The author argues that local news papers should be externally funded (government, NGOs) to keep them in existence. One main argument brought forth is that newspaper uncover scandals, which is for the public good and ultimately saves money by preventing and couteracting corruption.

This seems completly insane. The reason local newspapers are failing is because nobody reads them. People obviously do not care what is written in them to an extent that would keep the paper alive. Funding them will not make people read them.

The idea that state funded journalists should be recruited to uncover corruption and then report about it is unbelievable. The one reason journalists can uncover what the government can not is because they are independent of the goverment. If you want to fight corruption you don't need journalists in between.