THERE has been a flurry of political commentaries over the recent report of the World Bank on ‘Ease of Doing Business’, which ranked Andhra Pradesh second among Indian states, after Gujarat. In the World Bank report, released on September 14, 2015, AP with a score of 70.12 percentage points has been ranked below Gujarat which stands at the top with 71.14 points.

It was no surprise considering that the rankings by the World Bank, completed with the help of consultancy firm KPMG and industry bodies CII and FICCI, and by the Department of Industrial Policy and Promotion was done at the behest of Modi government.

World Bank Country Director Onno Ruhl candidly admitted the support rendered by the Government of India in preparing this report. He mentioned in the foreword that the support of the Modi government has been continuous and unwavering. The report carries the logo of the Prime Minister’s pet programme ‘Make in India’. Hence, it is not difficult to fathom the real purport of these ratings as they are intended to project image makeover of BJP-controlled state governments as well as governments led by its allies, in the global level.

India has been ranked 142nd among the 189 countries in the World Bank's ‘Ease of Doing Business’ Report, 2015, two places below the previous year's ranking. However, quite astonishingly the report mentioned that the Government of India had put up an  ambitious target to be in Top-50 by 2017. It is no sheer coincidence that earlier this month, Commerce Minister Nirmala Sitharaman said that India is likely to be ranked 'better' this year in the World Bank's 'Ease of Doing Business' Report. The semantics behind ratings are unmistakable. There is calibrated effort to “tutor” states in order to  roll out red carpets and to dole out huge concessions for land, water, electricity and other resources like mining to the capitalist class.

RATINGS

POLITICS

The World Bank rankings for the states of India had already drawn flak from political parties and from prominent persons. The ratings scenario is seen by many intellectuals as arm-twisting tactics by the World Bank to coerce some states which doesn’t fall in line. Some academicians point out that ratings are fallacious. They claim that on the issue of FDI during 2000-2014, Maharashtra topped the list with Tamil Nadu, Karnataka, Gujarat following, but Gujarat has topped the given rankings. It is observed that Congress-ruled Kerala and Karnataka are placed 18th and 9th, respectively. Jharkhand, which is considered one among the low developed states, is ranked 3rd. Odisha, which has lost FDI opportunities due to lack of proper infrastructure, is given 7th rank. Surprisingly, Tamil Nadu, which amounts to huge seven per cent of total FDI, is given 12th rank. They counter with arguments that “doing business” is different and “rankings” are different. All said and done, ratings have political overtones and they have raised political shackles as expected.

It is a known fact that the World Bank uses among other things land allotment, compliance with labour regulations and environmental clearances as indicators for a state’s industrial policy. The report had come at a time when the Chandrababu Naidu government in Andhra Pradesh is resorting to large scale land acquisition despite simmering discontentment and farmer protests. Andhra Pradesh was ranked in the category of ‘Aspiring Leaders’ which means the overall implementation status should be between 50 to 75 per cent.

The report assesses implementation status of 98-point reform measures across the following eight areas: (1) Setting up of a business, (2) Allotment of land and obtaining construction permit, (3) Complying with environmental procedures, (4) Complying with labour regulations, (5) Obtaining infrastructure utilities, (6) Registering and complying with tax concession procedures, (7) Regulating and Carrying out inspections, and (8) Enforcing contracts.

The key initiatives implemented by Andhra Pradesh according to the World Bank report are following:

(1) Single window: Offers an online single window portal with clearly defined timelines for application filing, tracking and approvals.

(2) Registration: Issue spot approvals for various registrations with only scrutiny of basic documents.

(3) Labour: Deemed approval for factory registration upon SelfCertification.

(4) Labour: Allocate inspectors randomly and introduced computerized risk assessment-based inspections under various laws.

(5) Labour: Implemented an online system for registrations and renewals under various laws with no physical touch points.

(6) Land: Implemented an advanced query- and layer-based web system to identify industrial land, connectivity & infrastructure.

(7) Taxes: Implemented an online system for registrations and return filing under VAT and other State taxes.

The report states that single-window system should be a time-bound service delivery for at least any four of the following registration or licensing processes: Labor, Environment, Land Allotment, Construction Permits, Power/Electricity connections and State taxes. “Only Andhra Pradesh, Chhattisgarh and Uttar Pradesh have scored ‘Yes’ on all four of these questions,” the World Bank report stated.

