contribute to a pooled fund. In this case, however,
donors share the same set of standards and reporting requirements.
In the process of selection of the Fund implementer, focus should be on those organizations
with a proven track record and highest, possibly certified, project management and
accounting standards.
After a few years, the final decision on the need to create a dedicated staff for the Fund, to
keep it in the hands of a professional management organization, or to house it with a local
CSO would depend on size of the Fund, workload, performance of the implementing
organization, and many other factors.
While the exact structure of the Fund will no doubt be subject to discussion between
important donors and local stakeholders, the following is an overview of what such a Fund
might ultimately look like:
Donor Policy Coordination Committee sets overall policies and determines the Fund mission.
The committee is also the founder of the Fund: it appoints the implementing organization
and the initial Board of Directors. Such a committee may or may not be a permanent.
Fund Operations’ Management is run by the selected implementing organization. Its
functions include:
 Development of the strategy and workflow procedures for the pilot phase of the Fund;
 Design of monitoring and evaluation mechanisms;
 Set up and management of advanced accounting procedures to match donors’
requirements;
 Selection and overall management of finance and administration personnel;
 Hiring and management of the project management cycle pool of consultants;
 Approaching additional potential donors;
The Board convenes periodically to discuss project proposals and decides on their funding.
Members are representatives of Serbian media scene of differing professional profiles; some
board members may be selected from the ranks of the donor community. Board members
have terms that have staggered expiration dates to ensure continuous inflow of new
approaches and perspectives while at the same time retaining institutional memory. The
Board communicates its decisions to the Secretariat.
Finances and Project Administration ensures smooth workflow implementation and provide
operational support to the Fund management.
Project Management Cycle Pool of Consultants contracted based on need to guide and
assist applicants in the process of project design, implementation, compliance, and
reporting.
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Establishment of a Multi-Donor Media Fund in Serbia: Feasibility Study
A challenge at the outset will be to strike a balance between adherence to operating
procedures and the Fund’s fundamental purpose. The Fund’s implementing organization
should develop simplified yet efficient operating procedures that are harmonized with
specific donors’ requirements.
2.3
Start-Up Scenario
‘There is a risk that if no progress is made over time in the media scene,
donors will start detracting from the Fund. The question is how you animate
the machinery to stay (pro) active? To mitigate this, maybe earmark a portion
of contribution for research, student exchange, internships - Al Jazeera
Balkans, for instance -, in any case for activities that provide new
perspectives.’ Interview quote, Kevin Mannion, General Coordinator,
International Management Group
A careful defining of the Fund’s vision and mission at the policy level and among all
committed donors is required. A sound foundation will serve as an initial step toward
development of a strategy for the pilot phase. Lessons learned from similar ventures
worldwide indicate that the pilot phase of large-scale multi-donor initiative should be no less
than three years of duration (e.g. Tanzania case) in order to attract additional donors, redefine strategies, and solidify the mechanisms of the Fund’s operations.
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Establishment of a Multi-Donor Media Fund in Serbia: Feasibility Study
Month
Activity
4
5
Establishment of the
Secretariat
X
X
Establishment of the
Board
X
X
Donor policy making
and selection of the
implementer
1
2
3
X
X
X
First operations
running
3
Feasibility and Risks
3.1
Feasibility
6
X
Data obtained through interviews and questionnaires clearly indicate enough donor interest
that establishment of a multi-donor media fund is feasible. Six donor organizations (including
bilateral, multilateral, and private), three Serbian corporations, and the Serbian Ministry of
Culture and Information have expressed interest in supporting such a Fund. Some
respondents also expressed a desire to see a portion of national lottery proceeds or RRA’s
leftover funds, which are currently returned to the treasury, benefit this Fund. This study
revealed that support for an independent, diverse, and vibrant media remains valuable and
relevant in the eyes of many donors.
In the preceding section, this Study made recommendations on the scope of activity funding
and possible management structures of the Fund. The scope and management
recommendations were made with maximum possibility for Fund success in mind. In this
section, the underlying reasons for those recommendations, based upon the results of
research carried out for this Study, are explained.
