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`ADB doing a litmus test in State'

THIRUVANANTHAPURAM: The Asian Development Bank (ADB) is only an extension of the World Bank and an active supporter of the ideology of neo-liberalism that considers even drinking water as a `scarce commodity' that should be marketed, said K.Ramachandran Nair, chairman of Kerala Padanna Vedi.

Participating in a discussion on the topic "ADB loan and Kerala's democratic development," organised by the Kerala Padanna Vedi at the Press Club here on Thursday, he said the ADB had expanded its loan lending schemes to policy-based lending.

Systemic reforms

This required borrowing governments to put in place systemic reforms in their economic, financial, and social and environment sectors, much like the World Bank's structural adjustment programmes.

The ADB loan agreements were, therefore, routinely accompanied by policy matrices that outline the policy measures or conditionalities that a borrowing government must agree to in order to get a loan, Mr. Ramachandran Nair said.

Problem schemes

He said the latest decision of the State Government to install meters for the public water taps under the directions of ADB and the new urban development schemes brought under the Modernising Government Programme (MGP) would lead to several problems in Kerala society. "The ADB is conducting a `litmus test' in Kerala.

If the people of the State accept its conditions, then it will be easier for them to implement their so-called people friendly schemes in any other State in the country, Mr. Ramachandran Nair said.

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