The reason of choosing this particular topic is to establish the idea that how a country's internal and external imbalances can be affected by its economy and how a country can face the potential threats while the nation is economically either strong or weak.
Why am I choosing this topic?
In terms of choosing this particular topic I have personally taken keen interest in the economy of Pakistan along with its political history and have observed a clear change with e involvement of media in the country's politics, international affairs and economy with in last 2 decades.
Historically Pakistan has been an agricultural state with 80% of the country's population living in rural areas making the agricultural industry as the main source of employment and GDP.But in recent decades a sharp rise in the media industry has turned the direction of economy where even though most of the population still resides in the rural areas, the power of media has increased the influence on its over all economy.
As per influence of media is concerned surprisingly it can create a two way influence on a country's economy. There are observations and facts which have proved that in times of financial or economic crisis a media can play a role of either a life saver or even a fan over the burning flames of the economy. The character of media in particular has motivated me to see and research the actual impact of media in Pakistan's economy as it has been a controversial industry even though its growth seems to be a non stopping phenomena.
The idea of researching into this topic is to establish a fact where we can put media into one category or may be not. As in past 2 decades we have send its huge impact on country's politics and other affairs, I have noticed that it has effected the country in general more then ever before. Its effects on country's politics are massive and I would like to find out whether these effects actually have been positive or rather have damaged the country's image internationally where we have seen international media projecting the country as a state which is on its brink to collapse and is struggling to counteract the rising extremism inside the country.National Media
The economy of Pakistan has been a swinging phenomenon since its foundation. Though media has always been a major part of the country's political and international affairs but because the country was not sufficient in electronic media, the progression of economy was always slow. One of the reason of that was the media was always controlled by state and was never used properly as to raise the country's economy. It was only in last 10 years when we see a energizing boom in privatization of the media in Pakistan which has evidently proved its impact on every industry related to finance.Positive impacts
Independent figures and statistics have shown the effects of this revolution in terms of new jobs market, investment, bringing multinational businesses into the country and of course keeping the ordinary people up to date about the world which has hugely influenced and changed the life style and social attitude of people which not only has resulted in spending but also building business relationships across the world.
One of the examples how media has brought in investment is the introduction of multinational food chains into the country. Before the establishment of private media into the country there was literally no concept of food chains like PIZZA HUT, McDonalds or KFC.But as we have observed with in last 15-20 years , as the TV has promoted this life style of fast food now we can see a huge investment of these chains in the country.Accorduing to Wikipedia , only PIZZA HUT in Pakistan generated a revenue of 2 Billion dollars in 2009.
Pizza Hut in Karachi is the biggest of their international with 5000 seating. To cover this requirement there are 100s of job placement made and to sponsor the company all sources of media including newspaper, radio, internet and TV had been used which all created jobs, generated huge revenue, brought in investment because the company put money into the country to buy premises, giving TAX to government and giving out employment.
This is just one example where we can see with the figures that how economy has been influenced by media in this country.
Apart from multinational companies we have seen similar effects from national industries. Because of the media people now have a huge variety of products to choose. Take an example of any product like Tea. There is a clear competition of same products from 10s of different companies all competing over the media to promote their products as the best. This competition again has given a gear up pump to the employment and more revenue.
I have compared the revenue generated before 1980 and after 1990 solely from media and the figures are surprisingly different giving a clear clue that the economy now is dependent of media more then before when the main source was agriculture or cottage industry.
It is the media which has made us fond of sports as a result of which we have more and more sponsors over the media strengthening the economy.
Media in general is not only providing investment in particular to this industry only but also every single industry attached to it. It can be transport industry , agricultural industry, even health and education have felt the impact and are now on a race being a part of advertising or broadcasting media.
I would like to research and evaluate all these sectors mentioned above to show how the financial sector is now bound with media.Negative Impacts
If on one side the national media has been supportive to the economy we have to observe and accept the reality that its also damaging the country's economy as well. As there is a rivalry among media which is mostly because of different media groups supporting or against a particular political or religious party , this media war inside the country has led to some damaging effects on the country's economy. Taking into account we can present the example of media groups who are promoting a sense in general public that the country is in a state of collapse with very shaky government and giving our messages that the current situation is very unpredictable in terms of financial stability.
