Perplexed about the complex issues surrounding privatisation of state assets? The International Finance Corporation offers this parable at the beginning of its latest publication, attributing it to an anonymous agency official.
“To privatise is to drive a two-horse cart. The cart is the enterprise in question. One horse is called Political Goals and is flighty and fickle; the other is called Economics, and is slow and steady. They have to pull the cart along the Road to Privatisation, which is a rough, boulder-strewn track. The cart is full of cases of vintage wine, which is unfortunate because the horses, as often as not, are pulling in different directions. The bottles of wine, which can be enjoyed only when the cart reaches its goal, are labelled improved efficiency, high sales price, effective corporate governance, economic investment, and so on.
“Only the most skillful driver can negotiate this track: up the hill of Vested Interests (cases have to be jettisoned here, and some horses aren’t strong enough to make it), across the stream of Xenophobia (another case or two bumps off the back). Some carts are too weak and fall apart before they get to Privatisation. Sometimes it makes sense to give the flighty horse its head and fly the trail headlong, abandoning case after case on the way; sometimes it is possible to whip him into shape to follow his steadier partner. And many drivers simply give up, cut the horse loose, climb down and start back down the trail, hoping to find solace in the odd bottle that hasn’t smashed.”