China - Involuntary resettlement

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Report No. 11641 -CHA China- Involuntary Resettlement June 8, 1993 Office of the Director China and Mongolia Department MICROFICIHE Copy East Asia and Pacific Regional Office Title: INVOLUNTARY RESETTLEMENT Autaor: KINURA, y Ext.:81108 Room:A8023 Dept.:EA2DR s V -o <D- -.4 3 A->, X, x , ..= 4 'p -~~~~~~~~~~~~~~~~~~~~~~~~~~17v A '<.4"'~~~~~~~~~~~~~~~~o/ &.-"<j.,-- '9 _3 -S.'> .j ..-t,X A~~~~~~~~~~~~~~~~~~~~" , - AS -S b" :.,  CURRENCY EQUIVALENTS (As of April 16, 1993) Currency Unit = Yuan (Y) $1.00 = Y 5.7 Y 1.00 = $O.175 FISCAL YEAR Jamnry 1 - December 31 WEIGHTS AND MEASURES metric System ABBREVIATIONS AND ACRONYMS GLF Great Leap Forward MWR Ministry of Water Resources OECD Orgaizaton for Economic Cooperation and Development SOE State-O{ed Entrprise 'bVE Townsiip and Viliage Enteprise  ^ , ~~~~~~~~~~~~~~. .4 .ii. . ......... ..... . * . . . . . . . . . . . . . . . . . . . . . . . . . *~~~~~~~~~~~ : : : : g : : :: : : : : ::::* :: * * * * * * C , * *a . . . . . . . . . . ,.. * . . . . . * ..... E . : : : ' a : : :: *, : : : ::: :C' : * l_ C C .~~~~~~ E ... . . C...g*.... a * *' ! 9, ; * 01 , ! Ci j i , I C !5 5 , C C I * .mc Co * * * C * C * C CCC C* * .q C C * C" * C * C C C C * C C 0 C * C C * 4 * * C C C C S t  -ui- TAX= IN TEW 1.2 Avrae Reslemet Funding Levek . ...................... . 6 1.1 Chronotogy of Resetlan.ut Policy Shift . . ... . .. .. ... 3 1.2 'Me High Prie of Paying TooLtdo .......................... 5 2.1 Naiona Law avd PJwr inal Rep kaios .. .............. ... ..... 11 2.2 MirnizingiRoesdemat ................................ 2.3 Cbup -I for Collece Land Ep i Riervor vs. Nonreservolr Project... ..13 Naaeo@nx .................................. ........... 1 2.4 Ie Organization of Ruralie .... 14 2.5 Cinese, DaftCoRection ... .. ...... 16 25.6 Ilho ore DbwDBemn ........................... 17 3.1 Couveuo aofRe . . ..................s....... 30 3.2 no Cost of Off-farm Eragoyment ..................32....... 3 3.3 Resetdement Pla Fsiblity ...... ......................... 40 4.1 AResetteoesTae ..................................... 5 F.Gual im TST 4.1 Gievanuc Procedur Flow Cha ......... . .............................. . 52  PREFACE report wa prped by L4e Trvs A2R Conan) uder te uidnc of Yo Kimuma (&A2DR, Task Man ) ad based on misso reviewing resettlemet preaaion and eperience under severa Bank-gunded projects u wel as Chin se sudies of thei own resetlm expedence. he final preparon mbso itook place in November 199M. Study te memb Included David Butcher tASTIo t) Scott G (NDR, Anthropologit) ad Elisbe Croll (Consuta Anthrpolog). Eliabeh Crol prepared studies on two projects fb: the report, whi ae availe In a se t workig pae. Ms. su Cawns ad ms. u Youl of the Bks Rekdet misson pvided vauable omments and assista. May Cfhnee crntributed tD te study by prviig data and dicsing isues and options. Among te wero: th Mins of Finan; th M stry of Water Rerces; ho Minity of Er e Ste Ld Admo Bu; the Ministry of Railways; the 'tate Plann Commission; Hanm Electric Power Bureau; Taft Basin Authrit; Yellow Pavr Conservancy Conunission; and vaious counties and bureaus mnd Hanan, Hean, Guangi, Sandog, Pian, Zhjiang, ad Jiasu Prvnc ,and the ShaWhai Municipa oveuent. Tho financial supportof the Overseas DeelopmentAd n(UK)isgrateyaknwled.  -V. EKcUTIVE SMMRY L Chins massive capitl over the past forty yeas, coupled with a popaion dsityog thie worl' hgest, have led t noluntary ceemt for well over 30 mMion People. Hoa asi jobs bhve bees lMst to reseroirs beind the lager of the 86,OOO dam conucted since 1952; to tih of way for 30,000 km of tailroad and 900,000 km of ads and to newly constructed canas, rpors, fcris or ura rd 'pit JSfl(AUD RmEC BY mtowr Tm (udmilo people) 19S50S9 196049 1970-79 1980-89 Totl Transport 2.5 0.9 2.7 1.3 7.4 Reseror 4.6 3.2 1.4 1.0 10.2 Urban 1.5 1.3 2.6 8.5 13.9 Tota 8.6 5.4 6.7 10.8 31.5 i Ba- d prje in China hin