Not only in Nepal, but in India and China too, foreign direct investment (FDI) is a much talked-about issue. Many countries are under heavy pressure to open up the media industry to FDI. That is why India recently lifted the ban on FDI in the media sector up to 26 per cent ownership, which had totally been forbidden since its independence. China also, surprisingly, has permitted partial FDI in the media sector since January this year.

Since Theodor Levitt used the term ‘globalisation’ in 1985, the global market has magically integrated through liberalisation and deregulation of both product and capital markets, including the media industry. The barrier to investment in trade and unprecedented international mobility of capital have been eliminated. However, in Nepal, globalisation has not been without its adverse effects in economic and cultural fields. Some say even poor countries could promote their economy thro-ugh sustained economic gro-wth, free markets, globalisation and privatisation. But the basic characteristics of globalisation seem only to promote economic and cultural hegemony of superpowers.

In globalisation, the world’s money, technology and markets are controlled and managed by gigantic global corporations; a common consumer culture unifies all people in a shared quest for material gratification; and the perfect global competition among workers and localities offers their services to investors under the most advantageous terms. Furthermore, corporations are free to act solely on the basis of profitability; the market defines relationships; and there are no loyalties to country, place and community. A number of countries are taking strong regulatory measures to safeguard the national interests and identity regarding FDI in the media sector. The media have the power to shape opinion and attitudes. It is also necessary because information is increasingly being counted as a ‘strategic resource,’ the role of the media that disseminate information is conceived as being a check on public and private power. The media’s strength only lies in their independence not only from government and other agencies but also from foreign influence.

Some argue that the entry of organised private sector investment in the media can also help the state-owned media organisations and private media institutions to open up and become more competitive. Competition can lead to unethical practices too if FDI in the media is not welcomed within appropriate framework. On the contrary, there are those who underline the need to check FDI in the Nepali media, including the press, on the grounds of promoting fair and competent journalistic practices. Some fear FDI in the media will create anarchy. Financial matters are crucial to the survival of any newspaper. But one should also take into account global trends, recognising that it may not be possible to continue to impose complete restrictions on FDI in the media in this age of globalisation for long.

Nepali service sectors are bound by various domestic regulations such as Foreign Exchange (Regulation Act 1962), Foreign Investment and Technology Transfer Act (FITTA), Company Act 1997, and others. FITTA 1992 prohibits foreigners from producing films in Nepali languages. However, being a member of WTO, the pressure may build up to open up to foreign investment in the media, including print and broadcast. The pressure and influence of satellite broadcasting from foreign lands and the flow of newspapers and other periodicals are beyond control. Indeed, this is today’s reality and this trend is bound to become even stronger in days to come. This weakens the case of those who oppose FDI in the media.

Certainly, we have to develop competitive strength within the national media industry. But it is time we became more open to FDI in the media, with fair rules and regulations governing FDI in both the electronic and print media. These rules are necessary to ensure that full editorial control as well as much of effective management functions remain in Nepali hands. Similarly, TV companies looking for up-linking facilities should be brought under regulations and monitored. Permission for use of facilities for live news/footage collection and transmission should be available only to those channels that are up-linked from Nepal.

A controlling mechanism could be developed through limitations on equity participation, editorial as well as management control and reasonable proportion in covering national and international news and current affairs issues. Appropriate modalities should be developed to safeguard national interest, diversity of opinion, freedom of expression and sovereignty. Regulations should aim at permitting investors from all countries provided they fulfil the legal and other requirements. Such an open policy, along with reasonable restrictions, could help the Nepali media industry become better and more competitive.

Chalise is executive editor, Gorkhapatra