Presently, the major governance issues under debate at the global level are more of economic than the political.
The economic matters related to taxation, the balance of payment, trade agreements, poverty alleviation, environmental policies, immigration procedures and population control are sizzling concerns of the day.
This is the era of economic wars. China-US trade war, for the attainment of economic dominance, is a contemporary stance.
In such state of affairs, media being the fourth pillar of the state needs to be more focused on economic journalism; differentiating it from political journalism. Economic journalism is hard and filled with complexities. Most of the economic issues are not perceptible easily. A lack of proficiency, on the part of a journalist, in the domain of economics can leave many in the lurch regarding financial planning at the state level.
Economic dynamics are technical and analysis of economic indicators with lesser knowledge might be misleading. Either it is related to FDI or BOP, every journalist needs to grasp the fundamentals of economic journalism for carrying out precise policy analysis.
On simpler grounds, economic growth is always appreciated. GDP may rise in numbers, but in reality, this growth can be due to over-consumption. For a representative political agent, it is a tough job to explain economic principles. This is where misinformation propagates, and the public starts living in mere debates. Nobody understands, but everybody stands against the economic decisions taken by the governments.
A lack of proficiency, on the part of a journalist, in the domain of economics can leave many in the lurch regarding financial planning at the state level
A fall in the unemployment rate is always considered positive but what if it is managed on the expense of disguised employment? Further, when media journalists try to interpret economic indicators by relying heavily upon numeric values, they spread ambiguity in the masses, thus, discouraging them from making any investment decision. False economic interpretations hammer horrible messages for investors that make them terrified.
All these interpretations give momentum to uncertainty thus resulting in stagnant economic growth. On the other hand, if the public is well aware of all on-going economic condition, at least a wave of confidence will spread among the populace.
Currently, business and economics are the strongest forces shaping people’s lives. In the modern world, everyone is driven for and by money. Covering the economic aspects whether in front or behind the camera is mandatory.
The world has changed radically. This is the time of awful crises coupled with tremendous opportunities. A true awareness about economic indicators and their underlying causes can take us into the zone of tremendous opportunities; otherwise, the economy would remain in deep waters. It can be easier to detect economic exploitation, however, economic opportunities costing sustainability of resources is a hard nut to crack. Only, an adept economic journalist can expound if short term economic opportunities are over-weighing long-term economic benefits.
Economic journalism is imperative for the securitisation of the government’s economic and financial policies. A thorough debate by a competent journalist over such policies would result in a more refined policy framework. The journalists can comprehend the underlying causes and consequences of every economic policy with greater accuracy only by a conceptual study of such economic phenomena. A well-informed economic journalist can make it easier for its audiences to understand the implications of policy undertaken.
A huge emphasis is placed upon sustainable utilisation of natural resources. Thus, an economic journalist analyzes policy on the grounds of sustainability. The polices causing unsustainable usage of state’s resources will not only result in depletion of natural resources at an increasing rate but also poison the air we breathe, the water we drink and the food we eat. Economic journalism could regulate under-utilisation and over-exploitation of the country’s natural and financial resources by carrying out extensive cost-benefit analysis while keeping the sustainability in view.
If Pakistan is not going to take serious measures on this front, the Economic Hit Men, according to John Perkins, will keep on drenching the state out of resources. Proficient economic journalists can develop more strategic thinking about business and revenues. The methodology of educating the masses and educating them about economic decisions is indeed imperative these days.
Economic Journalism, as a subject, should be introduced at university levels, otherwise this ‘bubble journalism’ would keep on preaching the distorted look of the financial world leading to market manipulation by the real players. Specialization in economic journalism will add great value to this profession. Special conferences, seminars, training and capacity building workshops should be arranged by the major economic institutes for spreading awareness about basics of economic dynamics, corporate governance, financial regulatory systems, reflexivity and international market impact upon domestic economic conditions.
PEMRA should define the procedure for penalising the journalists and political agents who misinterpret economic facts due to lack of knowledge. The right to freedom of speech can be practised anywhere else!
The writer is an active research writer, a stock trader and postgraduate scholar in Economics and Finance from Pakistan Institute of Development Economics (PIDE)