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p. 10 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 1. World Bank's Experience 2. Policies of Other Agencies D. Resettlement and Local Organizations III. Involuntary Resettlement Policy IV. Implementation Procedures V. Conclusions

Involuntary Resettlement : II. Review of Involuntary Resettlment Experiences : C. Experiences of the World Bank and Other Agencies

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1. World Bank’ s Experience

20. The World Bank was one of the first international development aid agencies to formulate a policy on involuntary resettlement. The policy was first issued as an internal Operational Manual Statement (OMS 2.33) to staff in February 1980. Since then, it has been revised and reissued a number of times, most recently as an Operational Directive (OD 4.30) in June 1990, and it remains one of the most comprehensive resettlement policy statements. It describes the World Bank's policy objectives on involuntary resettlement as well as measures the borrowers are expected to take in operations involving resettlement. It also gives specific information on the review procedures that World Bank staff should follow for projects involving resettlement components.

21. Experiences of involuntary resettlement operations in World Bank-assisted projects between 1986 and 1993 were reviewed in 1993-1994.¹⁰ The review showed that of the World Bank's 1,900 ongoing projects in 1993, 146 (or less than 8 percent) involved involuntary resettlement. These projects displaced nearly two million people. A large majority of these projects (over 60 percent) were in East Asia and South Asia, and they accounted for about 80 percent of the people to be resettled. A small number of projects in Brazil, PRO, India, and Indonesia accounted for the bulk of the people displaced. Significant increases in the number of projects supported by World Bank and involving resettlement are expected in Bangladesh, Indonesia, Pakistan and Viet Nam. Globally, about 100 projects with a preliminary estimate of 600,000 people to be resettled have been proposed in the World Bank's 1994-1997 pipeline of projects.

22. The review showed that good resettlement can prevent impoverishment of affected persons and can even reduce their poverty by building sustainable livelihoods. However, inadequate resettlement induces local resistance to the project, increases political tensions, causes significant project delays, and postpones the flow of project benefits; and the benefits lost as a result of such avoidable delays may sometimes far exceed the additional cost of good resettlement. The World Bank’ s resettlement operations portfolio improved significantly during the period although resettlement operations and outcomes in a number of projects were not meeting the standards defined by the World Bank’ s policy.

23. Based on the World Bank's experience over the past 10-14 years, a number of major common factors that contribute to the success of resettlement were identified. These are (i) political commitment of borrowers in the form of laws, policies, and resource allocations; (ii) close adherence to established guidelines and procedures in implementation; (iii) sound social analysis, reliable demographic assessments, and appropriate technical expertise in planning for development-oriented resettlement; (iv) reliable cost estimates and provision of required financing, with resettlement activities phased in tune with civil works construction; (v) effective executing agencies that are responsive to local development needs, opportunities and constraints; and (f) people's participation in setting resettlement objectives, identifying reestablishment solutions, and implementing them.

24. In May 1994, the World Bank's Board of Directors discussed the review, and broadly supported the approach, findings and recommended action plans. Semiannual reports on remedial actions planned to improve involuntary resettlement in ongoing World-Bank financed projects were circulated to their Board of Directors in November 1994 and May 1995.¹¹

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