Media Meet to Agree Ground-Breaking Code for Reporting Elections in Pakistan

Media Meet to Agree Ground-Breaking Code for Reporting Elections in Pakistan

The challenge of objectivity, impartiality and balance in media is faced daily by Pakistan journalists, but there is no test of professionalism greater than that posed by a political election, states the Pakistan Coalition for Ethical Journalism, which today launched a historic code of ethics for the media in reporting the forthcoming elections.

The code was discussed at a meeting of senior media leaders in Karachi today and further meetings will be held in Lahore (November 21) and Islamabad (November 22).

The Pakistan Coalition plans to ask the Election Commission of Pakistan and the country’s major political parties to note the code and to respect the rights of journalists and media to report fairly and without any interference during the upcoming period.

"It is very important that the media realizes both its rights and its responsibilities," said Kamal Siddiqi, Editor of Express-Tribune and a member of the Pakistan Coalition for Ethical Journalism "In Pakistan being a journalist during election time makes you very vulnerable. You are pressurized from different sides. This code of conduct or a checklist of do's and don'ts keep things in perspective and helps us report the truth and report on issues that matter."

This view was strongly supported by Aidan White, Director of the Global Ethical Journalism Network, which has been working closely with the Pakistan Coalition.

"Election coverage is the biggest test of ethical journalism," he said. "Pakistan media are aiming to set standards that will ensure upcoming elections are properly reported, free of corruption and that all voices from all sections of society are heard. It is a bold initiative which should be supported on all sides."

The Coalition urges media to observe guidelines, which includes issues such as banning rumour & unsubstantiated allegations, not inciting hatred or sectarianism, banning inflammatory language, promoting tolerance and ensuring all parties and candidates are given fair & equal coverage.

Azhar Abbas, CEO of GEO TV, and also a leading member of the Coalition added his support, “Ethics are important because the media, especially the electronic media, is still in its infancy,” he said.

“There are lots that the industry still needs to learn. We have taken great strides in many areas, such as fighting for our rights, freedom of speech and democracy. But now we need to look from the inside.  It’s time to have a clear set of ethics and a code of conduct so that the media can be judged and held accountable. This is never more important than during an election.

“For us, it is clear that public interest is the number one priority over ratings. Elections are after all, about the public. If we lose ratings during the election then so be it. Public interest must, and will, come first.”

Shafqat Abbasi, Press Council of Pakistan, also voiced his support for the initiative.  “In regional media there is no concept of ethical journalism.  Journalists often become the spokesman of political parties and candidates,“ he said. “We must strike out the culture of paid news where local officials can use their power and influence to affect what is written.  In some areas journalists face threats and harassment if they don’t write the stories that they are told to. A strong code of conduct will help to protect journalists. Proper training of journalists is also essential.”

Code of Conduct for Pakistan Media and Elections

1.   The aim of journalism on all media platforms is to provide coverage that is fair, unbiased and ethical.

2.   This is particularly important in reporting of political affairs and the news, commentary and information services provided for citizens and voters at times of elections.

3.   Media and ethical journalists in Pakistan strive at all times to

a)    avoid discrimination against any political party, political leader or candidate

b)   provide information that will assist citizens to better understand the issues, policies and perspectives of all democratic participants in the election process

c)    ensure all communities are made fully aware of the election process and how they can freely exercise their right to vote

4.   Media recognise that it is not always possible to cover all candidates in an election, but they shall strive to ensure that all candidates representing democratic values and a credible and significant body of opinion shall be subject to journalistic scrutiny and appropriate media coverage.

In this regard media shall apply principles of fairness in the allocation of time and space in provision of coverage to political parties and candidates while recognising that balance and fairness are achieved over a reasonable period of time.

In line with their responsibility to be inclusive and independent, media will canvass the voices and opinions of all sections of society and all democratic groups in their coverage of political affairs and elections.

