TABLE OF CONTENT. Summary of Discussions. Summary of Deliberations. Annex 1 Summary of Presentations. Annex 2 Background Note

Transcription

1 TABLE OF CONTENT Summary of Discussions Summary of Deliberations Annex 1 Summary of Presentations Annex 2 Background Note Annex 3 List of Participants Annex 4 - Agenda 1

2 SUMMARY OF DISCUSSIONS 1 Background 1 The future growth of the fast expanding Indian economy is significantly linked with the progressive transformation of its urban sector, which makes an important contribution to the economy. The transformation of the key urban centres into world class cities in a way holds the key to India s future capacity to effectively compete with the emerging global players in the region and reap the benefits of globalisation. Such a transformation calls for well planned strategies for restructuring urban space in a way that redefines the direction and pace of urban development and augments economic growth in the country. Urban development in India, as in many other South Asian countries, except for a few good exceptions, has hitherto been largely unstructured in nature. Characterised by large informal settlements, anomalous expansion of housing, regular traffic congestions, and basic services choking at their capacity levels, Indian cities are faced with enormous challenges of redevelopment and expansion. The process of urban development if appropriately restructured could remove roadblocks and create scope for expansion of key economic activities, and make cities more liveable through initiatives aimed at optimal use of urban space. The process of such urban transformation will invariably require relocation of large populations living in informal settlements. 2 The informal settlements in Indian cities have intensified over many years, driven by accelerated urban migration in the last few decades. These mushrooming informal settlements are often characterized by unique social and cultural diversity and sustained by a diversified informal economy, both feeding into and supported by the formal sectors of the urban economy. Well-planned urban development in the context of the complex and largely informal socio-economic fabric of Indian and South Asian cities at large turns out to be a difficult and challenging proposition. Provision of much needed urban infrastructure for improving connectivity, services; and internal restructuring of cities for optimal urban aggregation in order to sustain the economic dynamism of cities as they grow confronts populations living in large informal settlements. Successful resettlement of people living in large informal settlements will open up space for diverse urban development activities, and on the contrary, failure to do so will intensify problems associated with infrastructure deficit, thus obstruct the process of urban development resulting in loss of growth opportunities. This calls for strategic reflection on ways and means of integrating development, redevelopment and resettlement processes for planning and engineering urban development in the light of existing and upcoming challenges and opportunities. 1 These proceedings were prepared by Mr. Satya Mishra, Social Scientist and reviewed by Mesrss. IUB Reddy and Hubert Nove-Josserand, The World Bank. 2

3 Rationale 3 World Bank has been supportive of India s urban infrastructure projects and has been involved in the process of reflection and analysis of urban development and the future of India s cities. The World Bank assisted Mumbai Urban Transport Project (MUTP) undertaken in Maharashtra, one of the largest urban transport projects implemented in the country, involves relocation of about 20,000 households making it perhaps the largest urban resettlement project in the world. The World Bank and the Government of Maharashtra have also been partners in the process of broader urban development planning in Mumbai, the capital of Maharashtra and the financial hub of India. This involvement has been a source of learning, which called for deeper reflection on issues of urban development, redevelopment and resettlement in the interest of greater understanding through sharing of diverse urban experiences, strategies, policies and perspectives. It was felt that reflection on resettlement of large population groups living in informal settlements in the broader context of urban development can help address broader issues of urban development in India. Objectives of the Workshop 4 The objective of this workshop was to reach a consensus, or at least a common understanding on approaches to resettlement and economic rehabilitation in urban development which are truly developmental and forward-looking. This workshop, far from being intended to be a forum for debate on issues relating to lender policy or the legal provisions of sovereign governments, was a collaborative exercise aimed at working out approaches and methods, seeking to build socially and economically sustainable outcomes where urban development becomes more effective and equitable. The aim was to understand cities, their growth, challenges they pose and opportunities that they offer in the light of global experiences an to reflect on generic issues related to urban resettlement in their economic, social, cultural, & technical dimensions. 5 The specific objectives of the workshop were to: 5.1 Reflect on challenges of urban development and resettlement in India against the backdrop of similar experiences in this region and other parts of the world; 5.2 Discuss various polices and perspectives focussing on key themes and issues (such as urban resettlement, restoration of livelihoods and incomes, and urban economic growth; legal and policy frameworks on land tenure and land use, mechanisms for land redistribution, real estate markets and ownership; steps needed for effective redevelopment ) for reaching a shared understanding on urban resettlement and development in the Indian context; and 5.3 Broaden scope for greater collaboration and partnership between World Bank and India for augmenting the process of sustainable urban transformation in the country for higher growth and greater equity. 3

