Resettlement with Development: Concept, Policy and Practice

ORIENT ACADEMIC FORUM
Resettlement with Development: Concept, Policy and Practice
DUAN Yuefang
Research Center for Reservoir Resettlement, China Three Gorges University, P.R.China, 443002
Abstract: To improve involuntary resettlement outcomes, the concept of Resettlement with
Development (RwD) has been elaborated and incorporated into National Policy of the People’s Republic
of China. China first applied its RwD policy to the world’s biggest water conservancy project, the
Three Gorges Project (TGP), which displaced some 1.3 million people. This article tries to analyses
the evolution of this concept and its application to China’s Three Gorges Project. The experience of
resettlement from the county closest to the construction site of the TGP, Zigui County in Hubei Province
suggests that there can be beneficial outcomes related to such a policy choice.
Keywords: Involuntary Resettlement, Compensation-Based Resettlement, Resettlement as
Development, Three Gorges Project
1 Introduction
According to Cernea, the number of project-caused population in all economic sectors over the world
are about 280-300 million over 20 years or 15 million people annually (Cernea, 2008). Owing to its
magnitude and serious socioeconomic impacts the incidence of involuntary resettlement has attracted
close attention. Cernea points out that involuntary resettlement is commonly associated with the
impoverishment of local communities (Cernea, 1988). In India, almost three quarters of those
displaced over the last four decades, some 15 million people, are in a worse predicament than before
resettlement (Parasuraman, 1999). According to incomplete statistics, of the 15 million people
displaced by water conservancy and hydropower projects before the 1980s in China, one third failed to
restore their livelihoods and became impoverished(Wenxue Yu et al., 2000). Here lies the dilemma:
projects constructed to stimulate the development of a nation also pose serious impoverishment risks to
those living in and around the construction site. The past experience has shown that simply providing
compensation cannot mitigate these risks. Academics and practictioners have long been called for
resettlements to be treated as development projects in their own right and put forward the concept of
‘Resettlement with Development’(RwD). This article tries to analyses the evolution of this concept
and its application to the largest water conservancy and hydropower project ever undertaken - China’s
Three Gorges Project and focuses specifically on the county of Zigui in Hubei Province.
2 The Evolution of RwD Concept
In the past the avoidance of impoverishment risks and the rehabilitation of project-caused population
were exclusively based on compensation payments. Resettlement was synonymous with compensation
paid in cash for the expropriated property. But the past experience has demonstrated that a lump sum
of cash provided to resettlers did little to halt the resettlers downward spiral into impoverishment.
Alternatively, land was provided to replace acquired land, but commonly the quality of this land was
inadequate to restore production output. Cernea argues that compensation alone is never sufficient for
reestablishing a similar socioeconomic basis for resettlers(Cernea, 2000). He states that the cost of
productively reestablishing a displaced family and a community is bound to exceed the strict market
value of the physical losses imposed on that family or community. He also points to the overreliance on
conventional cost-benefit analysis (CBA) by projects planners to justify projects as the fundamental
source of insufficient compensation and mitigation of impoverishment risks. David Pearce explored the
impact of the externalising resettlement costs onto the resettlers and concluded that asset replacement
through compensation does not prevent resettlers from becoming "worse off", and new assets must be
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created through investments(Pearce, 1999).
In order to overcome the shortcomings of compensation-based resettlement and improve the outcome of
involuntary resettlement, the concept of Resettlement with Development (RwD) was proposed.
According to Cernea, “resettlement operations should be treated as development projects in their own
right, benefiting the resettlers”(Cernea, 1997). The World Commssion on Dams points out that in order
to qualify as development, a resettlement programme must centre around enhancing human capabilities
and expanding social opportunities by addressing the social and personal constraints that restrict
people’s choices(WCD, 2000).
