In an announcement that struck a poignant contrast to the spirit of Independence Day, Telangana Chief Minister Revanth Reddy, during his address at the historic Golconda Fort, revealed his recent discussions with the President of the World Bank. Revanth expressed satisfaction with the progress made towards securing loans from the organization. However, this announcement has raised eyebrows, as it comes on a day meant to celebrate freedom from colonial rule.
The memory of a similar chapter from 24 years ago, when then-Chief Minister Chandrababu Naidu followed World Bank directives to hike electricity tariffs, remains vivid. The move, which resulted in widespread protests and tragic loss of life, serves as a grim reminder of the perils associated with such loans. The images of those events at Basheerbagh, where bullets were fired at common people protesting the tariff hikes, still linger in the collective memory of those who witnessed it.
The concern now is whether Telangana, under Revanth Reddy’s leadership, will face similar consequences. Revanth Reddy’s eagerness to secure loans for large-scale projects raises alarms about the potential hidden costs. The skepticism is not without precedent. During Chandrababu Naidu’s tenure, the World Bank’s involvement in Andhra Pradesh led to privatization efforts that ultimately resulted in widespread public discontent and economic strain.
Under the leadership of former CM KCR, Telangana had managed to keep the World Bank at bay, relying on domestic financial institutions for infrastructure projects. Between 2014 and 2023, KCR’s government avoided entangling the state in World Bank debt.
The World Bank, established in 1944 to aid global economic recovery post-World War II, has often been criticized for exploiting the resources of developing nations to serve the interests of superpowers and multinational corporations. The organization’s lending practices have historically driven countries into debt, benefiting corporate interests while imposing harsh conditions that can lead to widespread suffering.
These conditions often include the privatization of public services, the introduction of user fees in essential sectors, and the opening of markets to multinational companies. The consequences are well-documented: job losses due to privatization, inaccessible education and healthcare, and the displacement of communities due to environmentally destructive projects.
Revanth Reddy’s recent announcements, particularly regarding the Musi River rejuvenation project, have only deepened these concerns. The project’s estimated cost has ballooned from Rs. 16,634 crores under the previous government to an astonishing Rs. 1.5 lakh crores. Revanth’ss subsequent meeting with the World Bank President in the United States, where it was decided that the project would be financed through a World Bank loan, has led to suspicions of a well-orchestrated plan to burden the state with unnecessary debt.
While Congress leaders, including Revanth Reddy, highlight the low-interest rates offered by the World Bank, they often omit a crucial detail: these loans are denominated in dollars. As the rupee weakens, the repayment burden, both in terms of principal and interest, escalates. The conditions attached to these loans could lead to higher electricity tariffs and the privatization of public services like the Telangana State Road Transport Corporation.
Telangana’s progressive society must remain vigilant against such attempts to draw the state into financial dependency. Protecting Telangana from the clutches of the World Bank is not just a matter of economic prudence but a responsibility towards preserving the state’s independence and future prosperity.