INTRODUCTION
Andhra Pradesh is now in the forefront of national and international
attention due to its economic restructuring programme initiated by its Chief
Minister N. Chandrababu Naidu, or_as he likes to call himself, the Chief Executive
Officer (CEO) of Andhra Pradesh. It s is in the news for: Naidu's political
leadership for the on going economic reforms, his . policy programmes like
Information Technology Policy (HI-Tech City, HIT, e-governance), Vision 2020,
Janmabhoomi programme etc., state's effort to attract both domestic and
international investment; Naidu's style of governance; the way Naidu controls the
centre for his political survival and state development; the way he projects Andhra
to the nation and world; the way international aid agencies like the World Bank
and developed countries look at Andhra Pradesh. Andhra Pradesh is also in the
news for: highest number of AIDS cases, highest incidence of child labour,
highest number of prostitutes, high migration of labourers to the other states,
farmers suicides, industrial workers strikes, continuous people's protests, re
emergence of Telangana movement, survival of Naxalite movement, youth unrest
due to unemployment, debt-riddeness, number of scams, etc. This picture forces
academicians or researchers to examine Naidu's experiment empirically.
The state of Andhra Pradesh (AP), which is generally divided into three
geographical (economically unequal) regions known as coastal Andhra (developed
fertile and irrigated area), Rayalseema (drought prone area) and Telangana
(underdeveloped), came into existence on November 151 1956. It is the fourth
largest state having an area of 2,75,909 sq.km and a population of about 75.72
million out of which 26.84 percent is urban and the rest rural, that is, 73.16
percent. 1 Rural agriculture is the state's main occupation and about 37 to 40
percent of the state's Net Domestic product is derived form agriculture. Varying
types of soil, climate, surface water resources, a long coast line of 960 kilometres,
1 Verinder Grover and Rana Arora, Encyclopaedia of India and her States ( ed.), 1998, p. 2.
etc., give the state a comparable advantage in agriculture. On the whole, though it
varies according to region, the state gets a good amount of rain during both the
monsoons. Major rivers that run across the state such as the Godavari, the Krishna
· and the Pennar irrigate Andhra. However, only about 40 percept of cultivated area
is irrigated through projects such as the Nagarjauna Sagar, the Prakasam Barrage,
etc. In the production of tobacco, fruits, eggs, turmeric, rice, chillies and in
general agricultural productivity, Andhra Pradesh leads the country.2
Traditionally, Andhra has been called Annapurna and is known as the rice bowl of
India. Among Indian states, Andhra is second in both mineral and forest produce.3
Andhra is endowed with rich mineral resources some of which are ·unique to the
state. The mineral wealth of the state is rich, varied and remains untapped. Some
23 percent of the state is covered with forest. The state leads the country in the
white "revolution. And with regard to wealth from the sea, brackish water prawn
and fish farming have taken off in a big way in the states 64,000 hectares of
coastal land. Andhra is not well developed industrially. Infact, the share of
industry in the GDP of the state accounts for only 18 to 20 percent. Several major
industries are in operation around Hyderabad and Vishakapatnam. Some of the
industries are cotton and textiles, sugar, paper, cement, engineering and fertiliser.
Andhra Pradesh has got a strong infrastructural base for industries consisting of
arterial roads, a major port arid many minor ports, natural sources of water and air,
rail linkages and vast tracts of land. The government says that Andhra, with its
long coast, unlimited agricultural wealth, rich mineral deposits and existing
infrastructure is a is a land of opportunity for any entrepreneur.4
From 1956, when the state was formed, to 1983, when the Telugu Desam
Party (TDP), founded by the late N.T. Rama Rao swept into power, the state has
been ruled by the Congress party. The TDP has returned to power in 1985, 1994
2 "Andhni Pradesh: A Land of Opportunity", Blitz, November 1, 1997. 3 Majid Husain (ed.), Encyclopaedia of India"Andhra Pradesh, 1994, pp. 17-22. 4 http://andhrapradesh.com "Andhra Pradesh at a Glance"
2
and 1999. The present Chief Minister, N. Chandrababu Naidu, was sworn in as
Chief Minster first on September 1st 1995 and then for his present tenure on
October 11, 1999. The Communist movement in the state is quite strong, from the
Telangana movement to the present NaxaHte movement.
One should, however, see what the situation in Andhra Pradesh was before ...
Naidu came to power. Andhra Pradesh has failed to solve some of the major
problems, such as unemployment, poverty, caste and class divisions, regional
disparities, as expected, whatever the strategy of development that it has adopted
since 1947. That is why Andhra Pradesh has witnessed a number of political
agitations like separate Telangana Movement, Jai Andhra Movement, etc., and
social movements like Dalit Movement, Anti-liquor movement, Naxalite
Movement, etc. Now, caste based organisations from lower castes are growing
day by day in A.P because interests and wishes of lower castes are not properly
accommodated. Its per capita income (Rs. 2113), growth rate (4.5 percent),
literacy ( 44 percent) etc., are below the national average (per capita income: Rs.
2761, growth rate: 5.7 percent and literacy: 52 percent).5 It is argued that
development goals are not being met because of the failure in implementing
policies. And it can also be argued that people have developed negative attitudes
towards politicians and bureaucrats because they have failed to solve the problems
of the people. Moreover, other prpblems, such as corruption, favouritism, and
growing caste and communal consciousness also exist.
