The
Marxist
Volume: 17, No. 01
January-March 2001
AND
THE
RESISTANCE
MOVEMENT
-
B.V.RAGHAVULU
The
three
month
long
militant
agitation
in
Andhra
Pradesh
against
the
power
sector
reforms
during
June-August
2000
attracted
the
attention
of
even
the
captains
of
global
capitalism.
The
President
of
the
World
Bank
Wolfenson
reacted
significantly
defending
the
reform
process
in
Andhra
Pradesh
from
his
headquarters
in
Washington.
The
Microsoft
chief
Bill
Gates
enquired
about
this
agitation
during
his
deliberations
with
the
State
Chief
Minister
N.
Chandra
Babu
Naidu
in
Delhi.
Even
the
World
Bank
took
serious
note
of
this
agitation,
which
is
evident
from
its
own
literature.
“…….In
the
wake
of
power
tariff
increases
in
June,
the
opposition
was
able
to
turn
what
was
initially
scattered
protests
of
leftist
groups
in
to
major
and
bloody
demonstrations.
Naidu
has
managed
to
ride
out
this
storm,
and
remain
in
control
of
the
party
and
state
while
remaining
committed
to
the
reform
program.
However,
this
episode
has
highlighted
the
potentially
explosive
politics
of
AP,
the
vulnerability
to
crises,
and
the
political
sensitivity
of
Naidu’s
perceived
close
relationship
with
the
Bank.
Naidu’s
popularity
will
be
tested
soon
in
the
upcoming
elections
for
rural
local
bodies
(panchayats).
These
elections
were
originally
scheduled
to
be
held
in
October
but
the
political
fall
out
from
the
power
reforms
may
have
influenced
Naidu
to
postpone
them
(source:
Mr.James
D.
Wolfenson
Visit
to
India
(November
6-15,
2000)
Briefing
Book
3;
World
Bank
office
in
India
page
3
(AP))”.
The
significance
of
this
movement
also
stems
from
the
fact
that
the
World
Bank
has
decided
to
rethink
the
manner
in
which
its
reforms’
package
has
to
be
sold
to
the
people
of
Andhra
Pradesh.
This
can
be
understood
from
the
following:
“………India
cannot
afford
to
lose
him
(Naidu)
as
a
champion
of
reform.
But
with
the
pressures
he
has
faced
in
the
past
few
months,
there
is
a
risk
that
his
commitment
to
difficult
reforms
may,
understandably,
be
wavering:
there
is
talk
for
example
of
his
postponing
the
power
sector
distribution
privatization,
and
there
are
questions
over
whether
another
round
of
tariff
increases
by
the
electricity
regulator
will
be
allowed
by
the
Government…..
The
increased
focus
on
poverty
is
critical
for
AP
both
in
terms
of
the
interventions
themselves,
but
also
for
reinforcing
the
message
that
reforms
are
not
anti-poor,
and
that
the
Bank
is
in
fact
on
the
side
of
the
poor”
(Source:
Ibid.
Page
5)
With
the
backdrop
of
this
massive
agitation,
the
World
Bank
decided
to
fine
tune
its
strategy
and
has
now
decided
to
sell
them
in
AP
in
such
a
way
that
they
are
the
programmes
of
state
government,
rather
than
that
of
an
overseas
dictator.
This
can
be
understood
from
the
following
abstract
from
the
World
Bank
Document.
“The
irony
in
AP
is
that
despite
strong
ownership
of
reforms
by
key
politicians
and
bureaucrats,
the
perceptions
of
the
Bank
driving
the
reform
agenda
has
gained
ground
in
public
opinion.
Learning
from
this
experience
the
proposed
adjustment
operation
takes
as
its
starting
point
the
govt’s
own
A.P.
Vision
2020
document
…(source:
Ibid.
page
4)
The World Bank dictated power sector reforms and the movement of people’s resistance are of course not unique to Andhra Pradesh. However the experience of Andhra Pradesh offers an illuminating case study of people’s movement against World Bank reforms.
ANDHRA
PRADESH
AS
WORLD
BANK
LABORATORY:
The
World
Bank’s
partnership
with
Andhra
Pradesh
is
deep
and
wide.
Even
the
Bank
considers
this
relationship
as
most
significant
one
as
it
treats
the
state
as
its
laboratory
for
furtherance
of
its
anti-people
reformist
program
in
the
entire
country.
The
World
Bank
literature
makes
it
clear
that
this
imperial
institution
sees
the
state
as
its
laboratory,
and
its
Chief
Minister
as
the
example
for
others.
Why
was
Andhra
Pradesh
chosen
as
its
laboratory?
The
World
Bank
prepares
‘Country
Assistance
Strategy’
for
every
nation
in
which
it
wants
to
operate.
It
chalks
out
the
policies
and
programs
to
suit
this
strategy.
It
periodically
reviews
these
programs
and
policies
and
sharpens
their
implementation.
India
has
embarked
upon
process
of
economic
liberalization
since
1991.
The
World
Bank
is
not
fully
satisfied
with
the
speed
with
which
the
reforms
of
structural
adjustment
are
implemented
in
India.
The
Bank
considers
the
coalition
and
minority
governments
at
the
Centre
as
an
impeding
factor
in
the
way
of
fast
implementation
of
reforms.
Besides
the
World
Bank
recognizes
the
fact
that
in
the
Indian
federal
setup,
administration
takes
place
both
at
Central
and
State
levels.
The
full
effect
of
reforms
could
be
possible
only
if
they
are
taken
up
at
the
state
level
also.
This
is
euphemistically
called
as
second
generation
reforms.
The
divergent
political
landscape
of
India
was
also
taken
cognizance
of
by
the
Bank.
In
several
states
either
the
opposition
party
or
the
regional
political
formations
or
the
Left
Parties
are
at
the
helm
of
affairs.
As
a
result,
the
centrally
sponsored
reform
measures
can
either
be
rejected
or
implemented
at
a
tardy
pace.
Given
these
facts,
the
World
Bank
consider
that
the
process
of
economic
liberalization
would
be
complete
and
comprehensive
only
if
it
concentrates
on
the
state
governments.
In
a
country
of
such
a
magnitude,
the
World
Bank
is
aware
that
it
can
not
focus
on
all
the
states
at
a
time.
Therefore,
it
wanted
to
concentrate
all
its
energies
and
resources
on
two
or
three
states,
which
are
more
enthusiastic
to
implement
its
reforms,
and
thus
project
its
reforms
package
for
all
over
the
country.
The
World
Bank
can
also
put
pressure
on
the
Centre
to
carry
on
its
reforms
with
the
help
of
reforming
states.
It
also
intends
to
create
competition
among
different
state
governments
to
come
forward
for
a
partnership
with
the
Bank.