In doing so, media shall scrupulously observe the distinction between advertising and editorial and shall not allow forms of advertising or unpaid political promotion to be disguised as editorial content. Paid political broadcasts must always be identified as such.

5.   Media shall encourage journalism of the highest ethical standards in their election coverage and shall, in particular,

a)    Ban all forms of intolerance and expression that can be interpreted as incitement to violence or hatred,

b)   Avoid all forms of rumour, speculation and disinformation, particularly when these concern specific political parties or candidates,

c)    Forbid the publication of unsubstantiated allegations or personal remarks or opinions that are designed to be offensive and malicious and verify information regarding individuals or parties which is critical or negative before it is telecast, broadcast or published,

6.   Media respect the values of tolerance and respect in Pakistan society and are committed to excluding all forms of intemperate and abusive opinion that has the effect of promoting public disorder or intolerance.

7.   This pledge to avoid inflammatory expression shall apply to coverage of political activities at all levels including when it applies to the reporting of statements or remarks by political leaders or candidates.

8.   Media recognise that the power of elections rests with the people of Pakistan and the voters. They will exercise caution in the use of opinion polls and agree to work together to ensure that announcement of results is managed in an equitable and transparent manner ensuring that all media are able to report accurately the results as they emerge from the ECP and the election control room.

9.   All media shall ensure that they and their staff are fully prepared for the task of election coverage and agree to follow the common principles for preparation and organisation of election coverage.

10.                All media shall provide staff with guidance and advice on safety and security issues and provide journalists with appropriate support including insurance.

11.                Candidates in Pakistan elections shall not act as news anchors, interviewers or presenters of any type of programme during the election period. 

12.                When a candidate takes part in an item about his or her particular election, then candidates of each of the major parties shall be offered the opportunity to take part. However, if they refuse or are unable to participate, the item may nevertheless go ahead.

13.                Broadcasters must offer the opportunity to major candidates to take part in discussions covering a particular electoral area. This also applies to independent candidates. However, if a candidate refuses or is unable to participate, the item may nevertheless go ahead.

14.                All media shall give the audience regular information about appropriate websites or other information source listing all candidates taking part in the elections.

15.                Pakistan media agree to establish an election media monitoring group comprised of respected, non-partisan figures to protect the press from aggression and to investigate any incidents.

a)    The group will follow the coverage of the election and register all incidents of threats or intimidation or other improper violation of their right to report freely.  It shall receive and consider relevant information from media monitoring groups including the Press Council of Pakistan and PEMRA.

b)   It shall further be committed to protect the interests of media and should work under the umbrella of the Pakistan Broadcasters Association, the Pakistan Federal Union of Journalists, the Pakistan Newspaper Society and the Council of Pakistan Newspaper Editors.

c)    This group shall deal with all complaints and issues arising from media coverage of the elections and shall strive to ensure professional respect for the principles and values set out in this code.

d)   The group shall ensure that media act together to protect each other from acts of violence or political intimidation and that fair and transparent systems are used for the allocation of state and political advertising related to the elections.

16.     Pakistan media agree to submit this code and its commitments to the election commission and to all political parties, who are asked to recognise and support the self-regulating commitment of media, and to respect journalists and their right to report freely.

Promoting entrepreneurial growth in Pakistan

Promoting entrepreneurial growth in Pakistan

Entrepreneurs seek Government support for creating an enabling environment fostering entrepreneurial culture.

Celebrating the Global Entrepreneurship Week, twenty prominent Pakistani entrepreneurs, government officials and academic leaders gathered at a round-table meeting on ‘Creating an Enabling Environment for Entrepreneurship to Grow’ in Islamabad today. Panellists explored ways to promote entrepreneurial growth in Pakistan, emphasizing that entrepreneurs have the potential to create solutions that can transform Pakistan and generate new jobs for millions of young graduates entering the workforce.