Naidu's Experiment
When he first came to power, Chandrababu Naidu announced that he
wanted to restructure the resource-rich'but under developed economy. His aim is
Swarnandhrapradesh (Golden Andhra Pradesh), and his economic restructuring
programme is geared to meet this aim. Swarnandhrapradesh means deve!oping
A .. P into a model state by international standards, making it the foremost
5 Report,,The Reserve Bank oflndia, Department of Economic Analysis and Policies.
3
industrial state in the county, the premier hub of Information Technology, where
poverty and illiteracy will be totally eradicated, unemployment and child labour
will be eliminated, a new work culture put in place, and a hi-quality of life will be
achieved in terms of social and·economic development hy international standards.
Vision 2020, which reflects the direction and methodology of the
government's policies and has fixed physical and financial targets till 2020, is the
blueprint to achieve Swarnandhrapradesh. Naidu was instrumental in formulating
Vision 2020 and has constantly announced and introduced new developmental
programmes to cater to diverse interests- caste, class, regions, gender, region and
religion in order to achieve Swarnandhrapradesh. According to Naidu, Andhra
Pradesh has not developed as expected due to wrong policies (State-led
developmental policies) adopted by previous governments in Andhra Pradesh. For
the all round development of A.P, there is a need to change the policies from state
led developmental policies to market-led developmental policies. The market-led
developmental approach is based. on neo-classical economic theory, which
advocates free market without intervention, limited state, open trade, privatisation
etc. He says that he believes strongly.in the market-led development approach to
achieve his ambitious dream of Swarnandhrapradesh because faster growth is
possible through this approach and therefore problems like poverty,
unemployment etc., will be solved. Economic restructuring programme consists of
three major aspects. First, policies, programmes and courses of action related to
economic development are aimed at sustained long-term growth through focussing
on growth engines that offer high growth opportunities in three sectors -
agriculture, industry and service. 6 The state wants to develop growth engines by
allowing market to freely allocate resources most efficiently, encouraging private
investment, involving state wherever necessary. Second, policies, programmes
6 For details, see Vision 2020- Swarnandhrapradesh (1999); N. Chandrababu Naidu and Sevanti Ninan, Plain Speaking, Delhi: Viking, 2000, Andhra Pradesh: Agenda for Economic Reforms {1997), Document of the World Bank; Andhra Pradesh Economic Restructuring Project (1998), Document of the World Bank and Naidu's Interviews and articles from the news papers.
4
and course of action related to social development are aimed at high quality of life
through building capabilities of people - skilled, healthy and productive. 7 It
claims to do this through promoting investment in infrastructure. Third, policies,
programmes and course of actions related to institutional development are aimed
at good governance to facilitate both economic and social development through
decentralisation of power, introduction of electronic governance, maintenance of .
law and order, etc.
Naidu's Public Pronouncements: One can have an overview of Naidu's
economic reforms, developmental programmes, and the strategy that he has
adopted through public pronouncements and policy statements in the press and the
other public fora:
"I want to make Andhra Pradesh the number one state in the country in 1 0
year's time in terms of the standard of living of its people. I wish to achieve this
by encouraging private investment-both domestic and international - which will
be the prime instrument of growth and by the adoption of knowledge in all aspects
for governance and development. I want Andhra to become a role model for
others."8
"We have launched many programmes, and adopted innovations and the
best practices from all over the world. My target is to place Andhra Pradesh on
top in all parameters. "9
"Telugus inherit a glorious culture and look forward to a bright future.
Enriched by the vast potential of natural resources and the necessary basic
infrastructure, Andhra is all set for rapid industrialisation in addition to the
existing agriculture front. The government of Andhra Pradesh is committed to
providing a transparent, clean and efficient administration to the people and in
pursuance of this noble objective, several innovative programmes such as
7 Ibid. 8 Outlook, September 9th 1998, p. 52. 9 Das, Ashok "The Naidu Paradigm" The Hindustan Times, November 28, 1999.
5
Prajalavaddaku Pala_na, Shramadanam, Janmabhoomi, Karshaka Vignanavedika,
the formation of water users associations, the empowerment of youth, movement
for women's improvement, etc., have been launched." 10
"We are attempting to change the mindset and want a new work culture,
administrative reforms, training, skill-building- all have to fall in line." 11
"Andhra Pradesh economic reconstruction programme is for the common
man and the poor people. ~y innovative programmes are pro-poor and help the
rural people and our party is with the people totally. I am working for the
development of the state. My ideas are pro rich and I am spending money for the
poor." 12
"I am fed up with politics. Everybody thinks negative and nobody wants to
think of development. I am trying to set an example of clean politics based on
good governance. Everybody fears about the negative vote. I want to prove that
there is something called the positive vote. If you and your government work
harder for the benefit of all people, there will be a positive vote." 13
"My agenda is not regional, nor caste or religion based. My agenda is
economic agenda and an agenda for the redressal of the grievances of the poor.
