The new World Bank policy on "Involuntary Resettlement" was issued in December 2001, replacing an earlier policy in this area. The main rationale behind the new Policy was to provide an improved framework for increasing the development impact of Bank operations and to sharpen the focus on protecting those affected by resettlement under Bank operations. The process involved in the preparation of the new Policy incorporated lessons learnt from implementation of Bank operations involving resettlement.
The World Bank Policy on involuntary resettlement dates back to 1980. In that year the Bank issued its first policy directive in this area, Operational Manual Statement (OMS) 2.33, entitled "Social Issues Associated with Involuntary Resettlement in Bank- Financed Projects." The OMS attempted to reconcile two conflicting aspects. On the one hand it recognized the necessity for resettling people to execute projects which contribute to the general welfare, and which may be critical for national or regional development. On the other hand, the OMS also underscored the fact that resettlement is generally a politically sensitive measure as it gives rise to special social and technical problems. It enumerated the problems that could emanate from resettlement: a feeling of powerlessness and alienation is often engendered in those who are to be relocated especially when entire communities are uprooted from familiar surroundings, as well as the weakening of social cohesion of such communities. The OMS therefore directed that more systematic procedures were needed for dealing with resettlement under Bank-financed projects. Such procedures included avoiding or minimizing resettlement whenever feasible. If resettlement was unavoidable, it should be reduced to the minimum and should only be carried out in accordance with a well prepared resettlement plan.
The policies and procedures for handling resettlement laid down in the OMS were further clarified and reissued in June 1990 as Operational Directive (OD) 4.30. The OD indicated that the objective of the Bank resettlement policy was to ensure that the population displaced by a project should receive benefits from it. It further clarified that resettlement should form an integral part of project design and should take into account a number of policy considerations, including (i) avoiding or minimizing resettlement where feasible, (ii) developing resettlement plans where resettlement was unavoidable, and that such plans should include compensation for losses at full replacement cost, as well as assistance and support with the move, (iii) community participation in planning and implementing resettlement, (iv) social and economic integration of the resettlers into the host communities, and (v) provision of land, housing, infrastructure and other compensation to the adversely affected population.
As part of the process of the conversion of the Bank ODs into policies and procedures, OD 4.30has been reissued in December 2001 as Operational Policy (OP)and Bank Procedures (BP)4.12. The Policy reiterated the objective of the Bank resettlement policy included in the OD. However, the Policy made a number of clarifications to the OD with regard to the impacts covered, required measures, eligibility for benefits, and assistance to borrowers. On the issue of impacts covered, the Policy indicates that the policy covers direct economic and social impacts that both result from Bank-assisted investment projects, and are caused by:
(i) the involuntary taking of land resulting in (a) relocation or loss of shelter; (b) loss of assets or access to assets; or (c) loss of income sources or means of livelihood, whether or not the affected persons must move to another location; or
(ii) the involuntary restriction of access to legally designated parks and protected areas resulting in adverse impacts on the livelihoods of the displaced persons.
Furthermore, the OP clarifies that the Policy applies to all components of the project that result in involuntary resettlement, regardless of the source of financing. It also applies to other activities resulting in involuntary resettlement, that in the judgment of the Bank, are (i) directly and significantly related to the Bank-assisted project, (ii) necessary to achieve its objectives as set forth in the project documents; and (iii) carried out, or planned to be carried out, contemporaneously with the project.
On the required measures, the Policy requires that the borrower prepares a resettlement plan that covers (i) informed participation and meaningful consultation of affected people, and (ii) provision of assistance, residential housing and agricultural sites. The Policy indicates the preference for land-based resettlement strategies for displaced persons whose livelihoods are land-based. However, where impacts on the entire displaced population are minor 1, or fewer than 200 people are displaced, an abbreviated resettlement plan may be agreed with the borrower. For sector investment operations and financial intermediary operations that may involve involuntary resettlement, the Bank requires that the project implementing agency prepares a resettlement policy framework. For projects involving restriction of access to parks and protected areas, the borrower provides the Bank with a draft process framework that conforms to the relevant provisions of the Policy.
With regard to eligibility for benefits, the Policy distinguishes between three categories of affected persons (i) those who have formal legal title to land (including customary and traditional rights recognized under the laws of the country); (ii) those who do not have formal legal rights to land at the time the census begins but have a claim to such land or assets-provided that such claims are recognized under the laws of the country or become recognized through a process identified in the resettlement plan; and (iii) those who have no recognizable legal right or claim to the land they are occupying. Persons covered under (i) and (ii) are provided compensation for the land they lose, and other assistance as provided under the Policy, while persons covered under (iii) are provided resettlement assistance in lieu of compensation for the land they occupy, and other assistance, as specified under the Policy.
In furtherance of the objectives of the Policy, the Bank may at a borrower's request support the borrower and other concerned entities by providing (i) assistance to assess and strengthen resettlement policies, strategies, legal frameworks, and specific plans at a country, regional, or sectoral level; (ii) financing of technical assistance to strengthen the capacities of agencies responsible for resettlement, or of affected people to participate more effectively in resettlement operations; (iii) financing of technical assistance for developing resettlement policies, strategies, and specific plans, and for implementation, monitoring, and evaluation of resettlement activities; and (iv) financing of the investment costs of resettlement.
1. Impacts are considered "minor" if the affected people are not physically displaced and less than 10% of their productive assets are lost.
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Updated as of February 23, 2007 |
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