Local corruption thrives without newspapers
As newspapers close, local corruption thrives! An investigation shows that in districts where a major daily newspaper has closed, there was a 7.3 per cent increase in the number of corruption cases, two US professors report writing in LSE Business Review. An important question for policymakers is what can be done to address this rise in corruption in the absence of journalistic eyes, they argue.
A variety of new digital newsvendors have opened, which could potentially offset this loss, they write.
“When investigating if these news vendors had any effects, we found no association between their opening and the number of corruption cases”, write Ted Matherly, Assistant Professor at the Price College of Business, University of Oklahoma and Brad N Greenwood, Professor at the Costello College of Management, George Mason University.
“ All of this is to suggest that the rise of citizen journalism has little material effect on the rise of corruption that follows the closure of the professional press.”.
“Our results highlight an important role of the news media in society: providing a check on the potential for government officials to use their positions illicitly.”
“As the general business forces of the industry have led to consolidation and a focus on national news, there is an urgent need for local policymakers to incentivise local journalism, facilitated by the tools and information available through digitisation.”
They argue that further, newsvendors would do well to investigate ways to collaborate effectively and find efficiencies, while keeping local ears to the ground and their watchful eyes on council meetings.
Their investigation shows that in the years after a major daily newspaper closes, there is a steady rise in corruption cases prosecuted in the corresponding US Federal Court district.
The digitisation of the news industry has led to increased competition and tighter budgets.
“For a cash-strapped news organisation, the expense of investigative journalism is often first on the chopping block. Even worse, in many communities, newspapers have completely disappeared: since 2004, 2,100 newspapers have closed, leaving two-thirds of US counties without a daily newspaper.”
“This has already been shown to have damaging consequences, including negative effects on public sector financing and decreased prosecution of pollution. Given the “fourth estate” role of the news media as a check on government, it seems likely the hollowing out of professional investigative capacity could lead to an increase in corruption in the affected communities.”
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