4 Participant Profile 6 The workshop brought together senior government officers working at the level of policy making, overall operation coordination, and senior management at the implementation level representing key Central and State government departments and agencies dealing with resettlement and urban development 2. Representatives from NGOs, officials from the Bank and the Inspection Panel, and academics working in the field of urban development, resettlement, and social safeguards in various parts of the world also took part in the workshop. The participation of government officers playing a key role in decision making at policy, coordination, and implementation levels facilitated a sharing of diverse experiences and perspectives within the Indian context, enriched further by sharing of global experience. The participants with their diverse experiences and expertise made possible a comparative analysis of macro-level trends in the light of specific micro-level issues. Framework of the Workshop 7 A background note was earlier prepared and circulated among the participants, based on learning gained from urban development and resettlement experiences. Some workshop presentations included cases studies on urban development and resettlement from China, Thailand, India, Colombia, and the Ivory Coast. Other presentations focussed on specific issues, policies and perspectives of government departments/ agencies, NGOs, and the Bank. Presentations made by the departments of Government of India reflected on overall policy perspectives on R&R and urban poverty alleviation, whereas presentations made by the representatives of state level agencies focussed on implementation experiences, outlining challenges encountered and solutions explored in the local contexts of Indian cities of Chandigarh, Mumbai, and Bangalore. 8 The agenda for the workshop was designed keeping in view key themes and issues identified in the background note. The workshop was accordingly divided into presentation and discussion sessions. The key themes around which presentations were made and discussions held included the following. Urban development, redevelopment and resettlement, Issues in R&R/urban development policy and practice in the Indian context Legal and technical issues relating to R&R in the Indian context Resettlement, development opportunities, and livelihood improvement Land and property related issues in resettlement and urban development R&R implementation process 9 Group discussions were held on the following themes: Development Opportunities and Livelihood Improvement; Land and Real Estate; and Resettlement Implementation in Urban Development Context. 2 List of participants available in Annex-3 4

5 SUMMARY OF DELIBERATIONS: Inaugural Session 10 Following self introduction by the participants, introductory remarks were made by Mr. Rachid Benmessaoud, Operations Adviser for India, The World Bank and Mr Ramanand Tiwari, Secretary for Urban Development, Government of Maharashtra, during which they explained the objectives and rationale of the workshop and indicated key themes for discussion. The Bank representative said that resettlement and rehabilitation of people living in informal settlements remained a key aspect of urban development process, which posed enormous challenges of providing the former with formal housing, and restoring their livelihoods and incomes. The Bank and the Maharashtra government representatives agreed that they were able to identify some key issues and lessons learnt during the implementation of MUTP, which included a large resettlement component. Despite all difficulties, the project had managed to reach an advanced stage with the majority of affected households (14000) already resettled. At this juncture, the relevance of reflecting on issues encountered and lessons learnt during implementation could not be overestimated. The Bank and the Government of Maharashtra had jointly organised the workshop to reflect on key issues and reach common grounds, and reduce possible gaps in perception. The Secretary for Urban Development, Government of Maharashtra explained local constraints faced by Maharashtra in adhering to generic resettlement procedures. Both the organisers agreed that common issues such as land acquisition, urban infrastructure, and livelihoods deserved closer attention in the larger context urban development. The Bank official indicated the course of the workshop mentioning briefly about themes for discussion during different sessions. 11 Following the introductory remarks, Mr David Dowall 3 in his presentation explained intricate links between urbanisation and economic growth in India; and called for the need to balance urban development and economic growth with equity through proper resettlement and rehabilitation. Highlighting the centrality of restructuring of space to urban development, he explained why resettlement becomes such an important issue. Successful handling of resettlement can bring in new development opportunities and accelerate future growth of Indian cities. Emphasizing that urbanisation was an unavoidable global trend, he cautioned that India s ability to successfully compete with the newly emerging economic leaders in the region will largely depend on its capacity to transform its cities, which call for futuristic urban development strategies to address emerging development, redevelopment and consequent resettlement challenges. 3 Professor, City and Regional Planning, University of California (Berkeley), USA 5

