Land Acquisition and Resettlement - Mining and the Environment: From Ore to Metal - page 599

FIGURE 14.2
The Eight Potential Risks of
Involuntary Resettlement

These risks are the main route to
impoverishment, the central risk to
which displaced people are exposed.
Source:
based on Cernea 2000

Increase
Health Risk

Homelessness

attract the few skilled workers available in a developing country. On the other hand, there
are many examples of recent mining projects in which the operating company was able
to recruit and train hundreds or in some cases thousands of previously unskilled or semi-
skilled people from local communities. Companies that have made this investment in time
and resources, invariably observe that the costs are more than justii ed by the more stable
workforce that results, and the closer integration of the project into the local community.

Homelessness

Loss of shelter is not permanent, but for some displaced people a worsening in housing
standards or loss thereof is a reality. A decline in housing conditions increases if the com-
pensation for demolished houses is paid at assessed market value rather than replacement
value.

Marginalization

The risk of marginalization always exists when people are physically relocated. Previous
existing formal and informal networks are disrupted; new ones may be difi cult to
develop. The host community may view displaced people as strangers, or even intruders.
Marginalization is rel ected by a decline in social status, in social isolation and in psycho-
logical depression. Substance abuse may occur, which in turn affects health and produc-
tivity, often driving affected people even further into isolation. Adverse feelings against
the project that caused social change develop and grow, and are often associated with
increased crime and violence.

Previous existing formal and
informal networks are disrupted;
new ones may be diffi cult to
develop.