The concept of RwD in China was first presented by Li Yishan in 1965. He proposed the concept of
“resettlement project” which included the notion of resettlement planning and allocation of resettlement
funds and restoration of productive means by opening waste lands(Shihua Yang, 1992). In the early
1980s, the Chinese Government began to apply the concept of RwD in its first policy on involuntary
resettlement: The Reservoir Resettlement Law and Regulation (enacted in 1981). Since then RwD has
been improved and expanded. Some Chinese resettlement experts think that the basic meaning of
RwD is to develop sustainable local economy to create productions conditions and jobs for
resettlers(Baoxin Zhang, 1999; Shi Guoqing, 2001). Some foreign scholars think that RwD in the
Chinese context uses compensation as the backbone for resettlement planning, but extends it to raise the
living standards and the economic conditions of the entire project region(Bartolome, 2000; Li, 2000).
Although there are different explanations, academics generally agree that the resettlement of those
forcibly displaced should be treated as an opportunity for development. The authors propose that the
concept of RwD should include following dimensions: (1) the restoration and improvement of
production conditions and living standards as an objective; (2) proper compensation as the economic
foundation; (3) the making and implementation of resettlement planning that combines resettlement and
local economic development as the backbone; (4) resettlers’ participation in all stages of planning and
implementation as a foundation; (5) a resettlement administration system that is accountable and
transparent as the organizational guarantee for implementation and; (6) a series of assistance measures
such as a reservoir construction fund, long-term assistance and the redistribution of funds from the
beneficiaries to those affected.
The principle of RwD is widely accepted. The World Commission on Dams endorses the concept and
has outlined the fundamentals of a “successful” developmental resettlement policy in its 2000 report (for
more information see www.dams.org). The World Bank and the Asian Development Bank (ADB) have
incorporated this principle into their own policy frameworks. Many development agencies support the
application of RwD by modeling their own policies on that of the World Bank.
3 RwD in the People’s Republic of China
Although the concept of RwD was put forward by Chinese experts in 1965 it was not incorporated into
policy until the late of 1980s. In 1988, the Water Law of the People’s Republic of China was
promulgated which called for “the proper arrangement of the production and livelihoods of the
resetttlers.” In 1991, the most authoritative legal document was formally proposed The Regulations on
the Compensation for Land Acquisition and Resettlement of the Construction of Large and
Medium-sized Water Conservancy and Hydroelectric Projects. The Clause 3 of Chapter 1 in the
document stipulates that the State encourages and supports resettlement as development, adopting a
method of providing compensation and allowances in the pre-resettlement period and assistance for
resettlers’ production in the post-resettlement period. This is the first time that the State had
incorporated the core concept of RwD into its national resettlement policy framework. In July, 2006,
the State Council has revised the above regulations which has enriched the content of RwD.
In 1993 construction of the Three Gorges Project (hence forth TGP) ,which has caused 1.3 million
people to be displaced, began on the Yangtze River. In order to provide legal basis for the resettlement
the Central Government promulgated the Regulations on Resettlement for the Construction of the Three
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Gorges Project on the Yangtze River. Clause 3 of Chapter 1 stipulates that during the period of TGP
construction, the State will implement a developmental resettlement policy. The TGP is the first national
project that fully implements the concept of RwD. In order to supply the necessary funds for
restoration and reconstruction of the reservoir economy, the Central Government allocated 40 billion
RMB compensation investment (in static terms, not including interest and inflation) to the project
(which accounts for 44 per cent of total project investment). In addition to the compensation
investment assistance measures such as assistance fund for supporting the later resettlement period,
industry development fund, tax revenue retained for the local governments in the TGRA, tax exemptions,
partnership programs were established.
The implementation of the TGP resettlement plan has been under way since 1993 ( Duan Yuefang and
Shawn Steil 2003) Up to March 2006 about 1.13 million rural and urban resettlers had been displaced,
of which 60 per cent were urban resettlers and 40 per cent were rural resettlers(TGPCC, 2006).
