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54. Examples of effective participation. Effective participation in resettlement
planning is rare but documented, such as in the Minashtuk project in Canada in which
the approach to planning goes beyond participation to show respect, partnership and
benefit-sharing. 48 However, even with extensive consultations and planning, integration
does not always equate to successful implementation and assimilation, especially
when individuals have strong attachments to their original homes and identities.
55. Compensation and livelihood restoration. Land expropriation and resettlement
planning is ultimately the responsibility of the State. Large-scale evictions, in
particular of rural, Indigenous and informal settlement communities, often occur
through the exercise of eminent domain (see A/HRC/47/43). Governments frequently
resort to expropriation rather than negotiating with affected people. 49 Displaced
individuals are generally entitled to “fair” or “just” compensation, but the
compensation provided often falls short of covering losses.
56. Research on national compensation procedures shows that only 8 of 50 assessed
countries have alternative approaches to calculating compensation where land markets
are weak or non-existent. Compensation based on market value can disadvantage poor
and vulnerable landholders, especially where land markets are weak. 50
57. Under United States federal law (Uniform Relocation Assistance and Real
Property Acquisition Policies Act of 1970), the Government must cover relocation
costs and replacement housing, including for tenants. However, studies show that
eminent domain disproportionately affects ethnic or racial minorities, lower-income
residents and those living at or below the federal poverty line. 51
58. In India, the Right to Fair Compensation and Transparency in Land Acquisition,
Rehabilitation and Resettlement Act of 2013 introduced groundbreaking provisions
for social and environmental impact assessments prior to land acquisition, improved
compensation rates and mandatory transparency and consultation requirements.
However, resettlement projects in India often still show poor outcomes for resettled
communities. 52
59. Development finance institution safeguard policies operationalize livelihood
restoration or improvement through compensation, resettlement assistance and
livelihood support. IFC, for instance, encourages negotiated settlements and
compensation for loss of assets at replacement cost. 53 However, “replacement” costs
are typically based on market value and may not factor in non-financial losses or the
true value of the land after development. 54 Long-term challenges after project
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50
51
52
53
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Denis Roux, “Building on partnerships with Indigenous communities”. Available at www.un.org/
esa/sustdev/sdissues/energy/op/hydro_seelos_paper.pdf .
Frank Vanclay, “Project-induced displacement and resettlement: from impoverishment risks to an
opportunity for development?”, Impact Assessment and Project Appraisal, vol. 35, No. 1 (2017),
pp. 3–21.
Nicholas Tagliarino, “The status of national legal frameworks for valuing compensation for
expropriated land: an analysis of whether national laws in 50 countries/regions across Asia,
Africa, and Latin America comply with international standards on compens ation valuation”,
Land, vol. 6, No. 2 (2017).
Dick Carpenter and John Ross, “Victimizing the vulnerable: the demographics of eminent
domain abuse”, Institute for Justice, 2007, p. 7.
Rita Sinha, “Land acquisition law in neoliberal India: old wine in a new bottle?”.
IFS, performance standard 5, “Land acquisition and involuntary resettlement”, 2012.
Certain development finance institutions such as the African Development Bank now seek full
replacement costs and in-kind replacement (losses, damages, properties, livelihoods, opportunities
and ecosystem services) instead of financial compensation, including for livelihood restoration.
See African Development Bank, “Borrower guidance note for E&S operational safeguard 5: land
acquisition, restrictions on access to land and land use, and invo luntary resettlement”.
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