This
is
the
essence
of
the
proclaimed
Country
Assistance
Strategy.
The
World
Bank
states
this
clearly
in
the
following
words
in
the
appraisal
report
on
Andhra
Pradesh
Economic
Restructuring
Project
(APERP):
“As
such
it
would
also
support
a
key
strategic
objective
of
CAS,
which
is
to
focus
Bank
resources
on
states
that
have
embarked
on
a
comprehensive
program
of
economic
and
structural
reform.
The
CAS
aims
to
initiative
2-3
such
programs
in
selected
states
in
India
over
the
next
two
years
to
support
this
objective”.
“APERP
would
be
the
first
of
these
operations
supporting
the
state
of
AP,
which
is
not
only
among
the
poorest
states
in
India
but
which
has
emerged
as
one
of
the
leading
reforming
states
in
the
past
3
years”.
(APERP
Appraisal
Report
page
3)
Yet
another
important
reason
for
focussing
on
Andhra
Pradesh
is
that
the
Bank
has
seen
in
N.Chandrababu
Naidu,
an
unflinching
loyalist
prepared
to
not
only
accepts
its
dictates
but
implement
them
against
all
odds.
Chandrababu
Naidu
is
the
first
Chief
Minister
of
the
Country
to
embrace
the
World
Bank
wholehog.
The
Bank
sums
up
its
assessment
of
Mr.
Naidu
as
follows:
“Andhra
Pradesh
is
known
as
India’s
first
reforming
state.
Its
Chief
Minister,
Chandrababu
Naidu,
has
earned
a
well-deserved
reputation
as
one
of
India’s
top
reformists
and
development-oriented
politicians,
Known
as
Andhra’s
CEO…”
(Source:
Mr.James
D.Wolfenson
Visit
to
India
op
chit,
page
1)
The
World
Bank
assesses
the
commitment
of
Naidu
to
the
reformist
path
and
the
need
to
support
him
in
the
following
words.
“….. The Bank and AP have a close partnership of more than 3 years. This partnership however has become a political liability for Naidu….While recognizing that reforms in Andhra are now at a sensitive and complex stage, encourage the government to persist, particularly with fiscal restructuring and the privatization of distribution in power (Source: Ibid, Page 1 ).”
PROFILE OF REFORMS IN AP:
The
deliberations
between
the
World
Bank
and
Andhra
Pradesh
Government
have
commenced
since
1995.
At
the
instance
of
State
Government
and
with
its
active
and
full
support,
the
World
Bank
has
prepared
a
document
entitled
“Andhra
Pradesh
An
Agenda
for
Economic
Reforms”
in
1996.
This
is
the
first
ever
report
prepared
by
the
Bank
on
fiscal
situation
in
a
particular
state.
The
recommendations
of
this
document
formed
the
basis
for
the
World
Bank
reforms
in
Andhra
Pradesh.
The
State
Government
is
aware
of
the
painful
process
of
implementation
of
these
reforms,
which
are
bound
to
invite
peoples’
resistance.
In
a
bid
to
offset
this,
the
state
government
made
a
frantic
effort
right
from
the
beginning
to
create
illusions
among
the
people
that
these
reforms
are
its
own
creation
rather
than
World
Bank
dictates.
This
process
started
from
1995-96
when
the
state
government
appointed
a
series
of
committees.
For
instance,
Hitenbhayya
Committee
on
Privatization
of
Power
Sector,
Subramanyam
Committee
on
state
level
public
undertakings,
Gangopadhya
Committee
on
staff
reduction
etc.
The
fanfare
of
appointment
of
committees
and
their
reports
with
the
bank
brand
of
recommendations
were
part
of
the
dress
rehearsal
for
a
full
blown
implementation
of
World
Bank
reforms.
Subsequently
the
State
Government
released
a
series
of
white
papers
on
different
sectors
in
June,
1996.
The
contents
of
these
white
papers
were
nothing
but
the
recommendations
prescribed
in
the
above
said
World
Bank
document
with
altered
language
and
presentation.
The
State
Government
quickly
concluded
farcical
public
debates
on
these
white
papers
and
declared
that
the
people
have
favourably
understood
the
essence
of
the
white
papers
and
the
physical
compulsions
faced
by
the
State
Government.
Close
on
the
heels
of
so
called
public
debate
on
the
white
papers,
the
state
government
levied
burdens
on
the
people
to
the
tune
of
around
three
thousand
crores
rupees
during
July
and
August
1996.
Such
measures
included
hike
in
price
of
subsidised
rice,
power
rates
to
the
tune
of
37%,
doubling
the
water
cess,
increasing
the
professional
tax
by
7
times
and
rise
in
turnover
tax,
tax
on
vehicles
etc.
These
hikes
were
imposed
on
the
people
by
the
state
government
to
convince
the
World
Bank
about
its
reformist
credentials.
The
World
Bank
does
not
believe
in
promises,
it
wants
commitment
to
reforms
in
action
before
extending
the
loan
facility.
This
proven
track
record
of
Chandrababu
Naidu
Government
in
implementing
the
harsh
reforms
has
obviously
won
the
admiration
of
the
World
Bank
and
the
international
media.
During
the
1996-97
period,
meticulous
details
of
the
implementation
of
structural
adjustment
reforms
were
worked
out
in
the
talks
between
the
representatives
of
the
World
Bank
and
of
the
State
Government.
These
discussions
reached
a
defining
moment
when
the
resident
representative
of
the
World
Bank
Edward
Lim
met
State
Chief
Minister
Chandrababu
Naidu
on
June
4,
1997.
After
protracted
negotiations,
as
part
of
this,
the
World
Bank
agreed
to
extend
loan
for
the
two
programmes
called
Andhra
Pradesh
Economic
Restructuring
Project
and
the
Andhra
Pradesh
Power
Sector
Restructuring
Program.
The
World
Bank
decided
to
provide
loans
of
543.2
million
dollars
for
APERP
and
1
billion
dollars
(1000
million
dollars)
for
APPSRP.
On
May
14
1998,
Naidu
wrote
a
letter
to
World
Bank
President
Wolfenson
urging
for
the
loan.
He
explained
in
his
letter,
his
commitment
and
plan
of
action
regarding
the
implementation
of
World
Bank
sponsored
reforms.
The
World
Bank
board
approved
the
appraisal
reports
of
these
projects
in
1999
and
final
agreements
were
signed
between
the
World
Bank
and
the
State
Government
on
APERP
&
APPSRP
in
the
end
of
1999.
Though
these
two
are
different
agreements
but
they
are
closely
interlinked
.
