September-October 1999

 

Fleecing the People through Electronic Government

 

In the past few years, the TDP government in AP led by Chandrababu Naidu has been claiming to have introduced electronic rule in the state. Hailed by the World Bank and imperialist media as the first ever electronic government in the country, it is said to have achieved the computerisation of the various government offices, such as the registration office, employment exchanges, market yards, commercial tax offices and so on, through its much-acclaimed APSWAN (State Wide Area Network). ‘The Economist’ — the mouthpiece of international capital, in its May 22, 1999 issue, hailed Chandrababu Naidu as "the visionary Chief minister of AP (who), is trying to make government more transparent and responsive by making it electronic".

All the 23 district headquarters are now connected to the state secretariat in Hyderabad through computers making it possible for the chief minister or the state level officials to conduct video conferences with the district collectors and other officials.This electronic network has been hailed as bringing about a revolutionary transformation in the method of governance by linking up various district headquarters with the state capital and various departments with head offices. It is claimed that ‘red tapism’ would be done away with and will help the people to get the required information through the computers whenever they need; that corruption will have no place under the eyes of the computers; that there will not be wastage of time; and, that efficiency and skills of various government departments will improve due to speedy transactions, so on and so forth.

But all this propaganda about the first electronic government in India revealed its real, ugly, and anti-people features when the AP government came out with its proposal to offer public services to the people through private companies by trying to introduce what is known as APVAN (Value Added Network). The government, however, had to hastily withdraw its plans due to the united and determined protests by the non-gazetted officials. What the government had planned to achieve through APVAN was to surrender 20 government services to the private sector and to foreign companies. The computerisation is intended to aid privatisation of public services and to create a market for the computers and software of the TNCs and MNCs that have been glutting the world market.

The wily politician, Naidu, who came to power by back-stabbing his father-in-law, NTR, and often described as the CEO of AP Inc. by the business circles and media, is no doubt serving as one of the most loyal managers for World Bank-IMF and imperialist capital in general in AP, apart from all his cunning manipulations for power and aggrandisement. Bowing to the dictates of the imperialists he sold out the public sector companies under the control of the AP government one by one ever since he came to power in mid-’95 through a palace coup. Thousands of workers have been thrown into the streets either due to the closure or privatisation of industries like Allwyn Auto, AP Scooters, Republic Forge, AP Construction, Handicapped Corporation, Fisheries Corporation, Nizam Sugars and even some routes in the RTC.

Now, what is still worse, through computerisation of all public services, the APVAN scheme intends to collect money for every service that was hitherto free. APVAN is a joint venture of a Singapore consortium that is formed by three companies — Singapore Network Company, National Computer Board and National Computer Systems, and the participation of the AP state government. Among the board of directors of this APVAN, 4 represent the AP government, 4 from the Singapore Consortium and 3 from private companies. The government entered into agreement with the Singapore companies to transfer the management of 20 public services in 6 government departments: transport, commerce, registration, employment creation, electricity, water works. A big propaganda campaign is unleashed by the govermnent that once the APVAN scheme comes into operation, the people need not go to every government office for their work since all the services will be available at one place and that through intemet and direct dialing facilities, most of their needs will be met.

All these services, of course, come with a rider: one has to pay a fee for every service, including registering one’s name in the employment exchange. Thus even the unemployed will be squeezed for registering their names through the computerised service. Virtually every service, from registration of new vehicles, renewal of driving licences, transfer of ownership of vehicles, issue of passports, assessment of sales tax, land registration, payment of property taxes, lists of court cases, compilation of judgments, putting up market rates etc., now have a fee. Even to obtain birth and death certificates, one has to pay these foreign companies a price. The state government plays the role of a comprador and ensures that 50% of the fees is paid to the Singapore companies.

An unemployed person, for instance, has to pay Rs. 16 as fee for registering his/her name in the employment exchange which had been free till now. With four lakh registrations in the employment exchanges in the state every year, one lakh updatings (i.e., registering the new degrees obtained by the unemployed in the year) and 9. 5 lakh renewals, the foreign companies will be sqeezing out Rs. 17 crores from the unemployed alone every year. Besides, computerisation leads to the closure of most of the existing 39 employment exchanges in the state leading to even more unemployment.

