News and Events

printer friendly version

Regional Workshop On National Resettlement Policy Enhancement And Capacity Building

Opening statement by
Myoung-Ho Shin
Vice-President (Operations 1)
Asian Development Bank

18 February 2002
ADB Auditorium

Distinguished participants, good morning.

It is a pleasure to see representatives of many of our regional member countries here today. I am pleased that you are working together with us to address this challenge ¾ setting new national standards for involuntary resettlement.

We will be hearing country reports, some the result of hard work over many months. I know that consultation with stakeholders has been a major part of this work under our technical assistance. I commend all of you who participated in country teams. We look forward to hearing the results.

We also look forward to the presentation of status reports from other countries here. Sri Lanka, in particular, has taken commendable steps to establish a new national safeguard for involuntary resettlement.

We are also very pleased to welcome representatives of development agencies, including AusAID, JBIC, UNDP and the World Bank. A Memorandum of Understanding on Administrative Arrangements for Cooperation with the World Bank came into effect in January this year. We also have an MOU we signed with UNDP. We appreciate very much the working relationship with these agencies.

This morning I would like to take a few moments to explain our interest in national standards on involuntary resettlement. Last year, growth in the Asian region slowed. While this did not jeopardize the process of social and economic recovery in our region, it reminds us that the reform agendas that have been put in place should not be allowed to drift.

Many governments, I am pleased to say, are taking action to develop a national legal agenda. This covers many complementary elements: financial and capital market reform, banking reform, environmental protection, energy resources, land titling and management. ADB supports these initiatives, and involuntary resettlement policy frameworks are an integral part of them.

At ADB we have been working to address involuntary resettlement safeguards on two levels.

First, we have been working at the project level. We work with our executing agencies and project sponsors on a case-by-case basis for ADB-financed projects, to ensure our involuntary resettlement policy is properly recognized and incorporated. Here I would mention we share approaches when we cofinance projects with other MDBs and development agencies. We have similar standards on involuntary resettlement to those of the World Bank, which developed the original resettlement directive, and with other MDBs. We also have similar standards to bilateral donors.

We recognize that, as for other MDBs, compliance with ADB's safeguard policy on involuntary resettlement is subject to increasing scrutiny. We know too it is not easy in project design to ensure that displaced people will not be impoverished or disadvantaged. The efforts to get things rights may be intensive, in terms of project preparation and implementation, and they are increasing costly for compliance with safeguards requires time and resources.

For these reasons, we have been working with our DMCs at the second level, on national policy, legal, regulatory and administrative frameworks, to create a complementary basis for project resettlement plans. These would extend uniformly the benefits of good resettlement practice to all projects in each country. Transparent and consistent standards would bring major benefits. Iinvestors, as well as people likely to be affected, would know the rules. A climate would be created in which resettlement can be addressed early, and risks can be better managed.

Working with our DMCs at the national level will help to reduce pressure at the project level, in particular, reducing costly delays during processing and implementation. Importantly, also, it will reinforce project resettlement plans and make it more likely that they can be implemented effectively.

The ultimate goal of development assistance is for each country to be able to address its own sustainable development agenda. Approaching this goal requires greater ability and firmer commitment to implement effectively resettlement safeguards within the context of each country's own characteristics and traditions.

Indeed, as the ADB policy requires, we are assisting each country to (and I quote) "adopt and implement the…objectives and principles of the Bank's policy on involuntary resettlement within their own legal, policy, administrative and institutional frameworks".

As you all know very well, in our region, each country has its own frameworks of policies, laws, jurisprudence, rules and regulations, and each has its own administrative structure. These frameworks reflect historical, social, and economic parameters. But, in many cases, compensation is based on land acquisition laws that do not meet ADB's standards with respect to replacement costs for lost assets, rehabilitation for the non-titled, protection of poor and vulnerable groups, consultation, and disclosure of compensation and rehabilitation measures.

Involuntary resettlement should involve compensation based on replacement cost. It may also require the creation of new assets through investment, and income restoration strategies. Many governments worry that this might not be affordable. They may worry too that speculators might buy lands likely to be acquired ahead of time, and demand a high price when the land is later acquired for the project. Good planning, clear identification of those affected, and transparent standards all help contain such problems. For example, setting a cut-off date for compensation eligibility helps deter speculators, and those who seek illegally to benefit.

We also need to remember that the costs of not planning in advance and not doing it right can be much higher than the actual resettlement cost. Delays in implementation of the civil contract packages, growing public opposition, and lack of transparency can all create costs.

As to the financing of compensation and other assistance, projects often generate revenue streams that can be drawn upon. Similarly, projects can create employment or provide in-kind services and resources for those who are displaced, if carefully managed. Displacement can actually pave the way for real development opportunities.

This workshop is an opportunity for a regional exchange of views and commitments. Let me again congratulate the country teams on your efforts. Let me thank the development agencies for working with us so closely. And let me welcome the representatives of civil society groups, your views are important to us. The presence of so many of you confirms the importance we all place on reducing poverty, mitigating risks for the poor, and enhancing the quality of development in our region.

Each of you has something important to add to the workshop discussions. I wish you all the very best in these deliberations and a pleasant and rewarding stay in Manila.