This
was
explained
by
the
World
Bank
itself
in
the
APPSRP
appraisal
report
as
follows:
“Taken
together,
APERP
and
the
proposed
Andhra
Pradesh
Power
Sector
Restructuring
Program
would
make
a
major
contribution
to
modernizing
the
state’s
infrastructure
and
social
sectors,
and
they
would
be
fundamental
to
the
restructuring
of
the
state’s
finances
and
for
the
acceleration
of
Economic
growth
and
longer
term
human
development”
(Source:
Ibid
page
3
)
The
World
Bank
claims
that
its
reforms
are
aimed
at
poverty
reduction
and
achieving
over
all
human
development.
But
the
experiences
of
many
countries
reveal
the
contrary.
There
is
voluminous
documentation
available
to
prove
this.
But
the
World
Bank
and
the
State
Government
aims
at
image
management
in
favour
of
its
reforms.
This
can
be
understood
from
its
own
literature,
where
it
says
“
A
key
concern
of
Naidu’s
government
is
to
balance
the
“pain”
of
adjustment
with
visible
attempts
to
deal
with
poverty
and
other
social
issues..
(Source:
James
D
Wolfenson,
op
cit
page
5)
”
The
avowed
object
of
poverty
reduction
is
nothing
but
an
attempt
to
make
the
people
swallow
the
reforms
given
in
the
form
of
a
sugar
coated
bitter
pill.
The
hidden
agenda
behind
the
World
Bank
extended
loan
can
be
understood
from
what
has
been
stated
in
the
appraisal
report
of
APERP
as
follows:
“ The project itself would support a massive investment program aimed at raising the welfare of a large segment of the population in the short run (eg.through DPEP, Primary health, ICDS irrigation, rehabilitation). These investments would partly counter balance the negative political impact of the reform program. In some instances, irrigation for example, cost recovery would be strengthened in tandem with much improved service delivery and larger budget allocation for O & M”.
The
World
Bank
conditions
in
the
name
of
financial
reforms
hit
the
masses
hard.
This
is
because
the
conditionalities
force
the
State
to
retreat
from
welfare
and
other
social
sectors,
slashing
the
subsidies
that
provide
relief
to
the
poor
and
privatization
of
state
undertakings.
These
steps
harm
the
interest
of
the
common
man,
and
throw
the
workers
out
of
jobs
and
impose
burdens
on
the
people
by
raising
the
cost
of
public
utilities.
The
World
Bank
itself
is
aware
that
these
reform
measures
would
invite
people’s
anger,
when
it
notes:
“Possibly
strong
opposition
to
politically
sensitive
aspects
of
reform
program
such
as
more
effective
targetting
of
the
rice
subsidy,
staff
rationalization,
privatization,
closure
of
unviable
public
enterprises
and
more
effective
collection
of
user
charges”
(APERP
Appraisal
Report).
POWER
SECTOR
REFORMS
IN
AP:
There is a change in the strategy of the World Bank with regard to Power Sector reforms since 1993. Based on the lessons of the past, the bank decided in 1993 to lend its financial support to only those states that demonstrate a commitment to implement a comprehensive reform of their power sector. The first state to implement power sector reforms as per the new strategy of the Bank was Orissa followed by Haryana, Andhra Pradesh and Uttar Pradesh. Now other states like Karnataka are queuing up before the Bank. Andhra Pradesh initiated the power sector reforms from 1999 by reaching an agreement with the World Bank for a loan to the tune of Rs.4000 crores. The objectives of the power sector reforms were stated in the APPSRP appraisal report as follows:
“The
reform
of
the
power
sector
is
the
single
most
important
element
of
structural
and
fiscal
reform
in
Andhra
Pradesh.
The
underlying
broader
development
objective
of
the
Andhra
Pradesh
Power
Sector
restructuring
program
is
to
bring
about
a
permanent
shift
in
public
expenditure
in
the
power
sector,
from
major
drain
on
the
budget,
to
a
contributor
of
fund
to
social
sectors
and
other
priority
areas
for
public
investment.
This
fiscal
dimension
links
the
program
to
the
broader
APERP”
(page
3)
“The
power
sector
specific
development
objective
of
APPSRP
is
to
ensure
that,
by
2007
the
energy
requirements
of
the
state
are
met,
and
that
consumers
are
provided
with
reliable
high-quality
and
cost-effective
electricity
supply
by
credit
worthy
commercially
operated
power
utilities
functioning
is
a
competitive
and
appropriately
regulated
power
market
with
significant
private
ownership
and
participation”
(page
3)
“The
ultimate
objective
of
the
reforms
initiated
by
Andhra
Pradesh
is
for
the
Government
to
withdraw
from
the
power
sector
as
an
operator
and
regulator
of
utilities
and
to
have
commercially
operated
largely
privately
owned
utilities
functioning
in
competitive
and
appropriately
regulated
power
market”.
(page
8).
The essence of the power sector reforms is to hand over this vital sector to private players and prepare the ground for these players to appropriate huge profits. Conditions for maximizing profits for the private sector is done primarily by two ways. Firstly, to increase the power tariff substantially to ensure reliable profits for the private companies. Secondly, using the Bank funds for creating a reliable power infrastructure so that the private players can use it to accumulate profits at the cost of public money. The crude logic of reforms is evident when it aims at withdrawing subsidies for the poor consumers but desires to establish subsidized high cost infrastructure for the private companies through the funds obtained from the Bank, whose burden will have to be borne by the people subsequently.
Prior
to
the
reforms,
the
Andhra
Pradesh
State
Electricity
Board
managed
the
production,
distribution
and
transmission
of
power.
As
part
of
the
reforms,
APSEB
was
unbundled
to
set
up
AP
Transmission
Corporation
and
AP
Generation
Corporation.
Distribution
was
separated
from
APTRANSCO
and
4
distribution
companies
were
formed
and
they
will
be
handed
over
to
private
companies
in
future.
A
law
entitled
Andhra
Pradesh
Electricity
Reforms
Bill
was
enacted
in
1998
to
regulate
the
entire
power
sector.
Andhra
Pradesh
Regulatory
Commission
was
set
up
to
decide
and
regulate
the
power
tariff.
Private
power
companies
like
GVK,
Spectrum
and
Kondapalli
power
were
allowed
into
the
generation
sector.
The
State
Government
clandestinely
reached
power
purchase
agreements
with
these
private
companies
(PPAs).
There
were
reports
in
the
media
suggesting
large
scale
irregularities
in
the
PPAs
and
bribes
changing
hands.
As
usual,
the
APTRANSCO
is
paying
higher
tariff
to
the
private
companies.
As
a
result
these
private
companies
have
become
a
big
burden
for
APTRANSCO.
The
World
Bank
stipulated
a
condition
to
effect
15%
rise
in
power
tariff
in
the
year
2001
and
2002
each
and
an
annual
average
tariff
hike
of
10%
for
the
next
four
years.
The
power
sector
will
be
modernized
in
the
next
seven
years
by
spending
Rs.28000
crores,
which
will
be
mobilized
as
follows.
