4. Plan Provision
The Medium Term Development Framework, MTDF 2005-10, proposes a paradigm shift based upon adaptation and diffusion of knowledge and technology applied across the entire
spectrum of institutional excellence. In this context, the key issue of quality in all its various manifestations needs to be addressed if the basic building blocks of a just and prosperous society, or the ability of the state to provide an efficient and friendly system, are to be put in place.
Technology is now an intrinsic part of the economic system and has become the major factor of production in leading economies. It is the accumulation of knowledge that drives economic growth. Information and knowledge can be shared, and actually grows through application, unlike most resources that deplete when used. Technology can thus raise the return on investment; which explains why developed countries can sustain growth, and why more than 50 % of GDP in the major economic powers is now based on the production and distribution of knowledge. It also explains why developing economies with unlimited labour and ample capital, cannot sustain growth unless they make investments in knowledge and technology.
While legacies of earlier neglect and inconsistencies have no doubt taken their toll, Pakistan is emerging as a threshold state, which has macroeconomic stability, and is consolidating its institutions, human resources, and infrastructure. Two indices, the Global Competitive Index (GCI) and Business Competitive Index (BCI) provide useful metrics of a nation’s competitive environment. GCI integrates the macroeconomic environment, public institutions, and technology; BCI complements the medium term macroeconomic sub-index in GCI, and evaluates the microeconomic conditions, which define the current sustainable level of economic activity, and where wealth is actually created. Pakistan’s rank is low compared with several countries, with extremely poor showing in the Technology Index, T, because of lower scoring in the innovation and ICT sub-indices. Finland and USA head the ‘core group’ of top 25 countries.
The Development Plans and existing Policies on Science and Technology points towards the importance of excellence in institutional building and vast investment in science and technology to take the country towards prosperity and knowledge-based economy.
Technology transfer is very crucial for Pakistan, if it requires competing international market. Currently, Pakistan like other developing countries does not possess a large amount of protected technology upon which it can build new technology and research. Also, it lacks a sufficient pool of trained personnel to perform research and development in new technologies. Consequently, the need of the hour demands transfer of technology from developed nations to assist its growth.
There are two ways by which developing countries can lead ahead in technology. One is doing Research and Development within the...