You are on page 1of 19

What is media?

The organizations that provide information to public.


Actually media is a source for general public, for
businessmen as well as for politicians to get information
about country or about any situation of any particular place
or about the whole world.

Types of Media

There are two main types of media.


1. Electronic Media ( Television & Radio)
2. Print Media ( Newspaper)

What is Economy?

An economy consists of the economic system of a country


or other area, the labor, capital and land resources, and the
economic agents that socially participate in the production,
exchange, distribution, and consumption of goods and
services of that area.

The Role of Media in the Economy


It can be said that the media has a very important role in
shaping the markets and the economy. The media has the
potential to bring fame to a business, but it also has the
power to bring that business down.
The media is after stories that attract attention. It will not
therefore settle for anything that is even less than mediocre.
Either the story is extremely negative or extremely positive,
you can almost bet on the media to exert all means to get to
the bottom of the story. After all, running such compelling
stories is one way the network the news outlet is involved in
is able to earn money.
For example, when the media reports news of half of the
population of the US believing that the economic situation
will worsen and turn into something like the Great
Depression, such a story is going to have millions of people
glued to their TV sets, and this can mean more money from
ad revenues.
On the other hand, while the mother company is earning a
lot of money from such stories, more and more Americans
are like to spend less money and pulling out their stock
investments, crippling the economy even more. It’s a vicious
cycle, but this is one situation that illustrates well how the
media can affect the economy.

How media affects to Economy

Media has always a big influence in the economy, actually


we can say that growth or downfall of economy depends
upon the Media.
The economy is going under and is the worst in decades. Is
it really? The media has been trying to scare everyone into
believing that for over a year now. They would like to say it
is and make it much worse than it is. The economy is bad
yes but is scaring people to not spend their money helping?
In the long run, no.
The media has had a field day to have a headline like this
fall into their lap. It scares their public home and religiously
watching their headlines and scare tactics. That is what
keeps the economy stagnant and causes a cycle of events.
Big companies also thrive on these headlines by advertising
how much they care even though they have been much of
the problem of why the economy is so bad. How is that you
say? Well it is simple. Big companies use these headlines to
advertise and tread on your fears. Like Wal-Mart, save your
money, low prices here, keep your life good by shopping
with us. Well Wal-Mart is part of many big companies that
promise the world the best but sends American dollars
across seas for cheaper labor and products putting
Americans out of jobs and business's out of business just to
save a penny. They thrive on these scare tactics to get you to
shop with them.
Many businesses have gone bankrupt. Many people have
been laid off. Is this necessary? To many business's yes.
These scare tactics have caused people to sit on their money
causing the economy to go stagnant. When the economy
goes stagnant, business's do not make money therefore
laying people off and going bankrupt causing more of a
vicious cycle going.
If the media would shy away from these scare tactics then
people would be spending money, thus helping the
economy. Christmas would have helped sales if the media
would not have spoken about how the economy is keeping
everyone from spending money because they may not have a
job tomorrow or a dime to their name.
The people we should take a look at are the criminals who
claim they have your back. Credit card companies, mortgage
companies, insurance companies, big companies that are
taking your money and sending it to other countries to save a
cent. The media who scares you into buying their products
or sitting on your money, or being scared to do anything.
Those are the true criminals who are legally stealing your
money right from beneath you.
Political stability

As we know today media is very fast and there are many


political issues rise by the media and these issues leads to
political instability.

Good news for investors

Every good news in media about politics, government,


Industry or commerce set a good trend for economy.
Because investors attract towards that news and makes
investment which is good for economy.

Bad news for investors

Every bad news in media about politics, government,


Industry or commerce set a bad trend for economy. Because
investors attract towards that news and withdraw investment
which is not good for economy.

