Policy Impact of Involuntary Resettlement

Evaluation Document | 30 September 2000

This evaluation assesses the appropriateness, effectiveness, and impact of the involuntary resettlement policy on involuntary resettlement to enhance ADB's operations in it's developing member countries.

ADB adopted a policy on involuntary resettlement in 1994. Under it, people who lose assets or livelihoods because of ADB-supported projects receive assistance from the project for relocation and resettlement and are paid market or replacement value for assets.

Since the policy's adoption, ADB has financed 80 projects involving resettlement in 12 developing member countries. On average, 40,000 people required relocation annually from ADB-funded projects. The highest percentage (60%) was from the People's Republic of China. Sector wise, transport projects accounted for 78% of people relocated.

This study evaluates the adequacy and effectiveness of the involuntary resettlement policy, and offers recommendations for its improvement. Eight sample projects in four countries - Bangladesh, the People's Republic of China, Indonesia, and the Philippines - were selected for field investigation based on sector and regional criteria.

The study concludes that the policy is adequate and relevant, but refinements need to be made to clarify specific elements, such as compensation levels, identifying people directly affected by projects, and those from vulnerable groups. Implementation practices should also be improved with a focus on income restoration in the post-resettlement period.

Among factors viewed as crucial for an integrated approach to resettlement planning were appropriate country and legal policy frameworks to provide clear guidelines, and that early attention is needed to resolve land acquisition and resettlement issues.

Contents 

  • Executive Summary
  • Introduction
  • Relevance and Effectiveness of Policy Implementation
  • Resettlement Impact: Empirical Findings of Case Studies
  • Comparative Impact Evaluations of Case Studies
  • Issues Identified
  • Conclusions and Recommendations
  • Appendixes