6 12 Mr Rachid Benmassaoud stressed the need to reach a broader common understanding on urban resettlement issues, setting the tone for presentations and discussion in the workshop. Highlights of Presentations and Discussions 13 Resettlement experiences shared in the workshop were drawn from urban development projects implemented across the world including Ban Mekong (Thailand), Abidjan (Ivory Coast), Tianjin (China), Bogota (Colombia), Mumbai, Chandigarh, and Bangalore (India). Out of these, the case studies of Abidjan, Tianjin, and Bogota were from Bank-assisted projects. Listed below are presentations made on policy related issues by the Ministries of Rural Development, and Housing and Urban Poverty Alleviation, the Government of India; the Government of Karnataka, the Tata Institute of Social Sciences, Mumbai, India, NGOs, and the Bank. Government of India s R&R Policy and Approach Employment and Poverty Alleviation in the Context of Urban Development in India Role of Urban Local Bodies in Supporting R&R Review of Law and Policy on Land Acquisition, R&R and Slum Development in India NGOs Views on R&R in the Context of Urban Development World Bank Policy on Social Safeguards (R&R) 14 The presentations on generic issues were supplemented by comparative analysis of trends and practices during discussions. The case study presentations generally followed a common pattern, introducing the context, project outline, and then explaining specific problems encountered, strategies adopted, and lessons learnt. A summary of all the presentations are appended in Annex The deliberations and the main outcomes have been captured under themes given below. Integrating Urban Development/Redevelopment with Resettlement 16 Restructuring land use patterns in Indian cities requires resettlement of thousands of families living in informal settlements, which pose major road blocks to urban development. This enormous challenge can be met only if resettlement is treated as a development opportunity. The case of urban redevelopment in Bogota (Colombia); Tianjin (China), and Ban Mekong (Thailand) verified the truth of this argument. All three cities faced stagnation beyond a certain point of growth, which called for planned resettlement in order to clear urban space for vital infrastructure facilities. Systematic resettlement efforts within a larger strategy of planned urban transformation helped to remove old formal and informal settlements in favour of optimal reorganisation of the 6

7 city space for higher communicability, better housing, and growth in economic activities. If Bogota showed the ills of unstructured urban expansion driven by long term factors and contingencies, and difficulties of having to redevelop cities at a later stage, Tianjin exemplified how best to reorganise urban space by integrating resettlement with urban development. Mumbai was recognised as a city where the need for planned urban redevelopment was most acute, which posed the challenge of having to shift large populations living in informal settlements away from vital space required for essential urban infrastructure through a citywide resettlement process. Participants agreed that without a well integrated framework for resettlement and urban redevelopment, Mumbai could well slip into a state of disarray and decline. They stressed the urgent need for reworking existing legal and policy frameworks and redesigning current strategies for urban development and resettlement in a holistic manner, which has been recorded under specific themes below. 17 Key Issues and Recommendations: Resettlement issues should be treated as an integral aspect in urban planning; City-wide resettlement plans should be developed as part of urban development; Resettlement should be seen as a development opportunity. R&R in India Context: Polices, Legal Frameworks, Guidelines 18 India developed its National Policy on R&R (NPRR) in 2003, other than which, there is no other legal framework on R&R at the national level. States such as Maharashtra and Karnataka have their own legislations; Orissa, Chhatisgarh, Andhra Pradesh and Mdhya Pradesh have their own polices. The Indian courts have held that the state s primary duty is to resettle and rehabilitate persons affected by land acquisition. The courts make no distinction between temporary and permanently affected people when it comes to involuntary ouster. The weakness of the NPRR lies in its being binding only on central agencies and not the states, as land related matters fall in the domain of the latter. 19 Upcoming National Level Policy Changes: The Secretary, Ministry of Rural Development (MoRD), Government of India in her presentation informed that the Central Government was in the process of modifying the NPRR reflecting emerging needs and concerns. The policy change was guided by considerations such as having in place a more consultative R&R process, which would reduce distress and ensure disbursal of fair compensation; and evolve an acceptable R&R framework with a clear time schedule to reduce delay and disputes. The objectives would be to have in place a mechanism for carrying out analysis of potential social and economic impacts and choose the least displacing alternative, a point also reflected in views expressed by NGOs. Participation of NGOs should be a key element in the R&R process; there should be grievance redress mechanism to address needs of the vulnerable project affected people and an Independent Commission to monitor the process of R&R, a view seconded by NGOs. The MoRD representative stated that R&R package should be developed keeping in view issues such as gender, specific needs of the affected tribal communities, employment opportunities, 7

