WTP-80 WORLD BANK TECHNICAL PAPER NUMBER 80 Involuntary Resettlement in Development Projects Policy Guidelines in World Bank-Financed Projects Michael M. Cemea f ., RECENT WORLD BANK TECHNICAL PAPERS No. 40. Plusquellec and Wickham, Irrigation Design and Management: Experience in Thailand and Its General Applicability No. 41. Bord na M6na, Fuel Peat in Developing Countries No. 42. Campbell, Administrative and Operational Procedures for Programs for Sites and Services and Area Upgrading No. 43. Simmonds, Farming Systems Research: A Review No. 44. de Haan and Nissen, Animal Health Services in Sub-Saharan Africa: Alternative Approaches (also in French, 44F) No. 45. Sayers, Gillespie, and Queiroz, The International Road Roughness Experiment: Establishing Correlation and a Calibration Standard for Measurements No. 46. Sayers, Gillespie, and Paterson, Guidelines for Conducting and Calibrating Road Roughness Measurements No. 47. Segura, Guidelines for Evaluating the Management Information Systems of Industrial Enterprises No. 48. Tschannerl and Bryan, Handpumps Testing and Development: Proceedings of a Workshop in China No. 49. Gunnerson and Stuckey, Anerobic Digestion: Principles and Practices for Biogas Systems No. 50. Turtiainen and Von Pischke, Investment and Finance in Agricultural Service Cooperatives No. 51. Shuval and others, Wastewater Irrigation in Developing Countries: Health Effects and Technical Solutions No. 52. Armstrong-Wright, Urban Transit Systems: Guidelines for Examining Options (also in Spanish, 52S) No. 53. Bamberger and Hewitt, Monitoring and Evaluating Urban Development Programs: A Handbookfor Program Managers and Researchers (also in French, 53F) No. 54. Bamberger and Hewitt, A Manager's Guide to "Monitoring and Evaluating Urban Development Programs: A Handbookfor Program Managers and Researchers" (also in French, 53F; Spanish, 53S; and Chinese, 53C) No. 55. Technica, Ltd., Techniques for Assessing Industrial Hazards: A Manual No. 56. Silverman, Kettering, and Schmidt, Action-Planning Workshops for Development Management: Guidelines No. 57. Obeng and Wright, The Co-composing of Domestic Solid and Human Wastes No. 58. Levitsky and Prasad, Credit Guarantee Schemes for Small and Medium Enterprises No. 59. Sheldrick, World Nitrogen Survey No. 60. Okun and Emst, Community Piped Water Supply Systems in Developing Countries: A Planning Manual No. 61. Gorse and Steeds, Desertification in the Sahelian and Sudanian Zones of West Africa No. 62. Goodland and Webb, The Management of Cultural Property in World Bank-Assisted Projects: Archaeological, Historical, Religious, and Natural Unique Sites No. 63. Mould, Financial Information for Management of a Development Finance Institution: Some Guidelines No. 64. Hillel, The Efficient Use of Water in Irrigation: Principles and Practices for Improving Irrigation in Arid and Semiarid Regions (List continues on the inside back cover) Involuntary Resettlement in Development Projects Policy Guidelines in World Bank-Financed Projects The cover photo was taken In 1978 In the area of the Paulo Alfonso IV Hydropower project In Brazil, at the site of tthe Sobradinho Dam reservoir. In a village to be submerged, children and adults are tearing down the wall of a house, brick by brick, to salvage the few materials that can be reused. Scme of the new houses of the relocated village, rebuilt on higher land, are visible in the deep background. (Photo: Maurice Asseo, 1978) WORLD BANK TECHNICAL PAPER NUMBER 80 Involuntary Resettlement in Development Projects Policy Guidelines in World Bank-Financed Projects Michael M. Cemea The World Bank Washington, D.C. Copyright ( 0, 1988 The Intemational Bank for Reconstruction and Development/THE WORLD BANK 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. All rights reserved Manufactured in the United States of America First printing April 1988 Technical Papers are not formal publications of the World Bank, and are circulated to encourage discussion and commnent and to communicate the results of the Bank's work quickly to the development community; citation and the use of these papers should take account of their provisional character. The findings, interpretations, and conclusions expressed in this paper are entirely those of the author(s) and should not be attributed in any manner to the World Bank, to its affiliated organizations, or to members of its Board of Executive Directors cr the countries they represent. 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The World Bank encourages dissemination of its work and will normally give permission promptly and, when the reproduction is for noncommercial purposes, without asking a fee. Permission to photocopy portions for classroom use is not required, though notification of such use having been made will be appreciated. The most recent World Bank publications are described in the catalog New Publications, a new edition of which is issued in the spring and fall of each year. The complete backlist of publications is shown in the annual Index of Publications, which contains an alphabetical title list and indexes of subjects, authors, and countries and regions; it is of value principally to libraries and institutional purchasers. The latest edition of each of these is available free of charge from the Publications Sales Unit, Department F, The'Vorld Bank, 1818 H Street, N.W., Washington, D.C. 20433, U.S.A., or from Publications, The World Bank, 66, avenue d'I6na, 75116 Paris, France. Michael M. Cemea is sociology adviser in the Agriculture and Rural Development Department of the World Bank. Library of Congress Cataloging-in-Publication Data Cernea, Michael M. Involuntary resettlement in development projects : policy guidelines in World Bank-financed projects / Michael M. Cernea. p. cm. -- (World Bank technical paper, ISSN 0.253-7494 ; no. 80) Bibliography: p. ISBN 0-8213-1036-4 1. Economic development projects--Developing countries. 2. Land settlement--Developing countries. 3. Land settlemeni--Planning. 4. Migration, Internal--Developing countries. I. Title. II. Series. HC79.E44C47 1988 307.1'4'091724--dcl9 88-5618 CIP ABSTRACT Development projects sometimes require that people be involuntarily resettled fran areas where they live and work to other locations. Adequate policy and purposive Implementatlon are necessary to minimize and reverse the negative effects of canpulsory relocation on individuals and on the economy, and to help people becane re-established on a productive, self-sustainable basis. The paper addresses policy Issues and operational Implications of development projects that cause involuntary resettlenent. The general principles for resettlement as planned change are discussed, with emphasis on goverrment responsibility, involvenent of resettlers In the choice amng available resettlement options, and prevention of adverse Impact on host populations and envirorment. The operational procedures described in the paper are tailored to each of the dlfferent stages of the project cycle In World Bank-financed projects. Involuntary resettlement has been, and often still Is, approached as a salvage and welfare operation, rather than one pursuing development objectives. In contrast with such approaches, the paper emphasizes that because Involuntary resettlement dismantles a previous production system and way of life, all Involuntary resettlement programs must be development programs as well. The backbone of any resettlement plan must be a development package consisting of a set of project funded provisions aImed at reconstructing the production base of those relocated and at re- establishing them as self-sustaining producers or wage earners. The paper argues that the knowledge generated by social science research on resettlement Is directly relevant and useful for addressing the social and econcmic problems of such relocation effectively. Policy aspects and operational Implications are discussed In the following sequence: types of projects causing Involuntary resettlement and ways of minimizing resettlement; the social nature of involuntary resettlement processes and lessons fram past project experiences; general principles In approaching resettlenent; policy objectives; resettlement plans; reconstruction of the resettlers' production base; habitat and social organization; environmental Implications and environnental management; and procedures for treating resettlement In each stage of the project cycle: Identification; preparation; appraisal; supervision and monitoring. Annex 1 contains a technical checklist for preparing and appraising resettlement plans In projects. Annex 2 contains guidelines for the econanic and financial analyses of project camponents addressing involuntary resettlement. Annex 3 contains a technical checklist for monitoring and evaluating resettlement. The paper Is addressed to planners, project managers and staff, development practitioners, anthropologists, sociologists, environmental- lsts, and other students of developnent processes. - vI - ACKNOWL EDGEME NT The author Is pleased to thankfully acknowledge the valuable camments and suggestions received during the preparation of this paper fram many colleagues, and In particular frcm V. RaJagopalan, V. Vyas, G. Le Moigne, G. E. Schuh, D. Pickering, and R. Goodland; thielr discussion of earlier drafts has significantly Improved this paper, long In the works. The anthropological and sociological concepts that Illuninate the nature of, and the required approaches to, the processes of populatlon resettlement, have been discussed and refined In many lengthy talks with social scientists and other resettlement professionals; grateful thanks are expressed In particular to Thayer Scudder, 0. Butcher, W. Partridge, S. Guggenheim, among several others. Numerous colleagues frcn the World Bank have contributed to the preparatlon and fleld-testing of the technical and econamic guldelines Included In the annexes, particularly G. Davis, S. Davis, C. Dlewald, D. Fltchett, W. Jones, M. Koch-Weser, R. Ng, W. Partridge. Thanks are also expressed to Gracle Ochieng, who skillfully and cheerfully typed the various versions of this paper. - vi I - TABLE OF CONTENTS I. I IN UCTICOIN ... . . . . . . . . . . . . . . . . . . . . 1 III. TYPES OF PRDJECTS THAT CAUISE IN tLLNTARY RESETTLEM?ENT . . . . 3 Avoiding or Minimizing Resettlement . . . . . . . . . . . 4 The Nature and Scale of Involuntary Resettlement . . . . 6 Lessons fran Past Projects InvolvIng Resettlement . . . . 9 III. GENERAL PRINCIPLES FOR RESETTLEMENT AS PLANNED CHANGE . . . . 13 Government Responsibility . . . . . . . . . . . . . . . . 13 Resettlers' Participation . . . . . . . . . . . . . . . . 14 The Host Population .................. 16 IV. THE DEVELOPvENT-OR IENTED APPPOACH TO RESETTLEENT . . . . . . 19 The Objective of Resettlenent . . . . . . . . . . . . . . 19 The Resettlement Plan . . . . . . . . . . . . . . . . . . 21 Development Packages and Strategies . . . . . . . . . 22 Canpensatlon . . . . . . . . . . . . . . . . . . . . . 25 Habitat . . . . . . . . . . . . . . . . . . . . . . . 27 Social Organization of Resettlers . . . . . . . . . . 28 Environmental Management . . . . . . . . . . . . . . . 29 V. OPERATIONAL PROCEDURES IN THE PROJECT CYCLE . . . . . . . . . 33 Project Identification . . . . . . . . . . . . . . . . . 34 Project Preparation .................. 35 Project Preappralsal and Appraisal . . . . . . . . . . . 37 Project Supervision and Monitoring . . . . . . . . . . . 42 ANNEXES: ANALYTICAL ANM PLANNINI TCOLS FOR PROJECTS IN 0LVIN3 I NUOLUNTARY RESETTLEMENT . . . . . . . . . . . . . . . . . 45 ANNEX 1 - Preparing and Appralsing Involuntary Resettlenent Canponents: Technical Guidelines (Checklist) . . . 47 ANNEX 2 - The Econonic and Financial Analysis of Project Ccmponents Addressing Involuntary Resettlement: Guidelines . . . . . . . . . . . . . . . . . . . . . 55 ANNEX 3 - Monitoring and Evaluating Involuntary Resettlement: Technical Guidellnes (Checklist) . . . . . . . . . . 83 NOTES AMD REFERENCES .... . . . . . . . . . . . . . . . . . . . . 87 - 1 - I. INTRODUCTION Develom,ent projects sametimes require the involuntary resettlement of people frcrn areas where they live and work to other locations. Such relocation causes profound econcmic and cultural disruption to the Individuals affected as well as to the social fabric of local carmunities. Adequate policy and purposive Implementatlon actions are necessary to minimize or reverse the negative effects of canpulsory relocation on Individuals and on the national econany. This paper presents the basic guidelines and the procedures for World Bank-financed development projects that entail Involuntary resettlement. The operational procedures are tailored to each of the different stages of the project cycle In such projects. The purpose of the paper Is to assist those Involved In preparing, Implementing or evaluating such projects, and to contribute to the exchange of information about current approaches to Involuntary resettlenent operations. Appended also I Sa set of three Interlinked annexes, containing analytical and planning tools: working technical checklists for preparing and appraising resettlement plans in projects (Annex 1), for the econcnic and financial analyses of resettlement camponents, Including worksheets and proforma tables (Annex 2), and for monitoring such operations (Annex 3). Involuntary resettlement has often been dealt with In the past In a haphazardous, ad-hoc manner, as a lcw priority side-effect of major Infrastructural works. The lack of clear objectives, consistent procedures and adequate resources for addressing resettlement had resulted in serious adverse effects on the people displaced, on the host populations at relocation sites, and on the environment. To correct such practices, In February 1980 the Bank Issued an Internal statenent to staff that formulated a coherent policy for treating Involuntary resettlement In Bank-financed projects. It was the first time that any major development aid agency estabi shed a special policy to guide work In this cacplex area In order to protect better the interests of the many people affected. That statenent defined the basic principles that must guide Bank staff In projects entalling ccnpulsory resettlenent, outlined the procedures for preparlng, appraising and supervising relocation scheres, and specified the conditions that are expected to be met by Bank borrowers and agencies in charge of resettlement. After a six year period, the experience accunLlated in applying the Bank's policy was again evaluated. A 1986 internal policy note that resulted from this evaluation, while reaffirming the existing resettlement pollcy, supplemented It with new elements and more precise norms for addressing these ccmplex processes effectively and canpprehensively. Other related concerns are addressed in the guidelines concerning physical environmnental issues and the management of cultural property in Bank- assisted projects,11 and in the overall Bank policies regarding the relationships between environment, growth and development.2/ The Bank's resettlenent policy was formulatecd by codifying the lessons learned fran prior and ongoing relocation operations, and by using research findings, concepts and tools that have emerged frcam social science studies3' of such processes. In the next sections of this paper, the two sets of policy and procedural guidelines mentioned above will be presented in an Integrated manner*. In keeping with the sociological nature of resettlement processes, primary attention is given to the socio-anthropologicai4' understanding of resettlement that informs both the pollcy and the operational recammendations. * Throughout the paper Indented single-spaced passages are used for highlighting and closely paraphrasing the critical elements of the Bank's policy and operatlonal guidelines. - 3 - 11. TYPES OF PROJECTS THAT CAUSE INVOLUNTARY RESETTLBNENT Involuntary resettlenent is often a consequence of planned change generated by major developnent projects or programs. While suwch relocation of people Is generally regarded as a consequence of building dams for irrigation or hydropower, In fact It also occurs with consider- able frequency as a result of projects in many other sectors (e.g., projects for urban renewal, highway construction, mine development, etc.). Therefore, early screening of most developnent projects Is necessary to assess their hidden potential to trigger Involuntary resettlement. Throughout the world, population displacements and Involuntary migration occur also as a consequence of wars, political turmoil, and natural disasters, such as earthquakes, droughts, floods and others. The numerous categories of refugee populations displaced by such events confront many problems similar to those confronted by people displaced by developnent projects; therefore, many considerations made in this paper apply as well to refugees fram natural disasters or war and to the type of assistance they need. However, the explicit purpose of this paper Is to deal with compulsory resettlement caused specifically by planned development5/. The types of development projects that most often cause Involuntary resettlement are those that are predicated on a