1. Involuntary Resettlement 0P 4.12 Principles and Objectives
WB Safeguards Training Workshop
Almaty, December 2012

2. A Resettlement Overview
Why does the Bank have an Involuntary Resettlement Policy?
How has the Bank’s policy evolved?
What are policy objectives and key principles
What is role of Financial Intermediaries?

3. Why a Policy on Involuntary Resettlement?
Bank funded investments, especially infrastructure development, often require the acquisition of privately and community owned land
Land acquisition induced impacts include: physical relocation, loss of land and assets, disruption of livelihoods
Without proper planning and management, involuntary resettlement may result in severe social impacts on affected populations

4. Resettlement History
No mitigation: Those losing land must make a sacrifice for national development objectives
Eminent domain: compensation for assets favors land owners.
Risks of impoverishment if interests of poor and vulnerable are not recognized
Resettlement can be a development opportunity too: Extending the reach of project benefits

5. Key Policy Objectives
Avoid, minimize, or otherwise mitigate land acquisition and associated adverse impacts
Assist all affected people to improve, or at least restore, incomes and living standards
Resettlement as a development opportunity for households and community infrastructure
(Mitigating risks for affected people helps minimize risks to borrower and Bank, too)

6. Key Guiding Principles
All affected persons should be compensated or assisted in other ways, regardless of legal status
Compensation for all assets at replacement cost (enough to obtain assets of equivalent value)
Income restoration may require supportive measures in addition to compensation for assets
Affected persons should be involved in resettlement planning and implementation
Consultation
Information Disclosure
Grievance Procedure

7. Role of Financial Intermediaries
Prepare and agree a Resettlement Policy Framework with the Bank, ensure FI capacity to oversee social safeguard subproject issues
Screen all proposed on-lending activities for land acquisition/associated resettlement impacts (going forward and in anticipation of project prior to funding)
Legal documents require compliance if IR impacts should arise
For all subprojects involving relevant impacts, Bank approval of a resettlement plan required before accepted for financing

8. Recurring Issues and Problems
Defining project scope: “Indirect impacts” and “linkage” in application of Bank policy
Bridging the eligibility gap: Assisting vulnerable people and those who lack full legal recognition
Covering all costs: ‘Replacement cost’ valuation, transaction costs and transitional support
Asset stock versus income flow: Going beyond compensation to livelihood restoration and incorporation of development opportunities
In FI projects, ensuring coordination with sub- clients in implementation and reporting

9. of land acquisition/involuntary resettlement
The many faces
of land acquisition/involuntary resettlement