World Bank chief coming on Aug 18

World Bank president Paul Wolfowitz is coming to Hyderabad on August 18, 2005 as part of his first-ever visit to India after he succeeded Wolfenson in March this year.

Though details of the visit are yet to be known, the fact that the inclusion of Hyderabad in his first visit to this country itself assumes a greater significance.

The kind of political scenario, particularly the reform programme that made his predecessor James Wolfenson to give special importance to Andhra Pradesh in the World Bank's lending programme under the previous regime led by N Chandrababu Naidu, is considerably altered now.

In this backdrop, Wolfowitz's visit to Andhra Pradesh is expected to provide him an opportunity to understand the changed reality to which the bank appears to be readjusting its responses.

Besides the $300-million urban bodies reform programme which is under an advanced stage of finalisation by the World Bank, the state government has approached the multi-lateral lending agency for financial support to other projects including roads and irrigation sectors.

The state government is also seeking the third tranche of the structural adjustment loan(APL3) even though the Union finance ministry is said to be reluctant to recommend for the same in the face of the Left opposition.

Chief minister Y S Rajasekhara Reddy is expected to host a dinner on August 18 in honour of Paul Wolfowitz.

Despite the free power scheme, visible slowdown in the pace of reforms in public sector enterprises along with the decision to revive certain sugar mills under cooperative sector, the Y S Rajasekhara Reddy government is by and large endorsing the economic reforms initiated by Chandrababu Naidu.

Recently, the state government brought an ordinance on Fiscal Responsibility Act announcing compliance with the fiscal management parameters determined by the 12th Finance Commission.

But the threat of revenue deficit going out of hand is looming large on the government as it has openly committed to implement the Pay Revision Committee recommendations for the government employees.