The
World
Bank
provides
Rs.4000
crores,
the
State
Government
shall
provide
Rs.5400
crores
and
the
remaining
funds
would
be
mobilized
from
commercial
banks.
The
tariff
hike
shall
ensure
reliable
profits
for
private
generation
companies.
The
modernization
of
power
infrastructure
will
ensure
reliable
profits
for
private
distribution
companies.
The
poor
shall
have
to
bear
the
burden.
This
is
the
essence
of
the
power
sector
reforms
imposed
by
the
World
Bank
on
Andhra
Pradesh.
The
World
Bank
imposes
four
important
conditions
as
part
of
the
power
sector
reforms.
They
are
(1)
Privatization
of
the
power
sector
(2)
Setting
up
of
Regulatory
Commission
(3)
Raising
the
power
tariff
(4)
Slashing
subsidies.
All
these
four
conditions
were
faithfully
implemented
by
the
State
Government.
The
Andhra
Pradesh
State
Electricity
Regulatory
Commission
announced
the
first
tariff
order
on
May
21,
2000.
The
Regulatory
Commission
decided
the
tariff
based
on
cost
to
serve
formula.
The
Commission’s
investigation
for
deciding
the
tariff
was
severely
criticized
by
several
sections.
Many
organizations
opposed
the
presence
of
World
Bank
officials
in
the
meetings
of
Electricity
Regulatory
Commission.
While
the
real
culprit
was
the
inefficient
APTRANSCO
and
the
government
which
implemented
disastrous
reforms,
the
people
had
to
face
the
burden.
The
main
reason
for
the
losses
in
the
power
sector
are
paying
high
cost
for
the
private
power,
failure
to
prevent
power
theft,
billing
being
less
than
40%,
high
transmission
and
distribution
losses
and
accumulating
payment
arrears.
Instead
of
correcting
these
malaise
resorting
to
tariff
hike,
evoked
wide
spread
condemnation
from
all
sections
of
consumers.
Liberalization is always associated with an attempt to distance people from real issues. The State Government resorted to various methods of image management to sell this poisonous pill of power reforms to the consumers with bogus claims. The Government propagated that the tariff hike was inevitable for providing reliable and quality power in future and preventing the power sector from sliding into a bigger crisis. The Government’s deceitful propaganda included mock public debate in the name of white papers, ruling party and government officials holding meetings, and especially through an orchestrated media management. The nature of media ownership and concentration has also helped the Chief Minister. One single media group whose management openly and blatantly supports Chandrababu Naidu, controls a majority of newspaper readership and television viewership through cross-media ownership and monopoly. Not only influencing the newspaper management, individual journalists were also pampered to join this chorus of consent. The general pro-liberalization mindset of the media and its functionaries also help the government in this propaganda. Chandrababu Naidu who claims to be the champion of information society has in fact resorted to worst kind of information maneuvering to influence the minds of the people. A newspaper management was forced by the Government to stop publication of articles of two columnists, who were critical of World Bank reforms. Even an editor of a Telugu paper belonging to a national newspaper chain was sacked by the management at the behest of Government for providing a relatively truthful account of the struggle. During the three month long agitation the police let loose a reign of repression even on individual journalists, who sincerely tried to portray the reality. All these were a part of a process, which can be described as manufacturing consent, to borrow Noam Chomsky’s phrase.
Despite police repression and state manipulation several sections of media were compelled to prominently cover this agitation. This is evident from a quick content analysis of front pages of different Telugu newspapers during June, July, August months.
Number
of
days
in
which
the
agitation
figured
on
the
front
pages
Newspaper
Name
June
July
August
Eenadu 19 9 21
Vaartha 19 21 31
Andhra Bhoomi 26 25 28
Prajasakti 28 29 28
The whole process of implementation of reforms was shrouded in secrecy. The World Bank conditions, correspondence between the State Government and the Bank and the related documents were withheld even from the state assembly. The state government withdrew the proposal to enact the right to information bill which was suggested by group of its own ministers. The Chief Minister who has a craze for conducting all-parties meetings even on unimportant issues refused to hold all-parties meeting on the crucial issue of power tariff hike even at a time when the agitation was at its peak. The power purchase agreements reached with private companies, which entail a huge drain of public resources remain official secrets. This is the style of governance of a Chief Minister, who makes repeated claims of transparency, plain speaking and accountability when it comes to World Bank reforms.
THE
CPI(M)’S
CRUSADE:
Referring to the responsibility of the Communist Party even at a time when the ruling classes manipulate ideas in their favour, Lenin had said:
“We
must
untiringly
combat
any
and
every
bourgeois
ideology,
regard
less
of
the
fashionable
and
striking
garb
in
which
it
may
drape
it
self”
-
(p.342,
Collected
Works
,
Vol.5)
The CPI(M) consistently opposed the World Bank sponsored reforms right from the beginning. The Party intervened on every occasion to expose the hypocrisy behind the false claims of the Chief Minister and the sinister designs of the reforms. The CPI(M) has released the secret documents proving the state government’s abject surrender to the World Bank conditions. The CPI(M) ran an elaborate campaign in 1995 opposing the Hitenbhayya committee recommendations aimed at privatization of power sector.
Similarly,
the
CPI(M)
conducted
campaigns
to
oppose
the
Subramanyam
and
Gangaopadhya
committees
recommendations.
It
effectively
exposed
the
World
Bank
document
entitled
“A.P.
Agenda
for
Economic
Reforms”
in
1996.
The
discussions
between
the
state
government
and
World
Bank
had
reached
crucial
stage
in
June,
1997.
The
CPI(M)
made
public
the
aide
memoir
documents
and
enlightened
the
people
about
the
World
Bank
conditions
and
the
consequences
of
the
reform’s
process
in
different
sectors
and
for
different
people.
The
CPI(M)
has
also
made
public
the
document
entitled
“Summary
of
the
meetings
between
Chief
Minister
Chandrababu
Naidu
and
World
Bank
Resident
representative
Edward
Lim
on
June
4,
1997
at
Hyderabad”.
These disclosures by the CPI(M) sparked off a major debate. The contents of these documents helped immensely in the CPI(M)’s consistent propaganda that the Naidu’s Government was succumbing to World Bank’s conditions. The State Committee of the CPI(M) published the book entitled “World Bank Loan: Boon Or Bane?” which included all the relevant documents and literature of the World Bank regarding its relationship with the state government. An introduction to the World Bank papers explaining CPI(M)’s perspective was published in Telugu and thousands of copies were circulated among the people. The CPI(M) also successfully made public the appraisal reports of APERP and APPSRP and exposed the hidden danger of these World Bank sponsored projects. The CPI(M) by disclosing these documents challenged the state government to reply and release all the documents concerning its relationship with the World Bank. The opposition parties especially the CPI(M) effectively used the assembly forum to expose the state government’s surrender to World Bank.
