Salaries and survival of small independent media across BiH under question.

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Immediately after assuming office as President of the United States of America (USA), Donald Trump decided to suspend the activities of the United States Agency for International Development (USAID).

The Agency invests millions of dollars in civil society, culture, education, institutions and independent media in Bosnia and Herzegovina (BiH) annually, providing hundreds of jobs.

The Trump administration's decision to suspend foreign assistance for 90 days pending a review, and the announcement that the Agency would be merged with the State Department, has led to uncertainty for the jobs of beneficiaries of this assistance, especially those for whom USAID was the sole donor.

Employees of USAID and other U.S. organisations to which USAID is a major donor worldwide received an email informing them that they will be placed on leave as of February 7th and that the future of their jobs is uncertain.

Non-governmental organisations and media outlets that rely on American foreign aid have had all projects suspended, and they have been ordered to suspend all activities and spending of funds from already awarded grants whose implementation has not been completed.

The information that USAID employees have is also scant and unclear and does not provide a clear picture of the future of this organisation. After the three-month audit, if it is completed, more information will be available, but the media from BiH that are funded by donors generally do not have that much time. For some, even February salaries are questionable, and some media outlets could start laying off workers as early as March.

Entire newsrooms under threat

Milica Samardžić, executive director of the Umbrella Association, which brings together 13 investigative media outlets, says that the suspension of US foreign aid will have serious consequences for the media sector, especially for independent and investigative media that rely on donor funds.

Many independent media outlets in the region, including in BiH, depend on grants from USAID and other American foundations, and if these funds are terminated, Samardžić says they will face the loss of a significant portion of their budget, which could lead to a reduction in activities, the closure of certain editorial offices, or even the complete closure of media outlets.

Umbrella is currently working with its members to find alternative sources of funding to ensure stability and resilience to economic and political changes, and to avoid the layoffs of journalists.

"If funds are not found for operational expenses in these three months, we estimate that 64 per cent of the journalists employed in the newsrooms could be left without employment, somewhere around 59 people," warns Samardžić.

Secretary General of the Association of BH Journalists Borka Rudić fears that the first move of media owners will be to fire journalists and researchers and to terminate cooperation with columnists and freelancers.

"I don't know of a single media outlet in BiH where the owners have been known to give up their profits for the benefit of their journalists or employees to improve their status. It won't be any different now after the suspension of a significant portion of American foreign aid. In BiH, it will be even more difficult and uncertain for journalists and media workers than in some other countries, because we don't have strong unions that would, if nothing else, demand that employers respect the legal provisions on dismissal, provide severance pay, and the like," Rudić is concerned.

Editor of the Interview.ba portal Senka Kurt explains that the media outlet she works for has managed to develop research thanks to projects funded by the USA, and that part of their work will be under threat.

She cannot talk about layoffs for now, but if USAID does not continue to operate in BiH, layoffs are inevitable.

“If that doesn’t happen, the entire newsroom will be under threat,” Kurt claims.

The Banja Luka-based portal Impuls, which deals with ecology, activism, corruption and marginalised groups, is also in a difficult situation after the announcement of the closure of USAID. In addition to the financial crisis, this, like other media outlets, has also come under attack from right-wingers who are gloating over Trump's decision.

"Because we, non-governmental organisations and independent media, have been portrayed as someone who amasses enormous amounts of money. However, the largest donations have been and continue to be given to public institutions. In the first days of the suspension of aid, the regime media in RS were already calling out independent investigative media. That speaks volumes about the disadvantageous position we find ourselves in," says Impuls editor-in-chief Jelena Jevđenić.

These days, she is forced to focus more on finding alternative sources of income than journalism and editorial work.

"Since Impuls is a small media outlet, I'm afraid we could all lose our jobs. Now I can't specify when that could be, because we are also looking for support from other donors," she said.

Direkt, the only investigative media outlet in the area from Nevesinje to Trebinje, could be left without funding in the coming period. They have secured funding until the end of August, but their long-term survival is questionable.

Direkt was founded by two journalists, and in the last two years, they have hired two more on a temporary basis. 

