Road to ruin: India.(ruling party in Andhra Pradesh state forced to reverse its welfare-state policies)(Brief Article)

From: The Economist (US) | Date: August 17, 1996 | Copyright information

DELHI

IN LATE 1994, the Telegu Desam Party (TDP) swept to power in the state of Andhra Pradesh, on the back of promises that it would almost halve the price of subsidised rice at ration shops, and slash electricity and water rates for farmers. Critics of the Congress party, which was then governing the country, declared gleefully that voters had rejected the government's structural adjustment programme, and opted instead for a party with a human face.

A Janus face, maybe. Last month, the TDP government raised the price of rice from 2 rupees (less than $0.06) a kilo to 3.5 ...

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