3.1.1
Justification of Proposed Scope of Activities
Although media development as a specific topic may not be high on the agenda of many
donors—topics such as youth, minorities, and marginal groups prevail—there is keen
interest among all 10 organizations to work with media to produce high quality content and
reporting that furthers their goals related to those topics. Such support can be classified as
“media for development,” and is in many ways indirect support to media. However, in
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Establishment of a Multi-Donor Media Fund in Serbia: Feasibility Study
interviews with representatives of media outlets, the potential beneficiaries of the Fund, there
was expressed interest in development of quality topical content. Therefore, there is
alignment between several potential donors and potential beneficiaries along this line.
Respondents to the study expressed their wish that the Fund’s scope reflect donors’
individual strategies as widely as possible. With most potential donors not specifying media
development as part of their mission, defining the Fund’s scope as either broad media
development or focusing on fewer topics (e.g., supporting only investigative journalism or
only new media initiatives) might both result in limited donor support and, consequently,
limited impact. The likelihood of a permanent and sustainable Fund would be greatly
reduced. Therefore, including a wide possibility for topical areas would appeal to a sizeable
donor base. The scope of this Study did not include obtaining “pledges” from potential
donors; an unexpectedly large donation from a few donors could change this reasoning.
With a relatively wide topical scope, the few proposed approaches that the Fund will
consider for funding will keep to a manageable scope the Fund’s own decisions on funding
applications.
Further, respondents to the Study stated their preference that the Fund’s activities be grantbased, further keeping activities manageable.
The proposed programmatic approaches that the Fund will support within the topic areas is
also a function of matching donor interest with the needs of the Serbian media sector.
Supporting content production will, for example, appeal to donors that wish to primarily
support the promotion of certain topics while injecting resources into media outlets. Capacity
building will meet a need highlighted by potential beneficiaries while appealing to donors
interested in certain topics (e.g., providing training in reporting on certain topics) and to
donors interested in media development generally. Finally, engaging in media advocacy
support will support a continued need of the Serbian media sector and appeal to donors who
seek alignment of Serbian laws with those of the EU or those who more broadly seek a more
open society.
The table below summarizes the areas of interest emphasized by potential donors
interviewed as part of this study as those they are most interested in supporting.
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Establishment of a Multi-Donor Media Fund in Serbia: Feasibility Study
Areas of
Support
Minorities/
Marginal
Groups
Youth
Potential Donors
NED
OSF
Raiffeisen
Bank
NED
OSF
Raiffeisen
Bank
Investigative
Journalism
NED
Dunav
Osiguranje
GMF
New Media and
New
Technologies
Citizen
Empowerment
and Civil
Society
EU Integrations
NED
Dunav
Osiguranje
GMF
German
Embassy
BTD
Raiffeisen
Bank
EU
NED
Media
Legislation and
Policy
Media
Management
and Market
Research
Education
OSF
German
Embassy
Ministry of
Culture and
Information
Dunav
Osiguranje
Economy
NED
GMF
Telenor
Ministry of
Culture and
Information
Ministry of
Culture and
Information
Ministry of
Culture and
Information
Ministry of
Culture and
Information
Telenor
Dunav
Osiguranje
GMF
Telenor
Raiffeisen
Bank
Ministry of
Culture and
Information
15
Establishment of a Multi-Donor Media Fund in Serbia: Feasibility Study
The graphic that follows matches donors to topics, with weighting to demonstrate the
estimated donor size and potential for each topic to generate donor interest.
Media
management
and market
research
Ecology and Environment
Culture and art
Fund for Open Society
Education
Media
Legislation and
Policy
Telenor
Balkan Trust for
Democracy
German Marshall
Fund
Minorities/Marginal Groups
Reiffeisen
bank
Youth
Citizen empowerment
and civil society
German
Embassy
Ministry of Culture
and Information
NED
Dunav
osiguranje
EU integration
Investigative
journalism
Economy
European Union
New media and new technologies
Chart 3.1
3.1.2
Justification of Proposed Management Structure
Respondents from all target groups agree on the necessity to create a professionally
managed fund with clearly defined mechanisms to ensure accountability, transparency, and
objectivity. Donors’ inclination—and in some cases their precondition to joining—is a fund
managed by an experienced, professional, large project management firm to serve as the
Fund implementer. Alternatively, for some donors, the Fund’s management could be
entrusted to an independent steering committee composed of selected media professionals.