The people are happy with what I am doing. At the village level, I am developing
natural resources, creating employment and improving health and educational
standards."14
"My mission is to promote Andhra Pradesh as the best destination for
investment." 15
"I want to !Uake Hyderabad an international city, a financial and investment
centre and a transit hub between Europe and China, and its knowledge hub." 16
10 Blitz, November I st 1997 11 The Hindus/an Times, November 2flh I999. 12 The Observer, June I 51 1999. 13 The Indian Express, December 81
h 1998. 14 The Observer, June I st 1999. 15 The Pioneer, September 13th 1998. 16 The Times of India, January 16th 1999.
6
"I am balancing both economic reforms on one side and the in~erest of the
common man on the other. I am spending all my money in the villages, while, at
the same time, I am trying to initiate economic reform." 17
Importance of the Study:- The present study has empirically examined
implementation process of Naidu's developmental experiment through fieldwork
in Andhra Pradesh. There are academic reasons to study this experiment: (i) There
has been a shift in developmental approach in India since 1991 from state led
development to market led development which has also been adopted by Naidu's
government in Andhra Pradesh since 1995 to achieve his dream of Swarnandhra
Pradesh. The logic is th~t faster growth is possible through market led
development and therefore problems like poverty, illiteracy etc., will be solved.
According to market led development, market allocates scarce resources very
efficiently and therefore, there is no corruption and rent seeking because there is
no government discretion. Moreover, there will be good governance which
facilitates economic reforms. Therefore, there is a need to examine new policies
empirically. (ii) In general, Andhra has not developed as expected because the
policies and their programmes have not been implemented properly due to so
many factors. Whereas Naidu claims that he has succeeded in implementing
reforms, which are delivering goods to people and he has been able to do it
because of good governance and market efficiency. (iii) Naidu made development
as a political agenda. He went to the people and asked votes during parliamentary
and assembly elections in 1999 on the basis of his developmental performanc.
After winning the elections in 1999, he said that he won the elections because his
performance in development delivered goods by which people are happy and
voted for him. Both the media and industry hailed Naidu's victory. Leading
national papers, in editorials and special reports, said that it is the primacy of
development over politics and people would overwhelmingly support a
government that performs. Manmohan Singh, the former Finance Minister of the
17 The Khaleej Times, January 261h 1999.
7
country, who in 1991, kicked off economic liberation programme, said that Naidu
was pushing reforms with a human face. (iv) "I am the best manager and the best
leader" Naidu said. He claims that he is better than his predecessors in developing
Andhra. (v) There is a considerable opposition to reforms from Dalits, Tribals,
Artisans, Naxalites, Leftists, Telengana People, etc., One should examine how
reforms are implemented. (vi) There are debates and discussions, formal and
informal, going on all over India, about Naidu's experiment. It has been observed
that Naidu has been hailed by the media and the industry for his developmental
policies and he has been selected as the Business Person of 1999 by the readers of
The Economic Times. There is a general public opinion that there is some kind of
miracle taking place in Andhra Pradesh because of Chandrababu Naidu.
Therefore, there is a need to study Naidu's reforms.
Objectives and Scope oft:te Study
Broadly, it is a public policy analysis especially developmental policy
analysis. The s!udy focuses on implementation process of development policy
(public policy). Therefore, it analyses developmental policy of Government of
Andhra Prade~h - Ecor.omic Restructuring Programme (ERP) from 1995 to 2001.
It focuses on implementation process of Naidu's experiment (ERP). So, it
examines empirically implementation of Naidu's experiment in Andhra Pradesh
through fieldwork. Since it cannot examine whole Naidu's experiment, it
examines only two policy programmes namely Janmabhoomi programme (rural
oriented) and e-govemance (urban oriented) in the field. Infact, it studies whole
implementation process of these two policy programmes in the field. Therefore,
the study consists of four aspects: (1) the theory, (2) empirical examination of
theory - implementation or realisation of the theory, (3) socio-econmic-political
explanation of the results and (4) the impact ofNaidu's experiment.
There are approaches to study the implementation of public policy namely
top-down approach and bottom-up approach. While top-down approach starts
from a policy decision and examines the extent to which its objectives are realised
8
over time, bottom-up approach looks at the implementation process in the field
and institutions, people etc., who are actually involved in the implementation
process.. The present study is not restricted by these approaches, though the
research is guided by these two approaches especially bottom-up approach.
Objectives
1) The study wants to examine Naidu's developmental experiment in
Andhra Pradesh empirically whether it is fashionable political rhetorics
or field realities.
2) It wants to analyse the socio-economic and political factors that
contributed either to rhetoric or to reality.
3) It tries to understand the impact of this experiment.
Case Studies
The study has selected two policy programmes namely (I) Janmabhoomi
programme which is a rural oriented (rural development or community
development) programme and is about access to resources, and (2) e-governance
which is urban oriented and is about access to services, to examine actual
implementation process of Naidu's experiment in the field. These two policy
programmes have been selected because firstly, Naidu's government claims that it
has been implementing these two programmes successfully. Secondly, both
programmes are highly publicised and popular. Thirdly, both are highly
contentious programmes. Fourthly, one is urban oriented and other is rural
oriented. Both have been examined empirically by participatory observation,
using schedule and having formal and informal discussions.
