The role of the media in economic development By Ricky Binihi A FORMER World Bank president once said people with more information are empowered to make better choices, that free press is not a luxury for just rich countries but is the heart of equitable development, and that institutions such as a free media that support transparency and the empowerment of the disenfranchised are essential.    What James D. Wolfensohn said in 2002 nicely sums up what should be the role of the media in the economic development of the Asia-Pacific region.    It is commonly argued that there can never be a meaningful democracy without a well informed public and that the role of the media is to transmit new ideas and information to the people to ensure that the pillars of democracy remain intact.    But a democracy does not function effectively if there is no economic development to sustain the basic needs of its people. It is vital therefore that the media play an important role in making democratically elected government more responsive to the needs of the people.    The failure of the media in many democratic countries in the world, and not necessarily just the small island nations of the South Pacific, to equip their people with information to hold their leaders more accountable has caused many media critics to accuse journalists of aiding and abetting government ministers and parliamentarians to indulge in corrupt practices.    Nobel laureate Joseph Stiglitz wrote in his book “The Role of the Media in Economic Development” that “Free speech and free press not only make abuses of government powers less likely, they also enhance the likelihood that people’s basic needs will be met.    “Improvements in information and the rules governing its dissemination can reduce the scope for these abuses in both markets and in political processes. Many of the decisions taken in the political arena have economic consequences. Also, better timelier information results in better, more effective allocations,” he wrote.    To guarantee economic development in developing countries, the media must argue constantly for transparency in government action and also in the activities of aid donor agencies and the like.    It is unfortunate that news media rarely report in detail on aid processes, so it is unclear to what extent there is truth in the suggestion that aid money sometimes fuels corruption. If the media are to live up to the expectation of being the watchdog of the society, then they must inform the people about these processes.    Corruption and bribery in national and international businesses can only be exposed by the media when they are independent. Sadly, that remains one of the shortfalls of the media in many countries.    The book, “The Right to Tell – the Role of Mass Media in Economic Development”, says free and independent media can expose corruption in government and the corporate sector, provide voice for the people to be heard, and help public consensus to bring about change.    It also says the media can help markets work better by providing reliable economic information, from small-scale vegetable trading in Indonesia and Ghana, to global foreign currency and capital markets in London and New York.    “A free press can reduce poverty and boost economic development in poor countries but the success of newspapers, radio and TV stations in spurring development depends on their independence, quality, and their ability to reach a wide audience,” the book says.    Another factor that hinders economic development in many countries is the failure of the media to scrutinise untrue statements made by public officials.    According to Dean Baker of the Center for Economic and Policy Research, “It is important for the political system that reporters recognise their responsibility to challenge public statements that are not true. If a politician believes that he or she can say things that are clearly untrue - and see them printed without challenge - then there is a very strong incentive to simply make things up.    “Alternatively, if they knew that their inaccuracies would be highlighted in news stories - showing readers that they are either poorly informed or dishonest - then politicians would likely be more careful in their public statements.”    It is unfortunate that many leaders in the Pacific region routinely get away with making false promises. Unless the media play their proper role in highlighting the dishonesty of leaders and help build consensus to bring about change, then economic development will continue to remain an elusive dream for many Pacific island nations. Ricky Binihi, freelance journalist and journalism lecturer in Vanuatu, took part in the APJC/AusAID 2007 Reporting Economic Affairs program as an Australian Leadership Awards fellow.