The opposition relentlessly pressurized the government to disclose the World Bank documents during the assembly sessions February-March, 1999. The CPI(M) demanded that the government place the documents before the State Assembly or allow it to place the same. The other opposition parties also supported the CPI(M)’s demand. Cornered by this, the state government ultimately placed the APERP documents before the state assembly. Until then, it was maintaining that the World Bank had not imposed any conditions.
The state government changed its argument. The new argument was that the conditions are common, when a loan is taken, and these conditions are not harmful. The CPI(M) effectively countered this new rhetoric. The CPI(M) also exposed the fallacy in the argument of the state government that the World Bank loan is the cheapest possible assistance. The Party countered with full facts and figures and pushed the government to the wall.
Rattled by the effective campaign of the CPI(M), the ruling party especially its supremo Chandrababu Naidu indulged in a false propaganda that even the West Bengal took loans from the World Bank and the CPI(M) was indulging in double talk. Countering this motivated campaign by the ruling party the CPI(M) made it clear that the Party is not opposed to taking project-specific loans without conditions from the World Bank. But is opposed to an economic restructuring agreement, which the Andhra Pradesh state government had agreed to with the World Bank.
When the state government brought the Andhra Pradesh Electricity Reforms Bill for the approval of the state assembly in 1998, the Left parties strongly opposed the bill. The bill was adopted by the house after suspending the members of Left. The power sector employees observed two days strike against the power bill in April, 1998. Though the INTUC betrayed, the strike was successful under the leadership of an independent union. Though the CITU has a weak presence among the employees, its consistent and effective campaign in exposing the danger of power sector reforms, significantly contributed to the success of the strike. The State Government made every effort to suppress the strike. The government tried to divide the working class, by entering in to an agreement with a union led by INTUC All India President. The Government successfully distanced the Engineer’s association from the strike and also the contract and casual workers by promising that they would be made permanent. It threatened to bring in the army to suppress the strike. The strike was successful despite all the efforts and threats of the state government to crush the strike. This is a notable success when viewed against the fact that the strike was observed against all odds. The World Bank unabashedly appreciated the state government for suppressing the strike. The World Bank said
“Approval
of
the
Reform
Bill
by
the
legislature
in
April
1998
had
triggered
a
state
wide
strike
by
APSEB
workers.
The
Government
had
to
mobilize
large
contingents
of
police
force
and
kept
the
army
on
the
standby
to
protect
installations
and
keep
the
system
running.
The
Government
stood
firm
and
did
not
retreat
from
the
reform
measures”
(APPSRP
Appraisal
Report
of
Page
19)
The CPI(M) during the last four years has conducted an intense campaign against the World Bank and the State Government through several forums. Since 1998, the Party and the mass organizations circulated 142 pamphlets in lakhs and 12 booklets.
In October 1998, the CPI(M) organized campaign jathas from all corners of the state. Though the CPI(M) alone was raising the issue of World Bank conditions at the initial stage, all opposition parties subsequently joined the campaign.
The CPI(M)’s consistent and effective campaign intervention on every occasion has enhanced the Party’s prestige and credibility among the people and the media. The ruling party and especially the Chief Minister Chandrababu Naidu targetted the CPI(M) for criticism and misinformation campaign. The Party state centre became a source of information on the subject of World Bank conditions and reforms for the media and other political parties. Its effective disclosure of the secret documents and convincing presentation of an alternative brought the Party to the centre stage of the debate on reforms during the last four years. The wider campaign of the Party was informed by the systematic and deep study of the materials concerning the power sector reforms.
The CPI(M) was also successful in turning the struggle against World Bank reforms into a political battle through its effective campaign. The CPI(M) could successfully bring the World Bank reforms and the state government surrender to the centre-stage of the public agenda. In every aspect of the campaign, the Party targetted both the State Government and the World Bank. Through wider mobilization of people on the issue, the Party could effectively immobilise the powerful ruling party.
However, the Party acknowledges the fact that the movement against the power sector reforms in particular and World Bank reforms in general could not have achieved the much needed political striking power without uniting the largest possible forces and masses. The State CPI(M) implemented the Leninist organisational principle “Work Independently and strike unitedly”. The Party combined independent initiative and the broadest possible united action in the ongoing struggle against the World Bank and the State Government.
THE
PRICE
HIKE
AND
AFTER:
The steep hike in power tariff galvanised the entire struggle against the power sector reforms in particular and the World Bank reforms in general.
Even after failing to answer the questions raised by the experts, political parties, mass organizations, intellectuals and several individual consumers, the Electricity Regulatory Commission announced a 20% hike in the power tariff on May 27, 2000. It amounted to the tune of Rs. 1050 crores. Especially a hundred per cent of hike hit hardly the domestic consumers. All the sections were horrified at the burden imposed on them. Faced with opposition from everywhere including from a section of the ruling party itself, the state government announced a 5% relief on June 3 and maintained the price hike at 15 per cent. Even after this reduction, the burden was still at its peak high i.e. of 800 crores. In fact, this is what World Bank had asked. The 20 per cent hike by the regulatory commission and subsequent relief announced by the state government was nothing but a pre-planned attempt to reduce opposition to the tariff hike. The CPI(M) effectively exposed this drama enacted by the State government in collusion with so called independent regulatory commission. Thus the demand for a complete roll-back of increased tariff continued to gain momentum.
INNOVATIVE
CAMPAIGN
AND
UNITED
ACTION:
The success of this campaign was to a great extent due to the meticulous planning, adoption of innovative forms and widest possible mobilization. The CPI(M) immediately responded to the price hike and called for public demonstrations to oppose it.
The Congress also called for protest actions. The disgruntled TDP leader and the deputy speaker of the state assembly wrote an open letter to Chief Minister opposing the power tariff hike. This raised a storm of controversy. On June 2, on the initiative of the CPI(M), nine Left parties formed a united platform to continue the struggle. The state government hope that the movement would subside after the announcement of 5 per cent relief in the increased tariff was shattered. In fact the movement continued to spread and gain momentum. The nine Left parties announced a month long agitation program in June 2000 which included rastaroko, picketings, massive signature campaign and burning the double headed effigies depicting Chandrababu Naidu and the World Bank. The success of these agitation programs drew wider public attention and further brought the issue to the fore.