ably add to the burden of retmenot, wit 36 of th 109 lons and reit made though FY92 reuirg reenemt and ilAing to more San 500,000 people chan eir homes or jobs. Involutay reeemnt In Bank projeot ranes fom the 14 people in 3 fmIes moved fom the it of the el gag Ibmua Powe Plan to the 67,000 dIwlacd by te reroi bend d Shulwo dam Ih current portolio cta most of the projec tha have er Inolved retlmen, wIth 32 projec lnvoIng 473,000 peopl Of ts, FY9 alo saw the approval of 10 project t ill reset an estim 123,00 people Addtonlly, 15 pIS oj in the pipelie for FY93-96 a expcd to cause the nvoluntay ttlem of over 300,000 people. _d ea xpeiene prir to ts8 IL Pdor to 1980, res qpicaly sacficed for, aher tihn b fd rm, the projesa affectd tm. Only uda projects prote tedrseers In ta ca For revi carelbl pb nd adquw ig of rur lcae ttleent effort In the early 195(1 qucy gae way t demands for self-scrifIc die (ra LAp Forwad ta ben In 195f. Ihe tovery fo that campaig was followed by the Culral Revoluon and for tho twenty ye to 1978, rurl rters ad ther hos were pecd to rely pimay on"n lao and tir own saving h thn adequae t "ow to d o pojcts. Those augLi In project we lft In most ce wit  -vi- ylesn and ecologically mo fragile land, and hard work alone was not enough to resorthir livelihoods. A 1984 sudy of reservk pect reels sowed over a thid Hivg tn abject poV and aother third bardy gettg by. Only the remaining thid wero d to hae rerated suficen and scur ivelihoods for themselves. Rua tnsport and ndusa project generaly took less land in any given vilag and therefor ecause fewe long trm problems, but adequ sowed recowvery In to caes as well. IV. Th. 1984 sder srey sm y cofmd for govrmet he fa of much of te reswoi resettlement to thattm e. Pobln In the lager proec such as Daqziagku Sanmewxa, and Dongpnhu were wll bko to the govermt, which had been coping with periodieseer demonstrionsananeous from the otresedemet are back tod e resOrvoi . WWih t to househod mig and the mre relaxed polcal atmospher of the la 1970s and eady 1980s, das, roads, and other ural projecw began to fa srong resiste fom potentW rlers arul of Over the past deade, t govement has responded to the past probmems and new through a conse to develop and lmplemet Impved r4settlement pracd. Curre d nt Lw and sltutdos V. For tanport, Iduty, and all urba project, Chinese national and povi l law and reglOn now st y deet he e o of both the Bank's operati dietve on reeement and the O resttlment guideln. Taken together, the appicabe las and rDatons for such ptojet cal for fl prtcton of rsters and provide administraive and a mdn to faciita successful resetdemen Mm reservoir element reglion prvide mud ston protection than prerlusly enjoyed, but pmb lower nlevestnInoteproject tpes and a dowe r reoey to pre-projdct lvg VI. Coupled with stented and momare ntle protection ae featr of o bmpolWkdandeconomi oqpnbmthdkat aid succe resettlemen Crucially, villags shar title to all vilg land. Suc collectIve ownetship facitatorts to resetle rura n unanities &a a whole and avt the problems of ural landles s and poody defined, ofte nmpensated rihs to commons tht can so plae rra retdement in other countries. b urban aea, etoements include resetder rhs to job and housing protcto, rts ta h lOg been key to successl ua rttement. For both rural and urban resettlemn, project provide metdemet c aeVMadaon, but local governmen plan and Implement the resetem Ths govas s have considerable Xex In the of major social chnge, n aribute ta suits dem to meetig the resettlement chaleoge. vi. Succ_esM reseemnt et moving people, realocating lnd, maig nw social and productio.l invmt, and absorbing displaced labor, among oter acvites. Typically, in develping country maket economies no local goverment or other agec wi hve had such broad eperinc. Yet the land, labor, and housing marets tmnseves ar nt suffic y well deveoped to efieny absorb displaced families, conbut to the resetemet fau so often seen By conrst, although