The Hindu Business Line : World Bank chief's visit evokes fears and expectations

While the State Government wants to carry forward the support from the Bank as per its understanding, the Left parties have sounded a note of caution.

On his maiden visit to the State, Mr Wolfowitz arrived here on Wednesday evening and had a dinner meeting with the Chief Minister, Dr Y.S. Rajasekhara Reddy.

The World Bank chief will visit Kosigi village in neighbouring Mahbubnagar district to get a firsthand account of some of the funded projects in the area on Thursday morning, official sources said.

He will also participate in an interactive session with self-help group (SHGs) along with the State Chief Minister and other officials in Jubilee Hall.

Meanwhile, the State Committee of the Communist Party of India (Marxist) has cautioned the Government against taking structural adjustment loans from the World Bank, which they claimed came with several conditionalities, which are against the interests of the people.

At a protest meeting against the visit of the World Bank President, the CPI(M) State Secretary, Mr B.V. Raghavulu, said that the bank imposed conditions like scrapping free power, privatisation of agricultural markets, encouragement to contract & corporate farming and total privatisation of health sector.

"The Chief Minister, Dr Y.S. Rajasekhara Reddy, says there is a perceptible change in the World Bank's attitude. But, it is in fact Dr Reddy who has changed his tune before and after the elections," he said.

The CPI State Secretary, Mr K. Narayana, said that though Dr Reddy put on hold plans for implementation of the World Bank-dictated policies for more than a year, the recent steps taken by the State Government point to the reversal of the situation.

Nagarjuna project: The State Government will discuss with Mr Wolfowitz, the Nagarjunasagar Project modernisation proposal and seek its financial assistance to the tune of Rs 3,000 crore.

Dr Reddy, told newspersons here on Wednesday that since several proposals sent by the State Government were pending consideration by the World Bank, it was decided not to put forth any fresh ones.

According to Dr Reddy, the Rs 3,000-crore proposal for modernising Nagarjunasagar Project was the most important one pending with the World Bank. The issue would be taken up with Mr Wolfowitz, during his stay in Hyderabad on Thursday, the Chief Minister said.

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