Good news is no news, and having no news is bad for


business, particularly for a 24-hour TV news channel or an
online site which is desperate for content. I absolutely
believe that the mainstream media are harming the
.economy

The "expert" commentators so beloved of these media


channels are much more likely to be gloomy about future
business because, often, their business depends on helping
people during difficult business climates - so promoting the
.difficult times serves their interests
Importance of media in growth of Economy

Media can play a vital role in the growth of Economy. If


instead of reporting useless polls that are likely unscientific,
the media could be more responsible and only report the
news in an unbiased fashion. This would likely lead to less
volatile situations both when this news is positive and
negative, meaning it will not have a direct impact on the
economy itself.

Free and independent media are necessary for the effective


functioning of democratic societies. Democratic governance
depends on the ability of citizens to make informed
decisions, which requires the dissemination of accurate
information through free and independent media. Media not
only facilitate communication, but also expose corruption
and hold public officials accountable. Media are crucial for
economic growth, because they are responsible for
providing information, aiding communication, and
promoting transparency.

Now the question is in how many ways the media can play
an important role for the growth of economy?

The answer is;

If media shows the reality and realize to government that our


economy is worst due to these main reasons, then
government takes measures for those problems and try to
pull it out then economy be going to grow.
So media should do realize following given factors to
government.

1. Inflation
2. Poverty
3. Population
4. Corruption
5. Unemployment
6. Energy crises
7. Industrial problems
8. Agriculture problems
9. Monitory policies
10. Economic development
11. Law & Order situations
12. Foreign Investment
13. Literacy Rate

Let's discuss all these factors according to the Economy of


Pakistan.

1. INFLATION

The inflation rate as measured by the changes in Consumer


Price Index (CPI) after reaching peak at 25.3 percent in
August 2008, showing easing since November 2008 but
bounced back to 21.1 percent in February 2009 mainly
because of spike in the prices of some food items like onion,
chicken farm, sugar etc. WPI inflation is following
international declining trend but non-food component of the
CPI showed some stubbornness till February 2009. The CPI
inflation averaged 23.5 percent in July-February 2008-09 as
against 8.9 percent in the comparable period of last year.
So inflation rate is rising day by day, now it is the media that
shows the reality of the prices of different items at different
places. Then government looks after the situation and then
takes action against that factors.

2. Poverty

Media has the responsibility to show out the actual position


of poverty in the country other wise its prove to worst for
economy.

The number of Pakistanis now living below the poverty line


has crossed the 62 million mark, according to the latest
official statistics.

The State Bank of Pakistan in its latest annual report on the


economy revealed that the World Bank’s task force on food
security has estimated that the Head Count Ratio (HCR)
regarding poverty increased in Pakistan to 33.8 percent in
FY08 (fiscal year 2007-08) and 36.1 percent in FY09,
projecting that 62 million people in the country now live
below the poverty line.

Role of media in poverty

Media should support the poverty reduction strategy of


government and it should suggest to government that what
to do and how to do?

Discover the methods or plans trough which reduction in


poverty could be possible and ultimately this helps to
economy to grow.
Population

Pakistan's estimated population in 2010 is over 169,308,000


making it the world's sixth most-populous country, behind
Brazil and ahead of Russia. During 1950-2008, Pakistan's
urban population expanded over sevenfold, while the total
population increased by over fourfold. In the past, the
country's population had a relatively high growth rate that
has, however, been moderated by declining fertility and
birth rates. The population growth rate now stands at 1.6%.

Role of Media

a. Media should take measures to control


population which is increasing day by day.

b. Media plays the advertisement to family


planning and awareness in people to control to
increase in population because resources are
limited.

4. Corruption

Media plays a vital role to highlight the corruption.


If supposed to be there is no corruption in a country, just
think about that how much is strong their economy.

In Pakistan Politicians have made a Billions of $


corruption, but it is the media who highlight them in front
of people of Pakistan.
5. UNEMPLOYEMENT

The unemployment rate in Pakistan was 5.20 percent in


December of 2008. The labor force is defined as the number
of people employed plus the number unemployed but
seeking work. The non labor force includes those who are
not looking for work, those who are institutionalized and
those serving in the military. This page includes: Pakistan
Unemployment Rate chart, historical data and news.