On the potential beneficiaries’ side, most respondents expressed a desire for a locally
established board.
All considered a clear line of separation between administrative and financial functions on
one side and the decision-making functions on the other is necessary.
Alongside interviews with different stakeholders, IREX conducted a desk review of
applicable worldwide best practices for establishing multi-donor development funds.
Commonly, transitioning management to local ownership is performed once the
intermediary—as an interim measure—has built sufficient capacity and legitimacy in a given
fund.
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Establishment of a Multi-Donor Media Fund in Serbia: Feasibility Study
3.2
Summary of Survey Findings
3.2.1
Survey Findings - Donor Landscape
Potential donors who took part in the research all positively assessed the feasibility of a
multi-donor media fund. The initial openness of this group to pursue the idea further requires
an elaborated and detailed plan and strategy to match their current individual efforts. This
segment outlines in detail the respondents’ positions.

International Organizations
The European Union Delegation to the Republic of Serbia (hereinafter: the EU) has been
recognized by most respondents as one of the biggest potential donors since it has so far
allocated significant resources for Serbian media.
A precondition for the EU’s participation in the Fund includes restriction of support to the
topics pertaining to Serbia’s EU integration processes, only. The EU’s Strategic Plan
includes support for media projects dealing with thirty topics that would be subject to
Serbia’s EU membership negotiations, once the date for the beginning of the negotiations is
set.
Synchronization of the Fund’s support schemes with the EU’s strategic objectives would be
necessary.
Fund for Open Society-Serbia (hereinafter: FOS) has continuously been providing support
for media in Serbia. Although their level of funding has significantly decreased recently,
compared with a decade ago, FOS remains a donor that supports media development as
opposed to, or rather, in addition to media for development.
FOS’s assistance is two-fold: for media content production and development of the
legislative framework. The former includes investigative journalism and support for media
dealing with topics of a wider social significance that are often not sufficiently recognized as
such (corruption, facing the past, etc.). The latter form of assistance aims to reform the
media enabling environment and consequently citizens’ right to be objectively informed.
FOS sees its involvement in the multi-donor media Fund through projects supporting high
quality media productions dealing with topics of public, social importance, particularly those
dealing with the status of marginal groups, national minorities, and youth. FOS
representatives would seek to harmonize donors’ strategies so that joining the Fund would
make sense and provide, through joint work, a better contribution to enhancement of
freedom of the media and better information for citizens of Serbia’ than existing funds and
donations on their own.
National Endowment for Democracy’s (hereinafter: NED) their statutes pose restrictions for
NED’s participation in a fund as a donor. However, NED’s past experience in similar cases
includes grant making to a specialized implementer managing a fund to disburse
contributions further in the form of project-based sub-grants.
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Establishment of a Multi-Donor Media Fund in Serbia: Feasibility Study
German Embassy representative has assessed the EU integration in addition to civil society
as the two most important areas that need to be dealt with by the media. The Embassy
currently does not provide support for media related projects; assistance for this area has
been significantly reduced since 2005.
However, it is not impossible that the Embassy would get involved in the work of the Fund by
supporting those projects that tackle civil society and EU integration topics.
Balkan Trust for Democracy (hereinafter: BTD) recognizes problems on the media scene to
be among the most important and assesses efforts of the Study as positive. However, BTD’s
assistance to media comes in the form of support to projects tackling topics of public interest
and citizens’ education programs; like most other potential donors, it seeks to support media
in producing content dealing with these subjects. In consideration that BTD’s mandate ends
in June 2013 and there is an expected significant decrease in the amount of resources in the
forthcoming mandate, BTD perceives itself as a minor donor.
‘Topics that educate people, whether this is security in the region, health
system, school, but program schemes have to be education orientated, this is
what we strive to’. BTD representative questionnaire response
German Marshall Fund (hereinafter: GMF) joining the Fund could come restricted to specific
topics or projects. GMF assesses as most important institutional support for media
organizations and subsequently, support to specific quality projects. GMF considers support
for investigative journalism, EU integrations reporting and reporting on the state of economy
to be of particular importance.