Case Study 1: Janmabhoomi Programme
J anmabhoomi (place of birth), launched in the state of Andhra Pradesh on
1st January 1997, is a decentralised, people centred developmental process aimed
at establishing an ideal society which embodies and cherishes the principles of
participation, equity, equality, transparency, accountability, innovation and
sustainability leading to sustained economic development and excellence in all
9
walks of life. 18 The goal is an enhanced quality of life for every man, women and
child in the state, imbibing the time tested values of sacrifice, diligence, honesty,
self-help, self-respect, sense of fulfilment apd quest for excellence. 19
It is basically a programme for rural development by involving people in
the developmental process. People participate in the developmental process
decision-making, planning, implementation and monitoring of developmental
programme. Institutions which are involved in Janmabhoomi, are going to be
imbibed by principles of Janmabhoomi and principled institutions, in turn,
internalise the values of J<'lnmabhoomi among the people.20 Janmabhoomi wants
to achieve social and economic development and democracy at grassroots level
through decentralised people centred developmental process which is a part of
good governance. Therefore, Janmabhoomi wants to achieve all round
development at grassroots level through good governance and good governance, in
turn, creates positive environment for economic reforms.21
In J anmabhoomi programme, bureaucratic officials visit the habitation
(village) to organise the Grama Sabha where people individually or group wise
participate to express their felt needs to the officials.22 Officials categorise and
prioritise people's felt needs into priority, permissible and restricted for the next
round Janmabhoomi. Officials involve the people in the planning, implementation
and monitoring of developmental works based on peoples felt needs in the second
round J anmabhoomi. 23 People are educated, mobilised and organised by the
officials, grassroots level institutions, local bodies, NGOs and social animators to
participate in the Grama Sabha. There are institutional arrangements at different
levels to facilitate Janmabhoomi programme in its implementation process from
18 Janmabhoomi: Operational Guidelines (1997), Govemm~nt of Andhra Pradesh (Document), Hyderabad, p. 1.
19 Ibid,p.17. ~· 20 Ibid, pp. 4-11. 21 N. Chandrababu Naidu and Sevanti Ninan, op.cit, pp. 197-201. 22 S.P. Ranga Rao, "Janmabhoomi: A Programme for Good Governance", Indian Journal of Public
Administration, XLIV (3), July-September 1998, pp. 576-83. 23 Ibid, p. 579.
10
process to achieve good governance.29 The state aims at establishing S.MART
(Simple, Moral, Account~ble, Responsive and Transparent) government through
the e-governance.30 Andhra has recognised that IT is strategic to the state's future.
The government claims that it is one of the first states to introduce e-governance to
provide services and information to the citizens. Andhra is the first state in India
to design a state-wide computerisation programme covering all levels of the
administrative spectrum from the top to bottom.
In order to establish SMART government, Government is usmg IT
applications in the governance of the state to deliver efficient, transparent and
accountable services to the people, to provide easy and credible information to the
people, to make government more efficient in its functioning, to help the CM in
governing the state efficiently, and to provide an opportunity to the people for
practising e-democracy. 31 Government of Andhra Pradesh is using IT applications
in government in different dimensions for its practical purposes to achieve the aim
of good governance. 32 First dimension is that how the CM can govern the state
efficiently through IT application. Second dimension is that how state can provide
efficient, transparent and accountable citizen-related services to the people through
IT applications. Third dimension is that how state is using IT applications within
the government to make government more efficient in its functioning. Fourth
dimension is that how state is using IT applications to provide information to the
people and for planning and creating a citizen data base.
Government has been taking a number of initiatives like setting up
infrastructure, reviewing regulations etc., to facilitate e-governance.33
Government has been introducing a number of e-governance projects like CARD,
' 29 IT Policy 2001, Department oflnformation Technology and Communications, Government of Andhra Pradesh, Hyderabad, 2001, p. 8.
30 Ibid, p. 9. 31 N. Chandrababu Naidu and Sevanti Ninan, Plain Speaking, op.cit., pp. 78-102. 32 Ibid, p. 81. 33 Vision 2020: Swarnandhrapradesh, Draft Vision 2020 Document Government of Andhra Pradesh, State
Secretariat, Hyderabad, 1999, p. 281.
12
TWINS, e-Seva, Video-conference facility, Dial Your CM, etc., in Andhra
Pradesh to establish SMART government.34 CARD (Computerised Administration
of Registration Department) has been introduced to quicken the process of
registration of deeds.35 TWINS (Twin Cities Network Services) provides
integrated citizen services in a single window mode.36 e-Seva provides
information and services online to citizens and it acts as one-stop-shop for nearly
30 services.37 Video-conferencing facility facilitates interface between top
officials and bottom officials. Top of:Ecials and ministers can have interaction or
discussion with bottom officials. Dial Your CM provides opportunity to the
people to interact with the CM directly through telephones. People can give feed
back on government policies. e-Mail gives opportunity to the people to mail their
problems to the CM.
Methodology
The theoretical and empirical aspects of Naidu's experiment have been
taken into consideration, but focus of the study has been on the empirical aspects
of Naidu's experiment. The theoretical aspects of the issue have been studied by
using descriptive, historical and analytical methods. For this, both primary
· sources like government policy documents, arid interviews and secondary sources
like books, journals, magazines and newspapers have been used.
It is a qualitative research in which participant observation method is used.