"Unless we find a way to secure funds, we won't be able to renew the contract with them because you can't expect anyone to work without pay," says Direkt portal editor Milanka Babić Kovačević.

If USAID does not resume operations by the end of the year, the entire editorial office could be shut down. She adds that it will be difficult to provide the four minimum salaries for university graduates now that the minimum wage is BAM 1,300.

“Honestly, all journalist jobs are under threat,” Babić Kovačević says.

Dinko Dundić, editor of the Fokus portal, which has won several awards for investigative journalism, explains that the US is one of the strategic partners that has been key in helping independent media fight crime and corruption not only in BiH but throughout the Western Balkans. Therefore, their current suspension of aid will have a major impact on the fight against corruption.

"As for our media outlet, the aid allowed us to fight crime and corruption with more resources, but that is still our mission and we will continue our fight against all deviations in our society to the best of our ability," says Dundić.

Without the continuation of USAID projects, it will be much more difficult to fund investigative journalism.

"Unfortunately, some restructuring will probably be necessary, and we hope this process will not be comprehensive. It would be irresponsible to talk about the details at this time. These are professionals who have adapted their lives to fighting for the benefit of BiH society, and any departure will be painful for both the journalist and the editorial staff, but also for the entire society of BiH," says Dundić.

Donor funds allow the media to investigate corruption

The authorities in BiH are not interested in funding independent and investigative media. Grants from governments and local communities are mainly intended for media outlets loyal to the authorities, so independent media rely mostly on donor funds from abroad.

"Donor aid is extremely important, considering that our authorities use public revenues and budgets for their friends, relatives, and supporters, and not for independent media, which they regularly threaten and tell how to do their jobs," says Kurt.

Milica Samardžić emphasises that donor funds often finance investigative journalism that uncovers corruption, abuse of power, and other social problems. Without these funds, Samardžić says, there will be fewer resources for in-depth analyses and long-term research projects.

When the media run out of donor funding, they often turn to advertisers and other sources of funding, who may have political or economic interests.

"This increases the risk of self-censorship and reduces journalistic objectivity. If independent media are forced to close, the market will remain dominated by state-owned or commercial media, which often do not work in the public interest," says Samardžić.

For the editor of Impuls, donor support is crucial for the survival of independent media in BiH.

"In most cases, independent investigative media cannot generate income even from marketing, and in this kind of political atmosphere and instability, it is almost impossible to be self-sustaining. It is ridiculous to talk about funds from the media budget for independent media, it is mostly convenient media that get it," says Jevđenić.

Unfortunately, independent media outlets, especially small ones, can hardly be self-sustaining, warns Babić Kovačević. They are not focused on cheap entertainment, sensational news and clickbait headlines.

"The area of ​​Trebinje and Eastern Herzegovina is sparsely populated, the market is small, and potential advertisers are mostly companies that have succeeded thanks to their deals with the state. As a rule, those deals were not transparently made, which we write about, so it is difficult to expect that any of them will want to advertise on our portal", says Babić Kovačević.

It is the editorial policy of Direkt never to advertise betting shops, which further reduces the possibility of non-donor income.

“So”, she says, “when you add it all up, donor support is vital”.

Considering the endemic corruption that prevails in BiH, which is largely fought against by independent media, donor funds are of crucial importance, says the editor of Fokus.

The government at all levels in BiH is only prepared to finance select media outlets that will report on important events without due criticism.

"That is why the help of donors who enable the media to do their work is crucial. And the work is questioning, without any political background, how every mark earned by the citizens of Bosnia and Herzegovina is spent," says Dundić.

Many media outlets have only one source of funding

There are not many donors in BiH that fund small independent local media, and even they often lack the capacity to run multiple projects.

"We would certainly like to have more sources of funding, but the list of donors is limited. Personally, I would also like municipalities, entities, and BiH to issue calls for projects to fund independent and investigative media, but considering the kind of government we have, it is illusory to expect that," says Babić Kovačević.