Role of Media
(a) This is the media who are telling to government to take
helpful actions against the unemployment that’s why now
unemployment rate is decreasing as compare to previous
years.
(b) So the importance of media is here too because if there
is employment then there is less poverty and there will be
growing economy.
6. Energy Crises

Energy is the lifeline of a nation. The economic engine and


the wheels of industry, agriculture and business need energy
to move forward but from 2007 onwards Pakistan's economy
faces a huge crisis of Energy that is destroying the economy
of Pakistan. Pakistan is facing app. 5000 MW energy
shortage that leads to economy in destruction.

Role of Media

Media continuously highlighting this issue and they are


giving the positive suggestions to government as well butt
government not takes strong measures on that yet.
All besides media is playing a positive role and it should do
as well.

7. Industrial problems
Pakistani industry is facing some of below given problems
which need to be solved.

1. Power shortage
2. Lack of trained manpower;
3. Lack of proper infrastructure;
4. Inefficiency;
5. Lack of products innovation resulting concentration of
industries in some specific sectors;
6. Changing political and economic policies;
7. Bad law and order situation resulting in lower
investment in industries;
8. Corruption in related government agencies and so
many govt. agencies intervention;
9. Higher interest rate;

Part of Media All these above given issues and factors


are risen by the Media, if they not raised then what is the
future? Accordingly these factors I think government
takes help to remove the problems and improve the
economy as well.

8. Agriculture problems

Pakistani agriculture is facing following problems which


pull it down day by day.

Flat yielding
the low productivity of water
Thin market and weak institutions
Globalization
Inadequate supply of inputs
Lack of adequate finance

Role of media In agriculture sector media helps to farmers'


to share productive information through TV programs that
help to farmers to increase their production level.
Besides this media also shows the problems of farmers to
government to over come them.
Media also shows the needs of farmers such as they need
capital to invest in land and they need a range of water
supply.
So media play their very important role in this sector that
grows economy.
9. Monitory Policies

Monetary policy is the process a government, central bank,


or monetary authority of a country uses to control (i) the
supply of money, (ii) availability of money, and (iii) cost of
money or rate of interest to attain a set of objectives oriented
towards the growth and stability of the economy.

Role of Media

There should be a role of Media in making the monitory


policy Because this policy is very important for economy as
well as for various institutions. Last year the following
suggestions are given to state bank through media.
• Institutionalizing the process of policy formulation and
conduct,

• Stepping up movement towards a more market based credit


allocation mechanism,

• Developing its analytical and operational capacity,

• Improving its capabilities to assess future developments to


act proactively, and

• Improving upon the communication of policy stance to the


general public.
10. Economic Development

The economic development has always been as issue for the


contemporary society. This is primary due to the fact that it
is economic development that gives any country the
potential to prosper and grow. Being the attribute of
“strong” countries, mainly belonging to the first world,
economic development creates a completely new life-
standard for people. In other worlds the actual goal of the
economic development is the improvement of the quality of
life of ordinary citizens.

Media is the important part of economic development, all


issues towards that government is not paying attention; it is
the media that attract the government by rising issues.

11. Law & Order Situation

The law and order situation arises when there is insecurity,


threat of violence or violence arising due to a host of factors
disturbing the ordinary conduct of life and businesses in a
society.

Causes of Crimes

Side by side the economic and poverty factors, crimes may


be caused by social environment motivating or encouraging
crime.

Law & Order Situation in Pakistan


In Pakistan so many factors are the causes of bad law and
order situation, such as
Terrorism
Inflation
Poverty
Are the main reasons behind bad law and order situation.

Role of Media

In current situation media plays the highest role in pointing


to those persons who are disturbing the law and order
situation in Pakistan or in any other country.

Media provides all information about law and order situation


to the general public as well as to the government, and the
government takes a lot of help to prove the situation that
definitely affects the economy.