In participant observation, both complete participant and participant-as-observer
methods are applied. In addition to this, Schedule, which is open-ended
questionnaire, formal and informal discussions and interview methods are also
used to collect data.
It is a public policy study especially of implementation of public policy
(developmental policy). So, it has examined implementation process of Naidu's
34 IT Policy 2001, op.cit., pp. 8-11. 35 Ibid, p. 8. 36 Ibid, p. 9. 37 Ibid, p. 10.
13
developmental experiment (Economic Restructuring Programme) in Andhra
Pradesh from 1995 to 2001, because there is a need to empirically see what is
actually happening in Andhra Pradesh regarding Naidu's experiment through field
work where one can actually observe whole implementation process. Since one
cannot:examine the whole experiment for the study, it has examined two policy
programmes of Naidu's experiment namely Janmabhoomi programme and e
governance in the field by participatory observation, using schedule and having
formal and informal discussions and conducting interviews.
Janmabhoomi programme has been examined empirically by participatory
observation: the researcher has observed the whole process of J anmabhoomi
programme by participating in that process fully without identifying himself as a
researcher in Vutukuru, Vinjamuru and Chakalakonda habitations (villages) of
Vinjamuru mandai in Nellore district (complete participant observation). He has
also observed the programme by participating in it by identifying himself as a
researcher in Nallagonda and Nandigunta habitaitons of Vinjamuru mandai in
Nellore district (participant-as-observer). The researcher has participated in the
15th round Janmabhoomi conducted from 1st June 2001 to ih June 2001. This
round of Janmabhoomi is known as the 'Girl Child Welfare Janmabhoomi.' The
field work has been conducted in five villages (above mentioned) of Vinjamuru
mandai in Nellore district for participatory observation.
Janmabhoomi programme has also been examined empirically by using
open ended schedule (150), having formal and informal discussions (25) and
conducting interviews (10), to understand the progress of Janmabhoomi
programme from 1999 to 2001. For Janmabhoomi, three districts from three
regions of Andhra Pradesh namely Karimnagar district from Telangana region,
Ananthapur district from Rayalaseema and Nellore district from Coastal region
have been selected by using strategic sample. The field work has been conducted
in fifteen villages, five from each district namely, Konaraopet, Kanagurty,
Nizamabad, Marrimadla and Nimmapally of Konaraopet mandai in Karimnagar
14
district, Mushtipalli, Mutukupalli, Kummaravandlapalley, Pathigaddapalli and
Muthyalacheruvu of Kadiri mandai in Ananthpur district, and Vinjamuru,
Vutukuru, Chakal~l<:onda, Nandigunta and Nallagonda of Vinjamuru mandai in
Nell ore district, from 1st April 2001 to 20th July 2001.
e-Governance programme has been examined empirically by participatory
observation: the researcher has observed e-governance projects- CARD, TWINS,
and Dial Your CM by participating in them fully without identifying himself as a
researcher; he has also observed e-governance projects - e-Seva, Video
Conferencing programme, CARD, TWINS by participating in them by identifying
himself as a researcher. For this, the field work has been conducted in Hyderabad
city to study CARD, TWINS, e-Seva because these e-governance projects are
introduced and are working in Hyderabad only, and also in Nellore to study Video
Conferencing facility, and Dial Your CM programme. Infact, the major part of the
fieldwork fore-governance has been conducted in Hyderabad only.
e-Governance has also been examined empirically by using schedule (open
ended), having formal and informal discussions, conducting interviews. For this,
the fieldwork has been conducted in Hyderabad, three district headquarters
(Karimnagar, Ananthapur and Nellore), sub-divisional headquarters of these
districts (Sircilla, Kadiri and Kavali), mandai headquarters of these districts
(Konaraopet, Kadiri and Vinjamuru), and fifteen villages (above mentioned for
Janmabhoomi programme) of these three districts. Schedules (250), formal and
informal discussions (30), interviews (1 0) have been used for this purpose.
Review of Literature
Books
The book Development of Andhra Pradesh: 1956-2001 - A Study of
Regional Disparities (2002), edited by Y. V. Krishna Rao and S. Subrahmanyam,
argues that regional disparities that were existing at the time of formation of the
state due to historical reasons have been narrowed down. But it is also equally
15
true that disparities still persist, crying for immediate removal. The long period of
46 years after the state formation and the vast resources available were not used
properly for the balanced and speedy development of the state.