The State
State Secretary Predić of the Ministry of Culture and Information strongly supports the idea
of establishment of the Fund and sees room for the State’s involvement. This would apply to
projects dealing with the following topics/areas: usage of new technologies and multimedia
operations, reporting on vulnerable groups, youth, investigative journalism, economy, and
other areas. The Ministry is also interested in supporting work related to media legislation.
Predić proposes that a portion of the IPA funds that are assigned to the Ministry and are
aimed at the enhancement of media awareness should be earmarked for this fund.
Gordana Suša of the Republic Broadcasting Agency (hereinafter: RBA) has expressed her
opinion whereby surplus RBA fees should ideally be allocated to quality media projects and
cultural initiatives rather than to the State budget. At the top of Suša’s list for support by a
media Fund are education, culture, news programming, and investigative journalism
projects. It remains unclear, however, if Suša spoke in her capacity of member of the RBA
Council or as a journalist.
Several respondents, primarily media representatives, said that the State should join the
Fund. The State’s contribution to the Fund would, they believe, ensure transparency of
public funds allocated to the media, which would improve the entire media sector.
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Establishment of a Multi-Donor Media Fund in Serbia: Feasibility Study
‘We would then have more clear criteria on allocation of the public funds,
since the money has undoubtedly been given now, but we don’t know to
whom and according to which criteria. Involvement in the Fund would reveal
these resources and criteria for allocation of this support. Then the criteria
could be commented and one could analyze whether the State does
something for the freedom of information or only promotes special political
objectives through its support.’ Questionnaire response, potential donor
representative

Business Sector (Corporate Social Responsibility)
Business sector representatives taking part in the research have demonstrated openness to
the idea of the Fund. However, their involvement in the Fund brings about limitations, as
these companies have so far not had experience with the provision of support to the media
sector. Support to youth, minorities and marginal social groups have so far been major focus
of the business sector CSR.
Given such strategic determination of the business sector, CSR support to media could
come for those initiatives that are closely tackling specific topics.
There were three business sector representatives who expressed interest in joining the Fund
in their CSR capacity. While interest from Telenor and Raiffeisen is limited to supporting
areas of social interest, rather than supporting media development as such, Dunav
Osiguranje expressed interest in media development as well.
Telenor’s strategic orientation includes support in four areas: youth and education, ecology
and environmental protection, assistance to marginal social groups and development of
culture and art. Telenor is interested in providing assistance to these specific areas through
the Fund. Merging the topic of education of youth with media would be of particular interest
to Telenor.
Raiffeisen Bank expressed interest in joining the Fund by supporting projects dealing with
youth, marginal social groups, and other areas of wider social interest.
Dunav Osiguranje expressed firm interest to joining the Fund through both support for quality
projects and through institutional support. Topics of interest for this possible donor include
investigative journalism, reporting on minorities, media management, multimedia and new
technologies, and market research.
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Establishment of a Multi-Donor Media Fund in Serbia: Feasibility Study
3.2.2
Survey Findings - Potential Beneficiaries
Potential beneficiaries of the Fund mostly agree that support is necessary for quality projects
of content production (investigative journalism, culture and educational programming, and
EU integration subjects) and for capacity building in the areas of new media and new
technologies adoption and use and marketing and sales.
One important point around which this target group largely agrees is that, apart from
technical assistance, there is need for administrative guidance in the managing donor funds,
including the application process. This type of assistance is particularly significant for local
media who seldom can afford professional help while lacking in-house know-how.
‘This has to be a flexible body that is able to adapt to given circumstance and
given issues.’ Questionnaire response, potential donor representative
There is a widespread opinion that the Fund should be flexible and fast in reacting
3.2.3
Survey Findings - Civil Society Organizations
Representatives of this target group urge support for projects that deal with EU integration.
They advocate for media as places for public debate, media that engage citizens.
Additionally, CSOs insist on training journalists and editors in subjects such as gender
sensitive writing and reporting, reporting on marginal groups, and usage of appropriate
vocabulary and importance of public participation in decision-making processes.
