ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Articles by V RanganathanSubscribe to V Ranganathan

World Bank and India's Economic Development

What is the World Bank's contribution to India�s growth and poverty alleviation? The effectiveness of the Bank's initiatives in these areas is explored. The Bank's own perspectives on growth and development are outlined. An analysis of India's agriculture and forestry sectors is undertaken, followed by a study of the power sector, to which the maximum amount of Bank funds has been directed. Urban and social development issues are also dealt with. The paper concludes with an analysis of the Bank's policies.

Long-Term Impact of Rural Electrification-A Study in UP and MP

A Study in UP and MP V Ranganathan T V Ramanayya RURAL electrification was once the 'pet' project of global funding agencies. The World Bank had invoked Hirschman to support the thesis that investment in basic infrastructure projects like rural electrification will lead to induced investment in other direct private sector projects by depressing their costs that would have to be incurred otherwise. However, over the years there has been considerable disen- chantment that the promised benefits have been elusive and so it should be left to the market when increased income will create the demand for electrification.

Cogentrix Power Uneconomical

favourable for the economic reformers lobby. The reformers seem now determined not to brook any dithering or hesitation on the honouring of the international obligations of the government or the logic of the privatisation-globalisation process. Finance minister P Chidambaram sees the inflow of foreign funds by way of direct and portfolio investments, deposits and credits as the only panacea for the ailing and stunted Indian economy. The adverse implications for the balance of payments position do not bother him. This is the same mindset that has driven him to cut domestic taxes for the rich without making in his budget 'conventional' estimates of the revenue losses for the government on this account. But the balance of payments problem is not something which can be cavalierly wished away. India's exchange reserves are only seemingly large. They arc not composed of dollars earned. They are almost entirely based on the accumulation of borrowed funds which have been frozen by the Reserve Bank of India and have not been used as in the past for investment or social welfare, albeit inefficiently. The major portion of reserves is composed of the volatile portfolio investment and unreliable NRl deposits. The reckless commercial borrowing to push up the economic growth rate in the second half of the 1980s resulted in the external payments problem in 1991. The imprudent reduction of tariff barriers and lifting of quantitative restrictions on imports in the second half of the 1990s may in the prevailing conditions when reserves can easily melt and exports are not picking up, push India into a far more grave balance of payments position into a couple of years. Combined with the planned decline and, eventually total stoppage of public investment in industry as well as agriculture, prospects for economic growth, let alone social justice, will be blighted.

Electricity Tariffs in Karnataka

V Ranganathan The recent hike in power tariff in Karnataka has evoked unprecedented protest from consumer groups in the State. Among the criticisms levelled are the inefficiency of the Karnataka State Electricity Board, which has been attributed to the absence of competition from the private sector, and the subsidy to farmers. The paper attempts a proper scrutiny of the various factors underlying the tariff revision.


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