markt play an in sng role In Chin local goveranmn stdU ldy de the pace and directio of local developme _thrug direot of mwsand ote rouarcsr. Govmen iv power has loqg been exerci ho annual plang te ques fa which ar readily appli to retementeds. Annua plig has been suorted by a data collec effort that inclu  Pv - a wide rang of econmic and social Infoastion again providig the basi fr nformation neded for r _ hoegh aurrent pproahes ba some , pdc y in toe pracdco of ucderestimatin pojet cosa and M I bnefi, n nw am s ned be Introducad to most countis or cities f rm to decty mang reelmniat. AI ~~rmai In paeto realloct land move people ad cret jobs. Toepower hav bee mode d but to minaed by the reform of the as decade. Indeed, Chine oettme succs or fir w daemind not byu cases, butby the nexus I local biestmn op_rue, and loc - N sbute and Biwk viii. Rese la, oject needs, ad urba r differ s lead tothree nct modes of resetdlme In China. fist apies to taspot, cana, and ndustW prjec in ra are. hem tabe lavdy littlelnd In any give va and use Sg filebility to m izheimpa on hoig. Affecd viagr ae epectd to resed. witin te orgin vll and fe mor job ta housn k. Mae second model applie to resevoirs. Large teservors In inbabited val iudat both vilage housn and lands, ofen affcti entvlages d cau bohjob nd hoing loss. Often, affected e must move to lan owned by otdr vlae. lh NthW mode ape to all udn resttlemen regardless of projec typO. Urba projects raey cse Job loss but ofte require replacement housi, althoug most project provide that housin in the originlnihbrod (a) TralSpot an Idury lx. In th 1906 about 12 pece of overal Chines resetement was caused by the costuDon o upg ofralroads and roads. No8 are avaiable fr ova or hustria rettemet altho th latter clea~.y co_nd d at a hig levd. Some 59 percent of Ban-f ced project resetemen efll in te categoris. AfWted vlages typically los noore th 20 pern of their ld and all viloge rese witin the original vlage boundaies. With income fiom lad now contiuti only 48 pecn of averg t vla icme in Cbia, pil vip icom osse fom ewil be below 10 pece of toW income. ily law, proje mw ompnst _ tiad asseft of all Wyes aZ pvv,o hnds to creft roplaement jobs for vagers losig their farm land. For large project. countes neoiateo pacges on b f of villages md villg bousdwols ad ovrs th re n proee. Coues nd twnships often sppleme ta bdgt through oans, gn, or policy meaes such, as tx hdays tofither haste reoovy. Counies l to via" rewonibiliy for most planning and Implementaton tab, aRo dhecty _; I ; - I I -t-i vilger for crop d housing and oter ass losses. Vlg feedve co _to offe t Ios Of InOm fM eprpraed land and enTrie, which hy us to cr nw jobs and te or ugade th prducie and soci servic infastuctreOf the vig. L. Despit th reda y low impct of t type of resetemen, the difficut task fA creating enoUgh 1nCOM o at les matc t lost. Few unexloited small scale Opportunitiesfor agriclua Ie c remain. lowever, _Pin from n croppi ca often be aftr resttlemnt, aowing cin high value rm- grai crops, a strate dt has wodrkd In many areas. Where tat cannot create sufficient icom, vies seek to do so tough no-fm empoymnt If ages lak adequa Invesm posbits owbips or cou tab r b for job p _ in excang  Si h "Ph 'ill ~ihiiiiIor em iItF[110HALheIuI [4I1~~~~~~~~~~~I hI "4~~~~~~~~~~~~~o 111111? u~~~~~~~~~~~~~~~~~~~~~E Iatt I Idi 'I I' mtV  - i - in other countries. Income from all sources, whether field crops, animll husbanry, sdeline nterprises or off-farm employment is threatened by the need to move to now environent o many kilometers from the original home. Rich bottom lands are lost and replacement land n less dependable water supplies and more fragile soils. New cropping patns must be mastered. Land scarcity forces many more people to look for non-agricultural employment. Ad much more of the planning and implementation is of necessity done for, rather than by, the resotlers. xiv. Its project manager is required to employ a design burea to plan and budgt for restement. ITe plans must conform to quite detailed desigu regulations tht require full restoration of living standards. 