The Communist Party of India (Marxist) has expressed concern that the World Bank was trying to interfere in the functioning of the governments of different States against the federal spirit of the Constitution.
The World Bank’s latest report “Assessment of State Implementation of Business Reforms” was an indicator of the Bank’s interference in the government’s affairs. The bank has termed the implementation of reforms at the State-level and reducing the governments’ control as an important component in its report.
“The bank’s intentions to interfere in governance is evident from the claim that the latest report will be followed by a series of recommendations,” CPI (M) State committee secretary P. Madhu said.
The World Bank, which hitherto confined itself to the project related activities in different States that borrowed from it was now trying to pressurise the government’s to speed up reform process.
He said the report mounted pressure on diluting labour laws in the name of encouraging new industry/businesses as could be seen from World Bank Country Director Omno Ruhl’s claim that the country remained a difficult place to do business as a disproportionately high regulatory burden was borne by businesses at present. The report suggested reforms in the areas checks on payment of gratuity, minimum wages and laws governing payment of bonus.
“The recommendations are tantamount to lifting the controls on workers’ welfare in favour of investors,” he said. Another key recommendation was that of hosting the land availability online so that the land forcibly acquired from farmers was doled out at cheaper rates to corporates. In the set of 285 questions posed to different States, 112 related to labour laws and inspections while another 44 dealt with taxes being collected from businesses.
The bank also recommended approval for self certification by the businesses and third party certification on the pretext that the departments concerned were not effective in conducting inspections thanks to the shortage of manpower availability. Andhra Pradesh could secure the second position as it had implemented a majority of the labour reform recommendations made by the bank. The CPI (M) had, therefore, resolved to build a mass movement against forcible acquisition of land by taking together like-minded people and organisations. Chief Minister N. Chandrababu Naidu was trying to vigorously pursue the same policies again, he said.
(The Hindu)
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