The Knowledge-based Economy: Trends and Implications for Pakistan

Economic history has witnessed transformation from Agriculture based to Manufacturing based economies over the time. This transformation had its effects on social structure of the communities, as new types of jobs were created in the manufacturing industries, and new life styles of metropolitan culture evolved. A similar transformation is now taking place as; business has grown global over the last years, making the present business atmosphere further competitive, fast and fluid. Technological and political events taking place across the world affect us as strongly as something happening in our neighbourhood. The two most recent and prominent developments of present times that have changed our economic activities are: (1) Globalisation; (2) Increase in Information and Communication Technologies (ICT). Globalisation is most obvious, as the volume of global trade and products has expanded manyfold. The world economies are opening up to new world horizons. Developments in Information Technology has increased the pace of the events, bringing new products to markets from all over the world, increasing the global watch and reach of the organisations. As a result of this, the companies are forced to reduce the costs and product development time of their products. Second prominent development taking place during this time is the increase in ICT. These ICTs (particularly Intranets/Internet) have provided new channels and means of acquiring knowledge and opened new doors of promising opportunities like e-business. Sharp decrease in cost of computer hardware and software, plus improvement in software development has been responsible for increasing number of firms using computers in their business processes. Computer has proved itself to be a revolutionary tool for management, its data and information processing capabilities has improved management in all domains.