Summary

In the 1950s, the U.S. government established Radio Free Europe/Radio Liberty (RFE/RL) as a private nonprofit company to provide radio programming to Eastern Europe and the former Soviet Union. With the end of the Cold War, the executive branch began questioning the role and management of international broadcasting. Executive branch officials conclude that management consolidation would reduce costs by promoting more rational programming decisions and the sharing of engineering and other resources. In July 1994, the President directed that the operations of RFE/RL be moved from Munich to Prague. This report discusses (1) RFE/RL's ability to meet the congressionally mandated funding ceiling and successfully operate in Prague, (2) the most pressing management problems RFE/RL faces in Prague, and (3) RFE/RL's view of its role and mission in the 21st century.

GAO found that: (1) the President signed legislation in April 1994 which called for RFE/RL consolidation, downsizing, and reinvention, with the ultimate goal that the private sector assume all funding for the radios by the end of fiscal year 1999; (2) under the direction of the Board for International Broadcasting (BIB), RFE/RL expected to realize savings through merging resources, eliminating duplicative broadcasts, reducing staff, and decreasing its salary and compensation package; (3) in August 1994, BIB estimated that downsizing and relocation would cost more than $200 million and that RFE/RL would have to use some of its operating funds for those costs; (4) congressional budget cuts and lower than anticipated revenue and currency gains have contributed to the RFE/RL funding shortfall; (5) RFE/RL has not met its ambitious timeframe for construction and relocation, which could cause such costs to rise; (6) RFE/RL may face problems in obtaining the experienced talented staff it wants to move to Prague; and (7) in light of changing world conditions, RFE/RL is redefining its mission beyond simply supplying the news to assisting indigenous radio stations and preparing for the eventual termination of U.S. government support by becoming involved in new services and activities.