Learning Curves

OED
January2007

ADBsInvoluntaryResettlement Safeguards

ThescopeoftheoriginalPolicyonInvoluntaryResettlementhasexpandedsincetheissuance oftheHandbookonResettlementin1998andADBsreorganizationin2002,whichbrought withitanewsafeguardcompliancemechanismandanewsectioninADBsOperations Manual.Throughthenewdefactopolicy,ADBpracticeisnowmuchmoreinclusivethan thetitleofthepolicysuggests.Itnowfocusesnotonlyonpeopleaffectedbyinvoluntary resettlement,butalsoonthosewhoexperiencelandlossandlossoflivelihoodasaresultof anADBsupportedproject.Theprocedureshavealsobecomemoreelaborateand prescriptiveovertheyears.Formalcompliancehasbeenstressedandrequiresasignoffby thechiefcomplianceofficeronthequalityofresettlementplanningbeforeloanappraisal. ThishascausedstaffofADBtobemuchmoredemandingofexecutingagencies. ThePolicyonInvoluntaryResettlementishighlycontroversial.Manyborrowersand executingagenciesthinkthatthepolicyisnotcompatiblewithnationallawsandpolicies, andtooexpensive.Somecivilsocietyorganizationsthinkthatitisnotsufficientlywell implemented.SomestaffofADBlamentthatthepolicyislaborintensivegivenstaff constraintsandmaytakeresourcesawayfromothernecessaryandequallyimportantproject preparationtasks.
Background TheAsianDevelopmentBank(ADB)hassafeguard policieson:(i)involuntaryresettlement(1995),(ii) indigenouspeoples(1998),and(iii)theenvironment (2002).Sincetheiradoption,thethreepolicieshave guidedformulationandimplementationofADBs assistanceprograms,particularlyitslendingactivities. However,theevolvingdevelopmentalcontextin whichADBoperatesandtheexperienceaccumulated warrantregularreviewsofthepolicies.ADBhas embarkedonanupdateofitssafeguardpoliciesto enhancetheireffectiveness,andensuretheirrelevance tochangingclientneedsandnewlendingmodalities andinstruments.In2006,theOperationsEvaluation DepartmentundertookaSpecialEvaluationStudyon InvoluntaryResettlementSafeguardsthatbuiltonthe SpecialEvaluationStudyonthePolicyImpactof InvoluntaryResettlement(2000).1,2
Operations Evaluation Department Asian Development Bank

SummaryofFindings TheSpecialEvaluationStudyreliedonADB databasesanddocuments;questionnairesurveysof staffofADBandexecutingagencies;countryvisitsto thePeoplesRepublicofChina,India,Philippines,and VietNam;and16casestudiesofongoingand completedprojectswithresettlementconductedinthe firstthreeofthesecountries.Itskeyfindingsarethat:(i) manyprojectsnowplanforresettlement,(ii)many peopleareaffectedbyADBsupportedprojects,(iii) transportprojectshaveaffectedthemostpeoplebyfar, (iv)estimationofthenumberofaffectedpersonshas beenweak,(v)costshavebeendifficulttoestimate,(vi) theviewsofstaffofADBandexecutingagenciesonthe efficiencyofthepolicyaremixed,(vii)theconvergence betweencountryandADBsystemsisgrowing,(viii)the valueofADBstechnicalassistanceinhelpingcountries withinvoluntaryresettlementpolicyorcapacity

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developmenthasalmostinvariablybeenhigh,(ix) proceduralcomplianceinprojectcasestudieswas variable,(x)efficiencyandproceduralcomplianceis improving,(xi)mostaffectedpersonsaresatisfiedwith housingimprovements,andmanywithcompensation andeconomicrehabilitation.,and(xii)incrementaland transactioncostsarehigh. ThestudyassessedthatthePolicyonInvoluntary Resettlementisrelevanttoprojectimplementationand toADBsaimtoreducepoverty.Ittentativelyassessed thepolicyaseffectiveintermsofoutcomesforaffected persons,becauseofthelimitednumberofcountries visitedandprojectsexamined.However,itassessed inputs,processes,andsystemsforpolicy implementationashavingbeenlessefficient.Changing proceduresandtheorganizationalarrangementsmade toenforcethepolicyhavegraduallysetthebarhigher andfueleduncertainty.Moreresourcesallocatedto capacitydevelopmentratherthanshortterm compliancemayyieldbetterlongtermresults.Last,the studyassessedADBspolicyapproachaslesslikelyto besustainablegiventhehighcostsforADBandclients andthewidelydivergingviewsheldbystakeholders. Recommendations Thestudyrecommendedtheplannedupdateofthe policybebasedonaresultsbasedframework,andthat itbetterindicatemandatoryandnonmandatorybut desirableelements.ADBshoulddecideonthelevelof inclusivenessofthepolicy,particularlyregarding secondaryadverseimpactsofprojectsonpeople. ManagementandtheBoardneedtoreconcilethe differencesbetweentheoriginalPolicyon InvoluntaryResettlementandthatcurrentlyapplied. Whateverthenatureofthepolicyadopted,itshould havearesultsbasedframeworkdistinguishing desiredimpact,outcomes,outputs,activities,and inputsbothatmacro(country)andmicro(project) level. Theupdatedpolicyshouldhighlightasetof performancestandards. Theupdatedpolicyshouldelaborateonthe objectiveofgreaterrelianceoncountryexecuting agencysystemsforlandacquisitionand resettlementsafeguards.

Thereshouldbeclearerguidelinesandprocedures regardingtheidentificationofresettlement operationsneeded. Thereshouldbeclearerguidelinesandprocedures regardingcompensationandassistancewithin resettlementoperations. Thestudymaderecommendationsregardingissues ofinvoluntaryresettlementimplementation. Formulateatimesequencedimplementationplanto complementthepolicyupdate. Improveinvoluntaryresettlementmonitoring. Deepeninvolvementinbuildingcountrysystems andcapacityforinvoluntaryresettlement. Feedback ADBManagementsResponsewelcomedthestudy. Managementnotedthatthefindingsaresubjectto significantlimitationsasdescribedinpara.9ofthe studyandashighlightedindetailedinterdepartmental commentsonitsdraft.Nevertheless,Management believedthattherecommendationsdirectedatthe safeguardpolicyupdateandtherecommendationsfor involuntaryresettlementimplementationwerehighly relevant.Managementemphasizedthatbothsetsof recommendationsshouldbefurtherreviewedand consideredinthecontextofthesafeguardpolicy update,includingitsconsultationprocess.Stakeholder Feedbackprovidedothersuggestionsforpolicyupdate. TheChairsSummaryoftheDevelopment EffectivenessCommitteeDiscussionsgenerally endorsedthedirectionssetoutintherecommendations ofthestudy.ItadvisedamongothersthatADBrecast thepolicyinacomprehensiveresultsframework providingclearguidelinesontheprinciples,degree, andapproachesbywhichflexibilitymaybeexercisedin applicationofthepolicy.
ADB.2006.SpecialEvaluationStudyonInvoluntary ResettlementSafeguards.Manila.Available: http://www.adb.org/Documents/SES/REG/sstreg2006 14/sstreg200614.pdf 2 ADB.2000.SpecialEvaluationStudyonthePolicyImpactof InvoluntaryResettlement.Manila.Available: http://www.adb.org/Documents/PERs/sstoth200008/ses resettlement.pdf
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Learning Curves available @ www.adb.org/evaluation/

Team Leader: Walter Kolkma; Tel +63 2 632 4189; kolkma@adb.org