major change in land and water use. This commonly occurs In urban development projects, water resource projects, In highway construction, mine develop- ment or In Industry, where financing Is provided for: (a) construction of dams for Irrigation, hydro-energy and water supply which create man-qade lakes on previously Inhabited areas; (b) construction of transportation corridors -- railways, highways, airports, transmission lines, Irrigatlon canal networks and others that require right of way; - 4 - (c) construction of new ports and towns; (d) construction or Improvement of urban Infrastructure (e.g., sewerage systems, subways, Intracity roads, etc.) and more generally, urban systematizatlon; (e) Inception of mining operations, particuliarly strip mining; and (f) the protection of grazing areas and of trainshumance routes. Such projects are often of crucial Importance for natlonal or regional developnent. They are but one of a variety of situations In which national long term Interests may conflict witlh the Interests of groups and individuals who are Inmmedlately and adversely affected. The former usually prevail. However, Inasmuch as these projects, In addition to their positive contribution to national Interests, have also an unavoidable negative impact, means of reconciling the two sets of conflicting Interests need to be found. Firm measures must be taken to protect the lives, welfare, culture and human rights of those displaced, as well as to reduce/redress the loss of econanlc pot(ential incurred by the local or regional econcmy. Avoiding or Minimizing Resettlement In recognitlon of the hardship and hunan suffering caused by Involuntary resettlenent, the Bank's policy states as Its first requirement that whenever feasible, Involuntary resettlenent must be avolded or minimized, and alternative development solutions must be explored. To encourage the active search for alternatlve solutions, the guidelInes require Bank staff, as well as the borrower's project preparation teams, - 5 - to examine, in the case of all large construction projects (dams, ports, highways, irrIgation schemes, etc.), and determine at the time of identification and appraisal, whether people must be displaced and, If displacement is unavoidable, to reduce It to a minimim compatible with the purpose of the proJect. There have been cases when Insufficient examinatlon of such possible consequences has permitted projects to be designed and appraised without any provislon for resettlenent, only to find out subsequently that resettlement was necessary but that It had neither been Identifled In time, nor prepared and provided for financially, socially and technically. To ensure the resources necessary for, and eliminate the econamically unjustified, relocation, the Bank also requires that the costs of resettlement (both caopensatIon for lost assets and costs of other redevelopnent measures) be included In the overall project costs and taken Into account In the rate of return calculation when the econanic analysis of a project Is prepared. Social science studies have pointed out that there Is an Intrinsic link between the civil engineering solutions adopted for development projects and the social engineering required for their adequate design and Implementatlon.6' For Instance, significant trade- offs may be Identifled between dam height and the amount of population displacement planned. In the physlcal layout of reservoirs, sanetimes small Increments in dam height and reservoir level can entail major Increases In the nunber of people exposed to submergence; conversely, small decreases In height may significantly reduce this nunber. Social considerations are an intrinsic part of technical evaluation and must, therefore, weigh significantly In the darn optimization studles and In the cost-benefit analyses. Other aspects of resettlement minimization are addressed further In the section on project appraisal. - 6 - The Nature and Scale of Involuntary Resettlenent The nature of resettlenent processes has been the subject of pertinent sociological research; their soclo-cultural, econanic, and psychological consequences are beccning better understood. In particular, social science research has identified both the similar and the dissimilar behavioral patterns present in voluntary and canpulsory resettlenent processes. It is crucial that planners recognize the profound differences between these two types of resettlenent and between the populations they encanpass (a self-selected, young or middle age, initiative-prone and risk-taking, voluntary-moving segnent of the population in one case; and the total populatlon that is evicted against Its desire, in the other); such, and other, differences must dictate different designs, approaches, Institutional responsibilities and financing sources In the corresponding types of projects. Frequently, involuntary resettlenent is dealt with by govermients, consulting firms, the media, etc. under the rubric of "environmental problems". This is, perhaps, a result of the fact that envirormentalists have traditionally been those who have expressed the strongest criticism about the adverse effects of dams and thus have helped Increase public awareness about hLman relocation too. But by its very nature, resettlement Is a soclo-cultural/econcmric process that happens first to people, rather than to their physical envirorwment. Therefore, the correct understanding of the sociological nature of Involuntary resettlement -- with Its cultural, econcnic and psychological ramifica- tions that much exceed the envirormental aspects -- has strategic consequences, for It leads to a different course of action in addressing resettlement than if it is regarded only as an environmental problem. When agencies and project managers understand in-depth the ccnplex social nature of involuntary resettlemnt, they are more likely to address It with the tools and resources of planned change; rather than seek mitigation only, they would aim to relaunching the soclo-economic development process. They might also become willing to brIng in the specialized professional skills (anthropological, sociological, technical) needed to work with the people subject to resettlenent. - 7 - The resettlement guidelines formulated for Bank-financed projects reflect the conceptualizatlons that have emerged fram social science research, particularly that the very nature of involuntary resettlemnt gives rise to special social and technical problems, which are to a great extent different fran, and usually more severe than, those encountered In cases of voluntary resettlement. A feeling of powerlessness and alienation Is often engendered In those who are relocated, especially when entire canmunities are uprooted fran famillar surroundings. To the extent that pre-existing carnmunity structure and social networks disintegrate, and tightly-knit kin groups are dispersed to new locations, social cohesion Is weakened, and the potential for productive group- action is diminished. Further, the Bank's guidelines Identify and call attention to what sociologists name the "dependency syndrame" and the risks entailed if welfare-only approaches are applied. People subjected to relocation are prone to develop the syndrame of settler dependency If paternalistic help policies are applied. Because such policles discourage self-mobilization and undermine the settlers' cammitment to self-support and develop- ment, government assistance should be an interim measure; however, care must be taken to avoid Introducing In the patterns of assistance provided at the time of relocation, or Implanting In the minds of the resettlers, the idea that those resettled are going to be permanent wards of the State. In light of such and other special problems that result fran involuntary relocation, the Bank has concluded that more systematic procedures are needed for the treatment of resettlement under the Bank projects, as well as guidance to staff on the policies and measures the Bank should pramote in its relations with borrowers and settlement agencies. By Its nature, displacement Is always an extraordinarily disruptive and painful process, econanically and culturally: It - 8 - dlsnantIes productIon systems, it disorganizes entire human camnunitles and It breaks up long establIshed social networks, It destroys productive assets, it causes severe enviromnental effects and the loss of valuable natural resources. Research has found that forced resettlement also tends to be associated wlth Increased stress (psychological and soclo-cultural), and heightened morbidity and mortality rates. The sIze of the population displaced may vary fron only several hundred people In one project to tens of thousands of people In others: the Aswan Damn project In Egypt, for Instance, had to resettle over 100,000 people, and the Narmada Sardar Sarovar Dam belng built now In Gujarat will displace scme 70,000 people; the Yacyreta reservoir at the border area between Argentina and Paraguay will sutmerge tcwns and villages Inhabited by some 45,000 people; about 60,000 urban and rural people were displaced by the Sobradinho Dam In Brazil; the recently ccnpleted Nangbeto hydropower dam in Togo has displaced sane 10,000 rural people, many of whan are shifting cultivators; the Shuikou dam on the Min river In China, whose construction started In 1987, will cause the relocation of about 62,500 people living In villages and townships; the largest Involuntary relocation in dam projects kncwn so far was caused by the Danjlangkou dam, completed In China in mid '70s, where same 383,000 people were resettled; and a drinking water reservolr and supply system under construction now in Dhaka, Bangladesh will cause the relocation of some 20,000 people, etc. In each and every case, the task of Involuntarily relocating people is a daunting one, and It would be a mistake to underestimate the disruptive effects of dislocation even In projects where the size of the population affected Is relatively small. In Guatemala, for Instance, the mishandling of the relatively limited relocation entailed by the Chlxoy dam caused such discontent that a national emergency was declared. Warning about the difficulties Involved in resettlement, the Bank's guidelines emphasize that the camplexity of dislocation results not fram numbers alone, but fran the severity of the consequences to the people affected and to project success. The way Involuntary resettlement Is handled can substantially affect the overall econanic and social results of projects. The only response adequate to the canplex and disruptive nature of Involuntary resettlement, when such resettlenent Is unavoidable, Is careful and systematic advance planning for viable alternatives in each Individual project. Because involuntary resettIement dismantles a previous productlon system and way of life, all resettlement programs must be development programs as well. It Is not acceptable to leave unexplored or unimplemented reasonable measures to prevent those dislocated fran beccming permanently Impoverished. When resettlenent Is unavoidable, the Bank's policy Is to help the borrower ensure that the productive base and lncane-earning ability of those Involuntarily resettled are improved -- so that they share the benefits of the new developnent and are canpensated for transitional hardships -- or at least helped to attain the standards they would have achieved without relocation. Lessons franm Past Projects Involving Resettlennent Throughout the world, Involuntary resettlenent has probably been the most unsatisfactory canponent associated with dam construction, either In nationally or In Internationally financed projects. This sobering record calls for changes through Improved policy approaches, greater resource allocation, and enhanced implenentation standards. Past Bank-assisted projects, particularly during the 1960s and early 1970s, sanetImes contained relocation operations that were flawed by the lack of socIal planning. They failed to restore, let alone Improve, the socIal and econanic well-being of the displaced population. CrItIcal conclusions in this respect have been reached both by the Bank and by many socIo-anthropological and envirornental studies undertaken by Independent researchers frcan developing and developed countrIes7/, who have enpIrically docunented performance, failures and lessons fran various resettlement schenes. When resettlement operations In Bank-assisted projects were left out of the main project design, and Implicitly out of the Bank's concern - 10 - for Implementation and assistance to the borrowing agency responsible, the result ing Institutional and financlal problems tended not to be resolved In time. This caused Increased hardship to the affected population and delays in project implemntation. In other cases, some general provision for resettlement was made in the project design but without always ensuring that a detailed resettlement plan would be drawn up, agreed upon in time, and implemented; this often happened because the borrowing agency did not realize the complexity of resettlement and under-estimated Its econcrmic, cultural and political consequences. In the latter cases, Bank misslons have often been unable to assess the real size of relocation, the soundness of the provisions for resettlement, or their costs; the result has been an Incacplete design for, and underfinancing of, the Involuntary resettlement components. The Bank concluded, therefore, that examining a resettlement plan after project appraisal and negotiations is unsatisfactory, as the Bank may be unable at that time to persuade the borrowers to make desirable modification to the plan or obtain the full cannitment of the lborrower to carry It out. Past experience has also shown the Importance of mobilizing adequate local sociological skills [besides the technical and econcmic ones] for the investigatlons and/or planning and Implementation needed for effective resettlement. For Instance, as the Bank's guldelines point out, the fallure, during project preparation, to carry out social surveys of those to be dislocated as well as of the host-area populations, canbined with weak preparation of viable re-developnent alter- natives, can make It Impossible to conduct an adequate appraisal of resettlement plans, costs and organizational arrangements and can result In resettlement ccnponents which are underdesigned, underfunded and understaffed. Inadequate concern with the severe consequences of Involuntary dis- location or Inability by the borrowers to carry out their responsibility for preventing destitution -- for example, by re-establishing those evicted on an alternative productive base -- can defeat an important purpose of the overall developMent effort and of assistance by the Bank. - 11 - Over the last seven years, the application of the Bank's policy, although not free of shortcanings, has led to significant improvements In the resettling of people displaced under Bank-financed projects. The Bank has been the only international development agency with a clear policy guiding Involuntary resettlement operations. The Impact of this policy has not been limited to resettlement under Bank-assisted projects, but has also had a spill-over effect among borrowing goverrments and local agencies, as well as other International donors. Nevertheless, the Bank has sanetimes not applied the policy and Its related operational procedures with adequate rigor and consistency In all its projects; serious issues have remalned unresolved regarding the resettlement policies, laws, and practices of various borrowers. Although the Bank usually is involved In only a fraction of the resettlement operations that do arise In a country, and thus Its Influence Is limited, It Is regarded as essential that the Bank's own approach and performance under Its financed projects set an example of addressing relocation probiems effectively; for that too, Bank policies must be appiled to Bank- financed operations faithfully and consistently. A retrospective analysis of resettlenent experiences carried out In 1986 on a large nunber of projects Indicated that both the Bank and the borrowers need to Improve substantially their performance In this category of projects. Three key areas were identifled as requiring Immediate and considerable strengthening: first, the quality of borrowers' preparation and detailed planning of resettlement canponents must Improve radically with respect to their econanic, technical, sociological and organizational content; without canprehensive, detailed, and timely feasibility studies and relocation design, there is little that can be meaningfully done at appraisal time and little that can subsequently guide implementation on an effective path; - 12 - second, increased attention must be given to econcmically and socially viable options for developing the productive capacity of displaced populations through project-financed land- and employment-based strategies; third, supervision by the Bank of the Implenentation of resettlenent operations must be exercised more regularly, professionally and firmly, to help improve the performance of the agencies executing resettlenent and ensure consistency of Implenentation with polIcies and legal