COMPARISON BETWEEN PAKISTAN AND TURKEY GENERAL ENVIRONMENT

The history of generic similarity between Turkey and Pakistan is hard to miss.

Democratic Comparison

Turkey and Pakistan is hard to miss. Both countries have experienced military rule, and military coups
have come and gone with almost equal intervals.

Free Market Comparison

Decades of internal political disputes and low levels of foreign investment have led to slow growth and
underdevelopment in Pakistan while Turkey's largely free-market economy is increasingly driven by its
industry and service sectors.

Agricultural Comaprison

Agriculture accounts for more than one-fifth of output and two-fifths of employment while traditional
agriculture sector in Turkey still accounts for about 25% of employment

FDI Comparison

Foreign investment in Pakistan has not returned, due to investor concerns related to governance, energy,
security, and a slow-down in the global economy while in Turkey the reforms strengthened the country's
economic fundamentals and ushered in an era of strong growth.

EFFECT ON MANAGEMENT PRACTICES DUE TO GLOBALIZATION

The management practices due to globalization have effected Pakistan and Turkey in following many
ways

1. In Turkey, An aggressive globalization and privatization program has reduced state involvement
in basic industry, banking, transport, and communication, and an emerging cadre of middle-class
entrepreneurs is adding dynamism to the economy and expanding production beyond the
traditional textiles and clothing sectors

2. In Pakistan Textiles account for most of Pakistan's export earnings, and Pakistan's failure to
expand a viable export base for other manufactures has left the country vulnerable to shifts in
world demand

3. In Turkey, the automotive, construction, and electronics industries, are rising in importance and
have surpassed textiles within Turkey's export mix due to globalization

4. In Pakistan much of the management practices are informal and underemployment remains
high. Over the past few years, low growth and high inflation have increased the amount of
 poverty

5. Turkey adopted financial and fiscal reforms as part of an IMF program. The reforms strengthened
the country's economic fundamentals and ushered in an era of strong growth

6. In Pakistan, Although the economy has stabilized since the crisis, it has failed to recover

7. Other long term management challenges in Pakistan include expanding investment in education
and healthcare, adapting to the effects of climate change and natural disasters, and reducing
dependence on foreign donors.