Involuntary ResettlementInvoluntary ResettlementOPERATIONAL POLICY 0P 4.12OPERATIONAL POLICY 0P 4.12

Resettlement InstrumentsResettlement Instruments

Afshan Khawaja, OPCQCAfshan Khawaja, OPCQCZagreb, May 2009Zagreb, May 2009

OverviewOverview

Social assessmentSocial assessment Impacts that trigger OP 4.12Impacts that trigger OP 4.12 Required mitigation measuresRequired mitigation measures Who is eligibleWho is eligible Key issuesKey issues

• Replacement value, livelihood restoration, eligibilityReplacement value, livelihood restoration, eligibility ConsultationConsultation Resettlement instrumentsResettlement instruments Borrower and Bank responsibilitiesBorrower and Bank responsibilities Supervision, completion and beyondSupervision, completion and beyond

Social AssessmentSocial AssessmentIdentification of Social Impacts and RisksIdentification of Social Impacts and Risks

Good practice for the borrower to undertake a Good practice for the borrower to undertake a social assessment to:social assessment to:• Identify the nature and magnitude of social impactsIdentify the nature and magnitude of social impacts• Identify indirect social and economic impacts*Identify indirect social and economic impacts*• Define and implement measures to mitigate these Define and implement measures to mitigate these

impacts, especially on poor and vulnerable groupsimpacts, especially on poor and vulnerable groups• Identify project activities that may give rise to Identify project activities that may give rise to

involuntary resettlementinvoluntary resettlement

* Economic and social impacts that do not result * Economic and social impacts that do not result directly from land taking can pose significant directly from land taking can pose significant social risks if not mitigated and managed social risks if not mitigated and managed properlyproperly

Core Elements of Social AssessmentCore Elements of Social Assessment

Social Social diversity diversity and genderand gender

Stakeholder Stakeholder analysisanalysis

Social risksSocial risks and and mitigationmitigation

ParticipatioParticipationn

Impacts that Trigger OP 4.12Impacts that Trigger OP 4.12 Direct economic and social impacts that both Direct economic and social impacts that both

result from Bank-assisted projects, and are result from Bank-assisted projects, and are caused by the involuntary taking of land resulting caused by the involuntary taking of land resulting from:from:

Loss of assets or access to assetsLoss of assets or access to assets Loss of shelter or relocationLoss of shelter or relocation Loss of income sources or means of livelihood (whether or Loss of income sources or means of livelihood (whether or

not the affected persons must move to another location)not the affected persons must move to another location)

Restriction of access to legally designated parks Restriction of access to legally designated parks

and protected areas that result in adverse and protected areas that result in adverse

impacts on the livelihoods of affected personsimpacts on the livelihoods of affected persons

Liberia: Liberia: Infrastructure and Infrastructure and Resettlement Resettlement ChallengeChallenge

Required Resettlement MeasuresRequired Resettlement Measures

To inform displaced To inform displaced persons about their persons about their options and rights options and rights pertaining to pertaining to resettlementresettlement

Provide them technically Provide them technically and economically and economically feasible resettlement feasible resettlement alternativesalternatives

Required Resettlement MeasuresRequired Resettlement Measures

To provide prompt and To provide prompt and effective compensation effective compensation at full at full replacement costreplacement cost for losses of for losses of assets attributable directly to assets attributable directly to the projectthe project

Provide assistance during Provide assistance during relocationrelocation

To provide with residential To provide with residential houses, or housing sites, or houses, or housing sites, or as required agricultural sites,as required agricultural sites, at least equivalent to the at least equivalent to the advantages of the old siteadvantages of the old site

Required Resettlement MeasuresRequired Resettlement Measures “LAND VS. CASH“LAND VS. CASH””

Providing “land for land” is the Providing “land for land” is the preferred option for people whose preferred option for people whose livelihoods are land basedlivelihoods are land based

Required Resettlement MeasuresRequired Resettlement Measures

Cash compensation may Cash compensation may be appropriate when:be appropriate when:

Land taken by the Land taken by the project is a small project is a small fraction of the fraction of the affected asset and affected asset and residual is viableresidual is viable

Livelihoods are not Livelihoods are not land basedland based

Cash compensation is Cash compensation is the preferred option of the preferred option of displaced people and displaced people and they have the they have the capacity for self-capacity for self-resettlement resettlement

Required Resettlement MeasuresRequired Resettlement Measures

Offer support after Offer support after displacement, for a displacement, for a transition period, based on transition period, based on a reasonable estimate of a reasonable estimate of the time likely to be the time likely to be needed to restore their needed to restore their livelihood and standards of livelihood and standards of livingliving

Moving expensesMoving expenses Employment trainingEmployment training Income support while Income support while

awaiting income awaiting income restorationrestoration

Develop affordable and Develop affordable and accessible grievance accessible grievance redress mechanismsredress mechanisms

Include the total costs resettlement Include the total costs resettlement activities in the total costs of the projectactivities in the total costs of the project

Link resettlement implementation to Link resettlement implementation to project timetable (people should be project timetable (people should be properly compensated and assisted prior properly compensated and assisted prior to displacementto displacement

Required Resettlement MeasuresRequired Resettlement Measures

Who is Eligible?Who is Eligible?

The borrower carries out a census to The borrower carries out a census to identify those affected and eligible for identify those affected and eligible for assistance:assistance:• Those who have formal legal rights to land Those who have formal legal rights to land

(compensation)(compensation)• Those who do not have formal legal rights to Those who do not have formal legal rights to

land at the time the census begins but have a land at the time the census begins but have a claim to such land or assets (compensation)claim to such land or assets (compensation)

• Those who have no recognizable legal right or Those who have no recognizable legal right or claim to the land that they are occupying claim to the land that they are occupying (resettlement assistance)(resettlement assistance)

……particular attention should be particular attention should be paid to…paid to…

Vulnerable groups:Vulnerable groups:

below poverty line, landless, below poverty line, landless, elderly, women, children, elderly, women, children, handicapped, single parents, handicapped, single parents, indigenous peoples, ethnic indigenous peoples, ethnic minorities minorities

Key Policy Application IssuesKey Policy Application Issues

Differences with Countries’ PracticesDifferences with Countries’ Practices• Replacement cost – for lost land and assetsReplacement cost – for lost land and assets

Practice: undervalued, under-compensatedPractice: undervalued, under-compensated

• Livelihood restorationLivelihood restoration Not part of standard practiceNot part of standard practice

• Eligibility Eligibility Controversial – assistance to people without Controversial – assistance to people without

legal claimslegal claims

Replacement ValueReplacement Value ImpactsImpacts

• Loss of land and other assetsLoss of land and other assets Agricultural and non-agricultural land Agricultural and non-agricultural land Houses and other structuresHouses and other structures Assets – wells, trees, cropsAssets – wells, trees, crops

CompensationCompensation• Full replacement costs (market value of assets plus Full replacement costs (market value of assets plus

transaction costs, registration and transfer taxes)transaction costs, registration and transfer taxes) IssuesIssues

• Who determine value?Who determine value?• Who pays for it?Who pays for it?• When is it decided?When is it decided?• Practice - undervalued, under-compensatedPractice - undervalued, under-compensated

Livelihood RestorationLivelihood Restoration

ImpactsImpacts• Loss of income-earning capacityLoss of income-earning capacity• Compensation alone does not guarantee the restoration or Compensation alone does not guarantee the restoration or

improvement of living standardsimprovement of living standards• Example: agricultural land has a market value (requires Example: agricultural land has a market value (requires

compensation), but it is also the basis for livelihood and future compensation), but it is also the basis for livelihood and future earning capacity (requires rehabilitation)earning capacity (requires rehabilitation)