loan agreenents. The in-depth evaluation of the Bank's experience in the '80s has shcwn that staff must also pay increased attention to: (a) Consideration of legal aspects of resettlement and of legislative policy frameworks governing expropriation, ccmpensation and production-based relocation In the borrowing countries; (b) Econaoic analysis and full costing of resettlement canponents In projects; (c) Recognition of the special conditions and needs of tribal populations affected by displacement; (d) Implications of resettlement for the host population and the physical envirorment In the receiving areas, and (e) The suitability of available organizatilonal arrangements (which are often Inadequate) for executing the relocatlon, and means for improving them. - 13 - 111. GENERAL PRINCIPLES FOR RESETTLENENT AS PLANNED CHANGE The policy for involuntary resettlement operations rests on a nunber of basic principles related to goverment responsibillty, resettler rights and participation, protection of the Interests of host populations, and a clear definition of the objective of resettlenent. These consider- ations and objectives must be embodied in resettlenent action plans, adequately financed and intrinslcally coordinated with the implementation of the project's Infrastructural canponents which cause resettlement. These aspects are presented, In sequence, below. Goverrment Respons Ib I I I ty The responsibility for relocating the affected groups rests with the government. The Bank is prepared to assist the responsible agency to ensure that an appropriate course of action Is followed and that hunan hardship Is minimized. Further, the Bank encourages goverment policies that both permit affected households to choose their future frcm a nunber of acceptable alternatives and assist technically and financially these famllies to rebuild their lives, their self-sustaining econcmnic basis and their social support networks. It discourages solutions of a purely welfare nature because these promote feelings of powerlessness and tend to lack lasting beneficial effects. The Bank is aware that Involuntary resettlement Is often politically sensitive In Borrower countries and encourages the Improvement of country policies and legal regulations pertinent to the rights of those displaced, or the formulation of new policies and legislation regarding resettlement when such Institutional frameworks are not yet In place. In some countrles, such explicit Bank efforts have resulted in the adoption of significantly improved policies and dcmestic legislation. When this happens, the resulting legislation and regulations Improve the framework for resettlement operations that occur outside Bank financed projects as well. - 14 - The Bank also engages In pollcy dialogue with borrozer goverrments, when necessary, on matters regarding resettlenent. To address such Issues adequately and on a larger -- country or sectoral -- scale, the Bank uses not only Its project assistance, but other vehicles too, like sector work and sectoral lending operations. The guidelines specifically indicate that In cases when large scale Involuntary resettlenent Is likely to occur as a result of sectoral lending for energy, irrigation, transportation, industry, urban development or water supply, the Bank's sector analytical work should address the social, technical, econanic and political impilcations of resettlement on a broad sector basis. When sectoral lending operations are envisaged, these should take Into account the need for sound resettlement policies and the country's willingness and capability to handle Involuntary resettlenent adequately. The emphasis on a sectoral approach in the case of lending operations with unavoidable population displacement, such as In the hydropcwer sector, Is a rather recent approach and constitutes a notable advance over the previous way of handling resettlement case by case or project by project. The sectoral approach is ali-eady proving Its advantages (e.g., In the case of sectoral lending for energy In Brazil In 1987) by helping to establish sector-wide criteria for such operations In the respective country, by creating conditional interlinkages between investments In energy Infrastructure and investments in the soclo-econcmic re-establishment of those displaced, and by providing a longer time horizon for the advance planning of relocation. Resettlers' Participation Since resettlement planning Implies critical decisions regarding the future of the displaced groups, It Is Incumibent upon the agencles involved In this planning to seek the participation of the resettlers. The guidelines reccmiend specifically that affected populations be consulted -- directly or through their formal and Informal leaders, - 15 - representatives, or non-goverrnental organizations -- with respect to the social and econanic aspects of the various alternatives being considered for resettlenent. This will Improve the understanding of their needs, resources and preferences, prevent costly mistakes, help reduce the understandable reluctance to move and the stress associated with the dislocation, and accelerate the subsequent transition to and Integration within the new settlenents. Dissemination of Information about the Impending relocation, about resettlers' rights, ccmpensatlon procedures, available choices, etc. Is an Indispensable premise for participation. Initial resistance or hostility to the Idea of Involuntary resettlement Is normal and should be expected. The responses of settlers and hosts will greatly depend on establishing good ccrmunicatlons and holding consultations with the concerned groups and their organizations (local associations, NG3s, etc.), and on encouraging their participation In finding solutions to the ccmplIcated problems encountered In the planning and execution of resettlement. Moreover, the lack of accurate Information can exacerbate misunderstanding and strengthen resistance. It also gives rise to situations where scme Individuals may try to manipulate conditions to their personal advantage. A progran to Inform and educate Is therefore a prerequisite for obtaining the cooperation of the affected population. Involving the local leadership and the non-governmental organizations (NlOs) Is another basic requirement underlying the recimmendatlons for resettlenent operations; NGOs have effectively contributed to calling the attention of the Bank to the problems emerging In various resettlement operations, and they are apt to articulate resettlers' needs and defend their entitlements8l. Since traditional local organizations and the ethnic and religious leaders are usually respected by the people, planners and acdninistrators should seek thelr Involvement In planning relocatlon whenever possible, in order to facilitate ccfmunication, mobilization of group resources, and cooperation. Leaving behind lands, deities, and ancestors deeply - 16 - affects both the individual and the cormunity, and may lead to a partial breakdown of social cohesion. Moreover, the weakening of the previous econanic organization and of traditional authority can foster dependency and prcmote social apathy. These socIo-cultural factors should be taken into account In plannIng and Implementing resettlement. The Host Population Besides (a) the goverrment agencies and (b) the resettlers thenselves, the other major actor In resettlenent processes is (c) the host population living In the receiving areas. A widespread fallacy Is to cnit the host populatlon fran the pre-project weighing of resettlenent Implicatlons, only to discover during Implenentation that Intractable probIems arise. Since only rarely can implenenting agencies find pempty lands" to place resettlers, the risks are that population density in receiving areas wil Increase suddenly to levels abDve the carrying capacity of the land and the natural resources available to both hosts and inccmers on a sustainable basis. Although hosts may at first react favorably to the arrival of the displaced, serious conflict may arise as Increased demands are placed on land, water, services, etc. In situations where no large blocks of land are available and a "fill-In" operation Is planned, experilence shows that hosts tend to see the newccners as a source of cheap labor and may try to exploit then. The resettlenent agency should anticipate that feel ings of jealousy will likely be aroused among the hosts If superior services and housing are provided to the settlers. If possible, educatIon, water, health, and other services should be made available for both groups, and a suitable social climate generated for their integration. To prcnote this cl Imate, any payment due the hosts for land or other assets provided to settlers should be pranptly rendered. EquItable treatment should be accorded as far as possible to both hosts and settlers. - 17 - Obviously, carrying out these recarmendations may increase the cost of a project, but In the long run the extra investment wIil prevent the possible abandorment of settlements and help secure the desired results of the initial Investment. They are necessary also to help prevent Impoverishment effects on the host populations and destructive environmental consequences caused by Induced overpopulation in the arrival zones. The social, econcmic and cultural Integration of the resettlers with the host population is a slow process, which cannot happen through adninistrative decree. But it Is an Indispensable process, If viable camnunitles, settlenents, and new social networks are to be rebuilt. Such a process can be accelerated by policy driven planning that purposively Integrates host-resettler development. - 19 - IV. THE DEVELOPENT-OR I ENTED APPFOACH TO RESETTLEMENT The Objective of Resettlement Not Infrequently, involuntary resettlement of people has been treated in the past as a salvage and welfare operation, rather than as one pursuing development objectives. Resettlement can be bureaucratically dealt with by some planners or adninistrators as a mere and hasty physical removal of people out of the path of the flooding reservoir waters or of the caning highway. But it may also be approached as a multisided opportunity for the reconstruction of systems of production and human settlenents that would represent a development In the standard of life of those affected, as well as In the regional econany of which they are a part. The former perspective has been proven a recipe for failure, able only to canpound for the long term the Inmedlate disruptive effects of forced dislocation; the latter is clearly preferable but It is more difficult and costlier. This major difference In perspective leads to different approaches to conceptualizing, designing, planning, financing and implementing resettlement. When certain development projects make the Involuntary resettlement of people unavoidable, the general policy of the Bank Is to help the borrowing country ensure that, after a transition period, the displaced people regain at least their previous standard of living and that, so far as possible, they be econcmically and socially integrated Into the host ccamunities. In pursuing such Integration, the major objective Is to ensure that settlers are afforded opportunities to becace established and econanically self-sustaining In the shortest possible period, at living standards that at least match, and If possible Improve upon, those before resettlement. - 20 - it has to be kept in mind that the living standards of the people would In any case have changed somewhat during the project years had there not been a project; therefore, the usual "with-and-without-the-project" type of analysis, that is applied to assessing general returns, must be applied also to the ccmponent aiming to re-establish resettlers at levels comparable or better than those that would have been reached without the project-induced resettienent. More often than not, living standards suffer during the years preceding dam construction, and especially durlng the years between the ccmmencement of construction and actual relocation (which in certain big projects may be an extended time period). Therefore, to merely restore those living standards to a level strictly equal to the pre-project one, without considering the grcDvth that would have occurred anyway, would mean relocating people at a marginal or sutmarginal level. A canparable Improvement can and must be achieved In the physical pianning of new settlements, whether these are rural or urban: the future-looking approach calls for reconstructing settlemlents that are residentially superior to, and not Just replicas of, those existing previously. The policy guidelines for resettlement direct the actual relocation programs to recognize that new settlements are expanding socIo-cultural systems whose collective needs will Increase over time. in other words, develomient-oriented resettlement means that the social infrastructure, school and health services, access to employment opportunities and, If applicable, the housing-plot allotments and dwellings should be planned to meet the needs of resettlers' growing families, taking into account, if possible, at least the first and second generation In the settlement. The same applies to Infrastructural systems such as feeder roads and water supply, or service systems like marketing networks and agricultural extenslon. Such systems must be planned in ways that use the development opportunities created by relocatlon and their planning should provide for future expansion as well. This Is facilitated when those displaced are enabled to share in the benefits of the new development: for instance, by being resettled into the newly irrigable - 21 - areas downstream, whenever possible; by getting access to a share of the new power capacity or revenues, etc. The Resettlement Plan Without doubt, extraordinary difficulties await both the people displaced and the relocation agencies on the way to achieving these forward looking objectives, particularly because the starting point of resettlenent Is the setback caused by the loss of key productive assets. In order to accomplish these objectives, the Bank adopted the approach of making the planning and financing of resettlement an integral part of the preparation for the main project that causes the resettienent, i.e. of the planning, appraising, financing and supervising of this main project. The measures to be taken in this regard should be clarified between the Bank and the borrowers before, and agreed upon during, the negotiations for the project and Its financing loan. To be specific, the resettlement of those displaced must be undertaken based on a well-prepared resettlemnent plan, aimed at using the opportunities created by relocation towards re-establIshment and development. The goal of the foilOWing section Is to present some of the framing principles required of a resettlement plan and the specific canponents that must be present. It should be emphasized that these are the minimun requirements without which any proposed plan will be Incanplete. The content and level of detail required for such a plan will vary with circLmnstances. Where large nunbers of people are to be moved, such as entire cammunItles, a more detailed plan is required than where only few people are to be relocated. Such a plan provides far more than simply disbursing cash canpensation to those affected and considering the problem closed, as Is practice In sore countries. The resettlenent plan includes the activities necessary for relocation In a specific new area and for Integration with existing ccnynunities, In a manner that gives settlers the opportunity to becane physically established and econcnically self-sustaining In the shortest possible period. - 22 - To be successful, resettlenent planning and impleTenting requires close scrutiny of the essential needs of the settlers. Those responsible for planning the resettlement need to think about the econanic and cultural characteristics of the population to be moved and how these will aflFect Its response to relocation and Its ability to cope in the new environment. It is often useful to have this Initial orientation guided by professional sociological advice, especially when dealing with isolated or culturally non-homogenous groups. Planning for resettienent should begin as early as possible. Because delays In resettlement have led in the past to serlous cost overruns, not only in the resettlement operation itself but also in the overall project, completion of detalled resettlenent planning Is required before the negotiation of the project loan. Developnent Packages and Strategles. The backbone of the resettlement plan Is the "development package", In other words, the set of provisions aimed at reconstructing the production base of those relocated. The development package must offer sufficient opportunities and resources for their econcmic and social re-establishment as self-sustaining producers or wage earners. With costs of involuntary resettlenent operations now often close to those for goverment sponsored settlenent projects In which the settlers themselves contribute to project benefits, the developing countries are virtually in a situation where they cannot afford to relocate people without