Press freedom is extensively thought of to be a cornerstone of democracy. It brings accountability, transparency and entry to dependable info.
However past its democratic position, press freedom can also be a significant a part of a steady economic system. Analysis has proven that it acts as a type of financial watchdog, guaranteeing steadiness and accuracy.
In doing so, an impartial press strengthens the resilience of economic establishments. And our research means that increased ranges of press freedom may also be linked to larger monetary stability and decrease “systemic danger” – the place one thing unhealthy occurring at one firm can set off wider instability and even business collapse – within the banking sector.
Utilizing knowledge from 47 international locations, we discovered that an impartial press brings larger scrutiny of banking executives. One other profit is a greater stream of data across the monetary markets, making the entire system extra environment friendly.
International locations with increased ranges of press freedom are additionally extra more likely to foster company and political cultures which are free from the type of corruption which may jeopardise the steadiness of the banking sector. All of those benefits are most pronounced throughout financial downturns or banking crises.
And even outdoors instances of disaster, we are able to see the optimistic results by taking a look at primary monetary indicators in international locations with excessive and low press freedom ranges. International locations with constantly excessive ranges of press freedom comparable to Norway, Sweden or Estonia, for instance, have far fewer non-performing (unrepaid) loans than international locations with low ranges of press freedom comparable to Pakistan, Greece or Russia.
However a free press and a steady banking business are under no circumstances the norm.
Latest data from the marketing campaign group Reporters With out Borders highlights a worrying decline in media autonomy. It studies that 135 out of 180 international locations now have press freedom ranges labeled as “problematic”, “troublesome” or “very severe”.
This development extends to superior economies comparable to Japan (seventieth, down from 68th in 2023), Italy (forty sixth, down from forty first), and the US (fifty fifth, down from forty fifth).
And it appears to be like just like the world’s largest economic system may slip down the rankings even additional. Though President Trump signed an government order aimed toward “restoring freedom of speech”, he has additionally explicitly threatened to revoke broadcast licenses, examine vital media and jail journalists who defend confidential sources.
In February 2025, White Home officers even knowledgeable one US information company that its journalists can be barred from entering the Oval Workplace till it stopped utilizing the geographic time period “Gulf of Mexico” as an alternative of Trump’s most well-liked “Gulf of America”.
However the Trump impact will not be restricted to the US. A latest aid freeze by his administration has minimize billions in funding for impartial media shops throughout greater than 30 international locations, together with Ukraine, Afghanistan and Iran.
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Notable declines in press freedom have additionally been noticed in politically volatile regions comparable to Latin America, Africa, the Center East and central Asia, the place authoritarian regimes proceed to tighten their grip on the media.
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The survey from Reporters With out Borders means that governments the world over are failing to guard journalism, with a marked development of declining press freedom.
In 2014, 13% of nations loved a “good” diploma of press freedom, however this determine dropped to 7% by 2021 after which to simply 4.4% in 2022. Conversely, the share of nations within the lowest classifications has risen dramatically. A decade in the past, 8% have been thought of “troublesome”, now that determine is 24%. The variety of these with a “very severe” scenario has gone from 8% to 17% in the identical interval.
Learn extra:
White House spat with AP over ‘Gulf of America’ ignites fears for press freedom in second Trump era
In fact, there are outliers within the world image. China, for instance, has restricted press freedom however a really steady banking sector that has been extremely resilient to exterior shocks prior to now. However the nation is run by an authoritarian regime that helps to shield its banks from these sorts of dangers.
Elsewhere although, the decline in press freedom threatens not simply democratic ideas and political transparency, but in addition the operation of economic markets. Safeguarding that freedom is a vital foundation of financial resilience and stability.