IssuesIssues• Not part of standard practiceNot part of standard practice• Household may have multiple providers of income – require Household may have multiple providers of income – require

intra-household analysisintra-household analysis• Women have different opportunities for employment – require Women have different opportunities for employment – require

gender analysisgender analysis• Vulnerable groups (poor, elderly, ethnic minorities) have Vulnerable groups (poor, elderly, ethnic minorities) have

different opportunities for livelihood restoration – establish different opportunities for livelihood restoration – establish criteria for vulnerabilitycriteria for vulnerability

Eligibility- Groups Not Protected by Eligibility- Groups Not Protected by National Land Compensation LawNational Land Compensation Law

DefinitionDefinition• People lacking title to land or structuresPeople lacking title to land or structures• Squatters (urban) or encroachers (agricultural or forest areas)Squatters (urban) or encroachers (agricultural or forest areas)

ImpactsImpacts• Squatters in occupation of land Squatters in occupation of land beforebefore project initiation may have invested project initiation may have invested

in structures or land improvementin structures or land improvement IssuesIssues

• OP 4.12 – affected people who do not have legal title to lands occupied/used OP 4.12 – affected people who do not have legal title to lands occupied/used by them need to be provided with resettlement assistanceby them need to be provided with resettlement assistance

• Controversial – no recognized rightsControversial – no recognized rights

• When is a squatter not a squatter?When is a squatter not a squatter? Traditional rights where state never legally acquired landTraditional rights where state never legally acquired land Local recognition based on taxes – defecto ownershipLocal recognition based on taxes – defecto ownership Promises of land regularization by politicians Promises of land regularization by politicians Inconsistent applications of policies, court reversalsInconsistent applications of policies, court reversals

Loss of livelihood: SquattersLoss of livelihood: Squatters

Cartoon by Chris Madden

Resettlement InstrumentsResettlement Instruments Resettlement plan Resettlement plan (RAP)(RAP)

When it is possible to determine displacing population When it is possible to determine displacing population during project preparation (i.e. site-specific resettlement)during project preparation (i.e. site-specific resettlement)

Abbreviated resettlement plan Abbreviated resettlement plan (ARP)(ARP) When affected people are not physically displaced and less When affected people are not physically displaced and less

than 10% of their productive assets are lost, or fewer than than 10% of their productive assets are lost, or fewer than 200 people are displaced200 people are displaced

Resettlement policy framework Resettlement policy framework (RPF)(RPF) In a project with multiple subprojects where population to In a project with multiple subprojects where population to

be displaced not know during project preparation (i.e. linear be displaced not know during project preparation (i.e. linear resettlementresettlement

Process framework Process framework (PF)(PF) For projects involving restriction of access to legally For projects involving restriction of access to legally

designated parks and protected areas resulting in adverse designated parks and protected areas resulting in adverse impacts on the livelihoods of affected peopleimpacts on the livelihoods of affected people

Legal AgreementLegal Agreement

The resettlement instrument is The resettlement instrument is included in the Legal Agreement included in the Legal Agreement Between the Bank and the BorrowerBetween the Bank and the Borrower

Content ofContent ofResettlement InstrumentsResettlement Instruments

Resettlement Plan – Content (1)Resettlement Plan – Content (1)

Project description and locationProject description and location Potential impactsPotential impacts

Components that cause displacementComponents that cause displacement Affected areas and populationAffected areas and population Alternatives to prevent or minimize displacementAlternatives to prevent or minimize displacement

Socioeconomic and cultural studiesSocioeconomic and cultural studies Methodology (including detailed household census Methodology (including detailed household census

survey)survey) Results (size and socioeconomic characteristics of Results (size and socioeconomic characteristics of

affected population, systems of labor, livelihoods affected population, systems of labor, livelihoods property held and type of tenancy, etc.)property held and type of tenancy, etc.)