N. Innaiah in A Century of Politics in Andhra Pradesh (2002) has
attempted to present 100 years of politics in Andhra Pradesh starting from early
20th century till 2002. This book traces the history of British Raj and the Nizam 's
rule before the Indian independence. Covering a century of political turmoil in
Andhra Pradesh, it records the birth and death of the Justice Party, the genesis of
regionalism, ethnicity and caste politics. In its depiction of the long rule of the
Congress Party and the emergence of the Telugu Desam Party it maintains
objective descriptive analysis.-
Adrian Leftwich, in his edited book, Democracy and Development: Theory
and Practice, (1996) has presented very interesting articles. The question at the
end of the book is whether democracy is a condition for economic development or
a certain minimal level of economic development is required for democracy to
flourish. Sudipta Kaviraj, in his article, "Evolution of Parliamentary Democracy
in India", argues that democracy in India has not eradicated traditional identities,
based on caste and religion but has accommodated these as democratic structures
and they have become more entrenched. !ndia's post independence experience has
also changed received wisdom considering the needs for political order as a means
of guaranteeing economic development, since both early centralised experiments
and economic liberalisation in 1991 have progressed in the face of recurrent
political instability. John Harris, Janet Hunter and Colin M. Lewis, in their edited
book, The New Institutional Economics and Third World Development (1995)
have selected very interesting articles relating to institutional economic and
development. It contains theoretical and overview articles of what institutional
economics is and what its limitations are and presents many case studies in
economic history development covering many regions and countries. The basic
premise is that the market cannot function without institutions (formal and
16
informal) most of these are very relevant to economic development. David
Rodrik, in his valuable work, The New Global Economy and Developing
Countries: Making Openness Work (1999) focuses on developing country
experience. His main argument is threefold: openness by itself is not a reliable
mechanism to generate sustained economic growth; it contains hazards as well as
opportunities; and it must be a part of the strategy of growth albeit supplemented
by national investment policies and institutions for conflict management.
Roderik's main task is to challenge the Washington Consensus.
World Bank Report (1997) The State in a Changing World is devoted to
the role and the effectiveness of the state: what the state should do; how it should
do it; and how it can do it better in a rapidly changing world. It recognises that an
effective state is essential for the provision of goods and services, and the rules
and institutions that allow markets to flourish and people to have healthier, happier
lives. Without it, sustainable development, both economic and social, is
impossible. The report provides a two-part strategy to improve the state's ability
to enhance economic and social welfare. The first task is to match the state's role
to its existing capability to establish the institutional norms and rules that will
enable the state to provide collective goods and resources effectively. The second
element of strategy is to raise the state's capability by reinvigorating public
institutions. It means subjecting state institutions to greater competition to
increase their efficiency.
S.K. Das's main purpose in his work, titled Civil Service Reform and
Structural Adjustment, 1998 is to identify the problems of the Indian Civil Service
and t~ draw lessons from the experience of countries which have successfully
reformed. Two of the countries chosen for comparison; Singapore and Japan are
described as cases of incremental reform and two, the US and New Zealand, are
transformative. The analysis focuses more on the policy objectives and
achievements· of reforms in their countries rather than on the process of change.
According to the author, the lessons India has to learn are: Singapore controlled
17
staff numbers and raised their quality; Japan offers a civil service that is
autonomous to pressure and is embedded in the social structure. New Zealand is
an example of comprehensive reform towards clearer management accountability
to politicians and the pubic.
Cal Clark and K.C. Roy, in their valuable work, Comparing Development
Patterns in Asia (1997) have studies development pattern in Asia. There have been
debates on political economy of development since the 1950s between
modernisation theory and dependency theory over whether capitalisation and
modernisation promotes or perverts development; between neo classical
economics and the development of state approach over whether market or state is
more important in development; and between the developmental state and state in
society approaches over whether the state alone or a combination of state and
society is more important for supplementing the market forces to help the nation
climb the ladder of the international product cycle. The book tries to evaluate the
applicability and the limits of these various debates by comparing the performance
of Asian political economies, primarily the three major nations of China, India and
Japan and the four little dragons of East Asia (Hong Kong, Singapore, South
Korea and Taiwan).
Raja J. Chelliah in his article "Liberalisation, Economic Reform and Center
State Relations" in the same book, talks of recent developments in Centre State
relations due to the New Economic Reforms. He says that the state governments
are now free to take the initiative and formulate their own policies after
liberalisation. He argues that the new sense of freedom engendered by economic
liberalisation, coupled wHh the end of single party domination in the political
sphere, has led to the resurgence of the federal spirit and the assertion of regional
aspirations.
Amartya Sen, in his article, "Theory and Practice of Development" in the
book, India's Economic Reforms and Development edited by Isher Judge,
Ahluwalia, and I.M.D. Little, says that foreign trade has an important role to play
18
in the development of a country. He gives importance to export oriented growth.
East and South East Asia have achieved high growth rate because of an export
oriented growth model.
Kamal Nayan Kabr~'s purpose, in his book, Development Planning in
India; Exploring an Alternative Approach (1997) is to try and explore the
relatively neglected dimensions of the planning process. He finds that the model
of planning has failed because of its strategy being one-sided, that is, designed
only to raise the per capita income through capital accumulation and
industrialisation. The non-economic aspects of social existence were ignored.
Arun Ghosh, in his article, "Market: Evolution, Limits, and Relationship to
Governance" in the book Economics as Ideology and Experience (1998) edited by
Deepak Nayyar argues that market essentially reflects the nature and
characteristics of the organisation of the polity and the character of the
government in a country. A truly democratic country will know how to take and
regulate the market so that it does not become an instrument of exploitation of
man by. man. Moreover, society has to use the market system to its best
advantage; society should not allow the market system to run wild and to start
dominating production relation and threatening the very fabric of social relations.
A. Vaidyanathan, in his ruticle, "Planning in India: Retrospect and Prospects" in
the same book evaluated the planning process in India and explains why the
planned development of India is under severe attack.