The event culminates ‘Global Entrepreneurship Week’ and follows six days of workshops for emerging Pakistani entrepreneurs on how to start and grow a successful business.  The workshops were facilitated by the U.S. Embassy in Islamabad and held at Abasyn University from November 10 to 15.

After avoiding the collapse of the global financial and economic system, governments around the world are now focused on building a foundation for future growth. In addition to safeguarding the economic recovery, the world is facing a number of transformative challenges, such as an increasing scarcity of natural resources, significant demographic shifts, and the environmental and social implications of climate change.

In dealing with these challenges, governments have taken an increasingly strong interest in entrepreneurship. Speaking on the occasion, Amir Jahangir, Young Global Leader of the World Economic Forum and CEO Mishal Pakistan, said “Entrepreneurs are recognized as important drivers of economic and social progress, and rapidly growing entrepreneurial enterprises are viewed as important sources of innovation, employment and productivity growth”. Some of the most influential enterprises of our time began relatively recently as small entrepreneurial ventures, he further added.

The participants emphasized the need for the capacity building of the media on creating Entrepreneurship as a new beat in Pakistan. They emphasized the importance of a media fund, which can encourage young entrepreneurs and journalists to create more relevant content on entrepreneurship. The initiative would also be able to create a new breed of mediapreneurs and journalists to understand and report on the opportunities and challenges of being an entrepreneur in Pakistan.

Speaking about ‘Global Entrepreneurship Week,’ Muhammad Farrukh Mahmood, co-founder of Moftak Solutions, said, “We are thankful to the U.S. Embassy for giving us the opportunity to hear from Pakistan’s leading entrepreneurs about the challenges they face in starting and running a business.  The workshops this week helped to bridge the gap between industry and academia, and inspired youth to become entrepreneurs to contribute to the growth of this country."

Many recent public discussions have addressed the challenges that entrepreneurs face in Pakistan. The roundtable moved the discussion to the next level by developing a concrete set of recommendations to the Government of Pakistan on how to overcome the challenges and improve the business environment in Pakistan.

Panellists focused their discussions on the pivotal role of Pakistan’s private sector in spurring job creation.  Were an entrepreneurship ecosystem to take root, panellists said, Pakistan’s economic growth could accelerate.

Many governments are therefore trying to actively promote entrepreneurship through various forms of support. The World Economic Forum has been actively engaging early-stage and later-stage high-growth companies for many years through its Technology Pioneers programme and its community of Global Growth Companies.

Creating Enabling Environment for Entrepreneurship to Grow in Pakistan - Key Recommendations for action:

• Triple helix” entrepreneurial ecosystem components: industry, academia and government);
• Changing policies, laws and regulations to make it easy for startups;
• Improving access to finance—equity, debt and venture capital—and use of movable assets as collateral;
• Removing instruments of rent-seeking , which dwindle resources available for entrepreneurs;
• Building growth cities – urban development in line with the new growth strategy;
• Developing and managing brand, guarantees, warrantees/returns;
• Embedding entrepreneurship in education and business incubations;
• Releasing the energy of the domestic sector;
• Developing Science and Technology policy and its implementation;
• Engendering entrepreneurship;
• Role of intellectual property rights (IPR), including protection of trademarks, websites, copyrights and patents;

Pakistan faces tough challenges on developing its financial markets

Pakistan faces tough challenges on developing its financial markets

Pakistan ranks at 58 out of 62 economies in the Financial Development Index of 2012, losing 3 points from its position of 55 in 2011. The Financial Development Report 2012 depicts commercial and retail access to finance shrinking in Pakistan.

Financial systems across the world are stagnating, leading to challenges for a global economic recovery, according to the fifth edition of the World Economic Forum’s Financial Development Report 2012 released today.

“The Financial Development Report shows that financial systems in advanced and emerging economies are stalling”, said Giancarlo Bruno, Senior Director at the World Economic Forum. “Macroeconomic uncertainty, as well as concerns related to regulation, contributes to inhibiting the financial industry from funding much-needed growth.”

