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p. 7 of 25 BACK | NEXT I. Introduction II. Review of Involuntary Resettlment Experiences A. Experiences of Developing Member Countries (DMCs) B. Experience in Bank-financed Projects C. Experiences of the World Bank and Other Agencies D. Resettlement and Local Organizations III. Involuntary Resettlement Policy IV. Implementation Procedures V. Conclusions

Involuntary Resettlement : II. Review of Involuntary Resettlment Experiences

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A. Experiences of Developing Member Countries (DMCs)

13. The experiences of DMCs in involuntary resettlement is mixed. Since 1980, the People's Republic of China (PRO), with perhaps the largest number of people displaced (about 30 million) by development projects, has introduced numerous laws and regulations at various levels of government and that cover virtually every aspect of resettlement. These laws and regulations seem to offer protection to people whose living standards may be decreased by a development project. A recent World Bank study has concluded that the PRO resettlement laws related to transport, industry, and urban development projects "now fully meet the requirements of the World Bank's operational directive on resettlement and of the OECD resettlement guidelines.¹ However, complaints about compensation and resettlement procedures persist and stem mainly from delays in payment and diversion of funds by local governments into community facilities rather than payments to individuals. Also, the regulations related to reservoir projects such as irrigation, water supply, and hydropower generation need strengthening as they permit lower compensation levels and slow restoration of pre-project standards of living of affected persons.

14. In India, the State of Maharashtra has had resettlement legislation since 1976. The 1976 law was replaced by the improved "Maharashtra Project Affected Persons Rehabilitation Act, 1986." The Act is applicable to irrigation projects and provides a framework for resettling affected people by providing replacement farmlands and homesteads in the command area of an irrigation project. The Act is based on the principle that people who benefited from a project should bear part of the burden of those who are afflicted by it. Maharashtra State's relatively good resettlement record can be attributed to this legislation. However, the record could be improved, for example, by guaranteeing restoration of living standards of all sections of the affected population, and protecting people with customary or usufruct rights. The states of Madhya Pradesh and Karnataka have introduced legislation similar to Maharashtra's in 1989/90.

15. Resettlement in other parts of India as well as in other countries is governed by general or project-specific government directives issued from time to time. Some of the directives are innovative in recognizing that some landowners benefit from a project and recovering at least a part of the costs from such beneficiaries. For example, some road projects in Korea require the landowners to surrender a part of their holdings along the road corridor and do not compensate for the land taken because the value of the remaining land will appreciate considerably due to the road. However, many of the directives seem to offer inadequate strategies for reestablishment and restoration of income of displaced peoples. The provisions may have been influenced by government policies and practices, the demands of affected persons and nongovernment organizations (NGOs), as well as the advice provided by aid agencies assisting in projects.

16. Strong institutional commitment sometimes compensates for lack of resettlement legislation. Neither Thailand nor Malaysia have resettlement legislation, but resettlement performance in the power sector in both countries has been relatively encouraging. The policies and plans to resettle the indigenous peoples affected by the Batang Al Hydropower Project in Malaysia (see pare. 7) were carefully investigated and prepared. In Thailand, the public sector Electricity Generation Authority of Thailand has been improving its resettlement performance continuously since its formation in 1968, and its resettlement policy for each new project is based on the lessons learned from its previous experience. The Authority's resettlement strategy is based on direct negotiations with affected communities and formulation of a comprehensive compensation package.

17. A recent example from the Jamuna Multipurpose Bridge Project in Bangladesh (see pare. 7) indicates that it is possible to improve the resettlement policy framework of a DISC by working closely with country institutions. Bangladesh lacked particular laws and regulations of general applicability dealing with resettlement. With intensive assistance from the World Bank, the Jamuna Multipurpose Bridge Authority formulated a comprehensive resettlement policy and plan in October 1993 to resettle the 65,000 persons affected by the project.

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