Samardžić notes that the BiH audience is not yet accustomed to paying subscriptions or donations for journalism, and donor funds fill that gap and enable media to continue working. She believes it is necessary to hold the BiH state, or rather institutions, accountable, since we do not have systemic state support for the pluralism of media content.

"The role of the state in this context should be key in ensuring fair conditions for journalism, but the current situation shows that, unlike European countries where the state often provides financial support to independent media through grants or pluralism funds, such a system does not exist in BiH," says Samardžić.

Secretary General of the Association of BH Journalists Borka Rudić warns that the media market in BiH was shaken even before the suspension of US aid.

"BiH does not have adequate media assistance programs, public funds are not distributed transparently with clear criteria for media pluralism, i.e. for the diversity and quality of media content, but as part of the 'purchase' of political support and the creation of clientelistic relationships between parties in power, state bodies, public companies and individual media. Unfortunately, not only in the US but throughout the world, there has been a noted rise of radical political currents and individuals who are trying to destroy journalism as a public good and critical conscience," says Rudić.   

Samardžić emphasises that there is no legal framework in BiH that would guarantee the transparent distribution of public funds to the media, so the public budgets of cantons, cities and municipalities are often used to finance media outlets close to the authorities, while independent media remain without support.

“Without changes to this approach, independent journalists will remain at the mercy of international donors and uncertain market conditions, which threatens media freedom and democracy in the country in the long term,” says Samardžić.

He also warns that relying on only one donor makes the media vulnerable to political decisions and changes in international relations.

“Diversification of financial sources – subscriptions, crowdfunding, EU grants, regional foundations – could be the key to long-term survival,” says Samardžić.

What is the future of independent media in BiH?

The intention of the Trump administration, as well as the possible reaction of the US Congress and the Supreme Court, is not yet final or clear, since the US president has previously withdrawn decisions. All this keeps donor-funded media in a kind of vacuum. The final move of the US towards the future of foreign aid will greatly affect the future of independent media in BiH.

Jevđenić fears that we are moving away from democracy as a society and globally and that many small media outlets will shut down.

"And this is mainly investigative media that are targeted by the authorities. In the RS, we are now faced with the announcement of a law on a special register and transparency of the work of non-profit organisations, or the law on foreign agents. On the one hand, we are pressured by a repressive and undemocratic law, and on the other hand, we do not have enough support to fight on all fronts. If there is room for optimism, it is because of the love for this job and justice," says Jevđenić.

When asked how she sees the future of the media, Babić Kovačević replies that it is difficult to talk about projections.

“If the Trump administration shuts down USAID, the media will look for ways to survive. It is certain that not all of them will succeed. I can only hope that we will continue to spoil the mood and settle accounts with corrupt authorities.”

The Executive Director of the Umbrella Association warns that due to the suspension of US aid, some media outlets will be forced to close, and some will significantly reduce the intensity of work and the number of employees.

"If independent media are weakened and left without strong fact-checking editorial staff, the public space will be more open to the spread of fake news, propaganda and conspiracy theories. At the same time, it is possible that new forms of funding will emerge through digital subscriptions, domestic grants or other international donors," says Samardžić.

The solution to the newly emerged problem cannot be found quickly and it will not be comprehensive. Rudić advises that the media put pressure on the authorities to form a fund to support the media and media pluralism. On an annual basis, RAK generates a surplus of revenue, which in recent years has been around BAM 17 million.

"That money is returned to the state budget instead of being invested in the media, the production of media content, and the strengthening of journalism in the public interest. Likewise, every year, grants are distributed to the media from public budgets without clear criteria or transparency, so I am not sure that these funds contribute to the survival of the media and professional and responsible journalism. This must change as soon as possible – the media community should be more united in criticising such procedures and demanding transparency of allocations to the media from public budgets," says Rudić.

She also believes that one of the solutions beyond the borders of BiH is the strengthening of EU funds for the media, which was recently requested by both the European and International Federation of Journalists.

"However, considering the EU Parliament's budget and the statements of some radical EU parliamentarians, I am not sure that there will be enough money for independent media not only in BiH but throughout Europe," Rudić says.