Amir Jahangir, Chief Executive Officer - Mishal Pakistan, a country partner institute of the Center for Global Competitiveness and Performance, World Economic Forum said that “the Financial Development Report 2012 ranks 62 of the world’s leading financial systems and capital markets, analysing the drivers of financial system development in advanced and emerging economies to serve as a tool for countries to benchmark themselves and establish priorities for reform”. The rankings are based on more than 120 variables spanning institutional and business environments, financial stability, and size and depth of capital markets, among other factors, he added.

Top 10 performers on the Financial Development Index 2012 

Pakistan continues to show stability on the Financial Development Index of the World Economic Forum on the indicators; cost of closing a business, where the rank of 5 was maintained, also showing stability in frequency of banking crises and output loss during banking crises, Pakistan again secured the top rank of 1 among 62 economies; similarly on the public ownership of banks, which is a percentage of assets held by the 10 largest banks that is located in banks that are more than 25 percent government owned, Pakistan again secured the top rank of 1.

The Report also shows an improvement in the total number of active borrowers from microfinance institutions per 1,000 adults, where Pakistan has improved its position of 12 in 2011 to 9^th in 2012. 

Pakistan has shown slight improvements on the strength of auditing and reporting standards, where it is ranked 48 in 2012 as compared to 52 in 2011.

On the pillar of legal and regulatory issues Pakistan has shown significant gains, by improving the burden of government regulations, securing 21 rank as compared to 32 last year. The regulation of securities exchanges has also improved 5 points with a rank of 37 out of 62 economies globally.

The current account balance to GDP, a variable, which is the three-year average of current account balance to GDP, indicates the difficulty Pakistan had in mobilizing the foreign exchange necessary for debt service (from 2009 to 2011) has also improved from 53 last year to 40 in the current year.

The economy has also shown improvements in the “aggregate profitability indicator”, which is based on a three-year average of three measures of profitability: net interest margin, bank return on assets, and bank return on equity, this was measured on an average from 2008 to 2010, Pakistan improved 8 points on this, securing 41 rank on the Financial Development Index 2012.

Other area where Pakistan showed improvement of 14 ranks was the real growth of direct insurance premiums, where Pakistan stands at 30^th rank.

However Pakistan showed discouraging performance on various key indicators, where it lost it development advantage on multiple factors, whereas; intellectual property protection (53) and effectiveness of law-making bodies (47) as compared to 48 and 43 from last year.

The distortive effect of taxes and subsidies on competition, which is to what extent does government subsidies and tax breaks distort competition, Pakistan lost its rank from 46 in 2011 to 53 in 2012.

In terms of internet users, Pakistan has seen a decline in its internet penetration, where it lost its position of 54 to 61 as compared to 2011 and 2012 respectively.

On the external vulnerability indicator, which is the sum of several measures of external exposure as a percentage of foreign exchange reserves, Pakistan has lost an alarming 14 points and it stands at 20 in 2012. However Pakistan still maintains a development advantage in this area.

Whereas the world has shown improvements in the banking system, such as Tier 1 capital ratios and non-performing loans to total loans, Pakistan has declined in these two indicators, securing 26 and 57 out of 62 economies in 2012.

The decline in deposit money bank assets to GDP (52); the private credit to GDP which is a variable showing private credit by deposit-money banks and other financial institutions as a percentage of GDP also declined from 48 in 2011 to 56 in 2012.

The Financial Development Report (FDR) shows an alarming increase in banks overhead costs, which is the bank overhead costs as a percentage of total assets has increased from the rank of 22 in 2011 to 45 in 2012, impacting a probable profitability of the banks in the coming years.

On the equity market development pillar Pakistan has shown discouraging performance, where stock market capitalization to GDP has slipped from 43 to 50, stock market value traded to GDP from 33 to 43 and Pakistan’s rank on number of listed companies per 10,000 people has dropped from 36 to 43.

