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Archive for November 2nd, 2010

Last week, The Indus Entrepreneurship [TIE] Conference was held in Lahore, aiming to bring together “a mix of leading local and international entrepreneurs, investors and business leaders” to explore the role of entrepreneurship as a change agent. The News’ Mosharraf Zaidi, who wrote about the conference, noted, “Without a generation of innovators and entrepreneurs, job creation in Pakistan will stay dormant, while our population and its appetite for consumption goes through the roof.” Elmira Bayrasli, a writer working on development issues, recently returned from a trip to Pakistan where she explored similar issues, noting in a piece for Portfolio.com that Pakistani entrepreneurs are driven mainly by a desire “to pull Pakistan out of its political and economic abyss.” Below, she delves further into this topic [which first appeared on her blog, Wonderment Woman, as part of a five-part postcard on Pakistan]:

“Welcome honored donors,” read the banner hanging over the passport control counter at Benazir Bhutto Airport in Islamabad.  That, along with hot, musty air, was my greeting to Pakistan, at 3AM two Sundays ago.  I had arrived, along with my colleagues Phil Auerswald and Sara Shroff to assess Pakistan’s entrepreneurial landscape.

Not far from the banner, there also hung a framed black and white photo of a gaunt man in a dark textured and triangular hat, similar to the one that Afghan President Hamid Karzai sports.  It was Muhammad Ali Jinnah, the revered founder of Pakistan – the land of the pure.  Jinnah established the republic in 1947, after gaining independence from the British and breaking from India.jinnah

Jinnah reappeared a half hour later when I entered the lobby of the infamous Marriott Islamabad.  He was there again the next day when we visited the Institute of Business Administration in Karachi.  Jinnah seemed to be everywhere.  The only other place I know of where that happens is… Turkey.  The image of Mustafa Kemal Ataturk, the blue-eyed founder of Turkey, is, like Jinnah’s, ubiquitous throughout Anatolia. Both dominate every government office, school entranceway and public space.

Pakistan and Turkey have a lot in common.  As predominately Muslim nations, both have struggled with secularism and Islam.  Both have had, as a result, numerous military interventions that have overthrown their respective country’s government.  As predominately agrarian societies, Pakistan and Turkey have wrestled with developing their respective economies in order to compete on the global marketplace.  For a long time, it was a tough fight.  Both countries choked under unemployment, debt, run away inflation and rent seekers.  Pakistan still does.  Turkey has broken from that cycle.

It broke as a result of the economic liberalization reforms enacted by late Prime Minister Turgut Ozal in the 1980s.  With less state-control and relaxed trade and banking laws, Turks embraced entrepreneurship.  Overnight, they turned Anatolian cities, more commonly known as “Anatolian tigers,” into textile and manufacturing centers and lifted Turkey’s poor into the middle and upper class.  Today, Turkey holds a seat at the G20 and the UN Security Council.  Despite being continually rejected by Brussels, it has, by the European Commission’s own account, the fastest (and perhaps only) growing economy.  It is an example that beleaguered Pakistan can and should replicate.  It should do so with Turkey’s guidance.

Turkey understands Pakistan’s economic struggles because Turkey once endured them as well. “We have common problems and common solutions,” said Turkish Prime Minister Recep Tayyip Erdogan while visiting Pakistan just last week.  Part of Turkey’s solution is taken directly from Washington in the form of aid.  *Sigh.*  Fortunately, the other part of Turkey’s solution is precisely what Pakistan will help Pakistan develop: investments.

Rather than a money problem, Pakistan suffers from an investment problem.  The money that Pakistanis possess is caged. It’s used to cover day-to-day expenses rather than being used as leverage to create new enterprises and, most importantly, jobs.  Turkey has discussed opening banks in Pakistan, increasing trade and encouraging its private sector to seek collaboration on construction, infrastructure, engineering, energy, agriculture, telecom and textile opportunities.  That is a good start.  But more can be done. 

Here are two suggestions:

  1. From a historical, religious and cultural perspective, Turkish entrepreneurs and investors are ideal role models and mentors for aspiring Pakistanis with start-up ideas.  They can help advise on operating in a Muslim society where entrepreneurship has not traditionally been encouraged or possible, where risk has largely been absent and where failure has always been the kiss of death.  Both countries could develop an entrepreneurship exchange and mentoring program where Pakistani entrepreneurs spend time working in Turkey and Turkish entrepreneurs in Pakistan.
  2. Turkish investors could establish, along with their Pakistani counterparts, a fund, with manageable interest rates and transaction fees, for Pakistani entrepreneurs.  It is an idea that American venture capitalists would benefit joining as well.  This will help unshackle Pakistan’s paralyzed capital that can then provide the leverage to jumpstart enterprise development and job creation.

It is imperative that Pakistan climb out of its current crisis and into prosperity.  There are signs it is prepared to do so.  The absence of Jinnah’s photo in the sleek and modern offices of the several entrepreneurs Phil, Sara and I met with was the clearest. Pakistan’s younger generation, while deeply patriotic, is not straightjacketed by the past.  They know that while Jinnah may have been their country’s founder, they are its keepers.  For now, they’re pushing their black and white past aside in order to keep their focus on what could be Pakistan’s abundantly colorful and high-definition future.

The contribution is the sole opinion of the author and does not necessarily represent the opinion of CHUP. If you would like to contribute a piece to CHUP, please email Kalsoom at changinguppakistan[at]gmail[dot]com. Pieces should be no longer than 800 words please. For past contributions, click here.

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