Jean Dreze and Amartya Sen, in their edited book, Indian Development:
Selected Regional Perspectives (1997) have studied social and economic
development in three states, Uttar Pradesh, Kerala and West Bengal. It is also a
comparative study of the three states. They also compare India with China. Sen
says that Kerala should teach others and learn from others. It analyses successes
and failures in these saes regarding social and economic development.
S.C. Dube, in his article "Development Theory" in the book,
Development, Politics and Social Theory edited by Iqbal Narain, (1989), says that
19
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striking socio-economic advancement among many of the coastal districts of
Andhra Pradesh, except the backward Srikakulam and Vizianagaram districts,
where, as many of the districts in Telengana, except Nizamabad and Ranga Reddy,
all are backward and except Chitoor, other districts are socio-economically poor in
the Rayalseema region. Alok K. Haumik, !n his article, "Economic Liberalisation
and the Response of States in India: An Overview of Major Issues" in the same
book briefly discusses some of the major issues in the inter-state competition in
wooing such private investments both from domestic and foreign sources.
Richard Kozulwright and Robert Rowthorn, in their edited book,
Transnational Corporations and the Global Economy ( 1998) have presented a
thought provoking perspective on the interaction between the globalising economy
and the transnational corporations. The volume is divided into 3 parts. The first
report deals with current trends towards globalisation, and the role that is played
by transnational corporations in the process. The second deals with the interface
between transnational activities and national governments. The third offers some
revealing comparisons of how different countries have responded to the challenges
of globalisation.
· Edmund Malvin and others, in their contribution, Development Strategy
and the Management of the Market Economy Vol. I, 1997 presents essays on
various aspects of development strategy. Sen argues the case for a development
strategy, Stiglitz proposes a supporting role for the government in making markets
work, etc. Istivan P. Szekely and Richard Sabot, in their edited volume II, 1997,
have presented interesting papers on promoting an effective market economy, on
the important role of education, on the role of effective institutions and good
governance, on planning and on the financial market. The whole argument in both
the volumes, (I&II) is that markets dominated by private ownership and
entreprenuership allocate resources in the most efficient way. The state's role is to
assist these markets to work, to intervene only when- there is genuine market
failure, and to create an ove~ ma9ro-economics stability.
j.. 41-115 rp::.loi'IS /.f U 9~ ()~ P'-- 21 I j I
A~ticles
G. Krishna Reddy in his article "New Populism and Liberalisation: Regime
Shift Under Chandrababu Naidu in AP" argues that Naidu has been able to
continue economic reforms by adopting populist policies like Janmabhoomi to
control popular unrest against reforms.
Kenneth Kenniston, in his article, "Politics, Culture and Software" analyses
the impact of computer software on 95 percent of the Indian people who do not
know good enough English for computer use. He argues that since computer
software is not localised into Indian languages, the gaps that currently exist
between rich and poor, powerful and powerless will widen in the information age.
Sudha Pai, in her article "Andhra Pradesh: Elections and Fiscal Reforms"
analyses the impact of the state assembly elections in Andhra Pradesh in
November 1994 on the ongoing Economic Reforms introduced by the Congress
government at the Centre. She shows that elections and electoral politics can
have an impact upon the content and pace of fiscal reforms in a democratic polity.
Moreover, elections in a democracy provide an in-built mechanism against harsh
and painful reforms pushed through at a fast pace. Niraja Gopal Jayal, in her
article, "The Governance Agenda: Making Democratic Development Dispensable"
examines the ideology and politics of the project of good governance by the World
Bank. She analyses that governance is objectionable as a component of aid
conditionally, but also that its content is contradictory, and deserves interrogation
from both the methodological and the political standpoints. She clarifies some
concepts like governance, democracy and development, etc.
Mark Robinson, in his Corruption and Development: An Introduction
.explains two contrasting views of the relationship between corruption and
economic liberalisation. One approach that is based on the premise that corruption
hinders development holds !hat economic liberalisation has the potential to reduce
corruption through market mechanisms. Another approach argues that the absence
22
of adequate enforcement mechanisms, privatisation in the absence of effective
regulation would lead to corruption.
Ignacy Sachs, in his article, "The State and Social Partners: Towards
Development Compact" analyses laissez faire developmental· policies, planned
development policies and their limitations. He examines prospects for the middle
path which is the right balance between public, private, market and planning, short
term contigerncies and long term vision informed by the ideals of social justice
and harmony with nature.
Biplab Dasgupta, in The New Political Economy: A Critical Analysis says
that the New Political Economy (neo-classic economic theory of politics) provides
a powerful justification for the structural adjustment package of the World Bank.
He presents the outline of ideas emanating from the school of thought and
attempts a politico-economic analysis of the new political economy itself. He
argues that he new political economy of development which is internally
inconsistent, historical and is oriented towards justifying market-centered
economic policies under authoritarian regimes is dependant on the rich world
institutions for its suct;ess and ignores the importance of institutional factors in the
process.
Prabhat Patnaik, in "Macro-Economic Policy and Income Distribution: A
Note" says that liberalisation cum structural adjustment package brings about four
different kinds of distributional shi:(ts: from workers to capitalists, from petty
produces and small capitalists to large capitalists, from democratic capitalists to
foreign capitalists, andfrom producing interests to financial interests.