The worst news for Pakistan on the FDR is the commercial and retail access finance, where ease of access to credit has been deteriorated to 43 from 30 last year; similarly ease of access to loan has also become difficult, where the Report has ranked it 40 this year as compared to 28 in 2011.   

The market penetration of bank accounts, which is the number of commercial bank accounts per 100,000 adults has also declined 19 points in 2012, where Pakistan stands at 59 now, simultaneously debit card penetration has also lost development advantage from a rank of 37 in 2011 to 59 in 2012, showing staleness on part of the growth in the banking system in Pakistan.

On the global front, the Report shows that liquidity appears to be stabilizing in a number of top economies, as highlighted by the fact that turnover velocity rebounded in 2011, moving closer to 2006 levels. However, such gains are offset by considerably weaker domestic market capitalization levels across the world’s stock exchanges.

Topping the Index, Hong Kong SAR came in 1st for a second consecutive year as a result of benefits from a large and efficient banking system, well-developed infrastructure and robust equity markets. Despite these strengths, Hong Kong has a relatively underdeveloped bond market and its financial sector has yet to be fully liberalized.

The United States and the United Kingdom also remain in the same positions as last year, 2nd and 3rd, respectively. Both countries have highly developed financial markets, particularly their foreign exchange and derivatives markets, but they struggle with relatively inefficient banking systems. Banking system stability and currency stability are also areas of weakness. The US, however, has more developed equity and bond markets, while the United Kingdom has stronger corporate governance and legal and regulatory mechanisms. Japan and Switzerland each moved up one spot to 7th and 8th space overall. Both countries have improved the size and efficiency of their banking and financial services and have shown improvements in their legal and regulatory framework.

Mishal Pakistan is the country partner institute of the Center for Global Competitiveness and Performance, World Economic Forum. The World Economic Forum is an independent international organization committed to improving the state of the world by engaging business, political, academic and other leaders in partnerships to shape global, regional and industry agendas.

The Financial Development Report 2012

CONTACT: Peacebuilding Training and Education for SAARC Emerging Leaders

Peacebuilding Training and Education for SAARC Emerging Leaders

SAARC-South Asian Association for Regional Cooperation

December 5-16, 2012, Kathmandu, Nepal

The Conflict Transformation across Cultures CONTACT Programs, is currently accepting applications for the fourth peacebuilding course in Kathmandu. CONTACT has offered world-class training programs in the US for 16 years, and has led 5 programs in Africa.

Selection Criteria: participants will be selected by application, based on their work experience, educational background, English skills, and references. For schedule, location and fees please visit the program website: http://www.sit.edu/graduate/18382.htm

CONTACT is a short-term, concentrated, and intense educational immersion program for rising leaders from around the world who are engaged in responding to conflict, promoting social change, and building sustainable peace. CONTACT offers professional development programs and a graduate certificate program in conflict transformation, leading to a Master’s Degree at the SIT Graduate Institute. With more than 1000 graduates spanning the globe, CONTACT is of proven effectiveness in educating for peace leadership, conflict-sensitive development, and transformative intercultural exchange.

Application deadline for SAARC CONTACT is October 30, 2012

For application, questions and clarifications, please write to contactprogram@sit.edu

Download the CONTACT South Asia application form (DOC)
and be sure to review the full instructions for applying on the How To Apply to the CONTACT South Asia program page.

PAKISTAN OBSERVES THE SECOND INTERNATIONAL MEDIA ETHICS DAY 2012

PAKISTAN OBSERVES THE SECOND INTERNATIONAL MEDIA ETHICS DAY 2012

Media practitioners around the world built consensus on the need to realize the significance of globalization, understand socio-political, cultural and religious values, which strengthens the fundamental rights of individuals and societies.

2nd International Media Ethics Day 2012
(L to R) Puruesh Chaudhary, Amjad Hussain,
Shafqat Abbasi, Dr. Anjum Zia and Amir Jahangir

Mishal Pakistan in collaboration with the Center for International Media Ethics (CIME) and the Center for Media Research and Development celebrate the second International Media Ethics Day in Pakistan at the Royal Palm Country Club, Lahore.

