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  • Trusting hundreds of corporate journalists to wage war on income inequality was a bad mistake.

    Trusting hundreds of corporate journalists to wage war on income inequality was a bad mistake. | Photo: Reuters

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“John Doe” made a bad call when he leaked the Panama papers to the corporate media.

“Can a corporate media system be expected to tell the truth about a world dominated by corporations?” the Media Lens editors once asked rhetorically.

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Panama Papers: The Caribbean Connection

Assuming the best of intentions on the part of whoever leaked the Panama Papers, trusting hundreds of corporate journalists to wage war on income inequality was a bad mistake. However, the corporate media can be trusted to wage war on the enemies of income inequality, in particular progressive governments in Latin America, and use the Panama Papers to do so even if the ammunition they have is pitiful.

Consider an article in the Miami Herald that ran with the mocking headline, “Ecuador’s leader demands release of Panama Papers, and learns he’s in them.” A very similar article with an almost identical headline ran in the UK Independent, and in many other outlets. The article in the Herald began:

“…Ecuadoran President Rafael Correa called out his country’s journalists and boasted that, unlike other countries, he and his government weren’t found in the leak.

However, the secret documents show that he and his estranged brother, Fabricio, caught the attention of anti-corruption authorities in Panama in 2012.”

Anyone who follows Ecuadorian politics will find this very underwhelming. Fabricio Correa is a long-time bitter foe of his brother’s government. Fabricio is also a businessman who has long been accused of being less than ethical by his brother and many other people. That’s old news and it is hardly surprising that it would have “caught the attention” of investigators years ago. How could it not have? A book was written in 2010 – “El Gran Hermano” – alleging that Rafael Correa was complicit with his brother’s corruption and in 2012 Correa won a defamation suit against the authors.

The article in the Herald is convoluted and often unclear, but that actually serves its purpose. It is padded with details that ultimately fail to land a blow against Fabricio Correa, never mind President Correa, but readers unfamiliar with Ecuador, even if left confused by the article, will probably still come away thinking that something damning has been uncovered. 

WATCH: Media Review: Panama Papers

The use of meaningless statistics is another way the article is padded. It says “searching the word ‘Ecuador’ yields more than 160,000 secret documents. Guayaquil, the wealthy coastal city, shows up in 109,000 documents,” as if that refutes Correa’s observation that hostile Ecuadorean journalists who have had access to the documents for a year have not found anything to discredit his government. Correa would be the last person to deny that corruption, in particular tax avoidance by his elite opponents, is still a big problem in Ecuador. That’s one reason why Correa demanded that all the information be released rather than cherry-picked by corporate journalists. Ecuador’s private media led a very dishonest propaganda campaign last year against tax reforms that would have almost entirely impacted Ecuador’s wealthiest 2 percent.  Moreover, Guayaquil’s mayor for the past 16 years has been Jaime Nebot, a right-winger who is arguably Correa’s most prominent opponent. Applying the shoddy logic suggested by the article, Nebot and his right wing allies – including his many allies in Ecuador’s private media - are discredited by how often the word “Guayaquil” appears in the Panama Papers.

Reporters are not always so sloppy. When a journalist I recently corresponded with found a Venezuelan opposition member mentioned in the Panama Papers he explained to me that “he was simply mentioned in newspaper articles passed around by IMF staff.”

The article in the Herald also cited an NGO as follows:

“Last year, Transparency International ranked 168 countries and territories on its government corruption index. It found that 106 nations were less corrupt than Ecuador.”

It neglected to mention that the head of the groups’ Chile branch just resigned after being linked to offshore firms. Much more importantly, it has been obvious for many years that a little transparency does not flatter Transparency International (TI).  In 2008, Calvin Tucker wrote a hard hitting piece about a shockingly dishonest report that TI published about Venezuela’s state oil company. He reported “TI says that they ‘stand by their report’ and stand by the person who compiled the data, an anti-Chávez activist who backed the 2002 military coup against democracy.”

The Miami Herald also used the Panama Papers as an excuse to rehash the farcical “suitcase scandal” of 2008.  It was a comical example of the US government using its prosecutors and a more than cooperative media to smear governments it didn’t like – in this case the left governments of Venezuela and (at the time) Argentina. How could the United States possibly claim jurisdiction over a case based on far-fetched allegations that the Venezuelan government had tried to smuggle a suitcase full of cash into Argentina to influence an election? The U.S. government weaseled in by alleging that an “unregistered agent” of Venezuela’s government had come to the United States to convince one of the people involved to keep quiet. There had never been an indictment under this law unless there was an espionage or national security accusation to go along with it. Mind you, several years later the Obama Administration would officially declare Venezuela an “extraordinary threat to the national security” of the United States – and then defend the insane declaration by saying it didn’t mean it.  The U.S. media responded with some timid criticism. That should be unsurprising. Media outlets owned by the rich and powerful, whose most influential customers, advertisers, are rich and powerful are not going to lead movements for serious reform, never mind revolution.

None of this is to say that the Panama Papers will not be of any help in the fight against income inequality. Time will tell. There must be a very small number of journalists working in the private media who are genuinely interested in fighting inequality, but one can easily imagine how much more positive impact these leaks may have had. Recall how wisely Edward Snowden singled out Glenn Greenwald as a journalist he could trust. Remember where Julian Assange, a real thorn in the side of the most powerful and violent people in the world, ended up seeking refuge; and never forget how viciously the corporate media turned on him.

The battle against inequality, which is a crucial part of the battle for meaningful democracy, requires a struggle against the corporate media, a real movement to democratize the means of communication, not (a few exceptional corporate journalists aside) collaboration with it.


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