The nine Left parties met on June 24 and announced the subsequent plan of action. Week long campaign padayatras, dharnas, picketings, conventions at regional level involving peoples from different walks of life followed. This second phase of agitation programme culminated on July 31 with picketings at Collectorate offices. The response for this agitation program was massive and militant. The united action of nine Left parties made the Congress announce its intention to work with the Left Parties in the struggle. Due to the ambivalent stand of the Congress on the question of the World Bank reforms, the nine Left parties decided to conduct the campaign only in synchronization with Congress. Because of people’s mood, Congress also started talking of Telugu Desam government’s surrender to World Bank dictates. The nine Left parties felt that it is essential to rally all the forces and energies opposing the state government’s surrender to the World Bank, into a single united action. The Left was aware of the fact that it was fighting not only the government at Hyderabad but an imperial finance institution in Washington. The synchronized action between the Left and the Congress was immensely helpful in instilling confidence among the people in the struggle against the State Government and the World Bank.
Different
mass
organizations
representing
working
class,
peasantry,
women,
youth
and
students
formed
a
broad
platform
of
mass
organizations
to
spearhead
the
struggle.
The
leaders
of
the
Left
parties
and
Congress
participated
in
the
state
level
convention
held
under
its
aegis
on
June
12
in
Hyderabad.
Subsequently
similar
conventions
were
held
at
district
level.
This
further
reinforced
the
co-ordinated
efforts
and
gave
the
movement
greater
fillip.
THE
GOVERNMENT’S
RESPONSE:
Rattled by the growing response to the opposition movement against the power tariff hike the state government has set in motion a dual strategy of counter campaign on one hand and on the other letting loose a reign of repression on the opposition. The incident at Ongole on June 15th epitomize the government’s repression. The activists of Left Parties who assembled to gherao state minister Srinivasa Reddy at Ongole were brutally beaten up. Two important functionaries of the Left parties were tied with chains to the hospital beds. This has raised many an eye-brow. Severe protest to this heinous repression was demonstrated all over the state.
As part of the diversionary tactics, the state government conducted meetings of electricity consumers, dwacra groups etc. The State Government began giving new slogan of regularizing illegal connections and giving new connections in the name of preventing power theft. The meetings of power consumers were held all over the state with government sponsored fanfare. Chief Minister, Ministers and ruling party legislators participated in these meetings. The Left parties took an innovative decision to intervene in these meetings and challenge the government rather than ignoring them. The meetings of the consumers convened by the Government were successfully turned by the opposition parties into protest meetings against the power tariff hike. The Government tried its best to exclude the activists of the Left parties and tried to prevent their entry into these meetings using police brutal force. But innovative forms adopted by the Left parties helped in effectively overcoming government’s strategy. The innovative style in which the Left tried to brave the government’s efforts to prevent them is epitomized in the event at Kurnool in which Chief Minister participated. The following report published in the press stands testimony to this.
Deadly deception
Kurnool,
July
29:
A
group
of
protestors
led
by
CPI(M)
leader,
Mr.E.Pulla
Reddy
outwitted
the
police
and
manage
to
reach
the
centre
of
the
town
in
the
guise
of
a
“dead
body”
and
pallbearers
during
the
visit
of
the
Chief
Minister
to
the
town
on
Friday.
The
Police
launched
a
crackdown
on
the
activists
of
all
left
parties
day
before
the
visit
and
took
many
in
to
preventive
custody
to
foil
any
demonstration
before
the
Chief
Minister.
However,
the
left
activists
challenged
the
police
and
vowed
to
carry
out
their
protest.
About
300
activists,
many
from
villages
whose
identity
is
not
known
to
the
local
police
played
mourners.
While
Pullareddy
wrapped
himself
in
white
cloth
and
laid
out
on
the
funeral
stretcher.
All
rituals
associated
with
the
funeral
procession
like
funeral
band
smearing
of
vermillion
turmeric
powder,
sprinkling
of
coins
and
puffed
rice
were
scrupulously
followed.
The
police
who
watched
the
procession
disdainfully
throughout
the
length
of
two
km,
did
not
stop
it
anywhere.
After
reaching
the
targetted
place
at
Alankar
centre,
the
dead
man
got
up
and
distributed
red
flags
concealed
under
him.
They
created
a
scene
until
the
police
reinforcements
arrived
and
arrested
them.
Mr.Reddy
said………..
the
motive
behind
enacting
the
mock
funeral
procession
was
to
divert
the
attention
of
the
police
from
security
arrangements
at
the
venue
so
that
his
colleagues
there
could
perform
better.
(THE
HINDU
July
30th).
The
Andhra
Prajanatya
Mandali
cultural
troupes
stayed
for
a
full
day
in
the
190
bus
stations
in
the
entire
state
and
conducted
campaign
in
every
Road
Transport
Corporation
bus.
Through
this
message
of
struggle
reached
nook
and
corners
of
the
state.
On June 21, the activists of the Left parties, who tried to submit a memorandum to the State Agricultural Minister V.S.Rao in Vijayawada, were severely beaten up, even the women and leaders of the party were also not spared. The police brutality did not spare even the media persons who tried to discharge their duty by covering the scenes. This incident roused the people’s anger all over the state. The movement gained further strength after this incident and the protest bandh in Vijayawada in response to the call given by the Left parties and Congress was total.
The intensity of the repression on the movement can be understood by the fact that the ruling party announced ‘Telugu Sena’ to be formed to counter the opposition campaign. The plans of the ruling party to mobilise a goonda force to curb the legitimate democratic protest of opposition was met with widespread condemnation by all sections of the society. Taken aback by the hostile response, the ruling party later announced that formation of Telugu Sena was only a proposal. However, the ruling party used goonda elements to attack the opposition protestors at many places in the state.
Another milestone in this three months struggle was the Left-led demonstration on June 23 at Grand Kakatiya Hotel, the venue of a World Bank workshop. The nine Left parties called for picketing in front of the Hotel. The Government left no stone unturned to ensure that the protestors did not reach the venue and the World Bank officials do not hear the voices of protest. Despite this brazen display of government loyality to the World Bank and its machinery the Left parties cadre could penetrate the police cardon and successfully hold the demonstration. The police once again resorted to a brutal lathicharge. Even women activists were subjected to the police attack. Some of the participants representing different voluntary organizations expressed their reservations over the reforms during the meeting which was delayed due to the Left demonstration.
Soon the movement assumed a much wider character involving different sections. By the end of the June, 2000 – several non-governmental organizations and consumer forums started questioning the power price hike. Intellectuals formed forums in Visakhapatnam and Hyderabad to oppose the tariff hike. The AP Chamber of Commerce and Trade formed a forum on June 29 to oppose the upward revision of the power tariff and announced a phased action.
On July 4, 2000, traders in Chikkadapally area observed black out of electricity between 7.00 p.m. to 8.00 p.m. and conducted business by lighting kerosene lamps/candles. Traders wore black badges and hoisted black flags as a protest.