fostering new development, so that the Involuntary resettlement would eventually contribute to the benefit stream. Two basic strategies may be pursued In the resettlement plan for econcmically and socially re-establishing those dislocated frcm rural settings: - land-based strategies; and - non land-based strategies. In urban and pern-urban settings, those displaced usually depend on non land-based sources of livelihood (e.g., the service sector, - 23 - Industrial employment, self-employment, etc.) but scmetimes they may possess also scme farming lands. The approach to their situation should take Into account, in addition to their need for new housing plots, their access to aeployment opportunities and, when warranted, to sane land for farming or gardening. Depending on local (rural, urban or perl-urban) circunstances, a canbination of land-based and non land-based strategies may be adequate. Whichever strategy Is follcwed, hcwever, It must be flexibly translated into specific provisions In the project. In land-based strategies, the Bank's approach is that adequate ccmpensation for lost property Is important, but that providing economic opportunities to re-establish the displaced populations as agricultural producers, rural artisans, etc. Is the crux of any viable resettlement. Camponents based on technically feasible agricultural production packages are likely to be the main avenue to restoring the production systems of dislocated rural groups. Such econcmic opportunities arise fran building into the agricultural redevelopment package specific project-funded activities such as land reclamation, Irrigation schemes, agricultural Intensification, tree crops development, fisheries, canmerclal or social forestry, vocatlonal tralning, off-farm employment, and other kinds of lasting Inccme-generating activities. Reforestation schemes are of particular Importance not only for their Inccme generating potentlal, but also for mitigating scme of the environmental losses usually caused by reservoir submergence. Overall, when the solutions for displaced people are geared tcwards agriculturally-based Involuntary relocation, many of the general approaches to regular (voluntary) land settlement projects, descrlbed In other World Bank policy and technical papers9/, will also apply. Land settlement Is, In fact, also a resettlement process of people fram their old to a new location and, beside the sociological differences between causes and actors (see pp. 6-8) there is substantial similarity In many of - 24 - the reconstructive processes that can be predicted, and thus planned for, at the new locations. There Is, therefore, much to be learned In planning Involuntary resettlement frac the approaches developed for non-compulsory land settlement, voluntary and sponsored migration or transmigration processes. Land Is a crucial factor In re-establishment strategies, since the vast majority of those displaced tend to be farme!rs or agricultural laborers. The reconstruction of their productive potential essentially depends on availability of land. The experience in a nunber of projects, hcwever, Is not very encouraging, since borrcwers are often reluctant to take all the steps necessary for making land avallable to those dispossessed of their land or to those entitled to receive land even though they had no legal land title before. Scmetimes, land unavail- ability Is a real and serlous constraint, given e-xisting population densities. Usually, however, It Is the result of (I) poor project planning, (li) lack of effort to Identify land reserves, (111) lack of political will to use goverrment authority for providing land that may legally be made avallable, or (lv) lack of Imagination to design proper solutions. The resettlement plan for rural populations should, therefore, start by establishing the basic Indicator: the amount: of land necessary to re-estabilsh those displaced on a productive base. This requires having defined area targets, econcmically and technically viable sites acceptable to relocatees, and timetables for obtaining and preparing new farming land. Even when land is available, however, alternative non land-based strategies may be needed for scme of those displaced. Such alternatives beccme Imperative In situations of extreme land-scarcity. Opportunities then need to be opened up for those displaced to re-establish themselves In the Industrial or service sectors of the local or regional econany. Job creation through new Investments may beccme necessary, because vocational training alone, without actual employment of those displaced In their newly acquired skills, does not restore Incane. This Is why restoration of productive systems and substitution for lost income-generating assets should go beyond - 25 - simple cash payments to providing an alternative Inccme basis to the affected people. While land scarcity may make It difficult to identify such alternatives, It will also make themi more Important. In exploring land-based and employment- based opportunities, consideration should be given to such options as the creation of land-pools, granting first right of purchase to resettlers, project financing for land reclamation works, Investments in vocatlonal training, In small Industries, In service sector jobs, etc. Specific project funded provisions for carrying out these activities must be Incorporated in the proJect's design. In cases when urban settlements are affected, the resettlement plan must give special attentlon to the carplexities of site ownership, legalIty of site occupation, and site-related econanic (productive or service) activities. Bank operational guidelInes specify that squatter cammunities slated for removal must receive alternative locations for housing although they may lack the legal title or rights to their land (or other property) that would ensure their campensation. When the relocation Is Into an already populated urban setting, tensions between various neighborhood, ethnic or other groups may be exacerbated as a result of greater proximity, especially if previously separated groups are expected to share a site and Its resources In the new location. Planned provisions to ensure that services will be capable of handling the needs of the displaced are also a critical part of the resettlement plan. Ctn>asatlon. People displaced by a large project are caTpel led to relinquish rights to various linovable assets. These Include housing, land (and Improvements to both), access to econanic opportunities (such as nearby jobs) and public services, as well as non-econanic assets (such as shrines, cemeterles, camunal public bulIdings, etc.). In urban settings, relocation can cause special problems for traders, small businesses, street vendors, cottage Industries, etc. through the disruptlon of canmercial ties with custaners, suppliers and distributors. In rural areas, lost assets can Include fishing waters, irrigation works, standing - 26 - crops, and trees. In the case of the very poor, even the loss of assets or opportunities that are not normally ascribed an econanic value may be disastrous. Such opportunities Include the collection of roots, berries or leaves for dietary supplement or sale, occasional porterage, etc. Goverrmient laws and regulations pertinent to expropriation of property by the State when required by preeminent national Interests are generally used to define the procedures for valuation of, and ccmpensatlon for, the property lost in cases of ccimpulsory relocation. However, such national laws and regulations governing campensation are sametimes outdated, or lack In precision or implenentation mechanisms, and therefore do not prevent serious hardships and suffering. In particular, (I) canpensatlon procedures typically relate to fair market values, whereas In practice the return fran these assets to their owners may well exceed such a valuatlon; (Ii) certain types of Intangible assets are not counted - ranging fran proximity to kinship groups, or access to religlous shrines and other places of cultural Identification, to proximity to eployment opportunities (the latter may be the most Important to the poorest groups, whose tangible asset base eligible for canpensatlon Is typically meager); and (1li) the productive assets given up may be difficult to replace In kind, as In the case of land in densely populated areas; but the cash-only canpensation implicitly shifts the burden of solving this difficulty to those displaced, without providing them Institutional assistance In addition to cash ccampensatlonr. Sometimes borrowing agencies propose cash ccmpensatlon only, In lieu of resettlement facilities, because they are not able or willing to actively search for existing surplus lands for those displaced. The Bank's resettlement policy therefore emphasizes that experience wIth the resettlement of large populations tends to show that payment of cash canpensation alone Is often a very Inadequate strategy for dealing with the displaced; In scme Instances, the entire ccmpensatIon has been used for immediate constznptlon purposes, leaving the displaced with nothing to replace their lost - 27 - Income-generating assets and opportunities. When only few people are Involved, cash caopensation may be adequate; but, even In that case, consideration should be given to the ability of displaced persons to find alternative hcmes and employment opportunities. Assistance In relocating also Is often necessary. The reasons why cash caTpensation Is seldan the proper answer Is that such ccnpensation is usually not adequate, (e.g., in a project in Kenya the canpensation offered per acre represents only same 20% of the actual cost of replacement land) nor is it carmonly Invested productively. If not given land for land, the displaced population Is likely to end up In squatter settlements that undermine the project's objective. Experience In World Bank-assisted projects has shawn that cash handouts often result In Impoverishment. Under the pressure of lmmediate needs, or of cultural expectations, people frequently tend to use cash cacpensation for purposes other than replacing the land, after which those displaced are destitute and left to start farming on canal banks, encroaching, deforesting, overgrazing, etc. Thls Is why the borrowers "land for land" approaches are to be firmly supported by the Bank which seeks their consistent Implementatlon, in association with the use of imaginative Institutional mechanisms for land Identification, conversion, pooling, exchanging, selling, etc. The fact that cash ccmpensation, In certain situations, may be acceptable and adequate for a small higher-incane stratum of the affected population, should by no means validate it as an adequate solution generalizable to all those displaced. Habitat. Housing at the new sites, sanitary facilities, drinking water supply systens, schools, health care facilities, etc. are another maJor canponent of resettlement planning. Resettlers generally tend to put higher priority, and rightly so, on access to land and employment, and planners should allocate resources accordingly, rather than reverse prioritles. However, a development-oriented approach to resettlement should strive as well to enhance the prior housing standards and the physical infrastructure In the new settlement. - 28 - Since self-built houses are often better accepted, an effective project option Is to provide of prepared village sites, rnaterials and sane Infrastructure, which wlll enable the resettlers to construct larger and healthler dwellings using a model of their own preferences (in the Shaxicon project and In the ShuIkou project In China, for Instance, the resettIers are given the option to select among six different nav house blueprInts drawn for them by technical experts, and then assisted with materIals to build the one chosen). Restrictions on the settlers' customary activities (such as restrictions on farming, extending thelr houses, building shrines, etc.), which cause frustration and encourage those who can to abandon the settlenents, should be kept to a minimum . Social Organization of Resettlers. Attention to the social organizatIon of the new hunan settlenents Is indispensable for deveIopnent-orlented resettlement. The polIcy explicitly directs Bank- financed projects that the settlers' social and cultural Institutions should be supported and used as much as possible, and theIr cwn InItIative should be encouraged through self-help and Incentive programs. Because the dismantI ing of the previous economic organizatIon and of traditional authority systems Is apt to undermine thie self-mobilizing capacity of the caTnunity and may pramote social apathy, careful work with the resettIers, the host cammunitles and their respectIve leaders prior to and after the move Is also of cruclal Importance. Learning fran the conclusions of many anlthropological and sociological analyses of settlement schemes regarding the role of settlers' own organizatlon and self-management, the Bank's policy states that, to be ultimately successful, resettlenent operations require a gradual transfer of responsiblilty fracm settlement agencies to the settlers thenselves. ActIon should be taken fram the outset to prepare the transfer of the responsibilities of management to the reselttled. - 29 _ To prevent ackninistrative tutelage and a dangerous dependency relationship from setting In, the Bank's policy explicitly recammends to goverrnment settlement agencies to overcaoe the bureaucratic tendency to retain decision making and managerial functions among agency personnel and encourage the emergence of recognized ccrnnunity leaders. This will Increase participation, stimulate local initiative, and greatly facilitate the tasks of the agencies themselves. The majority preference of those displaced to move In groups as cultural/social units (e.g., as entire kin group, extended family, ethnic group, neighborhood, whole hamlet or village unit, etc.) also bears upon their potential to get socially organized and econanically productive quickly at the new location. This preference must be supported as long as It does not adversely affect the choice of feasible redevelopnent options or the genuine preference of same for Individual self-relocation. Such support for relocation as cultural units would protect an Important social resource -- the viable patterns of group organization -- which can act Inmediately at the new location to cushion disruption caused by resettlement. Envirormental Management. The resettlement plan must be drawn with a definite orientation towards preventing environmental deterioration as a consequence not only of the main project, but also of resettlement as such.10' Experience Indicates that reservoir relocation operations frequently tend to move the displaced people into the upper catctment belt imnediately surrounding the new reservolr, which may be already inhabited to capacity. The dcwnstream camiand areas may hold better pranise for relocation sites with less envirormental risks, due to then transition from rainfed to Irrigated agriculture and the resulting Increased agricultural potential. The key Indicator that must be used In such situations Is the ratio between the Inccming resettled population and the host populatlon already Inhabiting the receiving areas. This would measure the - 30 - incremental population density per unit of land caused by resettlement and the likely Increased pressure on the area's natural resources. To assess this, the resettlement plan must develop a working definition of the boundaries of the resettlement area, within which the specific new village sites (or the fill-in operations) are located, and of the area's available natural resources. If the predictable consequences on the physical environment are unacceptable, alternative relocation sites must be found. When relocatlon takes place dcownstream or around the reservoir, or In both areas, the guidelines emphasize that the Involvement of local authority systems of both resettlers and hosts Is essential, If maJor environmental problens, Including encroaching on forests, over-grazing, etc. are to be averted. Local leaders must eventually take over fram the settlement agency the responsibility for envirormental management and for the maintenance of Infrastructural assets. They, as well as local health practitioners (curers, mid-wives, and the like) who operate within the context of local medical systens and folk beliefs, must also be Involved in the execution of strategies to Improve canmunity health and prevent the spreadl of new water-borne diseases. At the same tIme, constructive measures for envirormental protection and management may provide new econcinlc opportunities and benefits to resettlers and host populations alike. For Instance, project financed ccmpensatory reforestation not only replaces forests that are submerged by the reservoirs, but also offers gainful employnent for many people; the new reservoir-lakes, If managed correctly fram an environmental viewpoint, are apt to provide significant new benefits through fishing and tourism. In sun, well balanced resettlenent plans, -- incorporating production-based development packages, adequate campensation, provisions for habitat and new settlement infrastructure, health