'Me bureau works with affected counties in this planning and the counties subsequendy implement resetlement. The basic strategy is to move villages as a unit to areas within the same township, or if that is not possible, the same county. Planers seek land-based resettlement, but avoid taking the best land from existing villages. Substatl investments in land levelling and irrigation, increased fertilizer use and bet seeds fom the package most often recommended to offset the lower quality of the new land. In lOSt cases, displaced villagers are encouraged to cultivate both their new and original farms untl the latter are inundated. Host villages are expected to use the land compensation payments they receive (from the resettling villages) to upgrade their remaining holdings or invest in non-farm enterprises. xv. Even with supporting agricultural lnvestment, the available land often will not support the resettling population. In that case, planners seek to reduce population pressure by encou=aging ifdividual household resettlement. This can be either rural-rural or rural-urban. In te former case households are permitted to become part of any village that will accept them In exchange for their pro rata share of collective resettlement com sation. In the latter, households with close relatives holding urban residence permits may be allowed to join them, and themselves become urban residents. Additionally, selected young people may be offered urban enterprise employment. Government restrictions on rural-urban migration, and the need to find urban jobs for such migrants, holds down the numbers offered that alternative. To cope with remaing employment problems, township and county leaders attempt to create new or expand existing enterprises to absorb the excess labor. xvi. Only a concerted, well-funded effort can deal effectively with the problems posed by reservoir resettlement An initial failure to recognize that fct led to the poverty detailed earlier and contiues to require both funds and institutional energy to resolve resetlment problems that are in some cases 30 years old. To avert future problems, the government now insists on reviewing the resettement plan developed in consultation with affected counties prior to approval of the project preliminary design documents. Unfornaly, the strong design requirements for mantaining standards of living are relaxed in the implementing regulations, which hold reservoir resettement plans to a lower standard than in other types of resettlement, asking only that resettler livelihoods "gradually reach or surpass their previous standard." Complementng that lower expectation is a cap on resettlement compensation lower than that for other types of resettlement. Good planning can help hold down costs, but the inherent problems of resevoir resettlement, the long gestation period for dams, and meager price contingency allowances continue to cause resettlement problems. Bank-funded projects use much higher price contingencies than do domesically funded projects, yet even with higher initial budgets, three of the first four Bank-fimded projects have required resettlement budget Increases ranging fom 40 to 100 pernt. Unlike Bank-funded projects, to which additional funding has been quicldy provided, evidence from Chinese projects suggests that even once resettlement budget problems  become apparent, seveal years may dap bfore they cn be rectified. in the mantime, it is the resettlers and hosts, nOt the power geneaton, rigation, or flood covtrol that suffer. xvi. The entre dfocted population s left much more vunerable in resevoir resettlement th in transport and Industry resettlement. Although the formal village social welfare system continues to funcion and will guoar subsistence, membes of infbrmal networks will all be sharig the stress of