Involuntary Resettlement

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Income Restoration

What are common problems in developing income restoration programs?

Common problems include:

• non-titled APs are legally ineligible for compensation
• compensation for productive assets is not based on replacement costs
• inadequate replacement land and poor land quality
• lack of skills needed for income-generating programs
• inadequate budget for income restoration programs
• lack of institutional and technical capacity to plan and implement micro-projects for income generation
• neglect of vulnerable groups in income restoration programs

Some of the problems stem from lack of appropriate policies, others relate to institutional and financial constraints. In many countries, replacement land is hard to find, and a "land-for-land" strategy has remained a difficult policy to implement.

What are 'short-term' income restoration strategies?

Short-term income restoration strategies are for immediate assistance during relocation and may include:

• compensation for land, structures, and all other lost assets, paid in full before relocation
• house construction grants and relocation subsistence allowances, paid for the full duration of the period of disruption and re-establishment
• free transport or costs of removal and re-establishment for relocation
• waiving of taxes subsidized inputs for agricultural, fisheries, and livestock production for the first two or three years or until income levels are restored;
• temporary or short-term employment in civil construction activities at the resettlement or project construction sites; and
• special assistance, as appropriate, to vulnerable groups such as women, indigenous people, the aged, and the disabled.

What are 'long-term' income restoration strategies?

Long-term income restoration strategies involve land- and non-land-based economic activities that will provide a sustained source of income over a longer period of time to enable restoration, or better still, improvements in APs' standard of living. These strategies may consist of both project-sponsored programs (for example, purchase of replacement land, employment, training and various inputs for income generation) and establishing linkages to local or national economic development and employment programs in the project area. There are also various kinds of rural credit and micro-enterprise programs managed by NGOs in many DMCs.

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