Economic crisis also difficult for business media

International Press Institute meets in Helsinki

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The international economic crisis has been a considerable challenge for quality newspapers such as the Financial Times and The New York Times. The papers are accused of both not giving sufficient warning of the crisis, and of aggravating the crisis by writing too many negative stories.
      Financial Times assistant editor Gillian Tett and New York Times news managing editor Jill Abramson faced both charges on Monday as they were taking part in the World Congress of the International Press Institute (IPI), which has been held in Helsinki this week.
     
A Hungarian participant called on Tett to show responsible journalism. When Iceland was teetering on the brink of bankruptcy, the FT predicted that Hungary might be next in line. The articles had a negative effect on Hungary’s position on financial markets, and on foreign investments into the country.
      “We are walking through a minefield and we live in a world of imperfect information. Nevertheless, we have done our best. We are constantly discussing how to report on the events, and we are trying to act in a responsible manner”, Tett answered.
      In her view, it is the newspaper’s responsibility to warn investors.
      She also asked if it would be right for only a few elite bankers to be aware of the situation while ordinary people are unaware. “The fact that we bring the information to the public at large does not make the situation worse - it reveals what is already going on.”
     
Jill Abramson is pleased with how her newspaper has covered the crisis.
      She noted that the New York Times, the Financial Times, The Wall Street Journal and other quality newspaper give loud warnings on their front pages. “Even if our warnings would have been louder, journalism alone could not have prevented the crisis”, Tett added, calling the situation a failure of the system that bankers were promoting. She also said that supervisory bodies of the various national governments were not awake, and were not strong enough.
      Tett noted that her newspaper had started to talk about the bursting of the finance bubble already in 2005. She nevertheless admitted that international credit markets especially did not get enough attention in the press.
      In the past two years the media has concentrated on explaining what is happening. She said that recent events have shown what happens when a topic is left without scrutiny. “My concern is whether we will have enough resources in the future”, said Tett.
     
Abramson was worried about the situation with competing newspapers. The papers are struggling with difficulties and journalism is weakened as a result.
      A fresh example is from Detroit, the home of the automotive giant General Motors, which has fallen into bankruptcy. The city’s newspaper, The Detroit News used to be renowned especially for its knowledgeable reporting of the situation in the car industry.
      From the beginning of the year, the paper edition of the newspaper began appearing only on three days a week. “It could not handle its task as it had before”, Abramson said.
      She observed that quality regional newspapers, such as The Philadelphia Inquirer and the The Boston Globe, are having an especially difficult time now that classified advertisements have disappeared almost completely.
     
Newspaper advertising revenue fell by nearly 30 per cent in the United States in the early part of this year. Sales of classified advertisements declined by about 42 per cent.
      “All newspapers have troubles now. But it is clear that a world without quality journalism would be much poorer”, Tett points out.

More on this subject:
 HS Editor-in-Chief: Press freedom requires vigilance

Links:
  International Press Institute - World congress

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