8 and compensation for loss of livelihoods through benefit sharing, which called for further reflection. A key perception emerging out of the presentation was that land-based resettlement was not easy to implement in case of urban and linear projects. Emphasis was laid on provision of basic services for the resettled community enabling them to cope with relocation. 20 Discussion on the World Bank Social Safeguard Policy, the Indian Government s policy intent on R&R issues, and views expressed by NGOs 4 showed an emerging consensus on different aspects of R&R principle and procedures with emphasis on a consultative process, participation, advanced potential adverse impact analysis ahead of project designing to minimise displacement, grievance redress, system of independent monitoring, and concern for addressing livelihood losses. 21 The need for having an overall R&R framework for different projects across the country was felt by most of the participants. The presentation on NGOs views emphasized obtaining informed participation and consent of the affected people as an integral part of R&R planning and implementation process, which was in consonance with the WB R&R framework. The NGOs felt recognizing customary rights of people to shelter and livelihood was important, which also reflected in the presentation on the WB Social Safeguards Policy. Indicating Indian Government s policy intentions, the MoRD called for special attention to vulnerable tribal communities, who have traditionally group access to natural resources, but lack formal rights. Though the MoRD did not specifically argue for formal recognition of customary rights, it underlined the need for understanding of community-based resource use while implementing R&R for indigenous communities. 22 Key issues and Recommendations: A uniform policy/legal framework on R&R in the country will help set down minimum standards for resettlement and rehabilitation and thus remove confusion across the states and various sectors of intervention. Prior assessment of likely adverse social and environmental impacts, if made mandatory at the planning stage, will help design projects causing minimal displacement. Norms such as participative planning and implementation, public consultation and information, civil society involvement, grievance redress, independent monitoring, livelihood restoration and vulnerability reduction should be integral to any R&R policy. Recognition of customary right/access to resource use is important in case of resettlement and rehabilitation of indigenous populations. 4 A presentation was prepared by Prof. Parmeswaran, Director, Tata Institute for Social Sciences (TISS), Mumbai on the basis of views expressed by NGOs in a special consultation with civil society organizations convened by the Bank prior to this workshop at New Delhi in September 04, The presentation was made through tele-conference during the workshop. 8