S. Simhadri, in his article "River Water Politics in Drought Prone
Telengana" explains that the caste-class-region-religion politics of coastal Andhra
made Telangana a drought prone area. He argues that a deteriorating situation in
Telanagana due to perennial drought ahs prompted the emergence of a unique
people's movement in the region.
23
Alan Walker, in his article titled "The Persistence of Poverty under Welfare
States and The Prospects for it's Abolition" examines the relation between poverty
and the welfare state and attempts to answer why poverty has persisted under all
welfare states. He argues that the main factor underlying the failure to abolish
poverty is the conflict between economic policy and social policy. Finally, he
proposes the alternative approach to the violation of poverty, one that is based on
the integration of economic and social policy.
V.K. Bhanoji Rao, in his article "East Asian Economies: Trends in Poverty
and Income Inequality" provides available evidence on the trends in absolute
poverty and the degree of income inequality in seven East Asian economies and
concludes that these economies have achieved substantial reduction in absolute
poverty, the same cannot be said of income inequality.
Kanakalatha Mukunda, in her edited book Andhra Pradesh Economy in
Transition (1989), has selected 49 articles which are divided into six parts. It
presents economic trends from 1956 to 1988-89 focusing on major economic
sectors - agriculture, industry, power, social sector, etc.
P. Prudhvikar Reddy in his article "Trends in Agricultural Wages: An Inter
Regional Analysis in Andhra Pradesh" attempts a comparative analysis of
agricultural wages in paddy farming by size/zone in AP during the period 1981-82
to 1991-92. In Andhra Pradesh, the HYV technology in paddy crop, which was
confined to canal, irrigated areas. He analyses that the real wages in all categories
of labour have increased at the state as well as zonal levels though the magnitude
differed from zone to zone. It also indicates continuous persistence of zonal
variation in wages.
S. Indrakanth in his article "Coverage and Leakage in PDS in Andhra
Pradesh", argues that by basing eligibility for PDS on the criterion of land ceiling,
many families in rainfed areas of Andhra Pradesh, with sizeable land but low
productivity, have been deprived ofPDS benefits.
24
Murali Patibandia, in his article, "Economic Reforms and Institutions:
Policy Implications for India" illustrate some of the costs of institutional failures
and the policy implications in the present Indian context. He argues that in the
absence of necessary institutional conditions of market reforms in developing
economies cause rent seeking and inequitable redistribution of income. This, in
turn, could stun economic growth and thwart the emergence of the right
institutions.
Arthur G. Robinoff, in his analysis titled, "General Elections 1996: Local
Issues Dominate in Andhra Pradesh and Tamil Nadu" explains how local issues
dominated in Andhra Pradesh and Tamil Nadu. Murali Patibandia, in his article
"Economic Reforms and Institutions: Policy Implications for India" Illustrates
some of the costs of institutional failures and the policy implications in the present
Indian content. He argues that in the absence of necessary institutional conditions,
market reforms in developing economies cause rent seeking and inequitable
distribution of income. This, in tum, could stunt economic growth and also thwart
the emergence of the right institutions.
RV, in his article titled "Sweet Dreams: Andhra's Vision 2020", without
mentioning his name has provided a critic of Vision 2020. He argues that Vision
2020 is a dream which cannot be materialised. R.S. Rao, in his article "World
Bank and Economy of Andhra Pradesh" criticises the World Bank report on the
state's economy that it is just to justify its predetermined recommendations. K.
Balagopal in his article, "The Man and the Times", examines Naidu's
liberalisation policies critically. He also evaluates Naidu as a aperson and his way
of functioning. Prahabt Patnaik in his article titled ''Nation-State in the Era of
Globalisation", analyses Eberalisation and globalisation and their impact on
nation-state, particularly on India~ In fact he provides critique of liberalisation and
globalisation. He says that globalisation undermines the control area of nation
states.
25
A. Subba Rao in his work "Water Management in India" presents an
interesting picture about drinking water supply by Visakhapatnam Municipal
Corporation, Andhra Pradesh. Water is a subsidised commodity and there is an
inequality in distribution of water. He argues that the middle and upper middle
classes receive greater share of the subsidised and safer water supply m
Visakhapatnam city and the poor classes have marginal access to water supply.
K. Sujata Rao in her article titled "Health Care Services in Tribal Areas of
Andhra Pradesh: A Public Policy Perspective" describes a brief overview of the
health status of tribals living in scheduled area of Andhra Pradesh, provides a
critique of the recent initiatives taken by the state government for providing better
health care services in tribal areas with assistance from the World Bank and the
IF AD, and outlines briefly the thrust areas of the new paradigm. She argues that
tribal development strategies need to be more human-centred with health at its
center. The conventional, bureaucratised approach of looking at health issues for
tribals in a sectoral, compartmentalised manner can have little impact on achieving
health goals. Strategies to reduce morbidity and mortality among tribals would I
need to contain specific directions for establishing interconnectivity between
income, food security, female literacy and good health right down to the PHC
level.
K. Krishna Prasad in his article titled "Some Thoughts on Development
Assistance" says that the quantum of development aid coming into developing
countries is quite small in relation to the needs of development. He suggests that
aid, though quite small, can be most effective if it is directed at improving basic
education, especially upgrad!ng the skills of the rural poor.
26