Land Acquisition and Resettlement - Mining and the Environment: From Ore to Metal - page 587

Box 14.2 Examples of Common Budgeting Mistakes

• The mining project allocates insufi cient funds for the entire resettlement pro-
cess from planning, displacement and capacity building to income restoration
and after care.
• Funds are insufi cient for expanding benei ts to host communities.
• Inl exible budgetary constraints exist, including the lack of additional compensa-
tion if the resettlement process is delayed.

• There is a shortage of skilled resources to implement capacity building for both

company and affected communities.

• The mining project partly externalizes costs for resettlement: affected commu-

nities shoulder the costs, but not the benei ts of the project.

Evaluation of resettlement losses eludes the purely scientii c approach. The ADB (1998)
and World Bank OD 4.30 (now superseded by OP 4.12 and BP 4.12, World Bank 2001
a,b) provide guidance on how to dei ne signii cant resettlement losses. The ADB (1998)
for example uses the following criteria to dei ne signii cant resettlement: (1) 200 people
or more will experience resettlement effects; (2) 100 people or more who are experiencing
resettlement effects are Indigenous Peoples or who are vulnerable (for example, female-
headed households, the poorest, isolated communities, including those without legal title
to assets); or (3) more than 50 people experiencing resettlement effects are particularly vul-
nerable, for example, hunter-gatherers.

The Reliability of Data

In most, if not all, projects associated with resettlement, estimating signii cance and design-
ing adequate resettlement plans requires extensive i eld surveys. Initially, it is necessary to
conduct a census to identify and enumerate affected people, giving special attention to identi-
fying the poor, Indigenous Peoples, ethnic minorities and other vulnerable groups who stand
to be affected by the project. If successful the census will document land ownership, land use
and other rights to land, and will provide an inventory of all potential tangible resettlement
losses. In conjunction with aerial mapping or high resolution satellite images, and a review
of land use records, if available, a census carried out at the early stage of mine development
will be the best safeguard against future land speculation. The census will help to distinguish
between genuine and false claims for entitlements. It will identify those who were living
in the project area prior to project approval, as distinct from those who subsequently move
into the area hoping to benei t from resettlement arrangements. It will also help to verify the
nature and extent of traditional activities such as harvesting of forest resources, and hunting.
First, a tabular listing of project-affected people is helpful. This table may be somewhat
inexact in the early stages of project planning, but the details should become precise as
project planning proceeds, enabling land requirements to be dei ned more clearly and as
the land surveys (and ultimately the i nal design) are completed. The table should identify
the types of people affected (e.g. as owners, tenants, squatters); the type of impact on land
(e.g. farm size reduced, house or shop acquired, access limited); and the type of impact on
people (e.g. reduced livelihood, reduced income, lost house).
Second, there is likely to be a need for the socio-economic survey to identify and to
dei ne intangible resettlement losses taking into account social, cultural and economic

Estimating signifi cance and
designing adequate resettlement
plans requires extensive fi eld
surveys.