The truth is loud and clear. The indecent haste of the Chandrababu government in implementing the dictates of the World Bank will jeopardize the interests of the working class as its initiatives destroy the very foundation of labour laws relating to eight hours of work, minimum wages, and equal pay for equal work. The report also lauds Andhra Pradesh’s “efforts” in implementing a single-desk portal for online clearances and for having comprehensive details of land bank available online. The “efforts” of Chandrababu government are glaringly visible. The AP government is in a tearing hurry to create land bank with 15 lakh acres to pander to the interests of the capitalist class while usurping the lands from farmers and subjugating the rural farm workers.

AP FOR FULL-THROTTLED

WORLD BANK REFORMS

It is an open secret that AP had become laboratory for World Bank reforms during the 1990s. Andhra Pradesh was the first state in the country for the World Bank to set its foot at the state level with its unconcealed intention to gain political, administrative and economic control over the state. It has been a fact that Chandrababu Naidu has become the ‘poster boy’ of reforms propounded by the World Bank and his government religiously implemented all the discredited anti-people policies, unmindful of the suffering of the people and resistance offered to it by trade unions and Left forces. He relished being called as CEO, instead of CM.

The post-reform scene in AP belies the claim of the World Bank that the image of AP has begun to change as a result of reforms. But, a quite contrary picture emerges from the human development index (HDI) brought out by the planning commission. The state has slipped down between 1991 and 2001. The HDI for major Indian states shows that AP between 1991 and 2001 has slipped from 9th to 10th rank. Of the 14 indices of human development, among the four southern states, AP stood last in respect of ten indices: growth of SDP in 9th plan, per capita GDP in 2000-01, literacy rate in 2001, infant mortality rate in 2001, male and female life expectancy, HDI in 2001, gross industrial output and value added in industries. The state of Andhra Pradesh was gripped by serious agricultural crisis, leading to suicides of farmers in highest order.

The power reforms unleashed by the Chandrababu government were severely resisted by all Left forces in the unified state of AP, and Chandrababu’s Telugu Desam Party had to bite the dust at the hustings in 2004, mainly due to this mindless WB-dictated policies. Chandrababu had to be in political hibernation for ten long years owing to this mindless implementation of these policies. Nevertheless, he had not changed for the better. Making true the assertion of Shakespeare that “will leopards ever change its spots”, Chandrababu has once again started implementing dictates of WB, this time with renewed vigour.

The Chandrababu government is leaving no stone unturned in trying to usher in a World Bank Raj in Andhra Pradesh. It is nothing but jungle raj, which is a direct infringement on the federal rights of our states and it will surely dent sovereignty of our country.

LAND GRAB IN GUISE OF

CREATING LAND BANK

The report finds the lack of availability of land a great impediment for doing business and establishing industry. It conveniently glossed over the fact that there is already plenty of land available with SEZs, which are lying unutilised. Hitherto, lakhs of acres of land is in the stranglehold of  36 SEZs in AP, which are lying unutilised (like Kakinada SEZ-10,000 acres) and the government did precious little to reclaim the same and utilise it for productive purposes. The report calls for digitalisation of land records and making it available online in sub-registrar offices, offices of mandal revenue officer (MRO) and municipal offices. The integration of database at these three levels is yet to be done in India. Only Maharashtra and Rajasthan have completed this integration. Eleven states, including AP, have integrated data base in revenue and registrar offices till now. The report reiterated about land bank availability, and its effective supervision through GIS.

The Chandrababu government has been going ahead in jet speed in snatching away the lands of farmers and small tillers in utter violation of provisions the 2013 Land Act. In utter disregard to parliamentary procedures, the Chandrababu government started implementing the provisions of the land ordinance issued by the Modi dispensation though it didn’t secure parliamentary approval. Land grabbing in the guise of creating land bank is taking place with the government acting like bulldozer, stifling the voices of dissent by farmers and peasants. Giving clearances to industries which severely impact fragile ecological system has also become order of the day. The report by the World Bank will embolden the AP government, which is already acting like facilitator in appropriating lands for private profit by taking away the same from small farmers.

