ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Michael M CerneaSubscribe to Michael M Cernea

Financing for Development

Adequate rehabilitation and the proper resettlement of those displaced as part of development-induced displacement have always been a difficult issue to resolve. The method usually favoured by governments has been to offer compensation, but this is never sufficient, for such sums accrue to the ultimate project costs and the invariable tendency is to minimise these. This article, by citing diverse examples pursued by different governments, shows how innovative methods of "benefit-sharing", wherein proceeds from the proposed project also assist the displaced in rebuilding their lives, offer a possible solution to the question of satisfactory rehabilitation and resettlement.

Risks, Safeguards and Reconstruction

Redressing the inequities caused by displacement and enabling affected people to share in the benefits of growth is not just possible but imperative, on both economic and moral grounds. Socially responsible resettlement - that is, resettlement genuinely guided by an equity compass - can counteract lasting impoverishment and generate benefits for both the national and local economy. Yet, much too often, those who approve and design projects causing displacement are deprived of an 'equity compass' that can guide them in allocating project resources and preventing (or mitigating) the risks of impoverishment. In an attempt to help develop such an equity compass, this paper proposes a risks-and-reconstructionoriented framework for resettlement operations. It argues against some chronic flaws in the policies and methodologies for planning and financing resettlement and recommends necessary improvements in policy and in mainstream resettlement practices.

Why Economic Analysis Is Essential to Resettlement

This paper examines the current state of the art in resettlement research, comparing the progress in socioanthropological knowledge about resettlement with economic knowledge. The comparison questions whether the economic knowledge and the analytical methods used for planning and financing resettlement are adequate for achieving the goals of resettlement policy. Historically, research on involuntary resettlement has emerged primarily within the fields of anthropology and sociology. Economic research on displacement and resettlement, the author argues, is virtually missing - but would be indispensable to improving resettlement outcomes. The paper argues that the method of cost-benefit analysis, and the conventional project risk and sensitivity analyses used in projects entailing resettlement, are incapable of answering displacement's economic and financial challenges and in practice tolerate the structural underfinancing of resettlement operations. The author calls for a constructive "alliance" between economic and sociological knowledge on resettlement and argues that in-depth economic knowledge is indispensable to achieving two fundamental goals of resettlement policy: reduced displacement and development of resettlers' livelihoods, once they have moved.

Public Policy Responses to Development-Induced Population Displacements

Population Displacements Michael M Cernea The forced displacement of populations caused by many infrastructural development programmes epitomises one category of disruptive changes that may occur as by-products of economic growth. Now should adverse consequences of development programmes be treated? What are the actual response patterns that can be distinguished, encouraged or rejected? This article addresses the roles and actual responses of mainly, though not exclusively two of the key social actors that participate in this process, namely, social scientists and governments. Population displacement calls for structured public policy responses as well as for continuous attention from social scientists.
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