Exploiting (and Rewarding) Merit
The major difference between the public and the private sector is that private entrepreneurs recognize merit as the touchstone for success, in the public sector (as in bureaucracy) merit can often be a disqualifier. Public sector can be roughly equated to a hereditary monarchy, with heritage, nepotism and favoritism the prime ingredients for career advancement. While the private sector is not completely free from the use of connections and influence for being upwardly mobile, merit commands far more weightage in rewarding performance. The major reason for privatization and denationalization is to provide better management, inculcating corporate culture dedicated to cost-effectiveness devoted to a positive balance sheet, in effect more (profit) for less (overheads).
A Third World Econo-Realist
Dr Ishrat Husain, Governor, State Bank of Pakistan (SBP), who retired in early December 2005 after completing two consecutive and eventful 3 year terms, has been a fascinating study from various vantage points in both my professional and personal capacity, viz being a Director on the Board of a publicity listed financial institution, as a weekly columnist writing on economic, commercial and geo-political matters, and as a friend, A comparable financial intellectual in Pakistan of similar absolute integrity is Dr Abdul Hafeez Shaikh, the Federal Minister for Privatization and Investment. As Pakistanis of good standing, they are both also human beings of some substance; what is really endearing is their humility. Such men are destined for greatness for their country and themselves, provided they are given the chance to do so and not slotted into corners of no consequence.