resettlement and therefore less able to provide extordiay assistc to on another. Older and less wll educated people are paricularly at risk of losing statu, as the off-farm job opportunities and new farm tochnologies are offered first to those with junior middle school or bove educations and in primw working years. The endemic underfundig of rsettleent places greater demands on family assets, demands to which the poor have difficulty responding. Gender, age, md ethnic factors will influence vulnerability in ways that vary with changes in the farming system and the adequacy of funding those changes. Becase haming system changes often are substantial in reservoir resettlement, potentially vunerable groups need specia atention during the preparation of resetemem plans. xviii. Despite, or perhaps becuse of, the recognized difficulties of reservoir resettlement, the current policy opts for gradual, rather than rapid, restoration of resettler living standards. Yet w*ere te snWdd of maintainng real Income Is fblowed, as k Is for Bank- funded projects In Clna, resettlement ets with broad internadonat eperen consyient rate Ohinese reseroir resement petformance among the best in a d(Odut busnss. This review argues if living standards are regaie only after some delay, it should be through circumstance, not design. The review recmmends da the 1985 reservoir resetmn design requiremnts, partiuarly tt ofmainainng real incomes, be made the new legal standard and that compensation lits be raised to the kle of odterprojects. Fwiemore, planner should be encouraged to seek a mJx of collctive and indiA household resetment, give a large proportion of the reseing populaton the opton t rmahi In he origal cropping system even i tdw Is possible only rough resetlme outsde the cowny, and be open to funding any commecalyfaslbke labor-absoinAg enterprse, be the ownersp state, collective, orprhiate. (c) Urban Resettlanent xix. Urban resettlement, accoutig for 79 percent of all Chinese resettlement, but only 8 pen of resettlement in the Bank portfolio, differs substandally from rural resettlement. The primary difference is that all urban land is owned by the state and therefore only land use rights, rather than ownership rights, are lost to expropriation. The project must compensate lost use rights for individuals by providing substitute housing of equal or higher standard and for enterprises by providing altertve places for doing business and the means to replace lost assets. Normally, the project fulflls its obligation by netiatng a resettlement compensation package with the municipal government, which then plans and implements resettement through district government offiaes. If jobs are lost due to resettlement, the municipal government, using project compensation, takes responsibility for finding new employment for the affected individuals and pays them unemployment compensation uAtil that happens. xx. Urban resettlent numbers overstate the magnitde of the resettlement challenge relative to other types of resettlement in the 1980s. Much of the building in the past decade comes as part of urban upgrading efforts to improve housing. For example, in Shanghai fully 85 percent of projects csing reatlement are themselves housing projects or have a housing component. Because of this, most people can expect relocation at or uear their original housmg  -xi- st flowing a sty in tempory housing. he nuro e of uram rn iont rul in liA prtection of vulnrble uban groups, wih the possibl xoept of theqot-d dm popuaio T gwoup ac housn ot job entfitements sad wait, eat temsel wkbout _OMPMatwo. In ba * and n-AB*a prOwe. ruan uwewerg hewig Mauda* tsndo ni mauc hrew dugh rsumh _ , ab#aawa eV co q. l a_mw. bfplsahv as a aside ferpplalnL ndqced bdWdtuhew hewqm bee prectd wudl new Jo ae fwd. Popula od Gr dlvane s xxi. Cbins restOlent boeit *om a well dvelope, proesf I14,usd to "cagain popular ac m of pocaldecsinad t shenecsAry to WPand dk MO* dWd_prZtoex 8o _OPOIdh *MD ea