CIME Ambassador, PurueshChaudhary in her opening remarks said “the media industry, think tanks, academia, civil society organizations, public and private need to realize the significance of globalization, understand the social, cultural, political and religious values, which strengthens the fundamental rights of individuals and societies”.

Joining the debate on ethical dilemmas and the future of journalism were Adrian Monck, Director Communications at the World Economic Forum, Kirsten Mogensen, Assistant Professor Roskilde University, Amjad Hussain Honorary Executive Director and Founder, Center for Media Research and Development, Shafqat Abbasi, Chairman Press Council of Pakistan, Amir Jahangir, CEO Mishal Pakistan, Dr. Anjum Zia, Chairperson Mass Communication Department Lahore College Women University.

The aim of the Media Ethics Day is to mobilize the journalism community and provide journalists around the world with an opportunity to discuss the challenges faced on the media ethics issues, examine case studies, and participate in role-plays and debates related to the various ethical dilemmas they might expect to face on the job.

From the World Economic Forum, Adrian Monck said the future of journalism is digital and data. The hope for journalism is being more data focused and a more digital savvy group of people who still want to bring interesting information to the public domain, who have skills and the tools to successfully share knowledge”. I hope that the journalism education can be that bridge, he further added.

In 2011, there were more than 300 participants in 11 countries, this year the event has doubled in size, with 23 locations globally. Amjad Hussain, Honorary Executive Director and Founder, Center for Media Research and Development, said there is a need to create more industry-academia linkages, which can foster collaborations to enable a knowledge-based society.

Amir Jahangir, CEO Mishal Pakistan, on the occasion said the Pakistani information ecosystem needs to develop a mechanism, which can distinguish between good and bad journalism. Only then the society can appreciate the quality of ethical journalism in the country. A media credibility barometer or index can ensure in raising the bar of journalism standards in the country.

Participants of the 2nd International Media Ethics Day 2012, Lahore - Pakistan

The CIME Forum also organizes an annual event that brings together media professionals for training, panels and discussion in ethical practices. The Forum is held each year in a different region in the world, in order to reach a wider community of journalists and connect ethical issues of local relevance with those of the broader international media community.

The interactive event was attended by a diverse segment of society, consisting of professionals from media, academia, think tanks and intellectuals.

The International Media Ethics Day is being celebrated in: Albania (Tirana), Benin (Cotonou), Cameroon (Yaoundé), Ghana (Accra), Germany (Calw /Baden-Württemberg), Hungary (Budapest), Ivory Coast (Abidjan), India (Jamshedpur), Myanmar (Mandalay), Nepal (Kathmandu), Nigeria (Lagos), Nigeria (Mkar), Pakistan (Lahore and Islamabad), Peru (Monterrico), Romania (Iasi), Russia (Moscow), Vanuatu, Afghanistan (Herat), Nigeria (Abuja); Palestine (Birzeit); Uganda (Mbarara); Argentina (Buenos Aires)

The Center for International Media Ethics - CIME, a non-profit organization with staff members operating across several continents teamed up with Mishal Pakistan, a social enterprise, specializing in media and communication for policy design in a bid to bring together a network of journalists and students in Pakistan to provide training, discussion and expertise in the ethics of their profession.

CIME and Mishal Pakistan, along with several other stakeholders intend to promote respect for truth, accuracy and privacy by engaging relevant stakeholders to create dialogue on ethical practices through training programmes on quality reporting that results in educating the public. The two organizations would drive the emphasis that journalists together have the power to formulate a tacit code of ethics as a status quo of their profession, which is evolved and observed, mutually by the community, the regulatory authority and relevant stakeholders.