To take another instance of how the government intends to loot the people in collaboration with foreign companies through the APVAN, is the issuing of driving licences. Of the 30 lakh-odd vehicles in the state, over 25 lakh are commercial ones. For the renewal of the driving licences Rs. 10-20 have to be paid every year as fee; for the registration of private vehicles, Rs. 30; and for the registration of 20 lakh commercial vehicles every year, Rs. 300 has to be paid.

In the electricity and water works departments where one crore services are in existence, Rs. 5 per service is sought to be collected on average. The 85 lakh domestic (home) consumers, 17 lakh agricultural consumers and 4800 commercial consumers have to pay Rs. 511 crore as fees to the Singapore company. In the water works, the government has been collecting Rs. 2000 crores annually from the consumers. According to the new scheme, the foreign companies will henceforth conduct the services and collect one percent as service fee from the concerned departments. Moreover, these companies will take up the task of purchasing stationery, machinery, computers, furniture etc. All these will throwout the staff working in the purchasing and other departments of the government which may even be closed down altogether.

The details of the APVAN scheme, that have serious repercussions on the fate of government employees, have been kept a secret from the people, the employees, and even from the higher officials and the legislators. Why has the government kept the details secret ? It is due to the fact that the very first condition of the agreement that was to have been concluded on February 24, 1999 (but was postponed due to protest by goverrunent employees), was that in the next five years the services in these departments should not be undertaken by anyone except APVAN. The scheme which, with a capital of just Rs. 20 crore (!), would gradually control every government department and aims at conducting a business worth Rs. 3600 crores over the next five years !! It also intends to penetrate the countryside. The rural cooperative banks too may have to be closed down as it is only the big foreign banks that have the means to conduct business through electronic means.

Though the APVAN scheme is temporarily shelved due to public protest, government is trying to bring it into operation by hook or by crook just as was done with the APSWAN. It is trying to mould public opinion in its favour by propagating the lie that all the people will be benefited.

The so-called ‘electronic’ government introduced by Naidu is a cruel joke and a big fraud on the people of the state, the vast majority of whom are reeling under acute poverty and starvation, unemployment and illiteracy, famine and disease. While keeping the oppressive semi-feudal relations in the countryside in tact, the imperialists and the comprador bourgeoisie are conspiring to step up the loot of the natural wealth and labour in the states and increase their assets and profits at an even faster rate by the use of hi-technology. At the same time, to fool the people, various populist schemes are being floated such as Janmabhoomi, DWCRA, Prajadeevena, and so on. Another mega-fraud that is being bandied about in recent months is Vision-2020 — a product of an imperialist consultancy firm, McKinsey — which is hailed by ‘The Economist’ as a report "that offers an inspiring picture of what AP might be like in two decades, a state free from poverty and illiteracy, by a government made responsive and efficient by hi-technology, a business environment that beguiles investors."

And the same mouth-piece of imperialist capital, further concludes: "the sort of revolution Mr. Naidu is aiming for in AP — a managerial, not an ideological one - is exactly what India needs."

During his 4-year-rule in AP, Naidu has already proved himself to be the most loyal and trusted manager of imperialist and comprador capital in the state. The spate of foreign collaborations and proliferation of foreign companies in AP such as: Rolls Royce, General Electric, Flo Daniel, Signode Corporation, Hambrecht & Quist, Thomas and Bells, Mobile Petroleum, Petro source, International Finance Corporation etc., from the US; ABB, Rethemir, Roche/BASF, Refractories Consulting, Lurgi etc., from Germany; National Power, Davy Mackee, Associate Coffee etc., from UK; Itochu Corporation, Matsushita Electric etc., from Japan; and several other companies from the Netherlands, Italy, Demnark and even from Singapore and Malaysia, show why the imperialists are so much enthusiastic about the introduction of hi-technology and electronic rule by Naidu.

Needless to say, this will only lead to further fleecing of the people of AP in more sophisticated ways, resulting in greater poverty and drain of the state’s resources. The ‘electronic’ rule is only to facilitate the imperialist plunder of the state and has to be opposed.

 

<Top>

 

Home  |  Current Issue  |  Archives  |  Revolutionary Publications  |  Links  |  Subscription