and environmental protection measures, as well as the strengthening of social organization - 31 - and local Institutions -- lead to a constructive response to the upheaval Inflicted on people by Involuntary dislocation. Projects containing and financing such plans are thus in a position not only to remove people, but to proceed systematically towards re-establishing them In a development- oriented and environmentally sound manner. - 33 - V. OPERATIONAL PROCEDURES IN THE PROJECT CYCLE A set of operational procedures germane to the resettlenent policy have been designed and prescribed for work on Bank-assisted projects with such ccmponents. These procedures are Intended to ensure that the policy provislons are translated Into substantive project realities in every stage of the project cycle. They supplement the general operational norms, valid for all projects, with added enphasis on key steps, requirements and processes particularly relevant for resettlement operations, as a way of preventing, or responding to, the unusually ccmplex problems arising In such projects. The policy and Its related procedures leave rocm for considerable flexibility In selecting the solutions and modes of implenentation that are most suitable In any particular situatlon. However, unjustified departures fran the basic procedures and processes carry a high risk of undercutting the policy Itself and rendering It less effective. Such departures, unfortunately, have happened, Including cases when legal covenants regarding resettlement have not been camplled with, and enforced rigorously. Specific procedures established precisely for handling resettlement have scmetimes been bypassed by Bank staff or borrowing agencies. In same cases Bank staff have not taken the required prcmpt, firm action when borrowing agencies have created situations In Involuntary resettlement that were contrary to the Bank's policies. When such departures or bypassing occur, the policy Is ccmprcnised and the quality of people's resettlement Is lowered. Therefore, the Bank has recently Increased Its expert resources (both specialized In-house staff and outside consultants) assigned specifically to work on resettlenent cmponents and to provide technical assistance to borrawers, In order to Improve the quality of resettlement planning and execution. The Bank has also Intensified Its policy dialogue with borrcwers on these Issues and strengthened the formulation and enforcement of resettlement related provisions In the legal agreements for loans and credits. - 34 - The sections that follow deal with the key stages1l/ of the Bank's project cycle; these stages are discussed as "entrance points", so as to Indicate the kind of population-related knowledge12/ that Is required at each stage and the basic elements of what needs to be done operationally. Project Identification Early during project Identification, It Is Important to Identify whether resettlement will be required and the size of the population that will be affected, and to start preparing the relocation ccnponent. This way the project preparation work would begin by "putting the people first" and considering the social Implications of the proposed Infrastructural development frcm the outset, thus reversing the habit (widespread In the planning of hydropower dams) of dealing with the population to be displaced last. Long before Investments are made In preparation or preappralsal work for a project -- namely, beginning with the Initial "executive project sumeary" brief -- the Bank's Internal procedures require that kncwn or potential resettlement operations related to the project be explicitly flagged to management, so that they can be weighed during the decision making process, and not dealt with as an after- thought when the key decisions had already been taken. The possibillty that the magnitude and ccmplexity of Involuntary resettlement might be better handled under a special full scale resettlement project, rather than as a subsidiary canponent In the main project, may be usefully considered at this stage, although definite answers to this question can be given only after preparatlon work and at preappralsal/appralsal stages. The guidellnes further indicate that in the early Identification stage Bank staff should discuss with the borrower its policies, plans, or preliminary ideas for the resettlement sites, and the Institutional and - 35 - legal arrangenents for planning and executing the resettlement. Revlewing past experience with similar projects In the borrowers' country Is recammended, since It may provide valuable Information on foreseeable Issues and suggest ways to proceed. The basic legal framework for ccmpensation should also be examined at this stage. During Identification and preparation, the Bank division In charge of a project is responsible for Informing the prospective borrower of the Bank's policies relevant to resettlement, and then ensuring that they are reflected in the work done. A development strategy for the new settlement must be considered at the Identification stage so that decisions will be based on available resources of land and water, as well as on factors relating to actninistrative convenience and provision of social services. Project Preparation Preparatlon of the resettlenent operation, which Is the responsibility of the borrowing agency and of the specialized teams working on Its behalf, should begin at the same time as preparation of the other project ccmponents. The proJect preparation phase Is when the actual feasibility of resettlement must be meticulously explored and demonstrated and, if It Is, the phase when the resettlement plan (as discussed In the previous chapter) must be generated. The Bank's operational guidelines require that the resettlement plan should Incorporate three distinct sets of activitles concerning: (I) the preparation of the affected groups for the transfer; (1i) the transportation of the displaced to the new site; (lli) the integration of the displaced Into the new ccnmunlty. Preparation of the resettlement ccmponent may require expertise In many disciplines, and should normally Involve the on-site services of at least one sociologist/ anthropologist, preferably a national frcm the country, and a specialist In resettlement. During preparation, finding sites for new settlements and their adjacent farming and grazing lands Is a key task entailing land capability - 36 - studies and planning for site preparation, land recIamation work, possible soil Improvenents, etc. In Irrigation dam projects, for instance, since land Is usually not easy to find, early and patient efforts should be undertaken during project preparation to inform downstream farming caTmunities (whose lands will benefit fran irrigation) and involve then In participatory planning for absorbing sane of the farmers displaced frcn upstream areas and for relinquishing land to be sold to the resettlers. When the amount of farm I and ava I i ab I e i s I nsuf f i c i ent 'to accarmnodate a I I displaced families, planning for urban relocation of sane groups may be needed, taking into account the camnon desire of those affected to move In units larger than the household. Criteria for houseplot allocation need also to be prepared at this stage, taking Into account the predictable growth of affected households In the next generation, the existing Inheritance systens, and other relevant factors. During project preparation, It Is importanit that affected populations be Informed, consulted and Involved -- directly or through their formal and Informal leaders, representatives, and through NG3s -- with respect to the varIous alternatives beIng considered for resett I enent. Large-scale resettlenent requires careful consideration of the most appropriate Institutional frarnework for executing the resettlenent and redevelopnent process. The Bank's guidelInes recarmend more flexibility vis-a-vis the conventional project formnat used In the past, calling attentlon to the fact that scnetimes resettlement can best be carried out through a free-standing area developnent: project paired with the project that finances the new physical Infrastructure, rather than through a secondary canponent within the main project. This approach can pranote a more effective resolution of the social, econanIc and envirormental aspects of resettlnent, with special attention for coordinating the progress of both projects. A specIal project, In certain circuristances, may be a better lending vehicle for financing the cost of relocation; It may help Integrate better - 37 - the assistance to those relocated with develop:ment assistance to the host area populations, under the unbrella of an area (basin) development approach. The adequacy of such an Institutional and lending vehicle will than be considered by the Bank during the preappralsal/appralsal stage. To help the borrowers along this preparation stage, the Bank's guidelines explicitly direct the divisions which envisage projects with resettiement to facilltate early provision of technical assistance to the borrowers for resettlement planning, Including, but not limited to, the use of funds under the project preparatlon facility (PPF) made avallable by the Bank to borrowing agencies, as appropriate, In special cases. In 1986 and 1987, for Instance, two special Technical Assistance projects, one In Nepal and one In Lesotho, were approved by the Bank specifically to advance the financing needed for detailed preparation studies, Including resettlement feasibility assessments, for large scale water engineering projects, long before these projects would cane under consideratlon for Bank appraisal and full financing. In same projects, field studies carried out by same NGOs among the affected population (for Instance, In India, by Lokayan, a research NGO, and by MYRADA, an N3G specialized In resettleent assistance) have improved the understanding of the resettlers' situation in several Bank-assisted projects and led to planning corrections for better addressing their needs. Project Preappralsal and Appraisal Appraisal missions for projects which cause significant resettlement should be mounted only after the borrower has developed the resettlement plan and timetable, and has submitted It for revlew. This is an essential procedural requirement germane to the resettlenent policy, that resulted from past experience with the negative consequences of timelags In the preparation of resettlement vis-a-vis other project camponents. The Bank's recent operational guidelines enphasize that - 38 - preappralsal work should ensure that appraisal missions are not faced with hastily improvised solutions as substitutes for such plans. The post- appraisal submisslon of resettlement plans not appraised In the field is unsatisfactory. Because involuntary dislocation gives rise to special social and technical problems even more severe than those encountered in voluntary settlement, soclological/anthropological skills are required In preappralsal teams for projects where such dislocation will occur on a large scale. The basic objective of the appralsal of the prolDosed arrangements for resettlement should be to ascertain (see Annex 1) whether they are adequate and feasible and whether, when implemented, they will relocate the affected people without undue hardship, provide them with support services, and enable them to fully rebuild their livelihood. This incorporates (and also goes considerably beyond) the elements usually reviewed under social Impact assessment (SIA) or envirornental Impact assessment (EIA). The appraisal of the plan for implementatlon Includes a reexamination of the premises and results of the prior feasibillty and preparation work and particularly focuses on determining whether: (i) property to be destroyed by the primary project has been inventoried and valued (II) land In the receiving sites has been identified and is available and accessible to the settlers; and (iii) the nunber of people choosing fran among the various alternative proposals Is adequately known and these alternatives are technically and econanically sound. The appraisal should also assess the overall pollcy of the borrower In respect to resettlement, as well as the legal and organizational framework within which the resettlement will be executed. The severe cultural and social Implications of displacement should be carefully considered at appraisal within the regional and national context, taking into account such factors as the ethnic composition of the area, population density, the IocalI socio-pol itical climate, traditions, etc. The ratio between the nLmber of irnediate - 39 - project beneficiaries and the number of those subject to dislocation will also be relevant. In an irrigation dam project, for Instance, this is the ratlo between the nunbers of beneficlary farmers In the cnmiand area and the nunber of upstream Inhabitants being displaced. Judgment should be exercised In each Individual case and multiple factors must be considered; as a rule-of-thumb, when this ratio Is smaller than approximately ten to one, Bank financing should be provided only In exceptional, carefully explained circLmstances, flagged early In the loan cycle and justifled In detail at appraisal. Technical optimization such as trade-offs between damn height and dislocation size must be also weighed once again during preappraisal and at appraisal, by reexamining the optimization and costs/benefit studies. The nunber of people to be dislocated per unit of flooded area must also be taken Into account, so that when It is unusually high, the desirability of the project design can be reconsidered. Particular attention should be given at appraisal to situations In which the affected land Is utilized by tribal people or others practicing a form of rotational agriculture, whether currently occupied by the people or not. Such lands form an Important resource In what Is often a long rotation cycle. Distinct guidelines were Issued by the Bank regarding projects that may affect tribal populations In generall3/, but the special guidelines for resettlement point out as well that since tribal peoples usually have custcmary rights rather than formal legal title to land, the question of recognizing their rights and entitlements to ccmpensation and alternative resources must be carefully discussed with the borrower In order to achieve fair and workable solutions. Organizatlonal frameworks for handling resettlenent should be confirmed at appraisal. Longitudinal anthropological studies and past experience In many projects, whether or not financed by the Bank, have shown that vesting operational responsibility for planning and executing resettlement in the agency which Is specialized In, and executes, the engineerlng and civil works of the project, often relegates resettlement to the status of a low priority task. It does not autanatically ensure, - 40 - as Is frequently but spuriously assumed, good coordination between construction and resettlement. Therefore, the guidelines conclude that setting up a distinct organizational responsibility In the project, with adequate budget and staffing for Implementing relocation and socio-econcmic re- establishment, may facillitate the involvement of line agencies for agriculture, fisheries, livestock, and other activities. It maLy also be more effective In terms of technical ccnpetence, priority treatment, and linkage with the regular development programs. Another alternative Is to entrust the Implenentation of resettlement to local acdilnistrative units i(e.g., Provincial Councils, District Councils), which can mobilize local technical expertise, know the local population and resources, speak resettlers' languages, and will ultimately be responsible for the resettlers. In this connection, a decision should be made during the preappraisal and appraisal phase about whether the most appropriate Institutional framework and Bank iending vehicle for resettlenent and redevelopment is a project camponent or a free standing area/basin developnent project. As pointed out above, at times a full scale project can better mobilize adequate resources -- staff time, financing, multisided expertise -- than can a secondary ccmponent within the main project. Such a full scale resettlement project was approved for the first time by the Bank In 1987: the Brazil-itaparica Resettlement and Area Development ProJect (Bank loan US$132 million), which will provide for the resettlement of scme 45,000 people and for Irrigation on 8,000 ha., agricultural support services, housing, electrificatlon, etc. to assist In the production-based re-establishment of those displaced. Other such full scale Bank-assisted projects are being prepared now In Asian and African countries. This special-proJect approach merits consideratlon especially when the people threatened with dislocation number In the tens of thousands. A similar approach may be taken In connection wilth sectoral loans for hydroenergy, Irrigation, transportation, etc., whllch can be paired - 41 - with specific parallel projects addressing one (or more) of the resulting major relocation operations, with borrower agreement to the parallel project as a condition of the sector loan. The advantage of the sectoral