Pakistan Loses its Competitiveness on the World Economic Forum’s Global Competitiveness Index 2012-2013

Pakistan Loses its Competitiveness on the World Economic Forum’s Global Competitiveness Index 2012-2013

Falls 6 points on the Global Competitiveness Ranking, 124 among 144 economies

Pakistan has been ranked among bottom 20 of the 144 economies around the world in The Global Competitiveness Report 2012-2013, released today by the World Economic Forum.

According to the Global Competitiveness Report (GCR) 2012-13, Pakistan lacks a long-term view of competitiveness. The level of corruption and poor governance are some of the factors slowing down Pakistan’s economic growth, therefore ranking Pakistan at 124 among 144 other countries on the index. The World Economic Forum ranks countries on more than 100 economic indicators comparing 144 countries.

Klaus Schwab,
Founder and Executive Chairman,
World Economic Forum 

“Persisting divides in competitiveness across regions and within regions, particularly in Europe, are at the origin of the turbulence we are experiencing today, and this is jeopardizing our future prosperity.” said Klaus Schwab, Founder and Executive Chairman, World Economic Forum. “We urge governments to act decisively by adopting long-term measures to enhance competitiveness and return the world to a sustainable growth path.”

Pakistan’s secured ranking on 12 pillars: institutions (115), infrastructure (116), macroeconomic environment (139), Health and Primary Education (117) Higher Education and Training (124), Goods Market Efficiency (97), Labor Market Efficiency (130) Financial Market Development (73), Technological Readiness (118), Market Size (30), Business Sophistication (78) and Innovation (77).

Amir Jahangir
Chief Executive Officer
Mishal Pakistan,
Young Global Leader,
World Economic Forum

‘Pakistan has lost its competitive advantage almost on all the pillars of the competitiveness index except for in Health, Primary Education and Labor market Efficiency’ says Amir Jahangir Chief Executive Officer Mishal Pakistan, countrypartner for the Center of Global Competitiveness and Performance at the World Economic Forum. Further adding, although Pakistan showed good performance on the innovation and sophistication pillars, but on the factors for basic requirements and efficiency enhancer pillars Pakistan continues to show poor performance.

The Pakistani business community has identified Corruption as the most problematic factor for doing business in the country. The report indicates that Pakistan has failed to come up with effective regulations on intellectual property protection, where the country lost its position of 93 to 108 from 2011 to 2012 respectively. Poor governance in terms of favoritism in decision-making (129) and wastefulness of government spending (96) have also shown significant decline in rankings. The Efficiency of Legal Framework in Challenging Regulations has also impacted the competiveness of Pakistan’s economy as it has declined from 79 in 2011 to 97 in 2012.

The law and order situation has been a serious threat to the economic activities, with war on terror and other target killing issues impacting throughout the year, the Reliability of Police Service has gone to 127 in the current year as compared to 116 in the last year. 

On the Macroeconomic Pillar the government’s performance has been weak with the budget balance ranking (% of GDP) deteriorating from 108 to 125 from 2011 to 2012 respectively. The general government debt has also seen poor performance as it has lost 11 points from last year, by being ranked at 107 in the current year.

Although Pakistan ranked 41 in 2011 on the Tax Collection Efficiency index, however the economy has lost its competitive advantage due to decline in 2012 by ranking to 59, limitations on the ease of access to loans and venture capital availability, where Pakistan stands at 65 and 55 respectively.

The labor market efficiency pillar shows a decline in the cooperation between labor and employer relations whereas the rank has slipped from 80 to 90. The GCR also identifies that the businesses in Pakistan are shying away from reliance on professional management as the ranking has decreased from 88 to 101.

  

Although Pakistan has seen some improvement on the broadband usage, but the individual internet usage has declined, ranking the country at 120 in 2012 from 98 in 2011. The government’s procurement of advanced tech products has not been a priority where it showed deterioration from 91 to 109 this year as compared to last year.

