190 CHAPTER 12 The Economic Liberalization Debate


The discourse analysis showed that—not surprisingly—both policy areas are equally influenced by the general debate on economic liberalization in India. The two major paradigms, market oriented and welfare state oriented, pro- vide the basis for the respective discourse coalitions that were identified in both the fertilizer and the electricity debates. These paradigms translate into arguments regarding a range of issues specific to the respective areas. They result, however, in a similar clash of beliefs and values, which in both cases contributes to the observed impasse in policy reform.


Political Actors


Although both policy fields are subject to similar political forces, they involve significantly different political actors. Broadly speaking, fertilizer policy is determined at the national level, whereas electricity pricing is determined at the state level. Farmers, as major stakeholders, can influence political processes at both the state level and the national level, but farmers’ orga- nizations are more active at the state level. In both Andhra Pradesh and Punjab, although farmers’ organizations occupy positions across the politi- cal spectrum, they are united in their public support for low input prices, including electricity prices for agriculture. In addition to lobbying, they use strategies such as political demonstrations to create electoral pressure and create political capital.


At the national level, where fertilizer policy is set, electoral strategies are less effective. Issues such as input pricing do come up in the political debates, but rarely are national level elections won or lost on such issues. However, electoral considerations play a role because the national govern- ment is usually cautious about adopting policies that would jeopardize its party’s prospects in state elections. On crucial issues, such as farm-trade liberalization, farmers have adopted disruptive strategies at the national level, staging massive demonstrations in New Delhi. Farmers’ interests in intersectoral battles are also protected by the minister for agriculture, who is always someone with strong farming ties. In addition, farmers’ organizations are consulted on policy matters by other ministries. Finally, as a majority of parliamentarians have rural backgrounds, farmers use personal connections and lobbying to demand low input prices.


Because the environmental implications of the electricity subsidies are widely perceived to be farther-reaching than those of the fertilizer subsidies, one might expect environmental actors to have appeared on the political scene and joined the discourse coalition that favored policy reform. However, this was not the case. The only NGO group at the state level that became active in this policy field joined the PMGER and promoted the combination


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