http://www.hindu.com/2006/03/20/stories/2006032005200500.htm

Call to drop move to take ADB loan

The Hindu, 20 March 2006

Staff Reporter

Activists' meet to work out common strategy

THRISSUR: Several activists groups from across the
State met here on Sunday to work out a common strategy
to demand cancellation of all proposals to take loan
from the Asian Development Bank (ADB).

The meeting was jointly organised by the
Thrissur-based Global Alternate Information
Applications (GAIA) and Wayanad-based `Kabani' in the
backdrop of the Annual Governors' Meeting (AGM) of the
ADB to be held in Hyderabad from May 3 to 6. Speaking
on the occasion, economist K. Raviraman of the Centre
for Development Studies (CDS), Thiruvananthapuram,
refuted the view that the benefits of availing of the
ADB loan outweigh its evil consequences.

Terming such views as `fallacious', Prof. Raviraman
said, ``one has to see the issue of ADB loan in a more
`holistic' perspective.

Kerala's agriculture sector is already suffering from
the negative terms of trade and, taking an
international loan in such a context will worsen the
situation.''

Writer C.R. Neelakandan criticised those who argue
that there was nothing wrong in the five municipal
corporations in the State availing of the ADB loan.
``The loan repayment burden will anyway fall on the
common citizens through the imposition of user fees
and increased taxes,'' Mr. Neelakandan said. The new
Government should be forced to give up the ADB loan
through intense public pressure, he said.

Pointing out that there were several sources of
alternative financing, leader of the Indian Farmers'
Movement (INFAM) M.C. George said: ``Banks in Kerala
have surplus funds that can be put to productive use.
But there is no political will to tap these
resources.'' Gururaja Budhya of the Urban Research
Centre in Karnataka said the urban development loan
extended by the ADB to his State had undermined the
importance of local bodies and eventually forced the
municipalities to operate as mere service delivery systems.

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