When general public is watching these programmes which includes political debates focusing on argument for the sake of argument, public is in a state of panic and though media itself is making money and bringing investment from businesses but unfortunately it has actually panicked the ordinary businessmen who are now afraid and scared of investing their money into the country.
We have seen a great efflux of people immigrating outside to countries like Dubai and West where they believe their investment will be safer. These countries have clearly seen the investment coming into these countries from outside and they are trying their best to keep these investments into their countries and for that they offer very handsome proposals which are lacking in Pakistan.
These people still make their money from with in the country but are investing them abroad as they are not satisfied with what they are every day over the radio, newspapers or TV.
Although media itself is a huge category which of course requires division of all of it's components in terms of references I have decided to categorize the media into two major components which areBroadcasting media
Print mediaBroadcasting media
I will be focusing mainly on TV which includes a wise range of programmes over TV including commercial advertising. Political or social debates and entertainment industry.Commercial advertising
Mainly thought to be positive for the economy as most likely bring in revenue by sponsors from the manufacturers and companies. As far as I have thought I will be debating on the positive and negative impacts of even commercial advertising which has of course inspired me to choose the proposal title.
Of course more sponsors do the job of urging people spending their money to buy the products advertised on TV which of course clearly shows the outcome as far as revenue generation is concerned. But on the other hand we have seen in past decades how the local and national manufacturing industry has been badly effected by sponsoring more and more imported products which are assembled and manufactured outside the country but marketed in the country with a sense of message that imported products are mire reliable and more worthy buying even though the country do have similar products and has the potential to manufacture them with in the country. But as the Market gas been highly influence by sponsors where media has changed people's minds about their own country products and as they are not considered as reliable so the sale is apparently reduced directly affecting the while chain of that particular product industry from the raw material Market to the manufacturing causing to lose jobs and putting more Burden on government where they are at a loss of a potential source of tax as well as a revenue generator.
I will be mentioning few of such products which have the potential of being produced with in the country but still are being imported and costing mire money to people and obvious loss of government.
We have examples ranging from food products to home appliances and have evidence that how many cottage industries and established companies have felt the effects and have lost their businesses.
Before the so revolution of this broadcasting media we were not very much into the idea of using and buying imported products but we now have decisive figures supporting my argument which I will further mention and thoroughly explain as part of my dissertation.
There is another real issue of encouraging talented and potentially best of the country people to leave the country. Although this sounds not of the strong arguments but in fact we have seen a rise in emigration where people are wiling to leave the country as they are very much influenced by the life and society of the world projected on media which is not always showing the true picture.
Like wise the country is losing best of their from the areas of folded like finance medicine and education raving country to find that standard which the media projects. Country is at HHS brink of economic crises and is short of people who are serving and helping other country economy which is of course a clear impact on economy. Again I will be using data and figures to show what has been the rate of immigration since the revolution of media and will compare the potential impact on economy because of this.International Media
International media has most probably played a key role in damaging the country's economy with in last 2 decades where it is seen that this country has been named in media in relation to a place where there is all danger for any other country and unfortunately the impression passed over to the world has not been positive. International media has projected this country as a failed state, a dropping down economically not viable place for investment.Indirect effects
Pakistan's political instability has led to international media talk more about the country globally with references of of the circumstances and causes of this instability. I have observed that not only broadcasting media but all medias have some how agreed that that the country's political situation is unstable and the main reason is the corruption with in the country.. This message although do have grounds to be sent aloud but in general this is the only message some international media are sending out to the world. Now indirectly any potential investor would be cautious and may not investigate itself but to believe the media. In terms of potential investment the country is at a clear loss.
My research will also include to analyze the facts and the stories broadcasted by international media and find out how realistic and appropriate these stories ae and to what extend they have caused damage.Direct Effects
Pakistan's economy is badly hit by international media. The potential industries of Tourism, manufacturing and exports all have been highly affected by international media.
One of the examples is the sports industry. Pakistan has been famous for producing the world's finest sports equipment for football. With in last 10 years this industry has come to its feet as because of the huge competing emerging from with in broadcasting media giving impression that this industry was abusing children in terms of child labour.Since this campaign the industry has lost huge revenues and the exports are now very low as compared to before..