Research conducted by the researchers in 2003-04 (McDonald, Webber and Duan, 2008; McDonald
2006) demonstrated that resettlers’ housing conditions and infrastructure in the TGRA have been
improved. However, there remain many challenges in the TGP resettlement.
4 The Case of Zigui County in the Three Gorges Project
Zigui County is adjacent to the dam wall of the TGP and as such experienced significant losses resulting
from construction and inundation. According to the baseline survey conducted in 1992 by Changjiang
Water Resources Commission (CWRC, 1994), the number of people to be relocated amounted to 65,400
which accounted for 15.46 per cent of the total population of the County. Of these 65,400, 50.6 per
cent were rural resettlers and 49.4 per cent were urban resettlers. The lost assets included 30,400 mu
farmland and citrus orchards, 2,767,200 m2 buildings, 207 km of graded roads and 148 factories. The
old county town of Zigui was totally inundated as were another 14 small towns. The total inundation
losses in Zigui County accounted for 10 per cent of the total inundation losses caused by the
construction of the TGP. Given the extent of the inundation the risk of impoverishment of those
affected in Zigui was serious and posed a significant challenge to the Zigui County government. Based
on our investigation in Zigui County and the statistical data collected we want to analyses that how
developmental resettlement policy has been implemented in a county level.
Compensation is an important foundation for resettlement. According to the original resettlement plan
for Zigui County, 2.156 billion RMB compensation fund would be invested in resettlement and
rehabilitation. However, relying on compensation for rebuilding and restoring the resettlers’ assets and
livelihoods is not sufficient. Additional investment in economic development and employment
creation is necessary.
Before 1991 infrastructure in the TGRA was poor and insufficient because of limited investment. As
the TGP had been proposed for many years, the Central and provincial governments did not make any
significant investments in the area. Indeed the Zigui County had not received much funding for
infrastructure development for some time. For example, only 938 kms of low-grade roads had been
constructed before 1991 in Zigui County. As part of the infrastructure provided under the resettlement
plans for the TGRA 1560 kms of roads, 69 large and middle-size bridges, 8 tunnels and 6 ports have
been constructed over 16 years since 1991. The total length of graded roads is 2587 kms which is 2.76
times that of 1991. A 40 km highway was also built to connect Zigui County with Yichang City, and
another 58 km highway is currently under construction. Other infrastructure and public facilities such
as schools, hospitals, electricity, water supply and telecommunications have also been rebuilt and
updated as part of the TGP resettlement.
In order to create a platform for commercial and industrial development, the Zigui County Government
has expanded the scale of the inundated county town and townships. Over six years the county town
and six townships have been rebuilt. The new rebuilt streets are much wider than the old ones and the
functions of cities and towns are restored and improved. The old Zigui county town was moved to
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Maoping which is 1.5 km away from the dam wall. More than 600 million RMB was invested in the
relocation. In 2008 the area of the new county town is 7.1 km2, which is 7.1 times higher than that of
the old town (1km2). Its population is 68,000 people which was 4.1 times larger that the old county
town (16,600 people).
During the period from 1993 to 2008, the total investment in infrastructure and fixed assets in Zigui
County was 13.385 billion RMB which accounted for 96.5 per cent of total investment (13.845 billion)
made from 1949 to 2008, according to the local government statistical data. Besides enhancing
infrastructure the Zigui County Government has made good use of the partnership support policy to
attract outside investment to promote enterprise development. Many provincial governments and
enterprises on the east coast of China responded enthusiastically to the policy. They donated 238
million RMB to Zigui County to rebuild schools, hospitals and other public facilities since 1992. 23
large costal manufacturing companies such as Belle, Wei Wei, AB, Rouse, Huayang, Huaxin constructed
subsidiary branches and factories in Zigui County amounting to an investment of 3.129 billion RMB and
the employment of more than 10000 resettlers since 1992. The new enterprises have boosted the
development of light industry such as food processing, clothing, footwear and electronics. In addition,
they have injected new management approaches and skills into Zigui. According to the local
government statistical data, in 2007 39 new enterprises were created with a combined output of 1.662
billion RMB for Zigui County, 11.88 times higher than in 1991. With increasing numbers of resettlers
being employed and the growing income delivered by these companies through tax, both employment
and fiscal pressure which have plagued the County Government for many years have been mitigated.