The state of cluster development has also been neglected and reflects in the report where the rank has plunged from 48 to 62. The commercialization of research has not been a priority in Pakistan, where the industry university collaboration has also seen negative fall from 69 to 81.

Nonetheless, Pakistan has also shown some positive indicators on improving its competitiveness, where the burden of government regulation has improved from 76 in 2011 to 62 this year, similarly the transparency of government policy making has also been improved from ranking of 119 to 109. The country credit rating index has also improved from 123 this year to 116 compared to last year.

The economy has shown flexibility in the hiring and firing practices where it has improved the rank from 33 last year to 21 this year. The pay and productivity index has also shown gains where Pakistan has improved 13 points and ranks at 73.

The report has shown significant improvements on the performance of the Securities and Exchange Commission, where Pakistan has shown improvements on the regulations of securities exchanges by being ranked 55 as compared to 70 last year.

Switzerland, for the fourth consecutive year, tops the overall rankings in The Global Competitiveness Report 2012-2013 Singapore remains in second position and Finland in third position, overtaking Sweden (4th). These and other Northern and Western European countries dominate the top 10 with the Netherlands (5th), Germany (6th) and United Kingdom (8th). The United States (7th), Hong Kong (9th) and Japan (10th) complete the ranking of the top 10 most competitive economies.

Xavier Sala-i-Martin, 
Professor of Economics,
Columbia University, USA 

Xavier Sala-i-Martin, Professor of Economics, Columbia University, USA, said: “The Global Competitiveness Index provides a window on the long-term trends that are shaping the competitiveness of the world’s economies. In this light, we believe it offers useful insight into the key areas where countries must act if they are to optimize the productivity that will determine their economic future.”

The report indicates that Switzerland and countries in Northern Europe have been consolidating their strong competitiveness positions since the financial and economic downturn in 2008. On the other hand, countries in Southern Europe, i.e. Portugal (49th), Spain (36th), Italy (42nd) and particularly Greece (96th) continue to suffer from competitiveness weaknesses in terms of macroeconomic imbalances, poor access to financing, rigid labour markets and an innovation deficit.

Despite growing its overall competitiveness score, the United States continues its decline for the fourth year in a row, falling two more places to seventh position. In addition to the burgeoning macroeconomic vulnerabilities, some aspects of the country’s institutional environment continue to raise concern among business leaders, particularly the low public trust in politicians and a perceived lack of government efficiency. On a more positive note, the US still remains a global innovation powerhouse and its markets work efficiently.

The large emerging market economies (BRICS) displayed different performances. Despite a slight decline in the rankings of three places, the People’s Republic of China (29th) continues to lead the group. Of the others, only Brazil (48th) moves up this year, with South Africa (52nd), India (59th) and Russia (67th) experiencing small declines in rankings.

In the Middle East and North Africa, Qatar (11th) leads the region while Saudi Arabia remains among the top 20 (18th). The United Arab Emirates (24th) improves its performance while Kuwait (37th) slightly declines. Morocco (70th) and Jordan (63rd) improve slightly. In sub-Saharan Africa, South Africa (52nd) and Mauritius (54th) feature in the top half of the rankings. However, most countries in the region continue to require efforts across the board to improve their competitiveness.

The Global Competitiveness Report’s competitiveness ranking is based on the Global Competitiveness Index (GCI), which was first developed for the World Economic Forum by Sala-i-Martin, a co-author of this year’s report, in 2004. Defining competitiveness as the set of institutions, policies and factors that determine the level of productivity of a country, GCI scores are calculated by drawing together public and private data around 12 key categories – the pillars of competitiveness – that together make up a comprehensive picture of a country’s competitiveness.

Mishal Pakistan is the country partner Institute of the Center for Global Competitiveness and Performance at the World Economic Forum. World Economic Forum is an independent international organization committed to improving the state of the world by engaging leaders in partnerships to shape global, regional and industry agendas.

Read the Global Competitiveness Report 2012-2013 at http://www.weforum.org/issues/global-competitiveness