[Senate Report 108-246]
[From the U.S. Government Publishing Office]
Calendar No. 459
108th Congress Report
SENATE
2nd Session 108-246
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INTERNATIONAL FREE PRESS AND OPEN MEDIA ACT
OF 2004
_______
March 18, 2004.--Ordered to be printed
Filed under authority of the order of the Senate of March 12, 2004.
_______
Mr. Lugar, from the Committee on Foreign Relations,
submitted the following
R E P O R T
[To accompany S. 2096]
The Committee on Foreign Relations, having had under
consideration a bill (S. 2096) to promote a free press and open
media through the National Endowment for Democracy and for
other purposes, reports favorably thereon and recommends that
the bill do pass.
CONTENTS
Page
I. Purpose..........................................................1
II. Committee Actions................................................2
III. Section-by-Section Analysis......................................3
IV. Cost Estimate....................................................4
V. Evaluation of Regulatory Impact..................................5
VI. Changes in Existing Law..........................................5
I. Purpose
The legislation seeks to provide greater focus on, and more
coordination of, U.S. Government programs to develop free,
fair, legally protected, and self-sustaining press and media in
the world. It directs the Secretary of State to provide the
necessary funding to the National Endowment for Democracy for
the work of a free press institute.
II. Committee Actions
Based on expert testimony presented to the committee on
February 26, 2004 and following studies by the Congressional
Research Service and General Accounting Office (GAO), as well
as numerous interviews by the committee staff, the committee
makes the following findings: a free press is essential for a
truly open and pluralistic democracy; a free press must be
guaranteed by constitutional or basic law protections; it must
be protected from political intimidation; it must be practiced
under rules governing open access, libel, and defamation; it
must be financially sustainable; U.S. Government efforts to
help support the development of free press and open media in
transitional societies have been successful, but require
greater coordination; these programs must be long-term in
scope, and clearly separated from public diplomacy initiatives;
greater coordination is also required among the private media
sector, foundations, and international non-governmental
organizations; the National Endowment for Democracy provides
the best funding mechanism and leadership for a better
organized public-private initiative to support the development
of an international free press and open media.
The committee recognizes that for many years the United
States Government has engaged in promotion of independent media
abroad through several foreign policy agencies, including the
United States Information Agency (USIA) (which was merged into
the Department of State in 1999), the Department of State, and
the Agency for International Development. Additionally, in the
late 1980s, Secretary of State James Baker endorsed the
International Media Fund, a private sector charitable
organization which received funding from the Agency of
International Development (USAID); however, in the mid-1990s,
USAID ended support of the Media Fund, and it ceased
operations. USAID has continued to fund various media training
and development programs, but they are not a central objective
of the Agency.
The committee notes that our nation's strong and vibrant
private media sector should be encouraged to participate in
American efforts to help develop indigenous free press and
media throughout the world.
Indigenous free media not only ensures that governments are
held accountable to the people that they represent, but also
provides those not in power with a peaceful outlet for
political expression. A free media, in other words, is an
important element in any open and democratic society.
Additionally, the committee believes that expanding the
presence of free media will go far to ensure that we are able
to disseminate more successfully the issues and stories that
promote American values and ideas.
The committee notes that the National Endowment for
Democracy (NED), a non-governmental organization, has been
providing excellent work in the field of human rights and
democratic institution building. The NED was founded in 1983
and recognized by Congress in the National Endowment of
Democracy Act (P.L. 98-164) to ``. . . support the
participation of the two major American political parties,
labor, business and other United State private sector groups in
fostering cooperation with those abroad dedicated to the
cultural values, institutions and organizations of democratic
pluralism . . .''
In the intervening 21 years, bipartisan congressional
support has sustained the NED and its institutes. A major
reason has been the degree to which GAO and Department of State
oversight and auditing of the NED and its institutes have
ensured fiscal discipline and responsibility.
The NED currently provides much of its support via four
``core'' grantees: the International Republican Institute
(IRI), the National Democratic Institute (NDI), the Center for
International Private Enterprise (CIPE), and the Free Trade
Union Institute (FTUI).
At the time of the creation of the first four grantees, a
fifth institute dedicated to the promotion of free media was
also envisioned. It was, however, never created due to
questions over its function and independence and uncertainty as
to the longevity of the NED. Now, long-ago doubts about the
merit or the integrity of the NED and its institutes have been
laid to rest. The committee believes it is crucial that the NED
promote greater free media throughout the world.
As such, and in conjunction with the administration's
decision to seek a doubling of the NED budget to $80 million in
fiscal year 2005, the committee intends to ensure that at least
10% of that funding is directed toward free media programs. One
of the prime reasons for directing this money through the NED
is not only the NED's proven track record of excellence and
government oversight, but also its status as a 501(c)(3)
organization, which enables private sector entities to
participate, partner or donate money, time and materiel. In
fact, the committee has heard unofficially from several major
U.S. news organizations, media companies and film studios that
they are already donating staff time, equipment, programs and
funds to fledging media throughout the world but would be able
to do so on a more sustained and generous basis if afforded the
tax advantages that come with working with 501(c)(3)
organizations.
The committee intends that the NED should create a new,
fifth institute that coordinates future programs directed at
free media, evaluates free media projects and leverages
resources from both the public and private sector to ensure the
viability of both the institute and the programs it
facilitates.