The government has also invested in the tourism industry to create jobs for resettlers. According to the
local government statistical data, in 2008 1.46 million domestic and foreign tourists visited the Zigui
County; 12 times higher than in 1992. The output value of this increased tourism industry was 1.884
billion RMB which was 20 times higher than in 1992. Tourism development has provided employment
opportunities to the resettlers through increasing demand for transportation, accommodation, tourism
services and products. Many resettlers have found employment opportunity in tourism industry.
The outcomes of the aforementioned approaches to resettlement at the TGP seem promising. In 2009
with the completion of the TGP about 100,000 people relocated to their new homes in Zigui in
accordance with the resettlement plan. The economy of Zigui County is booming. According to local
government statistical data, in 2008 Zigui County’s total GDP reached 3.697 billion RMB, which was
9.5 times the 1991 figure (in real terms), and the average annual growth rate of GDP was 15.8% which
is much higher than the national average. GDP per capita was 9,858 RMB which was 10.77 times
higher than in 1991. In aggregate terms the income of the resettlers has grown. Local government
statistical data has indicated that in 2008, the average income per capita in rural areas was 2875 RMB
which was 3.9 times higher than in 1991. Housing conditions have also been improved. Before
resettlement the average housing floor area per capita in rural areas was 36.96 m2 and 70 per cent of
houses were made of undesirable earth and wood. Moreover, they did not have adequate sanitation or
running water. Resettlement is an opportunity to improve housing quality by building two or three
storey houses from cement, with improved sanitation and running water. After resettlement, the
average housing floor area per capita has been increased to 44.62 m2 which is 20.7 per cent higher than
before resettlement.
Despite these improvements, challenges remain in Zigui County. Some resettlers’ incomes have
declined owing to a drop in their average land holdings. 17 per cent of rural resettlers hold less than
0.5 mu of land. To survive some resettlers have resorted to cultivating the floodplain on the banks of
reservoir and others have taken up cage fishing, which is polluting the reservoir. There remains a
palpable tension between the resettlers subsistence needs and environmental protection. Moreover,
many resettlers who have taken up off-farm work are reliant on the construction sector whose demand
for employees is declining as construction of the new cities and towns is completed.
5 Conclusion
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To improve involuntary resettlement outcomes, the concept of Resettlement with Development (RwD)
has been elaborated and incorporated in the National Policy of the People’s Republic of China since the
mid 1980s. Chinese government has taken resettlement as an opportunity to help resettlers restore and
improve their living standards and develop economy in reservoir areas by implementing RwD policy
including giving compensation and subsidies at early stage and offering production assistance at late
stage, setting up industry development fund, enhancing infrastructure construction, as well as initiating
partnership assistance programs and preferential policy. The TGP is the first example of this policy in
practice in a national project. The experience from Zigui County has indicated that the risks of
resettlers’ impoverishment caused by the TGP can be mitigated and avoided by implementing the
developmental resettlement policy, however, challenges remain. This project provides one of the few
practical examples of a national government shifting from compensation-based resettlement to a
developmental approach and warrants longitudinal research.
Acknowledgments:
We are grateful to the National Foundation of Social Science who has sponsored the project “A
Theoretical and Positive Study on Compensation for Involuntary Resettlement”(No.05BJL032). We
also thank the Zigui County Government and relevant departments for statistical data.
Authors Brief:
DUAN Yuefang - Professor, PhD, Director of Research Center for Reservoir Resettlement, China Three
Gorges University, China. Email:[email protected]
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See
also:
http://www.iied.org/pubs/pdfs/9126IIED.pdf
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