Compensation and benefit sharing: Why resettlement policies and practices must be reformed

Many public and private sector projects, such as hydropower dams or mines, trigger forced population displacement but fail to resettle people sustainably and instead cause their impoverishment. Social science research has found that one root cause of such failures and of impoverishment is asset dispossession and the insufficient financing of resettlement. Most governments, however, state that （1） compensation alone is sufficient for restoring the income and livelihood of those displaced, and （2） resources to supplement compensation with additional financing are not available. The author critiques and rejects these positions. He offers a theoretical analysis of the limits and flaws of compensation payments for expropriated assets, and argues that resources are available for supplementing compensation with financial investments for resettlers＇ development. The sources for supplementary financing are the economic rent （windfall profits） generated by natural resource projects such as hydropower or mining and the regular stream of benefits generated by all projects that require resettlement. Further, the author argues that financial investments in resettlers＇ welfare are indispensable and what benefit sharing is feasible. Therefore, both should become basic principles of resettlement legislation and practice. In addition to theoretical analysis, the author documents with empirical evidence that some countries （China, Brazil, Canada, Columbia and Japan） already make investments additional to compensation for post-displacement reconstruction. The author sums up his argument in these key points： （1） Compensation alone cannot prevent the impoverishment of resettlers and cannot in itself restore and improve their livelihoods; （2） Additional financing is needed for direct investments in resettlement with development; （3） Compensation levels must be increased; （4） Financing resources are available in most cases for investing in resettlers＇ development, but allocation of investments depends on the political will of governments and project owners; （5） Firm opposition to displacement and under-compensation is growing in many countries and the strength of resettlers＇ demands and political opposition does influence allocation levels; （6） Mechanisms for benefit sharing and transfer are known arid effective and these mechanisms Can be adjusted todifferent country and economic sector conditions; （7） The introduction of benefit-sharing rules requires legislative enactment for robust application.

Connecting the World with Shared Benefits

“New Era,Shared Future.”On November5th,the first China International Import Expo(hereafter referred as CIIE)was grandly opened.With a total exhibition area of300,000square meters,the first session of the CIIE attracted more than3,600companies from172countries,regions and international organizations,and over400,000purchasers from China as well as overseas to explore business deals.

Beijing Residents Share Benefits from Economic Growth

Residents in the Chinese capital received one more boon as winter sets in free inoculations of a vaccine against influenza for people at 60 or older the day the ruling Communist Party of China opened its 17th Congress. From October 15 to November 15, 2007, according to the Beijing Municipal Center for Diseases Control and Prevention, any person born before October 1, 1947 and registered as a permanent resident in the city may visit any hospital or clinic near his or her home for the inoculation free of charge.

Characteristics:Evidence from the“Enclave Economy”in the PRD Region

Paired assistance is an important means for developed regions to help lessdeveloped regions achieve common prosperity.Despite its advantages,governmentmandated paired assistance tends to be less effective due to the lack of economic incentives for assisting localities.Therefore,local governments in China have explored an incentivecompatible paired assistance model.Based on the paired assistance between cities in the Pearl River Delta(PRD)region and the eastern,western and northern parts of Guangdong Province,this study designed a natural experiment for the network relationship of paired assistance.Empirical results based on industrial and commercial registration data and land transfer data indicate that paired assistance has enhanced bilateral investment linkages,and that the inter-regional benefit sharing mechanism has incentivized assisting localities to provide paired assistance.Our heterogeneity analysis reveals that a shorter distance between assisting and beneficiary localities may lead to better results of paired assistance.This study contributes to the understanding of incentive mechanisms for local government cooperation and offers insights for balancing regional development and achieving common prosperity.