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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (8396)	10/14/1999 1:22:00 AM
From: Mohan Marette	Respond to of 12475

REFORM, Naidu Style. Nifty Naidu to guide govt on political approach to reform Our New Delhi Bureau (FT) 13 OCTOBER The Centre could take a leaf out of Chandrababu Naidu's book while implementing the second generation reforms. Fresh from a big electoral triumph in Andhra Pradesh, the Telugu Desam leader said he will share his experience of political management of reforms in his state with the Centre. In an informal chat with journalists, Mr Naidu said that subsidies cannot be done away with overnight. Reform and rationalisation of subsidies must be preceded by discussion and debate among people. "I asked people whether they wanted free power for two hours a day or uninterrupted power supply at a cost. They understood what I was saying," he said, adding, "While implementing macro reforms, I am continuing subsidies in key areas." The idea is to communicate and make people believe in themselves while doing a soft-landing in a manner that does not hurt. In this respect, he said this election has been crucial for him as he has received the mandate to develop Andhra Pradesh as a model for implementation of reforms, in the Naidu style. Admitting there was tremendous pressure on state finances, Mr Naidu said the answer was not in getting more finances from the Centre or other quarters, but in using the existing resources in a more efficient manner. According to the Andhra chief minister, subsidies must be properly redirected in order to make reforms more politically acceptable. "I have cut subsidies in many areas, but I came out with special schemes for the poor, such as rice at Rs 3.50 per kg and free electricity for poor farmers and so on," he said. Mr Naidu said that providing free electricity to a section of poor farmers was not incompatible with overall reforms in the power sector where the state electricity boards are privatised and power distributed on commercial pricing. Reforms can be successful only if sensitivity is meted out to the very poor section while restructuring the economy, he said. Asked whether the sharp diesel price hike will hurt people in general, the chief minister said the issue had to be looked at in perspective. Mr Naidu said his main objective in the coming years was to make Andhra Pradesh a model for economic reforms so that other states like Bihar could follow the example. "The cornerstone of my philosophy is to create a work culture where people become productive and help themselves to come out of poverty. I tell them that if I can work 18 hours a day, why can't you do the same," Mr Naidu said.