NO LABOUR LAWS

FOR LABOUR MARKET

The report brazenly talks of less intervention by the government on checks and controls, and at the same talks of full fledged labour reforms. Out of the 285 questions posed to state governments, 112 questions are on implementation of labour laws and inspections in institutions, and 44 on controls on the taxes payable by employers. Interestingly, only 21 questions are asked on infrastructure facilities, which are requisite for establishment of industries or business concerns. Page 16 of the report outlined reforms in 10 segments viz inspections by labour inspectors on implementation of the Bonus Act, Gratuity Act, Payment Of Minimum Wages Act, Shops and Establishments Act, Bonus Act, and the Equal Remuneration Act.

There is clear direction to all states that these acts are to be done away with. So, there cannot be inspectors doing inspections on the violations of labour laws, and labour welfare to propitiate the insatiable greed of investors. The report advised all states that as sufficient man-power is not available to conduct inspections and efficiency of government institutions is not up to the mark, it is better to go for self-certification and third party certification for establishing firms and business concerns.

The report stated that factory licences are to be given for longer duration. Inspections are to be conducted only on those business concerns and firms, where complaints are there. Inspections are to be conducted only on prior permission so that time can be saved. Inspections are to be conducted on all segments collectively instead of the same on individual one, in order to lessen the burden on inspectors. The existing practice of giving power connection to a business entity by discom and other government departments after conducting inspections should be done away with and it should be  entrusted to third party contractors. The practice of checking vehicles in each check post is time consuming as such random inspections are sufficient. The businessmen should be encouraged to generate waybills online and system of payment through online is to be encouraged.

The report applauded Jharkhand for removing inspections on 14 labour laws and conducting inspections once in five years, on a single day and for allowing self-certification on renewals and returns for industries. The report lauds Punjab for implementation of single-window system and advised AP to emulate the same. When it comes to implementation of reforms in labour laws, Jharkhand Stood No. 1 whereas AP remained at No. 4 and in terms of tax reforms, Karnataka stood at No. 1 and AP stood at No. 2. On allotment of land and clearance to construction activities, MP was ranked first whereas AP stood at fifth position. The report highlighted the fact that the AP government initiated reforms in seven segments, of which three relates to reforms in labour laws and the remaining four relates to taxes, land, registration and single-window clearance. Every conceivable opportunity was utilised in the report to hail those states which embark on reform trajectory, bypassing all laws and regulations. The report is a veritable treatise on labour market flexibility, ‘hire and fire regime’, devoid of any rules and regulations.

NO REGULATION, ONLY

SELF-REGULATION

World Bank Country Director Onno Ruhl, in his foreword to the report, said, "A disproportionately high regulatory burden is borne by businesses in India today." In the guise of easing business, he wants all regulatory frameworks to be dismantled. Further, the report said that infrastructure and finance related challenges can be as severe as regulatory burdens in discouraging investment. More complex reforms may need to be undertaken to bring about a paradigm shift in investment. It is a clarion call to state governments to desist from regulatory framework. Unregulated enterprise is a sure recipe for disaster. The experience of Mexican and East Asian crises is testimony to this. The report concluded that the Action Plan announced in 2014 does not cover all areas of importance; hence, further actions will need to be identified in stages, in addition to acting on unfinished actions. The Unfinished Agenda is to remove vestiges of laws, however minimal they are. It is a foregone conclusion that, henceforth, the World Bank will interfere and monitor the activities of the states directly without any qualms. So, in the days to come, intensified actions will be pursued. In other words, the working class may witness more attacks on their livelihood.

In sum, the World Bank report is a pointer for the shape of things to come in Andhra Pradesh in future. The TDP government, led by Chandrababu Naidu, has already started high decibel campaign that reforms unleashed by it are yielding fruits and investors are lining up with Investments. The corporate media is in league with him in this sinister campaign to beguile people of Andhra Pradesh. The working class of Andhra Pradesh is already witnessing worst days of the Chandrababu Rule. There are concerted efforts to trample the existing rights of the working class, secured over decades. Unless the World Bank-prescribed policies are thwarted lock, stock and barrel, there is no respite for the working class in the state as well as the country. (END)