approach Is that It extends the enhanced resettlenent criteria and standards to all operations in that sector, rather than applying them only In the projects assisted wlth Bank financing. Regardless, however, of whether the approach found suitable is a special proJect or a camponent, the preappralsal and appraisal efforts should make sure that the reconstructive activities incorporated are designed In adequate detail, sufficiently financed and staffed. The policy states clearly that financing canpensatlon and relief only Is insufficient. The full costs of re-estabi shment activities should be Identifled and Incorporated for financing In the total project cost, whether these activities are financed by the Bank Itself, as they often should be, or are to be financed through local funds. For Instance, hydropower projects which entail resettlement should Include financing earmarked for agricultural or urban packages. The costs of resettlement should be treated (see Annex 2) as a charge against the economlIc and social benefits of the project which makes resettlement necessary. The resettlement canponent need not necessarily be econcmically viable on Its own. When the reintegration of the displaced groups Is made part of a broader development project In the recelving area, there Is a better possibility to design the resettlement progran so that the Incane and productivity of the resettlers are raised relative to thelr previous circunstances. Any net benefits to resettlers as ccmpared to thelr previous circunstances should be added to the benefit stream of the primary project. Following appraisal, at the time of loan negotlations between the Bank and the borrcwer, the borrower Is expected to satisfy the Bank that the plan for resettlement Is fully workable and accepted as Intrinsic to - 42 - the project and to the legal agreement for that project, and represents an Integral part of the borrower's obligation to carry out the project. Project Supervision and Monitoring In the Iast Instance, adequate resettlement depends on the qual Ity of implementation. An adequate pol icy, even good planning and project design, are not sufficient and can be frustrated by unsatisfactory and Inconsistent Implementation. The Bank's policy requirements regarding the standards for adequate resettlement are, in general, considerably higher than the current practices In many borrowing countrles and usual ly are more demanding than the norms contained In the regulatory framieworks of the borrowers. This difference often affects the Implementation of resettIement provisIons agreed upon and designed I nto Bank assisted projects; discrepancies may therefore occur between plans and practice. Even when the levels achieved In actual resettlement operations represent significant Improvenents over prior local practices, thiey may fall short of set goals. The experience of many projects has thus reinforced the lesson that for Increasing the consistency between actuaI execution and the polIcy/project provisions designed at the outset, careful and regular supervision is essential. Sensitivity to the cultural, not only to the econcmic, ImplicatIons of forced dispiacement, to the responses of Individuals and ccnimunities, to the manner of agency Interaction with affected people, Is the mandate which Bank operational guidelines give when they direct supervision missions to pay careful attention to the sociological and technical aspects of resettle ent as a whole. Project management should monitor, with Bank assistance if required, the timely progress and ccmnpletIon of resettIenent activitIes, and the general sociaI and econanic condition of the resettled people. - 43 - Good results are achieved when arrangements for monitoring are Incorporated In the very design of the project and entail acdinistrative and funding provisions conducive to the needed Independence of judgment. Supervision and monitoring should provide both a warning system for project managers and a channel for the resettlers to make known their needs and their reactions to resettlement execution. Supervision and monitoring should cover both the departure and the arrival areas for those resettled, so that feedback fran the transfer and Initial adjustments of the first groups relocated may be used for the following groups. It Is reccmnended that Bank field supervision teams have on board the professional expertise to deal with the canplex social, agricultural, health and cultural Issues of resettlement and rehabilitation. In turn, the borrowers are best helped by local monitoring/evaluation teams able to analyze resettlement progress and issues distinctly fran the monitoring of other camponents of the project (see a technical checklist for monitoring resettlement In Annex 3). In sun, the entire set of operational procedures, as well as the resettlement pollcy guidelines, tell clearly that Involuntary relocation must be addressed with great concern and unrelenting consistency throughout all of the project's phases, and not be relegated to second degree status. Even under a carefully applied policy, involuntary resettlement Is, and will always remain, a traunatic process In the life of the affected groups, as well as a camplex and formidable task to solve for any development project that causes It. SInce such social disruptlons will continue to accampany future technical and econanic change, further Improvements In relocation pollcies, In legal frameworks, In Implementatlon, and In the study of resettlement will remain Imperative. - 45 - ANEXES ANALYTICAL AND PLANNINB TCOLS FOR PFRIJECTS INYOLVINGI INYOLUNTARY RESETTLEMENT The following set of three Annexes Is Intended to assist In, and Improve, the practice of substantive preparation, econaTiic analysis, appraising, and monitorlng of Involuntary resettlement camponents In projects. They contaln technical guidelines, standard tables, worksheets and checklists that closely reflect the policy principles and guidelines presented In the maln paper. They go several steps further In the level of detail, and In addressing the practicalities and technicalities usually encountered In the planning and analysis for such operatIons. These annexes are Important working aids, since no policy can be consistently and effectively Implemented without adequately tallored analytical, data processing and programming tools. At the same time, since they are standard, broad Instrunents, they should be applied flexibly; judgment must be exercised to determine the level of data and planning detail needed for each specific case. The following working guldelines have been developed durlng 1986 and 1987 through an Iterative process that has Included fleld testings and successive revislons; they have been appiled recently In a number of actual development projects and are presented here for a wider use In such projects. I - 47 - ANNEX 1 PREPARING AND APPRAISIN INVOLLNTARY RESETTLEMENT CCPONIENTS: TECHNICAL GJIDELINES (CHECKLIST) The main elements that should be considered during the project preparation phase for preparing an involuntary resettlement canponent. whether In agricultural or urban based projects, are: 1. Baseline Information on the affected populations frcm departure and arrival areas; II. Policy and legal frameworks; Ill. Organizatlonal capability for resettlement; IV. Resettlement plan for reconstructing the production systems and the habitat of the displaced; V. Transfer arrangements; VI. Timetable and budget. The same main elements, with same difference In level of detall and enphasis, must be re-exanined durlng the project preappralsal/ appraisal process by a team different than the project preparation team, to reassess the feasibility and soundness of the resettlement provisions fran a technical, econanic, sociological and institutlonal vlewpoint. PolIcy Oontext. The elements listed above wilI be explained one by one further. For brevity sake, policy considerations and general operational procedures regarding resettlement are not repeated here; but they are crucial for doing resettlenent adequately, and therefore this technical checklist can be used best only In the context of the Bank's policy and operations guidelines, summarized In the attached paper, particularly In sections Ill-V. Flexibillty. Slnce this Is a standard checklist, it needs adJustments to specific situations and to differences between levels of - 48 - ecorncic developnent or various sectors - e.g., agricultural versus urban resettlement, etc. The list Is not exhaustive and must be used flexibly: not every detail Is required for every single resettlerent plan; subject to the magnitude of the resettlement process, Judgnent must be exercised to determine the level of detall required and possible In each situation. Iterative Approach. In practice, not all the necessary Information Is available at once; but even If It becames available In stages, staff should determine what study or data Is necessary for each stage of preparation and Incremental planning, and define what kind of, and when, additional Information will be gathered by those responsible for various parts of the preparation effort. While countries have established laws and procedures for carrying out Involuntary resettlenent, It Is Important to docunent these, and assess the lessons of prior resettlenent processes. Work Tean. In most cases, preparation of retsettlement has to start when very llttle data Is readily available. In such situations it Is desirable to start by creating teans which will work for resettlement preparation, with adequate skills mix (technical, social, econamic), equlipent and field transport capacity, access to maps, links to relevant line agencies, etc.; this Is a prerequlsite for ensuring that further planning wIll occur In a professionally ccmpetent manner. The organiza- tion of the preparation work should be such as to facilitate bottam up planning and eventual Integration into an overall regional (basin or urban, as the case may be) developnent plan. I. BASEL I NE I FORMAT I ON AND STUJD I ES REQUJ I RED FOR PLANN I N3 A. information on the Departure (submergence) Area: 1. Census of population to be displaced, with key demographic Indicators, after the on-the-ground marking of the boundaries of the area to be evacuated (with - 49 - consideration of backwater effects In case of reservoirs). Inventory of property to be lost (irrigated and non-irrigated land, houses, wells, trees, cattle, etc.) and valuation. Estimate of likely popu!ation growth until actual resettlement takes place. Identity cards for settlers. 2. Description of production system(s) existing In the area and of the main social and ethnic groups (farmers; landless laborers; tribal groups; employees; artisans, merchants, haulers, processors, etc.) and forms of social organizations that operate and depend upon them (ownership, usufruct, and tenure system; kin groups or extended family systems, etc.). Determination of major Inccme sources and approximate lncame levels. 3. Description/inventory of public or cammn areas, Infra- structure and other productive or social resources, shared or divided (village schools, tenples, health roons, etc.; shared grazing lands, access to adjoining forests, etc.). B. Information and Design for Arrival Areas (relocation sites): 1. identification of new settlement sites (whether consolidated new settlements or fill-In operations). Maps at 1:10,000 of new sites. 2. Survey of host population at/around new settlement areas and their resource use-patterns (attention to econrnic, denographic, ecological, ethnic or other features that limit receptivity to displaced population; estimate carrying capacity of existing resources and potential for Intensification). - 50 - 3. Feasibility studles, Including assessment of new site sultablilty (adequate water sources, soil capability, grazing lands, fuelwood sources and other ccmmons; suitability of residential sites; site preparation requirements - clearing, leveling, tree planing, etc. and assessment of required new infrastructure). II. DEFINITION CF POLICY AND LEGAL FRAMEVHDKS 1. Definition of resettlement policy and development policy to be applied In given case (entitlement to replacement land and other productive resources; house reconstruction; cash compensation levels and terms for individuals and groups; overall development objectives of resettlement policy). If no policy/regulations exist, what norms need to be formally enacted as part of project preparation. 2. Legal definitions of the rights of displaced population; resettlement grants or awards; Institutional assistance for land replacement and land allenation procedures at new sites; technical and financial assistance for bringing new resources Into production; rights of the landless and those In non-agricultural sectors; have such damestic legal provislons been respected in the past; have they worked; legal grievance procedures; are there legal provisions for displaced people to share In the benefits generated by the constructlon which evicted them, such as access to electricity, irrigation, revenue frcm power, etc. Ill. ORGANIZATIONAL CAPABILITY FOR RESET1TLvEMNT 1. Designation of department/agency responsible for resettlement and for Inplementatlon of development plan - 51 - (existing staff; needed staffing plan and skill mix; equlpment, vehicles, etc.). 2. Line agencies/ministries expected to assist; cooperation with NXls; manag&emnt supervision and ccamunication systems; monitoring arrangements (see Annex 2). 3. Development plan for the resettlement organization: training of staff; training of representatives of the displaced and of host populations. 4. Strategy for securlng the participation of the displaced and host cTmiunities In each phase; Involvement of NGOs. IV. RESETTLEMNT PLAN FOR THE iW SITES 1. Development obJectives for the displaced groups; alternative development strategies among which families may choose; estimate of proportions In which each alternative Is likely to be selected; technical features known and further study required for the Implementation of each. 2. Development packages proposed for new settlements (agricultural Intensification, Irrigation, land reclamation/preparation, etc.; livestock Improvement plans, Including small animals; cropping regime packages, Including financing for Inputs; outputs estimates; opportunities for women In the schemes; fuelwood production; fruit trees development; main farm models anticipated; expected benefits and likelihood of restoring/improving farmer Inccme/living standards; financial analysis of each package). - 52 - 3. Urban development If necessary; permanent employment opportunities outside agriculture; development of swell Industries, services, etc.; Investmnents required for creation of new Jobs; temporary employment opportunitles In the construction works for the project. 4. Assessment of likelihood of txxon-tcwn growth; prevention/mitigation measures proposed regarding expected adverse soclo/envirormental effects. 5. Cacpensatlon for lost property and hardship to resettlers (assessment procedures, timetable of payments, etc.); recarmeended uses of compensatlon for re-establIshment of econcmic potential. 6. Habitat; provislons for assistance to resettlers for reconstructing housing; engineering of new sites (design and layout plans for Infrastructure, pubiIc and oammons Installations; land and resources use plans; potable water systen; drainage and water disposal system; environmental assessment of plans). 7. Support for the social organization of resettlers, Including local N30s, and explicit measures for the involvenent and participation of displaced and host people In pIanning/Impler entatlon (resettlement cnrmittees, leadership training strategies, resettlement ccmpanions; cooperation and Iilnkages between resettlenent agency, line agencies, local N30s, ccmnunity leadership, wacen's groups, other organizations; roles In site selection, land preparation, In plan execution, operation and malntenance, etc.). - 53 - 8. Measures proposed for envirormental management and protection. V TRANSFER ARRAN3WAENTS 1. Information dissemination among the displaced and host people (explanation of resettlement policies, rights of displaced people, legal provisions and grievance procedures; schedule of displacement; transport means available; access to Interim assistance programs). 2. Maintenance arrangements during transfer perlod (food, fodder, fuelwood, medical maintenance arrangements required for the "lag" time between moving out of old site and such time as the new lands are ylelding crops; monitoring systems should enable management to Identify precisely where such programs are to be strengthened). 3. Mobilization schedule (logistics or routes prepared to facilitate access and exit frcm old sites to new sites; vehicles to be used for hauling belongings, livestock, house materials, etc. and those for hauling persons; schedule of movement). VI. TINETABLE AN)D BUE%T 1. Resettlement timetable coordinated with chronogram of construction and other project features (e.g., reservoir filling); a diagram should be drawn up to summarize the resettlement plan showing all critical path activities by month for years -2, -1, 0 (O = transfer year), +1, +2 and so forth until transfer Is caopleted; envisaged developnent activities over the long-range, beginning with year +2 after - 54 - the transfer and continuing until former levels of livelihood or better levels are expected to be achieved. 