Print Media and Foreign Direct Investments: Creating Public Opinion in Slovenia

Abstract

The stock of FDI in comparison to GDP in Slovenia and Visegrád countries shows that Slovenia is receiving less FDI. We argue that the most important roots of this phenomenon are to be found in the year 1992, the first normal year after 1991 when Slovenia gained its independence. In 1992 the political discussions concerning which methods of privatization to choose were at their most fervent and the media were playing an important role in creating public opinion concerning participation of potential foreign investors in the privatization process. The media landscape in Slovenia has been, for the last three decades, a typical transitional one, with a strong role of public TV, a growing share of commercial TV, the declining role of print, underdeveloped internet and local radio. Being a tiny media market with a highly competitive environment, profit-making media companies are struggling with small ad budgets, especially those from state-owned companies, which have been for decades the largest local advertisers. The owners of private and state-owned media have been therefore highly connected to the political elites since the independence of Slovenia. We first try to explain the lesser importance of FDI in Slovenia with existing research concerning the role of institutions, especially the public opinion as an important informal institution. In the second part, we present the analysis of selected press articles for the year 1992. We propose conclusions concerning public opinion in Slovenia in 1992 and its influence on existing and potential foreign investors in subsequent years.