Country has experienced the big fall in employment, exports, and revenues because of this one sector. There are other examples which I would like to work on in detail in my dissertation with the help of figures and statistics and obviously that will include more industries under impact.
Because of this two way impact from one industry, this has in fact become a very interesting topic to work on trying to find out exactly where the country itself stands in between international and national media. The main purpose of choosing this title
As a student of Finance I would like to highlight the key factors which can shape a country's economic and political stability. Pakistan's economy in particular has been my key interest because of certain reasons including the fact that I was born there and have seen the biggest economic instability swings in last 30 years and the obvious relationship of this situation with the media and politics. In my observation politics in Pakistan itself has been influenced a lot by the existence of media especially with in last 2 decades where we have seen a massive rise in private media industry talking and taking stand against the old fashioned state run media and have given out the message globally that this country has the potential where international organizations can invest in in this country with a sense of freedom of speech and a free to use media for their financial campaigns with out getting influenced by the government.
This in fact is a great success of media which has clearly shown the changes in general ranging from more investment to a clear and reliable media which can of course point out any significant change in time and making it possible to use media as a generator of revenue giving out jobs and keeping the country in a race with its neighboring countries as well as globally.Required sources to complete the research
In order to present all these highlights mentioned above,in detail I will be using people in general as my main source of information which will include interviews with key figures who are involved in Pakistan's media industry as well as individuals from the finance market who have observed the statistics in last 2 decades in terms of rising up and slowing down economy and its interaction with the media in particular.
Other sources which will be used will include Newspapers, electronic media and Internet. I will also be using international media reports about the country's economy compared the national media's reports in same time frame to actually compare and evaluating my main thought whether international media is in any way damaging or constructive to this country's economy or vice versa.Supporting Evidence
Following facts will help to understand the media's emphases on Pakistan Economy
The current media revolution sweeping the nation began ten years ago when Pakistan had just one television channel, according to the UK's Prospect Magazine. Today it has over 100. Together they have begun to open up a country long shrouded by political, moral and religious censorshiptaking on the government, breaking social taboos and, most recently, pushing a new national consensus against the Taliban. The birth of privately owned commercial media has been enabled by the Musharraf-era deregulation, and funded by the tremendous growth in revenue from advertising targeted at the burgeoning urban middle class consumers. With television presence in over 16 million households accounting for 68% of the population in 2009, the electronic media have also helped inform and empower many rural Pakistanis, including women
With an increase of 38% over 2008, the television advertising revenue for 2009 in Pakistan was Rs 16.4 billion ((US $200m), accounting for about half of the total ad market during the year. The TV ad revenue is continuing to rise as a percentage of total ad revenue, mostly at the expense of the print media ads. The biggest spenders in 2009 were the telecom companies with Rs 8 billion, followed closely by fast moving consumer goods (FMCG) sector with Rs. 7 billion, as reported by Pakistan's GeoTV channel
According to Daily Times, Chairman Mushtaq Malik of the Pakistan Electronic Media Regulatory Authority (PEMRA) has said that the cable television sector "is the fast growing segment among the electronic media ventures". In the first 100 days of the current government, he has claimed that new licenses for 16 satellite TV channels, 10 FM radio stations, and 232 cable TV channels have been granted. It is anticipated that this would lead to additional investment worth Rs. 2.5 billion, generating 4000 additional jobs in this sector. The cable television sector alone is employing some 30,000 people in the country.
Foreign media, such as the business channel CNBC Pakistan, have also found a niche with the stellar performance and increased viewer and investor interest in Karachi stock exchange in the last decade. The Gallup Pakistan estimates that the number of TV viewers age 10 and above has increased from 63 million in 2004 to 86 million in 2009. Though exact numbers are hard to find, it is estimated that the rapid growth of Pakistan's media market over the last decade has attracted significant investment in the range of billions of dollars, and produced hundreds of millions of dollars in revenue. There are 150 advertising agencies and 74 production companies. Given the rising power of the media to shape Pakistani society, public opinion and government policy,