2. Cost estimates for all operations (see Annex 2), broken down according to main headings/categories above (costs estimates on a unit basis; Individual family beneficiary cost tables, operating unit costs table, financing timetable, etc.). - 55 - ANNEX 2 THE E0ON3AIC AND FINANCIAL ANALYSIS OF PROJECT COPONENTS ADDRESSING I ULNJJTARY RESETTLEMENT: GUIDELINES* 1. Many Irrigation, hydropcwer and water supply projects, as well as scme urban, transportation and Industry projects can only be Implemented If a certain number of people living In.the project's area are displaced. This generally Involves also the loss of land and other assets. This has significant social, financial, econanlc and envirormental consequences which should be reflected In the proJect's econcmic assessment. These guidelines Identify which costs and benefits should be considered In the econanic analysis of projects requiring population resettlement and clarify scme conceptual and methodological Issues encountered in defining and quantifying costs and benefits. These guidelines should be used flexibly, to help ensure that estabilshed pollcies are Implemented. 2. A revlew of past project experience revealed that Involuntary resettlement was often underfinanced. One major reason for this was that the costs of resettlement had been systematically underestimated by the Borrower and the Bank. Examples of cost elements frequently missed are surveys and population and property census, foregone benefits fran assets being lost, land reclamation/Improvements at relocation sites, adequate urban and village Infrastructure, Implementation of re-development (rehabilitation) packages, mitigation of the Impact on host populations, temporary losses or reductions In production and Inccme of the affected population, the cost of setting up new Industrial and cammercial enterprises, provision of special health and welfare services, * These guidelines have been drafted In 1986 and subsequently discussed and Improved through a group effort by several econcmists, anthro- pologists and other project specialists, particularly by C. Diewaid, D. Fltchett, W. Partridge, with contributions frcn S. El Serafl, W. Jones, R. Martin, G. Ed Schuh, H. Van der Tak, D. Turnham, V. Vyas, A. Walters, M. Wlehen, 0. Yenal. - 56 - training, technical and managerial staff, and logistical requirements of relocation. These costs will Include both Investments and recurrent costs. 3. The logic, concepts and methods pertinent to the econcmic and financial analysis of projects with Involuntary resettlement are the same as those generally used In the Bank. There are, hcwever, scme peculiar problems which occaslonally lead to confuslon. The tracing and valuation of the various costs and benefits may be quite cnmplex.1 These problems will be discussed below, followed by a sLmnary of the costs and benefits that should be considered. ConceptuaI Frarework 4. Econannic VIabilIty of ResettIenent Cargxxnents. The InclusIon of Involuntary resettlenent In the project Is not by choice but by necessity. Its cost Is an Integral part of project cost. Therefore, It Is neither possible nor appropriate to provide a separate econanic justification for resettlement, as one would do for "optional", separable carponents. What matters Is that the project as a whole has a positive net present value.2 For example, If the developnent of reservolr fisheries Is Included as a m-eans towards gainful employment of displaced persons, It Is not relevant whether this project "caoponent" is econanically viable on Its own; the "ccmponent" simply adds a net econaTic cost to the project.3 This additional cost Is justifled as long as the "coaponent" Is planned and 1/ The analyst may be tempted to put a great anount of effort Into refining the estimates of costs and benefits of resettlement, partIcularly If they escape easy handling. HFowever, the merIts of dolng so should always be judged In the light of what difference further refinement might make to the overall outcame of the econcmic analysis. 2/ For appraisal, a positive net present value is normally sufficient; hcwever, planning and design would aim at maximizing the NPV under given constraints. 3/ If a resettlement plan calls for more than just the "necessary" cost, for example, If housing provided to displaced farnillies is of better quality than the dwelling they are losing, this does still not constitute a separate project ccnponent, as It would not be undertaken outside the context of resettlement. - 57 - designed In the most efficient way and constitutes an element of the "best" resettlement plan and "best" overall project design, always provided, of oourse, that the project as a whole remains vlable. In this sense, elements of a resettlement plan are no different fran, say, a spillway as a canponent element of a dam project. 5. Flnancial Viability. Resettlement programs are designed to assist displaced familles to regaln and eventually Improve their previous standard of living. Elements of such programs, I.e. the various resettlement options planned and offered to displaced households, should be analyzed fran the viewpoint of the beneficiaries to ensure that they are financially viable and provide Incentives to the beneficiaries, In the sense of actually providing an adequate standard of living and of avoiding negative cash flows. This also Implies that base line data on the average incane level of the affected groups In the pre-project situation must be gathered during the project preparation stage to enable the econanic analysis to project the expected Income levels to be attained after resettlament and econanic re-estabiishment. 6. Financial versus Econmnic Costs and Benefits.4 Care should be taken to distinguish between costs that are purely financlal (transfers), those that are Included In both financial and econanic analysis, and those that are econanic only. Often a significant part of resettlament costs 4/ For the benefit of the reader not entirely familiar with these terms: the distinction between financial and econanic costs and benefits In Bank practice stems fran the different purposes of cost estimating and financial analysis on one hand, and econanic analysis on the other. Financial analysis deals with actual cash flcws (expenditures and revenue/incane) In the public and private sector. Project costs, in the narrower sense used In Bank cost tables, are a sub-set of all expenditures caused by a project. Econanic analysis attempts to determine whether a project Is worttwhile undertaking fran the vlewpoint of the national economy. It Is based on the financial streams, but will usually modify then to account for certain distortions, and may add certain costs or benefits that have no counterpart In actual cash flcws; It may also amit expenditures that don't represent use of econanic resources, suwch as transfers In the form of taxes, subsidies and other grants. The econanic analysis is based on ccmparing the "with" and "wlthout the project" situations, whereas the financial analysis canpares the situatlon of the beneficiaries before and after the project. - 58 - goes towards financial ccnpensation of asset losses and towards various subsidies or grants to the displaced populatlon. Such expenditures are prima facie transfer payments. The value of compensation paid, for example, should reflect the foregone future Incame fran the asset. Fore- gone (net) benefits fran land and natural resources, on the one hand, or certain envirormental costs, on the other hand, may have to be Included as purely econanic costs, as they often don't show up In the analysis of cash flows. 7. Treatment of Assets Lost. If assets such as land, forests, houses, wells, powerlines, factories, etc., are lost because of the project (for example, due to submergence or demioltion), the loss actually occurs In the form of foregone net benefits that would have been realized were the project not undertaken (opportunity cost concept). The market value of such assets might be a guide to the discounted (present) value of the net benefits foregone. (The value of ccmpensation paid Is usually not a good proxy.) Alternatively, the analyst might make an effort to estimate the stream of annual foregone net benefits himself. The latter method Is preferable, because It Is more consistent with the methods used for other ccmponents In the econanic analysis, although a ccmparlson of the results wlth the former method may be useful for cross-checking.5 8. in many cases, e.g. for houses, buildings, factories, roads, wells, etc., It Is approprlate and less difficult to estimate the 5/ The (present) market value of an asset reflects the perception of the actual and potential owners ("the market") of the net lnccme the asset may produce In the future, and thus what people are willing to pay to obtain those benefits. In this sense the market value (with saoe adjustment for distortions) would Indeed be a lproper measure of benefits lost. Hcwever, we don't kncw what discount rate is Implied In the market's valuation of future benefits. If we aire using a uniform discount rate for everything else in the economic analysis, as Is impilcit In both net present value and Internal rate of return methods, this would almost certainly Introduce an Inconsistency. Also, analysts usually project econamic benefits of an Investment themselves, based on scme estimate of quantities and econanic prices of goods to be produced. If such estimates for similar goods are made elsewhere In the econanic analysis (e.g., for incremental crop production fram an Irrigation project), then the treatment of benefits Foregone should be consistent with suwch estimates. - 59 - replacement cost (minus the value of any salvaged materials used In replacemnt), and to Ignore the foregone benefits as well as the benefits expected fram the replacement. The underlying assumptlon Is that the streams of benefits with and wlthout project are more or less the same, I.e., offset each other. This method would normally presuppose that the replacements will actually be Implemented, but even If they are not, the method may produce a good proxy for benefits foregone. In any case, It Is Important not to count costs twice, e.g., by accounting for benefits foregone and for the replacement.6 9. Questions have been raised with regard to the treatment of the loss of certain natural resources, such as forests that will be clearfelled before submergence. The timber and other forest products salvaged through clearfelling can legitimately be counted as project benefits. Hcwever, there Is a host of foregone benefits that will not be sufficiently approximated by the value of foregone timber and fuelwood production alone.7 For the replacement of forest resources through compensatory afforestation, an effort should be made to quantify at least same of the major benefits foregone fran the lost forests and their ecosystem, or the benefits fran clearfelling should be curtailed In same fashion or entirely cmitted In the econanic analysis. (Clearfelling represents, of course, a fInancial benefit to the owner, and future production without project a net cash flow foregone). 10. The Psychological Costs of Resettlement. The displacement of people fran their custcmary habitat Involves substantial hardship and suffering. These are certainly costs to the society which matter in evaluating a project with respect to Its social desirability. It Is, however, virtually Impossible to assign an econanic value to these costs and to make them cannensurate with other econanic costs In the analysis. 6/ Where benefits fran replacement assets are substantially different fron those foregone, an Incremental benefit stream (positive or negative, as the case may be) can be entered In the assessment of the "with-project" situation. 7/ Forests provide habitat for wildlife, regulate rainfall runoff, prevent soil eroslon and sedimentation, replenish oxygen In the atmosphere, are pleasant to walk In, etc. - 60 - Theoretically, there may be a level of ccmpensation at which people would be willing to relocate voluntarily; In practice, It Is virtually Impossible to find out what this level is. Since such pisychological costs cannot be quantified with available analytical tools, the specific programs or services designed to mitigate such suffering, particularly Its physical aspects, should be fully costed and included In the econcmic analysis (e.g., Incremental health, nutrition and social services, etc.); In the Initial post-relocation stage, health care costs (and possibly costs for other social services) might be higher than later on, and this should also be taken into account. 11. Disruption Costs. During the transfer and transition period, I.e., frcm the mcment of moving out until the families have regained their previous standard of living, there wIII be a general decrease in econanic activity and a resulting drop In production and Inccme. The net loss fran reduced production should be estimated. In general, It will not be cor- rect to assune that the full benefits of re-development (rehabilitation) packages can be realIzed Irmiedlately after the relocation. For example, where a family receives or acquires new farmland, the initlal net returns will probably be law for a while; where a smail shopkeeper has to set up shop In a new environmient, he may suffer a reduced turnover for sametime; and where a landless laborer has been trained as a carpenter, his productivity will only gradually rise to a normal level. This should be Incorporated, as far as possible, In the econcmic analysis and financlal models. The disruptlon cost would normally be captured as Incremental cost by careful modelling of costs and benefits (or incane and expendl- tures) "with project" and "without project". For costs which may not be anticipated or covered by the main categories, needed resources can be earmarked through a provision for contingency costs (sane 3-5% of the resettlenent costs). 12. Re-Uevelopment Packages. The formulation of econcmic re- development (rehabilitation) packages will encanpass all those costs and benefits which are entailed in re-establishing families or Individuals in new productive enterprises. They typically Include provision of replace- ment land, Improvements to such land (clearing, Irrigation, levelling, etc.), provision of seeds, tools, draft animals, research and extension - 61 - services, credit, and so forth. There may be training facilities, and new enterprise packages consisting of Investment credit, subsidies and technical assistance, etc. All these packages will entail investment and recurrent costs as well as benefits which should be estimated. This may be done either In the form of typical "modules" (see further Tables 3-5 given as samples), which can then be multiplied by the nunbers of households projected to adopt them, or In detail for larger schemes benefitting many displaced famiiles. Mbdules would serve a dual purpose: they would allcw an estimate of econnmic costs and benefits from re- development Investments, and they are useful In assessing the financial viability frcm the benefIclaries' viewpoint (see para. 5). Since the objective Is for the settlers to regain at least their previous standard of living adjusted to the "without project" estimated level, the modules should be based fran the outset on "baseline" Inccme streams against which future Incane fran re-development packages can be measured.8 13. An overall, and basic, objective of the econanic analysis Is to determine whether, If the Investments In soclo-econcmic re-estabilshment measures are made as planned, the expected Income of the resettlers will at least equal, and possibly surpass, their incame levels "without the project". This Is necessary for the econcmic analysis to confirm fran the outset that the projected outcome will meet the basic objective of the resettlement cacponent. 