The government did not take kindly to the protests of traders. The sign boards of shops were dismantled using cranes. This vandalism evoked sharp protest from the trading community. Traders began to join the agitation in a big way all over the state. They expressed their protests by resorting to black-out by switching off the lights and lighting kerosene lamps. This novel form of protest later became popular as Bijli Bandh. The state wide bijli bandh was held on August 24 as a culmination of similar such acts at the local and district level.
The owners of small scale industry observed a protest on July 13 and the managements of private educational institutions observed bandh on July 19.
Yet an another novel form of protest was peoples’ ballot. The CPI(M) called for a people’s ballot on the tariff hike on July 25. The nine Left parties held state wide people’s ballot on July 29 in the presence of the media. About 5 lakhs of people participated in this people’s ballot held in 395 centres for two hours all over the state. about 96.98 per cent of the people who participated in the people’s ballot opposed the government’s move. This remarkable response to people’s ballet pooh-poohed the government’s claim that the opposition protest lacks people’s support. Instead of accepting the people’s ballet as a genuine feed back from the people, the government alleged opposition of resorting to rigging. But the opposition effectively countered the government’s allegation by demanding government to conduct people’s ballet to know the feelings of the people.
The Mahila Janmabhoomi organised by the government in the first week of August was also similarly used by the opposition to corner the government representatives. The all party meeting convened by some intellectuals on August 3 called for non-cooperation movement in the form of refusing to pay the power bills. To support this movement the left parties gave a call for picketing before electricity revenue offices. Despite government’s propaganda to the contrary, consumers actively responded to the opposition’s call by refusing to pay the bills. The efforts of TDP leaders to mobilise consumers for paying bills incurred the wrath of people at many places.
The echoes of public protests reverberated on the floor of the house when the state assembly met in August. The opposition legislators were on their feet protesting. The opposition members were suspended and marshaled out on August 18th. The Congress legislature party unilaterally called for mass fast unto death. Despite having the reservations on this form of protest at that particular stage, the two CPI(M) legislators joined the fast unto death to preserve the unity of the struggle. This programme enthused the masses and increased their confidence in the movement. And hunger strikes were observed all over the state to express solidarity with fasting legislators. The vacillations and internal feuds in the Congress came to the fore during the hunger strike. Some legislators were disgruntled with this form of protest action and wanted to discontinue it. However, the Congress postponed its decision to withdraw the hunger strike due to the pressure from the Left.
The nine Left parties called for Chalo Assembly programme on August 28. Despite initial vacillation the Congress finally decided to join the protest. The Government spared no efforts to thwart the opposition mobilization. Heavy rains disrupted normal life in several districts. Due to government inefficiency the Hyderabad twin cities faced unprecedented floods. The Government tried to utilize the flood situation for obstructing the Chalo Assembly program. The nine Left parties decided to go ahead with the program, while participating in the flood relief work. The CPI(M) being in the forefront of the relief work in the twin cities could counter the Government’s campaign. After failing to stall the opposition from going ahead with its program, the government and the ruling party launched a false propaganda that contagious diseases were widely prevalent in twin cities due to floods and appealed to the people not to respond to the opposition’s call. The city police rejected permission to the Chalo Assembly program. The transport officials were used to pressurise truck owners not to give their vehicles to the opposition parties. Obstructions were also created for the movement of protestors by rail. Despite the government’s obstacles, the people rallied in impressive numbers.
The government strategy was to suppress the movement by letting loose a reign of terror on the people. Much ahead of August 28, government started fabricated propaganda that extremist elements had penetrated the agitation and violence would occur. On August 28, at the behest of the state government, police resorted to firing on the demonstration killing three. The TEJA television channel telecasted the police brutality live. The unprecedented police repression created a storm of anger in the people across the state. All those killed and injured had bullet injuries above the chest level indicating that the police resorted to shooting aimed to kill. The scenes telecast on the network was testimony to government repression. The state government refused to institute a judicial enquiry in to the incidents. The government has even tried to prevent the TEJA telecasts by threatening the cable operators with the help of district administrations in many places.
The state witnessed a peaceful and spontaneous bandh on August 29. Protest demonstrations were held all over the country.
The Congress legislators withdrew the hunger strike on August 28. Though the CPI(M) disagreed with the Congress, the CPI(M) legislators too called off their hunger strike keeping in view the future unity of the movement. The police brutality and the withdrawal of the hunger strike dampened the morale of the people and their confidence in the movement. The increased payments of power bills after August 28 reveals this dampened spirit. The Government launched hectic campaign to propagate blatant lies about August 28 events.
The
Left
parties
observed
a
protest
week
in
September
against
police
repression
and
false
propaganda.
During
this
week-long
campaign,
the
Left
parties
countered
the
campaign
of
the
government
among
the
people
at
large
through
pamphlets,
video
shows,
exhibitions,
sale
of
photo
albums.
State
level
convention
against
repression
were
also
held.
We
were
able
to
put
the
government
in
a
dock
for
criminal
action
on
August
28.
UNIQUE
FEATURES
OF
THE
CAMPAIGN:
The
CPI(M)
utilized
every
forum
organized
by
others
on
this
issue
to
voice
its
stand.
Such
a
multi-media
effort
helped
to
give
much
broader
and
wider
appeal
to
the
Party’s
campaign.
The
Party
combined
the
mass
campaign
and
a
selective
campaign
among
different
classes,
which
provided
cultural
leadership
to
the
masses.
The
campaign
was
continuous
and
multifarious
in
character.
The
CPI(M)’s
campaign
against
the
World
Bank
reforms
was
characterized
not
only
by
consistency
and
spontaneous
intervention
but
a
determined
effort
to
utilize
all
possible
avenues.
The
CPI(M)
pamphlets
reached
wherever
people
mobilized
including
the
ruling
party
congregations.
For
instance
the
party
distributed
lakhs
of
pamphlets
among
the
people
attending
TDP’s
annual
conference
called
Mahanadu.
The
meetings
of
self
help
DWACRA
groups
were
also
utilized
to
reach
the
Party’s
voice.
The
CPI(M)
wrote
letters
to
MLAs,
MPs,
sarpanches
and
other
representatives
of
the
local
bodies
irrespective
of
their
party
affiliation
explaining
the
dangers
of
the
World
Bank
path
and
urging
them
to
resist.
The
Party
utilized
the
forums
of
non-governmental
organizations
(NGO),
intellectuals
and
other
opinion
leaders
in
the
society.
The
Party
activists
went
to
every
meeting
participated
by
ruling
party
legislators,
Ministers,
Government
officials
to
raise
the
issue
of
power
tariff
hike
and
peacefully
demanded
reply
from
the
Government.
Many
a
time
the
ruling
party
and
government
leaders
especially
the
Chief
Minister
made
vituperative
public
utterances
against
communists
specially
CPI(M).
The
Government
charged
that
the
opposition
was
preventing
it
from
discharging
its
democratic
and
legitimate
right
to
administrate.
