Media Development Loan Fund
Encyclopedia
Media Development Loan Fund (MDLF) is a New York
-registered 501(c)(3) non-profit corporation and investment fund that provides low-cost financing to independent news media in countries with a history of media oppression. It works with newspapers, radio stations, and TV companies in Africa
, Asia
, Latin America
, the CIS
, and the Balkans
.
Through low-cost capital (mainly loans), business training and other advice and support, it aims to help news outlets committed to responsible journalism become commercially sustainable, believing that only financially independent news media can stay editorially independent over the long term.
radio in Belgrade
when, in the early 1990s, the station started to experience financial problems caused by government interference. Witnessing freedom of speech slowly slip away partly due to a lack of economic security, Vučinić had the idea of creating an organization that would provide independent media with access to capital. The idea was pitched to George Soros
, who provided the initial grant for MDLF's start-up.
It has financed 250 projects for 79 independent media companies in 27 countries and has written off only 1.96% of the total loaned and invested. MDLF has returned more than $16 million to investors. On 30 September 2011, MDLF's portfolio stood at $43.9 million in outstanding loans and investments..
MDLF Impact:
With its activities growing but the pool of development agency and private foundation funding limited, in 2006 MDLF, Swiss bank Vontobel Group and Zurich-based social investment specialists responsibility launched "Voncert responsibility Media Development". Voncerts are a bond-like investment that also include a loan to MDLF and are available in most countries outside the USA and UK. Voncerts are listed on the Zurich Stock Exchange.
Funders of MDLF's Loan/Investment Pool include: Bank Vontobel, Calvert Social Investment Foundation, DOEN Foundation, Dreilinden gGmbH, Foundation for Democracy and Media, John D. and Catherine T. MacArthur Foundation, Open Society Institute
, Oxfam Novib
, Swedish International Development Cooperation Agency
(Sida), Swiss Agency for Development and Cooperation
and Alexej Fulmek.
Other support for MDLF's work has also come from: Council of Europe
, Eurasia Foundation
, J.M. Kaplan Fund, Charles Stewart Mott Foundation
, Netherlands Ministry of Foreign Affairs, United Nations Development Program (UNDP) and U.S. Department of State, Bureau of Democracy, Human Rights and Labor.
MDLF recognized the importance of technology to media as long ago as 1998 when it founded the Center for Advanced Media-Prague (CAMP). CAMP provided technology support to independent media in developing countries and developed open-source software solutions under the Campware brand. In May 2010, MDLF spun off CAMP as an independent organization, Sourcefabric
, which continues to provide valuable support to news outlets in the majority world seeking to get the most out of technology.
All in all, Campsite cost between $100,000 and $250,000 over more than 5 years.
MDLF's active partners in Campware were Redaktion und Alltag (Berlin) and the Department of Digital Design of the Parsons School of Design in New York.
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
-registered 501(c)(3) non-profit corporation and investment fund that provides low-cost financing to independent news media in countries with a history of media oppression. It works with newspapers, radio stations, and TV companies in Africa
Africa
Africa is the world's second largest and second most populous continent, after Asia. At about 30.2 million km² including adjacent islands, it covers 6% of the Earth's total surface area and 20.4% of the total land area...
, Asia
Asia
Asia is the world's largest and most populous continent, located primarily in the eastern and northern hemispheres. It covers 8.7% of the Earth's total surface area and with approximately 3.879 billion people, it hosts 60% of the world's current human population...
, Latin America
Latin America
Latin America is a region of the Americas where Romance languages – particularly Spanish and Portuguese, and variably French – are primarily spoken. Latin America has an area of approximately 21,069,500 km² , almost 3.9% of the Earth's surface or 14.1% of its land surface area...
, the CIS
Commonwealth of Independent States
The Commonwealth of Independent States is a regional organization whose participating countries are former Soviet Republics, formed during the breakup of the Soviet Union....
, and the Balkans
Balkans
The Balkans is a geopolitical and cultural region of southeastern Europe...
.
Through low-cost capital (mainly loans), business training and other advice and support, it aims to help news outlets committed to responsible journalism become commercially sustainable, believing that only financially independent news media can stay editorially independent over the long term.
History
MDLF was founded in 1995 by Saša Vučinić and Stuart Auerbach, the late Washington Post reporter and editor. Previously Vučinić was editor-in-chief and general manager of B92B92
B92 is a radio and television broadcaster with national coverage headquartered in Belgrade, Serbia. The network's key demographic is chiefly urban and young audience. Its programs, including the news cover topics with fairly liberal political painted attitudes...
radio in Belgrade
Belgrade
Belgrade is the capital and largest city of Serbia. It is located at the confluence of the Sava and Danube rivers, where the Pannonian Plain meets the Balkans. According to official results of Census 2011, the city has a population of 1,639,121. It is one of the 15 largest cities in Europe...
when, in the early 1990s, the station started to experience financial problems caused by government interference. Witnessing freedom of speech slowly slip away partly due to a lack of economic security, Vučinić had the idea of creating an organization that would provide independent media with access to capital. The idea was pitched to George Soros
George Soros
George Soros is a Hungarian-American business magnate, investor, philosopher, and philanthropist. He is the chairman of Soros Fund Management. Soros supports progressive-liberal causes...
