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Evidence from Balaji Pandey's Depriving the Underprivileged for Development is Launched into a Storm of Policy Controversy on International Involuntary Resettlement

Theodore E. Downing

5 January1999

In a resource starved and crowded world, tens of millions are forced to make way for land-based development projects. More numerous than those who flee across borders to escape war and famine, these are unknown victims. It is difficult to grasp the magnitude of the problem. Scholars, developers and activists are still uncertain even as what to call the victims. Oustees? Involuntary resettled? Or development-displaced? Normally, we hear about these people in tidbits - one project at a time. And, save a handful of critical long-term studies, historical depth has been missing. Depriving the Underprivileged for Development by Balaji Pandey fills the void (1998, Bhubaneswar, Orissa, India, 189 pages, 61 tables, 20 maps - see note 1 below). And, given events unfolding, its publication launches timely scientific evidence into a storm of international policy controversy.

Pandey examines 44 years of involuntary resettlements in the Eastern Indian state of Orissa (1950-1994). During this period, development projects displaced 81,176 families in 1446 villages. While state industry prospered, the oustees lost 622,463 hectares of land. The projects included major dams (Machkund, Hirakud, Rengali, Upper Kolab, Indravati, Balimela, Subarnarekha, and Sslandi), thermal power stations (2,426 families in 73 villages), coal mining (3,143 families from 79 villages) steel plants, and ordinance factories. Eighty percent were displaced by dams. Pandey's team from the Institute of Socio-Economic Development, under a grant from the International Development Research Centre in Ottawa, surveyed a sample of 1977 households in 52 villages. The book is organized around a conceptual model of impoverishment risks and reconstruction, first identified by Michael Cernea, Senior Social Policy Advisor to the World Bank, and subsequently used in the 1994 Bankwide review of resettlement operations in its portfolio. This study steps beyond Bank financed projects and reveals broader dimensions of the problem.

The resettlement operational policy directive of the World Bank has become the de facto international standard for the rights of the resettled and the obligations of those responsible. In the Spring of 1998, a revision of the policy was opened to public comment. In June, I joined a delegation of Past and Present Presidents of Society for Applied Anthropology who met with the Executive Board, managers and resettlement staff of the World Bank to discuss the on-going redrafting. The professional society was concerned that the proposed revisions ignored a broad range of socio-cultural and economic research. The argued this represented a retreat of the Bank from its earlier use of the risk and reconstruction model. Rather than building better policy on the scaffolding of scientific research and bank lessons learned, the revised draft policy simply ignored the risks. This was an indefensible position to be taken by agency and employees charged with assessment of the risks associated with international loans. In the meeting, the consultant responsible for international training in resettlement dismissed risk studies and related research as irrelevant to policy. Nothing could be further from the truth. The delegation argued that narrowing the policy, ignoring the risks, does not exculpate those responsible from their moral and financial obligations. It simply covers up the issues and exposes investors to undisclosed liabilities.

Pandey's work shows that a pattern of unmitigated socio-cultural and economic risks not only haunt Bank projects, but threaten peoples in non-Bank projects sponsored by public and private sectors. He details the positive evolution of the resettlement legal frameworks, changes in the institutional capacity of those responsible for resettlement, and the projects' compensation components.

He emphasizes the detrimental impact of resettlement on different socio-economic groups and land holding classes, as well as by occupations. Particular attention is paid to the impact of displacement of the most vulnerable, women and children. Issues of rehabilitation, stakeholder access to information, resistance and protest movements, reactions to new habitats, perceptions of post-resettlement life, and the relationship of oustees to host populations are also measured.

The profile painted by Pandey is sobering, unquestionably reaffirming that people who are subjegated to involuntary resettlement are at grave risk of multidimensional impoverishment. The involuntarily resettled showed an increase in nuclear families and preponderance of females within the household, an increase in illiteracy, and a greater dependency ratio. As a result of displacement, landlessness among resettlement populations increased from two to five fold (See Table 1). And land impoverishment was further exacerbated by excluding affected peoples who were unable to document proof of ownership and a rapid increase in land values associated with local level market distortions. The risk of homelessness increased, as none of the 7 projects surveyed paid for houses at their replacement value.

Table 1: Landlessness in Orissa Resettlements (adopted from Pandey's data by Downing)
Project Families displaced

% Landless among displaced families

Before displacement After displacement
Sam Barrage 318 24 38
ITPS 44 12 75
Ib Valley 39 56 92
UKP 74 12 31
NALCO 100 20 88
HAL 44 36 59

Resettlement compensation proved insignificant. Rehabilitation by substituting jobs for lost land failed to measure up to land ownership as a multipurpose asset with the potential for continuous future use. Unemployment increased, as predominately-farming economies, in which most of the household members had economic duties, shifted to non-farming occupations in which only one person in a household was employed. The risk of food insecurity also increased as former farmers lost self-sufficiency and were forced into an economic situation requiring wager-earners to purchase foods that were previously accessible. The poor were especially hard hit as a result of lost access to fuelwood, minor forest produce, and other collected items.

Involuntary resettlement also brought about an improvement in housing, but these gains were too often at the expense of overcrowding, loss of sanitation and privacy, and the marginalization of women. The team documents an increased cost of living and erosion of income as traditional systems of exchange, mutual help, and barter were undermined. Social disintegration increased as did health risks. Those who consider savings capacity to be an indicator of sustainable development will discover that those displaced were experiencing counter-development.

In most cases, the Orissa experiences with rehabilitation efforts mirror the rest of the world. Project developers preferred ad hoc rehabilitation actions and failed to take into account the full spectrum of risks, focusing on very narrowly defined measures such as compensation for property and houses. This work provides a clear picture of the failures of communication in resettlement. The lack of a clear standard for informed participation and informed consent is most evident in Pandey's description of a notable gap between the expectations generated before resettlement and promises kept afterwards.

The International Development Research Centre (Canada) deserves special credit for sponsoring such a comprehensive study. After almost 50 years, the absence of a development policy framework is, in and of itself, an indictment of the failure of governments and NGOs to protect fundamental human rights. By 1999, developers and those who finance them are aware that the costs of infrastructure development must include, from the onset, the full cost of assuring that those affected are beneficiaries and their long term livelihoods are protected from harm. They recognize that avoidance of this dark side of development is impossible without a clear understanding of the long term, regional impact of displacement. Subsequent developments of this policy are being followed and discussed on the worldwide web at www.policykiosk.com.

Policies divorced from scientific knowledge and evaluated experience cannot be trusted. Armed with Pandey's work and an eruption of social knowledge documenting the risks associated with involuntary displacement, I asked the World Bank Resettlement Team to cite one scientific survey that refutes the Risk and Rehabilitation model. They remained silent. Hopefully, World Bank management will reassess its position, drawing upon knowledge gained from their Bank Wide Review, and tap the knowledge from Pandey's Depriving the Underprivileged for Development, its sponsors, and scores of other resettlement researchers throughout the Third and First World.

1. This book may be obtained from the Institute for Socio-Economic Development. 28, Dharma Vihar, Bhubaneshwar-751030 Orissa (India) Tel: (91-674) 470302; FAX 470312

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