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.

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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.

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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

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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.

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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.

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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.

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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

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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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IIIII II II 1111111111111111 TH9906

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