3.3
Risk Analysis
The following risk analysis has been performed in consideration of the fund’s recommended
management and programming set up for an interim period of the fund’s transition from an
intermediary to a locally owned fund.
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Establishment of a Multi-Donor Media Fund in Serbia: Feasibility Study
Task
Risks
Establishment
of the Fund
Lack of funding
from
development
partners
Maintain the
quality of the
Board in the long
run
Board decisionmaking on
provision of
support
Fund’s
operations
Complex
application,
decision-making
and reporting
procedures
hinder efficiency
and impact of the
Fund
Maintenance of
the Fund’s
viability and
vibrancy
Donors detracting
due to lack of
progress in the
media scene
High impact of
the Fund’s
support for
issues of public
concern
Public interest in
issues of
accountability
and transparency
not sustained
Risk Level
High
Moderate
Low
Mitigating measures
·
Define the financial window among
donors for three years of the Pilot Phase.
Low
Medium to
Low
Medium
Low
Medium
·
Representatives of donors available
to step in and act as Board members for
the time necessary to select professional
Board members;
·
Returning Board members one year
passed the end of their previous mandate.
·
In the Inception Phase, the
Implementing organization designs a
detailed and flexible plan as to operating
procedures and decision-making
processes. Flexibility of the Plan must
allow for subsequent adjustments;
·
Ascertain availability of a pool of
Project Management Cycle consultants
prior to beginning of operations. The PMC
pool’s role is to assist the applicants and
guide them through the process of project
design, management and close out;
·
The Board decides on provision of
support on the basis of a Concept Note
and a Budget submitted by applicants;
·
Select an Implementer with proven
track record and highest, possibly certified,
project management and accounting
standards.
Earmark funds for networking, student
internships, exchange.
·
Support is provided to those
production proposals that reflect public
interest concerns, that are disseminated
through meaningful media (including
internet), that are interesting,
understandable and engaging for wider
public;
·
Encourage collaboration between
media and CSOs.
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Establishment of a Multi-Donor Media Fund in Serbia: Feasibility Study
Task
Fund’s
programming
Fund’s impact
and
programming
Fund’s impact
and
programming
Fund’s
operations
Maintenance of
the Fund’s
neutrality,
objectivity and
transparency
Risks
Concentration of
ownership of
media restricts
media freedoms
(through
censorship, selfcensorship and
editorial
interference) and
visibility and
impact of
supported
projects of public
interest
Unsatisfactory
quality of output
of the grantees
Insufficient
number of quality
proposals
received
Insufficient
capacity of the
staff for quality
implementation of
the Fund’s
programming
Partiality in
provision of
support
Risk Level
High
Moderate
Low
High
Medium to
High
Medium
Low
Low
Mitigating measures
·
Apart from mainstream media, the
Fund will encourage publishing on the
Internet (blogs and social networks in
particular).
·
The Fund will support platforms that
publish/broadcast stories on topics of
public interest, particularly in the area of
investigative journalism.
Grantees are eligible for coaching
throughout the project duration through the
Fund’s capacity-building scheme.
The Secretariat will reach out to potential
beneficiaries through calls for proposals
and directly, in group meetings.
The Implementer will pay particular
attention to hiring senior: a.
finance/administration personnel, b.
communication and program outreach
personnel and c. digital/new media
personnel.
·
A clear line of separation between
administrative and financial functions on
one side and the decision-making
functions on the other is necessary;
·
Seven members of the Board with
differing mandate duration would ensure
continuous inflow of new approaches and
perspectives while at the same time
retaining institutional memory.
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Establishment of a Multi-Donor Media Fund in Serbia: Feasibility Study
4
Methodology
The Study has been conducted as a combination of desk research, which aimed at
exploration of existing data, in-depth interviews with relevant target groups in order to
examine their views regarding establishment of the Fund and its feasibility, short surveys
quantifying readiness of donors to join the fund, and data and information verification and
analysis.
Desk research for this study, set out to explore existing models of media funds or other
multi-donor funds in our neighborhood and the world. The ultimate goal was to determine
existing models in the region and worldwide, their most important characteristics, strengths
and weaknesses, and their sustainability. The data collected from the desk research, in
addition to providing relevant information about what has been done in this field so far,
provided relevant material, on the basis of which guidelines for interviews with key
respondents were developed (second stage of the research).
