HYDERABAD: Elected representatives have called for amendment to the Constitution, making it mandatory for Governments to obtain approval of the legislative and local bodies before they take loans from the World Bank, the Asian Development Bank and other multilateral development banks.

Participating in an interesting debate on "Reclaiming democracy - forum for peoples representatives", organised by the People's Forum Against ADB here on Thursday, they expressed concern at the way Parliament, Legislative Assemblies and local bodies were totally bypassed while accepting these loans and the conditions thereto having large-scale implications on people.

"How can decisions on taking loans be termed as representing the will of the people when their own representatives do not debate and approve them?" asked Suneelam, the articulate Samajwadi Party MLA from Madhya Pradesh (MP).

The MP Government took $ 200 million loan from the ADB for the urban water supply and environment improvement project in six towns without consulting the respective local bodies and the Assembly, he said.

Two municipal corporations of Ratlam and Ujjain rejected the loan citing high interest rate and conditions like removal of public stand posts and levying of water cess. In another project of restructuring MP Road Transport Corporation, over 11,000 employees were retrenched.

Abani Roy, Revolutionary Socialist Party (RSP) MP, spoke of the challenge faced by people's representatives when political parties to which they belong accept these loans. "More than people they seem to represent political parties. But we will campaign to ensure that the Governments are held accountable for pushing anti-poor anti-development bank loans."

"ADB's favourite"

Nayani Narasimha Reddy, TRS MLA, said if former Chief Minister N. Chandrababu Naidu was known for his "experiments" with World Bank loans, present Chief Minister Y.S. Rajasekhara Reddy could turn out to be a "favourite" of the ADB.

The pro-privatisation policies pushed by the World Bank had devastating impact on Telangana.

Judith Mascarenhas, former Deputy Mayor of Mangalore corporation, narrated how the local body rejected the loan and then ensured that the ADB fulfils the conditions suggested by it.

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