At a business meeting on March 4, 2004, the committee
considered S. 2096. No amendments were offered. The committee
ordered the bill reported by a vote of 19 to 0. Ayes: Senators
Lugar, Hagel, Chafee, Allen, Brownback, Enzi, Voinovich,
Alexander, Coleman, Sununu, Biden, Sarbanes, Dodd, Kerry,
Feingold, Boxer, Nelson, Rockefeller, and Corzine.
III. Section-by-Section Analysis
Section 1. Short title.
This section designates the title of the bill.
Section 2. Findings
This section lists findings that explain the need for the
legislation and its purpose.
Section 3. Amendments to the National Endowment for Democracy Act
This section amends the National Endowment for Democracy
Act to include free media as one of the major objectives of the
NED. The Secretary of State is requested to ensure that 10
percent of the funding for the NED be directed to programs to
promote freedom of the press and other media.
IV. Cost Estimate
In accordance with rule XXVI, paragraph 11(a) of the
Standing Rules of the Senate, the committee provides the
following estimate of the cost of this legislation prepared by
the Congressional Budget Office.
United States Congress,
Congressional Budget Office,
Washington, DC, March 12,2004.
Honorable Richard G. Lugar, Chairman
Committee on Foreign Relations,
United States Senate,
Washington, DC.
Dear Mr. Chairman:
The Congressional Budget Office has prepared the enclosed
cost estimate for S. 2096, the International Free Press and
Open Media Act of 2004.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Sunita
D'Monte.
Sincerely,
Douglas Holtz-Eakin, Director
Enclosure.
S. 2096--International Free Press and Open Media Act of 2004
S. 2096 would authorize the National Endowment for
Democracy (NED) to promote freedom of the press and other media
around the world, and would earmark not less than 10 percent of
funds made available to the NED for 2005 for this purpose. The
NED is a private, nonprofit corporation that makes grants to
private-sector and nonprofit entities to undertake activities
to encourage free and democratic institutions throughout the
world.
The NED received an appropriation of $40 million for 2004,
and CBO's baseline projection for 2005 is also about $40
million. In order to maintain its existing activities and
earmark 10 percent of its budget for programs authorized by
this bill, the NED would need an additional $4 million in 2005.
The President has requested an appropriation of $80 million
for 2005; under S. 2096, $8 million of that amount would be
allocated to promote freedom of the press and other media. S.
2144, the Foreign Affairs Authorization Act, Fiscal Year 2005,
as ordered reported by the Senate Committee on Foreign
Relations on March 4, 2004, would also authorize $80 million
for the NED in 2005.
S. 2096 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would not affect the budgets of state, local, or tribal
governments.
The CBO staff contact is Sunita D'Monte. This estimate was
approved by Robert A. Sunshine, Assistant Director for Budget
Analysis.
V. Evaluation of Regulatory Impact
In accordance with rule XXVI, paragraph 11(b) of the
Standing Rules of the Senate, the committee has concluded that
there is no regulatory impact from this legislation.
VI. Changes in Existing Law
In compliance with paragraph 12 of Rule XXVI of the
Standing Rules of the Senate, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman).
TITLE V--NATIONAL ENDOWMENT FOR DEMOCRACY
SHORT TITLE
Sec. 501. This title may be cited as the ``National Endowment
for Democracy Act''.
NATIONAL ENDOWMENT FOR DEMOCRACY
Sec. 502. (a) The Congress finds that there has been
established in the District of Columbia a private, nonprofit
corporation known as the National Endowment for Democracy
(hereafter in this title referred to as the ``Endowment'')
which is not an agency or establishment of the United States
Government.
(b) The purposes of the Endowment, as set forth in its
articles of incorporation, are--
(1) to encourage free and democratic institutions
throughout the world through private sector
initiatives, including activities which promote the
individual rights and freedoms (including
internationally recognized human [rights)] rights and
freedom of the press and other media) which are
essential to the functioning of democratic
institutions;
(2) to facilitate exchanges between United States
private sector groups (especially the two major
American political parties, labor, [and business)]
business, and media; and democratic groups abroad;
(3) to promote United States nongovernmental
participation (especially through the two major
American political parties, labor, business, media, and
other private sector groups) in democratic training
programs and democratic institution-building abroad;
(4) to strengthen democratic electoral processes
abroad through timely measures in cooperation with
indigenous democratic forces;
(5) to support the participation of the two major
American political parties, labor, business, media, and
other United States private sector groups in fostering
cooperation with those abroad dedicated to the cultural
values, institutions, and organizations of democratic
pluralism; and
(6) to encourage the establishment and growth of
democratic development in a manner consistent both with
the broad concerns of United States national interests
and with the specific requirements of the democratic
groups in other countries which are aided by programs
funded by the Endowment.
GRANTS TO THE ENDOWMENT
Sec. 503. (a) * * *
* * * * * * *
[(e) Of the amounts made available to the Endowment for each
of the fiscal years 1984 and 1985 to carry out programs in
furtherance of the purposes of this Act--
[(1) not less than $13,800,000 shall be for the Free
Trade Union Institute; and
[(2) not less than $2,500,000 shall be to support
private enterprise development programs of the National
Chamber Foundation.]
(e) Not less than 10 percent of the amounts made available to
the Endowment for fiscal year 2005 should be made available for
programs to promote freedom of the press and other media.