In-depth interviews with key respondents (representatives of media, media organizations,
civil sector and potential donors) were a natural extension of the desk research with the goal
of examining if and in what form establishment and functioning of the Fund is possible in
Serbia. Respondents were asked to comment on problems the media in Serbia face, priority
issues, opportunities and challenges for establishment of a fund, principles and standards
that it should adhere to and the course of action that it should take. A particular emphasis
has been placed on readiness and preconditions of donors to take part in establishing and
managing the fund. This was discussed through in-depth interviews (face-to-face and Skype)
and, in cases where respondents were unavailable for interview, through a short e-mail
questionnaire (survey).
IPSOS Strategic Marketing, the researching company has provided IREX with data collected
and processed following the ESOMAR and ISI (International Statistical Institute) standards.
23
Establishment of a Multi-Donor Media Fund in Serbia: Feasibility Study
Annex 1 - Examples of Best Practice
Fund for Encouraging Pluralism and Diversity - Croatia
The Croatian Agency for Electronic Media manages a Fund for Encouraging Pluralism and
Diversity. The source of the fund’s capital is 3% of the subscription fees paid to Croatian
Radio Television (defined by the Law on Croatian Radio Television). The aim of the fund is
to promote radio and TV programs of public interest. The fund has a special rulebook
determining the following: public bidding for fund co-financing procedures, approved funds
monitoring, and program realization monitoring. The fund has also defined different forms for
applications. The fund’s council makes the decisions. Each of seven members of the fund’s
council is assessing every application on the basis of criteria defined by the law and the fund
rules. Those criteria are:




Importance of program for public interest
Innovations in quality and content of proposed TV and Radio program
Project importance for national, regional or local development
Encouraging employment of highly educated persons, handicapped persons and
veterans and members of their families
Tanzania Media Fund
In 2008, a group of six donors joined resources together to facilitate the establishment of the
Tanzania Media Fund (TMF). With a budget of $7.5 million and a timeframe of three years,
Hivos was invited to set up the independent TMF organization and to implement its core
activities; providing grants and capacity building opportunities for journalists and media
organizations and building a strong national and international media network. The pilot
phase of the fund operated from 2008 to 2011.
For the period June, 2012 to May, 2015, TMF manages a budget of $9.4 million. Operational
costs represent approximately 20% of TMF’s total budget. The remaining 80% is earmarked
for grants, learning, and outreach. TMF has an average annual budget of $3.1 million.
TMF is an initiative of a group of development partners in Tanzania. They include: Swiss
Agency for Development and Cooperation (SDC), UK Department for International
Development (DFID), Irish Aid, and The Royal Danish Embassy.
Southern Africa Media Development Fund
The Southern Africa Media Development Fund (Samdef) traces its origins to the Second
Annual General Meeting of the Media Institute of Southern Africa (MISA), which was held in
Mbabane, Swaziland in November 1994. That meeting, which brought together a diverse
group of independent media practitioners from the Southern African Development
Community (SADC) countries, resolved that the MISA Head Office in Windhoek commission
a feasibility study into the setting up of a venture capital/revolving fund to assist with the
development of the nascent independent media in the SADC region which is facing a
number of problems. This study was conducted during the course of 1995 and, the decision
24
Establishment of a Multi-Donor Media Fund in Serbia: Feasibility Study
to set up a media development fund ratified by the Annual Congress of MISA in Zanzibar in
November of the same year.
Samdef was established in 1998, as a media development arm of MISA, the southern Africa
regional lobby body. Its initial mandate was to provide finance, training, and development
support to emerging media enterprises in the region. In an endeavor to realign the
operations of the institution, a major restructuring exercise was undertaken in 2001. The
restructuring exercise saw the creation of a new institution: the Southern Africa Institution for
Media Entrepreneurship Development (SAIMED), which focuses on entrepreneurial
development, research, and training. Samdef retained the core business for the provision of
media finance.
From the initial amount of $1 million in 1998, Samdef's portfolio has grown steadily to over
$9 million. Over the period Samdef has invested in over 30 projects throughout the region in
different media sectors like television, radio, newspaper, video production, and magazines.