8/ The total cost of resettlement Is scmetimes averaged on a per family or per household basis, but quite often this averaging Is methodologically done Incorrectly. If the value of lost Infrastructure (e.g., hlghmays, bridges, rallways, etc.) which are subnerged or have to be relocated Is averaged on a per household basis, this only artificially Inflates the apparent cost of people's resettlement. Such Infrastructure, however, Is not serving the displaced families only, but much larger regional or national needs, and the reconstruction of such Infrastructure should not be made spuriously to appear as a cost Incurred for these familles alone. The average cost per family Is, In any case, not an Indispensable Indicator for the econamic analysis; however, If it Is found useful to ccapute It for camparative reasons, It should Include only the costs Incurred for the resettlement and re-establishment of the affected families and for the Infrastructure required to serve their needs. - 62 - 14. Envirofmnental Costs and Benefits. Resettlemnt can entail envlronrental degradation, apart fran the general envirormental consequences of buliding large Infrastructure facilities such as dams and reservoirs. Environmental costs may Include pressure on forests, grazing lands and soils at resettlement sites. It will often be difficult to make precise estimates of the physical damages expected and to attach values to those. On the other hand, careful design of resettlement would anticipate such Incremental ecological pressures and Include measures to mitigate or prevent resulting damages as well as shortages of fuelwood, fodder, etc., in part as a measure to accamiodate the interests of bath host cafniunity and settlers at the relocation sites. Such measuires could include afforestation, cammunity fuelwood plots, grassland rehabilitation, soil conservation measures and the like. The costs and benefits of such measures can and should be Identifled and Included In the evaluation. Typlcal Costs and Benefits of Resettlenent (A Checklist) 15. It Is convenient to structure the cost accounting and the econanic analysis according to broad stages of the resettlement process: preparation, relocation, and re-development. More detailed tables are provided In the attachinent to support the broad categories listed below. Preparation and Carpensation (Table 1) - Cost of census of affected population and Inventory of properties - Caoipensation for properties lost (for project cost tables) - Foregone benefits fran all assets (for econanic and financial analysis) - Cost of residential site assessment In receiving area - Cost of replacement land - Cost of preparation of replacement farm land Relocation (Table 2) - Cost of moving and transport - Cost of replacement housing - Cost of village/urban Infrastructure at relocation site - Relocation/replacement of other Infrastructure - Subsistence packages - Special welfare services during resettlement - 63 - Re-Developnent (Table 2 and modules In Tables 3-5) - Large-scale schemes (costs and benefits) - SmaIf-scale (household) packages (costs and benefits) - Incremental Services (extension, health, education, etc.( - Environmental enhancement packages (forestry, soil conservation, grazing lands) Adninistrative Overhead (Table 6) - Physical facilltles - Vehicles - Materlals - Operationai staff (managerial and technical) - Support staff - Training - Monitoring - Evaluatlon (contract) - Technical assistance Financing Plan 16. The funding of resettlement costs will usually cane frcm several sources. The project entity will receive funds fran state or central goverment. Apart frcm aid financing, there may be local banks which will support private Investments, local goverment contributions and, last but not least, contributions by the displaced people (settlers) thenselves: for example, fran compensation they receive for assets lost. In the proforma belcw, allcwance Is made for the financial flows that may be recouped by an entity, for example fran settlers who make a dcwn payment on an Investment frcm ccmpensation received, or the revenue frcm forest clearlng from a reservoir -- to a government. - 64 - Resettlement Financing Plan Outlays Receipts Net Outlay Central Government State/Provincial Government Local Goverrnment Local Banks Other Donors NGOs Settlers IBRDIIDA Total - 65 - Table 1 PRFOORMA COST TABLES FOR RESETTLENENT Preparation and Omp,ensatIon Costs IJilt Quantity by Yearl/ Total Cost2/ -3 -2 -1 0 +1 +2 +3 Cost 1. Censu of the Affected Population 2. Land Survey and Property Inventory 3. Individual 2cmpensation Private land Standing orchards and crops Privately owned trees Hiouseplots and dwellings Other private structures, etc. 4. PLtilic Assets Replacenent a) Public UtilItles water supPly systems power IInes telephone lines public bul dings roads bridges Railways, etc. b) Caopensatory Afforestation 5. Site Assessnent In Receiving Areas Host population survey Land demarcation survey Potable water surveys Soll surveys Site layout/designs, etc. 6. Land AcquIsltlon In Receiving Areas Agricultural land Common lands (streets, parks, grazing areas, civic buildings, etc.) Hiouse Plots Reserve for future growth TOTAL 1/ Year 0 Is the point when actual transfer of the displaced people to the new settlement sItes begins. 2/ Use of unit costs may not be appropriate In all cases. Estimated iumpsun expenditures can be entered as annual values Instead. - 67 - Table 2 PPOFORMA COST TABLES FOR RESETTLEME3NT: RELOCATION COSTS Unit Quantity by Year1/ Total Cost2/ -3 -2 -1 0 +1 +2 +3 Cost 1. Replacenent Housing Building materials less salvaged materials Labor Civil works contract 2. Village/Urban Insfrastructure3/ Site preparation Streets and approach road Electricity Water supply Sanitation/Drainage Schools Comiunity bulIdings Dispensary Seed/Fertilizer Store Places of Worship Markets, etc. 3. Transport and Shelter Transport of families and belongings Transport of salvaged materials Transport of monunents, etc. Tenporary lodging 4. Special Welfare Services Tenporary health units Child nutrition supplements Training Costs Other social services 5. Subsistence Packages Relocation grants Food allowaances Fodder allowances, etc. TOTAL 1/ Year 0 Is the point when the transfer of the displaced people to the new settlement sites begins. 2/ Use of unit costs may not be appropriate In all cases. Estimated luTpsum expenditures can be entered as annual values Instead. 3/ Distinction between equlpnent purchase and operating cost/rental should be made. - 69 - Table 3 FINANCIAL ANALYSIS OF RESETTLENENT ALTERNATIVES ExarmIple: PRainfed Farming on Replacenent Land Year: -2 -1 0 1 2 3 4 5 6 7 A) FAMI LY I NOME 1. Before Mve a) FarmtIng on Old Land gross value of crops of which: -haoe consumption -sales less seeds and losses2/ less cash inputs net farm Income on old land b) Other family lnocme before move fran wage labor fron livestock (net) fran rents other (net) 2. After Mbve a) Farming on nem land1d gross value of crops of which: -home consumption -sales less seeds and losses2/ less cash Inputs net farm Incane on new land b) Other f an ly Icanse after move fran wage labor from lIvestock (net) fran rents other (net) Total I nooe B) OTHER RECEIPTS 1. Grants for transportation for subsistence In cash In kind 1/ May overlap with farmlng on old land 2/ Assumes seeds are retained fram harvest; losses are storage losses. - 71 - Year: -2 -1 0 1 2 3 4 5 6 7 2. Oufpersat Ion for lost farm land for lost house and plot for other lost assets 3. Investment Subsidies for new farm land for new house plot for building material for acquiring other assets 4. Loans for land Improvements for other assets (specify) Total Recelpts C) EXPENSES Household consunptlon In cash hane consuTption Relocatlon Expenses transportation cost temporary shelter Other Total Expenses D) INVESTMENTS Cost of new land Cost of land Improvements Cost of houseplot Cost of new house less salvaged materials Total Investment Cost E) DEBT SERVICE on loan A on loan B Total Debt Service F) NET CASH FLCW Net Result of A)+B)-C)-D)-E) - 73 - Table 4 FINAWCIIAL ANALYSIS OF RESETTLENENT ALTERNATIVES Example: Irrigated Farming with Well on Replacement Land Year: -2 -1 0 1 2 3 4 5 6 7 A) FAMILY INME 1. Before Mbve a) Farming on Old Land gross value of crops of which: -hane consumption -sales less seeds and losses less cash inputs net farm Incane on old land b) Other fanily Inoane before move fran wage labor fran IIvestock (net) fram rents other (net) 2. After Mbve a) Farming on now landl' gross value of crops of which: -hoae consunption -sales less seeds and losses2/ less cash Inputs less weli operating cost net farm incane on new land b) Other fan ly Inoome after move fran vWage labor fram livestock (net) fran rents other (net) Total Income B) OTHER RECEIPTS 1. Grants for transportation for subsistence in cash In kind 1/ May overlap wlth farming on old land 2/ Assunes seeds are retalned fran harvest; losses are storage losses. I - 75 - Year: -2 -1 0 1 2 3 4 5 6 7 2. Camensation for lost farm land for lost house and plot for other lost assets 3. Investment Subsidies for new farm land for well for nem house plot for acQilrlng other assets 4. Loans for land improvements for well for other assets (specIfy) Total Receipts C) EXPENSES Househo I d consunpt Ion In cash hane consunptlon Reelocation Expenses transportation cost temporary shelter Other Total Expenses D) INVESTMENTS Cost of new land Cost of land improvements Cost of well Cost of houseplot Cost of new house less salvaged materIals Total Investment Cost E) DEBT SERVICE on loan A on loan B Total Debt Service F) NET CASH FLOW Net Result of A)+B)-C)-D)-E) 1, - 77 - Table 5 FININCIAL ANALYSIS OF RESETTLEMENT ALTERNATIVES Ex I ple: DaIry for Landless Fa lly Year: -2 -1 0 1 2 3 4 5 6 7 A) FAMILY IN0OME 1. Before Mbve fran wage labor from livestock (net) other (net) 2. After Move a) Fran DaLry Coas gross value of production of which: -hane consunpt Ion -milk sales -manure less cash Inputs green fodder dry fodder concentrates veterinary services miscellaneous net cane fran dairy cows b) Other fanily Incane before move fran wage labor other (net) Total IncKme B) OTHER RECEIPTS 1. Grants for transportation for subsistence In cash In kind 2. Ccmgensat I on for lost house and plot for other lost assets 3. Invesbtent Subsidies for new house plot for building material for oaws for acquiring other assets - 79 - Year: -2 -1 0 1 2 3 4 5 6 7 4. Loans for dairy cows for other assets (specify) Total ReceIpts C) EXPENSES Household consunption in cash hane consunpt Ion Relocation Expenses transportation cost tenporary shelter Other Total Expenses D) lNVESTMENTS Cost of house plot Cost of new house and shed less salvaged materials Total Investment Cost E) DEBT SERVICE on loan A on loan B Total Debt Service F) NET CASH FLiOW Net Result of A)+B)-C)-D)-E) - 81 - Table 6 PRF2FOFMA COST TABLES FOR RESETTLEMENT Adninistrative Overhead of Resettlemient Project Unit Unit Quantity by Year1/ Total Cost2/ -3 -2 -1 0 +1 +2 +3 Cost A. Offices, Furnishings and Staff Housing: 1. BuIldings 2. Furnishings 3. Equlpnent 4. O&M B. Vehicles 1. Investment 2. OBM C. Materials and Supplies D. Staff3/ 1. Management 2. Operatlonal4/ 3. Support E. .'konitoring and Evaluation 1. Staff 2. Equlpment 3. Contracts F. Training and Staff Developnent G. Technical Assistance H. Other TOTAL 1/ Year 0 Is the polnt when transfer of the displaced people to new settlement sites begins. 2/ Use of unit costs may not be approprlate In all cases. Estimated Iumpsum expenditures can be entered as annual values Instead. 3/ Enumerate on separate table 4/ For example, resettlenent officers; specialists for agricultural development, veterinary, fIsheries, forestry, etc. a- 8s - A`FX 3 -, in anc oe:s" - - cIoe3-J inr cooperative act5vitles, canunlty organrizalt b5ns and o,i tes rates of alcohol consLmpt5on, violence or other storess- :-iice kbidl1ty and mortalIty rates; soci al support and ser v ice excziie nf7e Cu r as I i a c are; etc. Monitoring and evaiuation re-C's n£,w to periodically, to help assess the progress of rese -*'On nts effects compared with establ ished polIcy aEdi sne oi s -e-S and benchmarks at each phase. It s :>'sa t I iS ',3s ' .-, al', rCip a mechanism to expeditiousiy feed rep' r:Zs 03 'S the cfciols placed in a positIon to take neededr co:D-rec i ve me.r , i..3 aFy- Such Informatlon would ccntrintute also it-c >s -,,rj"'i,s o resettlennt coroonents by the lencidrng agen--o, c-fsz of evaluation reports should also be sum-Ittaed. - 87 - NOTES AND REFERENCES Earlier drafts of this paper were presented at the "International Conference on the Social Effects of Major Dams In Latin America", Buenos Aires, Argentina, July 1983, and at a seminar on "Experiences with Involuntary Resettlement In World Bank Projects", Yangtze Valley Project Office (YVPO), Wuhan, China, December 1986. 1. See "Environmental Policies and Procedures", World Bank, Office of Envirormental and Scientific Affairs, Washington, DC, 1984; and Goodiand, Robert, and Maryla Webb, The Managenent of Cultural Property in World Bank-Assisted Projects. World Bank Technical Paper No. 62, Washington, DC, 1987. 2. See Warford, Jeremy, Environment, Grawth and Developnent, Background Paper for the Developnent CcrTmittee, The World Bank, Washington, DC, 1987. 3. See, for Instance: Chambers, Robert (ed.), The Volta Resettlement Experience, Palm Mall Press, London, 1970; Butcher, 0. A. P., An Organizational Manual for Resettlement, Rome, FAO, 1971; Colson, Elizabeth, The Social Consequences of Resettlement, Manchester University Press, 1971; Scudder, Thayer, "The Hunan Ecology of Big Projects: River Basin Development and Resettlement", In B. Slegel (ed.), Annual Revlew of Anthropology, Palo Alto, 1973; Scudder, Thayer, "A Sociological Framework for the Analysis of New Land Settlenents", In Mlchael M. Cernea (ed.) Putting People First: Sociological Variables In Rural Developnent, New York, Oxford University Press, 1985; Scudder, T., and E. Colson, "Fran Welfare to Development: A Conceptual Framework for the Analysis of Dislocated People", In Hansen A., and A. Oliver-Snith (ed.), Involuntary Migration and Resettlement, Boulder, Colorado, Westview Press, 1982. 4. l4he terms "anthropological" and "sociological" are used In this paper Interchangeably; however, the research issues and approaches taken In resettlenent studles carried out by social anthropologists saoetimes differ significantly from the approach and research-focus of many soclologists. The differences and camplenentarity between these two traditions In the study of the same social processes deserve a speclal discussion. 5. For an lndepth study of refugee populations and assistance Issues, see Harrell-Bond, Barbara E., Imposing Aid: Emergency Assistance to Refugees, New York, Oxford University Press, 1986. For various types of involuntary migration, see the studies included in Hansen, Art, and A. Oliver-Smith (eds.), Involuntary Migration and Resettlement, Boulder, Colorado: Westview Press, 1982. - 88 - 6. See Cernea, Michael M. (ed.) PuttIng People First. Sociological Variables In Rural Development, New York, Oxford University Press, 1985. 7. See, for Instance, Partridge, W. L., A. B. Brcon and J. B. Nugent, The Papaloapan Dam and Resettlement Project: Human Ecology and Health Impacts In Hansen and Oliver-Smith (eds.), op. cit.; Fahim, Husseln, Egyptian Nublans: Resettlenent and Years of Coping, Salt Lake City, University of Utah Press, 1983; Agarval A., R. Chopra, and K. Sharma (eds.), The State of India's Envirorment 1982, A Cltizen's Report, Centre for Science and Environment, New Delhi, 1982; Agarval A., and S. Narain (eds.), The State of India's Envirorment 1984-85, The Second Citizen's Report, New Delhl, 1985; Goldsnith, E., and N. Hildyard, The Social and Environmental Effects of Large Dams, (2 vol.) European Ecological Action Group and Wa,debridge Ecological Centre, Camelford, Cornwall, 1984; Suarez, F., R. Franco, and E. Cohen (eds.), Effectos Soclales de las G-randes Represas en America Latina, CIDES-ILPES, Buenos Aires, 1984; Scudder, T., "A History of Developmnt In the Twentieth Century: The Zambian Portion of the Mlddle Zambezi Vialley and the Lake Kariba Basin", processed, Clark University and Institute for Developnent Anthropology, August, 1985; Varma, S. C., Human Settlement In Lower Narmada Basin, Bhopal, Government Central Press, 1987. 8. Cernea, Michael M., Non Goverrnental Organizations and Local Developnent, Agriculture and Rural Developnent, The World Bank, Washington, DC., April 1988. 9. See, for instance, "Agricultural Land Settlemnt," World Bank Issues Paper, Agriculture and Rural Develownment Department, Washington, DC, 1978; Forestry Sector Pollcy Paper, The World Bank, February, 1987. 10. See Schuh, G. E., G. Le Moigne, M. M. Cerneea, and R. Goodiand, "Social and Envirormental Impacts of Dams. The World Bank Experience", paper prepared for the 16th Congress on Large Dams, San Francisco, 1988 (forthccming). 11. For a detailed description of the standard activities during each project stage, see, Baum, Warren C., The ProJect Cycle, The World Bank, Washington, DC, 1982. 12. Cernea, Mlchael M., Entrance Points for Sociological Knowledge In Planned Rural Development, In Schwarzweller, Harry (ed.), Research In Rural Soclology and Developnent, Vol. 3, JAI Press, 1987. 13. See Goodland, Robert, Tribal Peoples and Econamic Developnent: Hunan Ecological Consideratlons, The World Bank, Washington, DC, 1982. DISTRIBUTORS OF WORLD BANK PUBLICATIONS ARGENTINA FRANCE KENYA SOlJTh- AFRICA Cauros Hmirch. SRL World Bank Publicalions Afnca Book Service (E.A.) Ltd. For single litles Galena Guemes 66. avenue d'iena PO Boa 45245 Onlornd Utnersity Press Southem Africa Flonda l65. 4tb hFlr-Ofc. 453/465 75116 Pans Nairobi PO. 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Heyneman and Figerlind, University Examinations and Standarized Testing: Principles, Experience, and Policy Options The World Bank q Headquarters European Office Tokyo Office CD 1818 H Street, N.W. 66, avenue d'Iena Kokusai Building Washington, D.C. 20433, U.S.A. 75 116 Paris, France 1-1 Marunouchi 3-chome Telephone: (202) 477-1234 Telephone: (1) 47.23.54.21 Chiyoda-ku, Tokyo 100, Japan Telex: WUI 64145 WORLDBANK Telex: 842-620628 Telephone: (03) 214-5001 RCA 248423 WORLDBK Telex: 781-26838 Cable Address: INTBAFRAD WASHINGTONDC 3 Cover photo by M. Asseo ISBN' 0-8213-1036-4