, who provided the initial grant for MDLF's start-up.
Financing
From 1996 to 30 September 2011, MDLF provided $110.6 million in affordable financing, including:- $96.3 million in loans and equity investments;
- $13.8 million in technical assistance and other grants;
- Earned over $36 million in interest, dividends and capital gains.
It has financed 250 projects for 79 independent media companies in 27 countries and has written off only 1.96% of the total loaned and invested. MDLF has returned more than $16 million to investors. On 30 September 2011, MDLF's portfolio stood at $43.9 million in outstanding loans and investments..
MDLF Impact:
- In 2010, more than 38 million people in developing democracies got their news from MDLF clients;
- After five years with MDLF, clients on average increased their sales by 213%;
- In 2010, MDLF clients generated over $97.5 million in sales;
- After five years with MDLF, clients on average increased their readers, listeners or viewers by 71%;
- In 2010, a total of 3,843 people were employed by MDLF clients;
- For every $10,000 invested in 2010, MDLF supported access to independent news for 8,944 readers, listeners and viewers;
- In 2010, each dollar invested by MDLF leveraged $2.28 in client sales; and
- In 2010, just under half of MDLF clients, 45%, were able to maintain a level of financial risk MDLF considers to be consistent with long-term sustainability.
With its activities growing but the pool of development agency and private foundation funding limited, in 2006 MDLF, Swiss bank Vontobel Group and Zurich-based social investment specialists responsibility launched "Voncert responsibility Media Development". Voncerts are a bond-like investment that also include a loan to MDLF and are available in most countries outside the USA and UK. Voncerts are listed on the Zurich Stock Exchange.
Funders of MDLF's Loan/Investment Pool include: Bank Vontobel, Calvert Social Investment Foundation, DOEN Foundation, Dreilinden gGmbH, Foundation for Democracy and Media, John D. and Catherine T. MacArthur Foundation, Open Society Institute
Open Society Institute
The Open Society Institute , renamed in 2011 to Open Society Foundations, is a private operating and grantmaking foundation started by George Soros, aimed to shape public policy to promote democratic governance, human rights, and economic, legal, and social reform...
, Oxfam Novib
Oxfam Novib
Oxfam Novib is the Dutch affiliate of the international Oxfam organization. It is an association dedicated to establishing a fair world with no poverty in it. The organization is based in The Hague.Oxfam Novib was founded under the name Novib in 1956...
, Swedish International Development Cooperation Agency
Swedish International Development Cooperation Agency
The Swedish International Development Cooperation Agency is a government agency of the Swedish Ministry for Foreign Affairs. Sida is responsible for organization of the bulk of Sweden's official development assistance to developing countries....
(Sida), Swiss Agency for Development and Cooperation
Swiss Agency for Development and Cooperation
The Swiss Agency for Development and Cooperation is an office-level agency in the federal administration of Switzerland, and a part of the Federal Department of Foreign Affairs...
and Alexej Fulmek.
Other support for MDLF's work has also come from: Council of Europe
Council of Europe
The Council of Europe is an international organisation promoting co-operation between all countries of Europe in the areas of legal standards, human rights, democratic development, the rule of law and cultural co-operation...
, Eurasia Foundation
Eurasia Foundation
Eurasia Foundation is a publicly funded, privately managed grantmaker and program implementer working to strengthen civil society, advance private enterprise and promote public policy and administration in the successor states of the former Soviet Union—Armenia, Azerbaijan, Belarus, Georgia,...
, J.M. Kaplan Fund, Charles Stewart Mott Foundation
Charles Stewart Mott Foundation
The Charles Stewart Mott Foundation is a charitable foundation founded in 1926 by Charles Stewart Mott of Flint, Michigan. Mott was the leading industrialist in Flint through his association with General Motors....
, Netherlands Ministry of Foreign Affairs, United Nations Development Program (UNDP) and U.S. Department of State, Bureau of Democracy, Human Rights and Labor.
CAMP and Sourcefabric
As in the developed world, media businesses in transitional countries must embrace developments in technology and changing customer demands if they are to survive. From interactive news services to broadcasting online, MDLF provides clients with strategic advice on some of the key challenges facing the media business worldwide and helps them to seize local first-mover advantage.MDLF recognized the importance of technology to media as long ago as 1998 when it founded the Center for Advanced Media-Prague (CAMP). CAMP provided technology support to independent media in developing countries and developed open-source software solutions under the Campware brand. In May 2010, MDLF spun off CAMP as an independent organization, Sourcefabric
Sourcefabric
Sourcefabric is a not-for-profit organisation based in Prague, Czech Republic, with branches in Berlin, Germany and Toronto, Canada. Sourcefabric was spun off from the Media Development Loan Fund's Campware project in May 2010.-Software:...
, which continues to provide valuable support to news outlets in the majority world seeking to get the most out of technology.
All in all, Campsite cost between $100,000 and $250,000 over more than 5 years.
MDLF's active partners in Campware were Redaktion und Alltag (Berlin) and the Department of Digital Design of the Parsons School of Design in New York.