Samdef raises funds from donors who share the concept of supporting media with the goal
of creating a democratic society. The major funders are Free Voice from the Netherlands
and Swedish International Development Cooperation Agency. Samdef has in the past
received support from institutions such as Open Society Institute of Southern Africa, USAID,
Netherlands Institute of Southern Africa, Inter Fund, and IBIS.
Media Development Loan Fund
International media loan funds have only existed for 15 years with the Media Development
Loan Fund (MDLF) being the oldest established in 1995. MDLF argues that loans contribute
to cementing sustainable media development and build up media companies while grants,
as a means of media assistance, are a way of supporting the message without considering
the media delivering it. MDLF’s investments are guided by “country needs,” not geography.
So far, MDLF’s investments have been in programs for small and medium-sized enterprises,
building capacity through financing and the development of management skills.
MDLF’s strategy has been to bring together loans and grants. The experience proves that
loans and grants can work effectively together. The capital gains made by MDLF are placed
in a subsidy fund. They charge all clients 4% to 8% interest on their loans, while the
remainder is covered by the client’s subsidy fund. In this way old projects fund new ones.
MDLF measures the impact of its investments by monitoring sales, reach, and financial
viability of the businesses invested in. The content analysis of the type of coverage produced
by clients should show the link between the loans and democracy developments in a
country. Another solution could be for media loan funds to come together and identify a third
party to look at their social impact, according to MDLF.
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Establishment of a Multi-Donor Media Fund in Serbia: Feasibility Study
Annex 2 - Organizations, Institutions, Companies and
Individuals Consulted
The following institutions, organizations and companies were included in this research (37 in
total):
Civil Initiatives
Belgrade Fund for Political Excellence
Faculty of Political Sciences, Zagreb
Raiffeisen Bank
Telenor
Dunav osiguranje
OSI
MDLF
European Fund for Balkan
OSCE
Giz
German Embassy
Balkan Trust Fund
EU Delegation in Serbia, Media Department
BBC Trust Fund/IREX Europe
NED
German Marshall Fund
RRA
RATEL
Ministry of Culture and Information
NIN
Radio 021 Novi Sad
Radio Srbobran
Radio Ozon Čačak
B92 Fondacija
Local Press
Radio Televizija Vojvodine
Beta
Tanjug
TV Forum, Prijepolje
Dubravka Velat, Director
Sonja Liht, Director
Davor Glavaš, Professor
Nemanja Naunović, Deputy Head of
Marketing and PR
Ivana Vranjican, External Affairs
Manager, Corporate Communications
and PR
Milica Slijepčević, Director of PR Sector
Jadranka Jelinčić, Director
Saša Vučinić, Managing Director
Hedvig Morvai-Horvath, Director
Dragana Solomon, Head of Media
Department
Ana Pribićević Čamernik, Public
Relations Manager
Marko Čadež, Spokesperson
Gordana Delić, Director
Saša Đorđević, Media and Information
Officer
Russell Peasgood, Project Manager
Ivana Howard, Senior Program Officer
Ivan Vejvoda, Vice President, Programs
Gordana Suša, Council Member
Milan Janković, Director
Gordana Predić, State Secretary
Nebojša Spaić, Editor-in-Chief
Slobodan Krajnović, Editor-in-Chief
Ivica Šmit, Editor-in-Chief
Stojan Marković, Director
Veran Matić, President
Snežana Milojević, General Secretary
Siniša Isakov, General Director
Ljubica Marković, Editor-in-Chief
Branka Đukić, Director
Mileva Malešić, Editor-in-Chief
26
Establishment of a Multi-Donor Media Fund in Serbia: Feasibility Study
NDNV
ANEM
UNS
NUNS
SEEMO
IMG
Nedim Sejdinović, Vice President
Saša Mirković, President
Ljiljana Smajlović, President
Vukašin Obradović, President
Oliver Vujović, Secretary General
Dragan Kremer, Media Expert
Kevin Mannion, General Coordinator
27
Establishment of a Multi-Donor Media Fund in Serbia: Feasibility Study
28