Effectively
countering
this,
the
CPI(M)
argued
that
the
government
was
resorting
to
unilateral
administration
without
taking
the
people
or
political
parties
or
even
the
state
legislature
into
confidence.
The
Government
was
not
explaining
its
stand
to
the
people
but
implementing
and
thereby
imposing
its
policies
on
the
people
and
therefore
the
people
were
left
with
no
choice
except
to
exercise
the
right
to
protest
as
a
legitimate
attempt
to
make
an
autocratic
government
to
heed
the
grievances.
A
significant
feature
of
the
Party
campaign
on
the
issue
was
an
attempt
to
link
the
public
policy
which
has
an
immediate
bearing
on
the
people
to
the
overall
programmatic
understanding
of
opposing
the
imperialistic
hegemony
and
the
ruling
class
which
permits
perpetration
of
such
a
hegemony.
This
was
precisely
how
the
campaign
and
struggle
against
power
price
hike
was
turned
in
to
a
people’s
battle
against
the
World
Bank
reforms.
This
was
the
significant
achievement
of
the
movement
despite
the
fact
that
it
could
not
achieve
any
further
relief
for
the
people
in
the
increased
tariff.
The
three
months
long
campaign
saw
one
or
other
protest
program
every
day.
The
movement
militantly
braved
state
repression.
The
police
resorted
to
lathicharge
on
more
than
200
occasions.
Even
the
Home
Minister
declared
in
the
state
assembly
that
20,414
people
were
arrested
and
533
cases
were
registered.
The
Home
Minister
in
his
report
to
the
state
assembly
also
acknowledged
that
the
role
of
women
in
the
agitation
was
clearly
manifest.
The
militancy
and
heroism
shown
by
the
cadre
including
large
number
of
women
needs
special
mention.
Every
party
functionary
including
party
MLAs,
MP
and
members
of
the
Central
Committee
and
State
Secretariat
directly
participated
in
the
struggle
and
suffered
at
hands
of
the
police.
The campaign ranged from conventional forms like Dharnas, Rallies to innovative protest forms like Bijili Bandh and People’s Ballot. The visual forms of campaign were a unique feature. The helplessness of the government during this entire agitation was clearly manifested as all the meetings of Chief Minister and Ministers turned in to virtual police camps. The spontaneous and timely intervention of the movement leadership was very useful in rousing people’s consciousness during the entire agitation program at a time when the state government with its massive resources unleashed Goebbelsian propaganda both on the reforms and the movement. The literature produced by the CPI(M) was highlight of the campaign. The Party’s literature was well documented and researched giving it greater credibility not only among masses but among media, intellectual and other opinion leaders.
During the entire agitation not a single ruling party legislator or a government official or a police man were injured at the hands of the protestors, which indicates the peaceful nature of the movement. On the other hand, as already explained, the state repression was brutal.
Interestingly the TDP state general secretary wrote a letter to the CPI(M) alleging that the later was resorting to violence. The CPI(M) effectively challenged the bankruptcy of the ruling party propaganda.
The Left and the Congress conducted this entire agitation by synchronizing their programs. The state government made a vain bid to divide the opposition’s camp by trying to isolate CPI(M) or provoking the Congress by calling it a blind follower of the Left.
LIMITATIONS
OF
THE
STRUGGLE:
A notable weakness was the lack of response from the electricity workers during the people’s agitation and the inadequate response from the people earlier, when the electricity workers were on strike opposing unbundling and privatization of state electricity board. The power engineers who were with the people during the agitation backed the government during the electricity workers strike. Though the tariff hike affects all sections of the consumers, different sections of the society experienced differential levels of impact of the World Bank reforms. However at the later stage of agitation different sections and forces were successfully galvanized to join the struggle giving it the much needed momentum.
The middle class faced the maximum burden of this power price hike. These sections responded impressively in favour of the agitation. But due to their professional status, their participation in direct action was limited. The impact of the tariff hike on the poorer sections and agricultural labourers was less when compared to others. Therefore their participation in direct action on the issue was also limited though their overwhelming sympathies lay with the movement. The state government deliberately chose the timing for the tariff revision as May end. This is the time when rainy season starts and the peasantry is fully involved in agricultural work. As a result their participation was also not at the full level.
The participation of the Congress helped to instill confidence in the people on the movement and sustain the movement for such a longer period. But the vacillating attitude of the Congress proved to be a weakness at the end.
The Chief Minister gave new slogans, new programs every day. The people were kept under illusion that the World Bank funds will result in development work. These illusions were yet to be dispelled in many sections which hindered their participation in the agitation.
The
movement
was
not
successful
in
forcing
the
government
to
declare
any
further
relief
in
the
increased
tariff.
This
was
because
the
state
government
was
so
committed
that
it
was
not
ready
to
give
an
impression
to
the
World
Bank,
that
it
retreats
from
the
reform
path
due
to
political
pressure.
The
World
Bank
has
always
been
alert
and
prompt
in
warning
the
government
on
a
possible
retreat.
The
World
Bank
president
Wolfenson
not
only
made
a
public
statement
in
the
Washington
defending
the
tariff
hike
but
also
paid
a
visit
to
the
state
to
keep
the
Chandrababu
Naidu
Government
firmly
committed
to
reforms.
ACHIEVEMENTS:
The World Bank condition was to impose 15 per cent hike in the tariff again this year. Compelled by the agitation last year the state government submitted tariff proposals to Electricity Regulatory Commission without suggesting any further hike, but in fact an overall reduction in the tariff to the tune of Rs.40 crores was proposed. This is the partial, though delayed success of the movement. Even the media acknowledged this and the people have begun to understand.
The movement was successful to put the government in the dock on the question of power sector reforms in particular and World Bank reforms in general. The image of the World Bank and Chandrababu Naidu Government suffered a serious beating. This fact was acknowledged even in the Bank documents. The Bank decided to indulge in s public relations exercise to refurbish its image. The Bank itself concluded that Chandrababu Naidu Government postponed the Panchayat Raj elections fearing a political fall out of this agitation.
An important feature of the agitation lay in the appreciable unity evident among the Left parties. This remarkable unity enthused the Left masses and helped instil people’s confidence in the agitation. However this unity cannot be sustained in future with out achieving broad political unity. Such a political unity among Left parties would help to effect change in the correlation of political forces in the state. However such a political unity cannot be facilitated unless some left groups shed their sectarian attitudes towards the whole question of Left unity. This united action created a positive atmosphere to struggle for political unity among the Left parties.
Peoples’ consciousness was roused about the perils of World Bank inspired structural reforms. The unity forged among the people during the agitation is a happy augury for the future. The militancy and heroism of the party cadre and alertness of party organization and the depth of its study on people’s issues were demonstrated. The Party’s prestige has been significantly enhanced.