12. Foreign Investment


Finance is always backbone of any economy and Foreign
invest is the major portion of finance of any country.

Foreign investment in Pakistan


Net foreign investment in Pakistan fell 35.9 percent to $2.08
billion in the first nine months of the 2008/09 fiscal year
compared with $3.25 billion in the same period last year, the
central bank said on Wednesday.
Foreign private investment fell 19.5 percent to $2.62 billion
in the July to March period, compared with $3.26 billion the
previous year, the State Bank of Pakistan said.

Role Of Media
Media is always the main source of information for public,
so investors always depend upon media too. Because media
tells and shows the picture of anything, so they rely on
media. If media shows a bad thing about country then
obviously investment be withdraw by investors and if media
tells something good about country or government then
investment will be increase.

From last 5 to 6 years Pakistani media shows the law and


order situation as well as energy crisis of country. Although
this is the real picture of country currently but it gives bad
impression to foreign investors.

What should media do?

Media should do that is its duty but in limitations, means


show the real picture but avoid unnecessary repetition.

Factors instrumental to private and foreign investors

Risks of doing business and;


Expected returns of the investment.
Four major challenges to Pakistan’s socio-economic growth
including;
regaining macroeconomic stability;
poverty reduction;
fiscal retrenchment and;
Weaknesses in the external account.

13. Literacy Rate


There is a big contribution of Literacy rate in the economy
of any country. Literacy, for sure, is the lifeline of any
developed country and there is, thus, no denial to the fact
that it alone is pivotal to human progress, most important
key to development.

Literacy Rate & Education Statistics in Pakistan

Total Adult Literacy Rate: 54% (Male 66.25%, Female


41.75%) – (Pakistan’s Ministry of Education)

Punjab: 60.8% (Male 70%, Female 51%)


NWFP: 47.4% (Male 63%, Female 30.8%)
Sindh: 5.15% (Male 60.5%, Female 42.5%)
Balochistan: 34% (Male 45%, Female 23%)

What should media do?

1. Literacy rate of Pakistan is not good for growth of


economy.
2. Media should realize to people to get educated to live
with standard.
3. Realize the people and become aware by the benefits of
Literate society.
4. Conduct programs for public to make them
knowledgeable.
Economy Recommendations

Media has discussed many times on economic issues that


are currently surviving the economy normally these
suggestions are given by the whole media.

1. During the period of economic problems, the


government should take the lead and start more public
investments to provide a jump start to the economic
activities.

2. Primarily, it is the domestic investors who have


to be encouraged and motivated to take the lead for the
investment. The administration of governmental
incentives to them should be more business-friendly.
Once, domestic investors start flourishing, it will
encourage foreigners to invest in Pakistan as well.

3. There is a need to improve business environment


in the country, including the availability of educated
and skilled manpower, ancillary industries and utility
services. Continuous rise in the prices of petroleum
products, electricity, gas and other utilities are also
adversely affecting the business environment.

4. We need to improve our infrastructure


facilitations to make the Business environment more
conducive to foreign and local investments.
5. Power shortage has already resulted in closure of
many units which is deplorable and needs to be
rectified at the earliest.

6. The main stake of our economy is agriculture and


facilitation and incentives to develop the cottage
industry need special attention. In order to boost up
investment particularly in livestock, poultry, fisheries,
and associated value added production facilities like
financing, development of services infrastructure, and
manpower development should be part of government
plans and programs.

Conclusion
Although media has some negative effects on economy but
in overall view Media plays highly appreciable role for the
betterment and growth of economy.

It is the Media who tells to government that what to do And


how to do?

Media shows the reality of government to general public


which is good thing fir transparency.

Media describes the real and poor condition as well as the


problems of people to government on which government
takes measurement.

Media attract the foreign investors to come and invest here.


Media gives the informative programs to its viewers to get
educated.
In nutshell Media is playing a very healthy and sound role
that is very important for the growth of economy.