Impact assessmentImpact assessment Magnitude of the expected losses (total, partial)Magnitude of the expected losses (total, partial) Type of displacement (physical, economic)Type of displacement (physical, economic)

Resettlement Plan – Content (2)Resettlement Plan – Content (2) Legal frameworkLegal framework

• Relevant legislation (international treaties, national Relevant legislation (international treaties, national constitution, laws related to eminent domain and the nature of constitution, laws related to eminent domain and the nature of compensation associated with it)compensation associated with it)

• Methods of valuing affected assetsMethods of valuing affected assets• Timing of paymentTiming of payment• Mechanisms for dispute resolutionsMechanisms for dispute resolutions• Gaps between local laws covering eminent domain and the Gaps between local laws covering eminent domain and the

Bank's policy, and mechanisms to bridge such gapsBank's policy, and mechanisms to bridge such gaps Entitlements to be offered based on type of Entitlements to be offered based on type of

impact, and on socioeconomic and cultural impact, and on socioeconomic and cultural characteristics of the population characteristics of the population (Entitlement Matrix)(Entitlement Matrix)

Eligibility criteria for each entitlementEligibility criteria for each entitlement Cut-off date to prevent "rent seeking"Cut-off date to prevent "rent seeking" Measures to prevent the arrival of new settlers in Measures to prevent the arrival of new settlers in

the affected areathe affected area

Resettlement Plan – Content (3)Resettlement Plan – Content (3) ProgramsPrograms

Communication, consultation, participationCommunication, consultation, participation Land acquisition or land replacementLand acquisition or land replacement Construction or acquisition of new housing, business, Construction or acquisition of new housing, business,

farms, industries and community facilities, public servicesfarms, industries and community facilities, public services Income restoration and development of economic Income restoration and development of economic

opportunitiesopportunities Reestablishment of social networksReestablishment of social networks Integration with host populationIntegration with host population Environmental impacts of the proposed resettlement and Environmental impacts of the proposed resettlement and

measures to mitigate themmeasures to mitigate them Grievance mechanisms and proceduresGrievance mechanisms and procedures Organizational responsibilitiesOrganizational responsibilities Budget and financing planBudget and financing plan Timetable (linked to underlying project)Timetable (linked to underlying project) Monitoring systemMonitoring system Evaluation systemEvaluation system

Resettlement Policy Framework - ContentResettlement Policy Framework - Content

Project description (explanation of displaced population)Project description (explanation of displaced population) Legal framework (relevant legislation, mechanisms)Legal framework (relevant legislation, mechanisms) Principles and objectives governing resettlement Principles and objectives governing resettlement

preparation and implementationpreparation and implementation Eligibility criteria for defining displaced persons Eligibility criteria for defining displaced persons

Description of the implementation process, linking Description of the implementation process, linking resettlement implementation to civil works or the events resettlement implementation to civil works or the events that could cause displacementthat could cause displacement

Procedures to prepare and implement resettlement plansProcedures to prepare and implement resettlement plans Ns (such plans are subject to prior review by the Bank Ns (such plans are subject to prior review by the Bank

before their implementation)before their implementation) Content of resettlement plansContent of resettlement plans

Participatory and consultation mechanismsParticipatory and consultation mechanisms Description of grievance redress mechanismsDescription of grievance redress mechanisms Institution responsible (resources, capacity and measures Institution responsible (resources, capacity and measures

to strengthen it, if needed)to strengthen it, if needed) Monitoring systemMonitoring system Evaluation systemEvaluation system

Process Framework - ContentProcess Framework - Content

Describe participatory process to:Describe participatory process to:

Prepare and implement project components that Prepare and implement project components that may cause restriction to access to resourcesmay cause restriction to access to resources

Identify and assess the magnitude of the impacts Identify and assess the magnitude of the impacts Establish criteria of eligibility for any Establish criteria of eligibility for any

compensatory measurecompensatory measure Choose potential mitigating or compensating Choose potential mitigating or compensating

measures to be provided to affected peoplemeasures to be provided to affected people Design conflict mechanisms resolutionDesign conflict mechanisms resolution Administrative and legal proceduresAdministrative and legal procedures Monitoring arrangementsMonitoring arrangements

ResponsibilitiesResponsibilitiesBorrower:Borrower:

Prepare the Resettlement Prepare the Resettlement Instrument (Framework or Instrument (Framework or Plan)Plan)

Consult project affected Consult project affected personspersons

Disclose the draft Disclose the draft instruments as condition of instruments as condition of project appraisalproject appraisal

Disclose the instrument Disclose the instrument again after it is finalizedagain after it is finalized

Implement and monitor the Implement and monitor the Resettlement PlanResettlement Plan

Final evaluation of the PlanFinal evaluation of the Plan

Bank:Bank:

Provide advice during the Provide advice during the preparation of the preparation of the instrumentsinstruments

Review and approve the Review and approve the Plan or Framework before Plan or Framework before appraisalappraisal

Disclose draft instrument Disclose draft instrument at the infoshopat the infoshop

Disclose final instrument Disclose final instrument again at the infoshopagain at the infoshop

Supervise regularly the Supervise regularly the implementation of the Planimplementation of the Plan

Include Resettlement Include Resettlement Results in the ICRResults in the ICR

When it works!When it works!

Supervision, Completion and BeyondSupervision, Completion and BeyondThe policy prescribes:The policy prescribes: An early review of implementationAn early review of implementation

• Earlier than the mid-term review for the projectEarlier than the mid-term review for the project• A project is not considered complete – and Bank A project is not considered complete – and Bank

supervision continues – until the agreed resettlement supervision continues – until the agreed resettlement measures have been implementedmeasures have been implemented

• A follow up socio-economic survey at project completionA follow up socio-economic survey at project completion To assess the extent to which the objectives of the To assess the extent to which the objectives of the

resettlement program have been achievedresettlement program have been achieved Based on the baseline socioeconomic survey and periodic Based on the baseline socioeconomic survey and periodic

monitoring reportsmonitoring reports If the assessment reveals that objectives may not If the assessment reveals that objectives may not

be realized, the borrower should propose follow be realized, the borrower should propose follow up measuresup measures

Bank supervision may continue beyond project Bank supervision may continue beyond project completion, if considered necessary by the Bankcompletion, if considered necessary by the Bank

Key Implementation Issues and Key Implementation Issues and ChallengesChallenges

Capacity of implementing agency and Capacity of implementing agency and understanding of agreements, rights an d understanding of agreements, rights an d obligationsobligations• How are impacts addressed?How are impacts addressed?• Who is responsible?Who is responsible?• Who pays for it, with what budget?Who pays for it, with what budget?• How is it monitored?How is it monitored?• How are impacts and results communicated to How are impacts and results communicated to

key stakeholders, particularly those affected?key stakeholders, particularly those affected?• If problems arise, how are they dealt with?If problems arise, how are they dealt with?

Consultants frequently prepare poor Consultants frequently prepare poor quality reportsquality reports

Summary of Key Issues toSummary of Key Issues toAddress Resettlement in Bank-Supported Address Resettlement in Bank-Supported

ProjectsProjects PolicyPolicy

• Agreement with the borrower on applicable principlesAgreement with the borrower on applicable principles AnalysisAnalysis

• If potential adverse impacts: identify, avoid, minimize, If potential adverse impacts: identify, avoid, minimize, mitigatemitigate

Consultation and disclosureConsultation and disclosure• Prior information, documentation of views and concerns Prior information, documentation of views and concerns

input to design, feedbackinput to design, feedback Action and mitigation plansAction and mitigation plans

• Instruments vary by policy and categoryInstruments vary by policy and category• Framework if direct impact area is unknownFramework if direct impact area is unknown

Institutional arrangementsInstitutional arrangements• Responsibilities, budgets, capacity assessment, Responsibilities, budgets, capacity assessment,

strengthening if neededstrengthening if needed

Thank you!Thank you!