9 R &R Package: Development Opportunities and Livelihood Improvement 23 Issues of development opportunities and livelihood improvement remained a major theme of discussion during the workshop. The presentation on the National Policy on R&R stressed the need for addressing livelihood issues. Protection of livelihoods was highlighted as an important issue in the context of urban resettlement involving slum dwellers the Ministry of Housing and Urban Poverty Alleviation, Government of India, which emphasized the crucial link between urban poverty and urban slums. According an estimate, the urban poor in India numbered 67 million in 2001 whereas the people living in urban slums numbered 62 million, which indicated that a majority of slum dwellers were poor. The government of India s initiative at reducing urban poverty was primarily targeted at the slum dwellers. 24 The presentation made on urban development and resettlement by Prof Dowall showed that restoration of diverse livelihoods during resettlement of slum populations posed both challenges and opportunities in the urban context. If diversity of livelihoods was a challenge, the presence of a vast labour market and scope for diverse business activities in an urban setting offered new economic opportunities. The Abidjan (Ivory Coast) experience showed that a flexible model of resettlement based an assessment of local needs and capacities could address livelihood needs of the people better. 25 The group work on the theme of development opportunities and livelihood options focussed on key issues such as: Steps to protect sustainability and survivability of displaced businesses, Key variable for differentiating across various categories of affected enterprises, Generic resettlement remedies for different types of affected enterprises, and Consultations for effective and timely mitigation of potential problems. 26 Recommendations were made by the groups at the end of discussions. 27 Steps such as holding consultations to find innovative resettlement solutions through dialogue and negotiation with involved stakeholders, offering resettlement package ensuring minimum economic sustainability of alternative business opportunities within a framework of differentiated resettlement packages were considered key to reducing impoverishment risks. The participants differentiated affected enterprises into title holders, and non-title holders in poor and non-poor categories suggesting that the legality of tenure and actual vulnerability levels should form the basis of resettlement packages provided for income restoration. Resettlement package for titleholders could be a mixed bag of cash compensation and alternative housing. Some suggested that the package for non-poor title holders should be limited to cash compensation while giving poor title holders compensation with additional rehabilitation assistance for protecting their livelihoods. In the non-title category, poor encroachers could get alternative shop for livelihood restoration. The non-poor encroachers should get the minimum R&R package 9

10 for livelihood restoration. More consultations were recommended as means for facilitating smooth resettlement of non-titleholders. 28 The suggestion for providing income restoration assistance for non-title holders, especially those in the non-poor category was not favoured on the ground that it was beyond the state s capacity to bear the costs, and secondly, because in the typical urban context of Mumbai such benefits might encourage more illegal encroachments. Some participants also argued against it on the ground that non-poor encroachers were getting unfair advantage in the market vis-à-vis their law abiding counterparts, and argued that honest taxpayers should not be made to bear the cost of income restoration of illegal nonpoor encroachers. Such encroachers, they argued, have already made undue profits and must accept minimum livelihood restoration assistance at par with the poor encroachers. Other suggestions were made relating to ensuring basic livelihoods for all shopkeepers through steps such as providing alternative shops with available additional area at a premium; extending vocational training, selecting resettlement sites close to main roads; carrying out BSES and holding early consultations as a part of resettlement planning. 29 Key issues and Recommendations: Livelihood restoration in urban resettlement process posed challenges, and at the same time, offered new development opportunities. Consultations with affected groups and stakeholders can help identify innovative methods for restoring affected livelihoods and incomes. Offering income restoration assistance to non-poor commercial encroachers in the resettlement process may encourage further proliferation of illegal/informal settlements adversely affecting urban development. A differential R&R package for livelihood restoration based on an assessment of legality of tenure and actual vulnerability levels could be a viable option. Steps such as identifying suitable resettlement sites, offering additional shop area at a premium, and vocational training can help strengthen livelihood restoration. Freeing Land and Real Estate Market for Urban Development 30 It was suggested that urban redevelopment demands twin strategy of building up and building out, involving re-aggregation of existing built-up space for intensive development in the central zones, and fresh expansion in new areas. All cities require additional space for development and expansion, which unavoidably involves resettlement. The experience of Bogota, Tianjin, and Mumbai, all pointed at the challenge of having to deal with land deficit for urban development at some stage through planned redevelopment and resettlement initiatives. In this context, one group discussion was conducted focussing on key issues such as: Changes required in land and real estate planning to unlock the supply of land; Market solutions (financial tools) for dealing with the resettlement issue; 10

11 Specific design and resettlement planning in view of complexities associated with multiple interventions for land development, housing, and basic services. 31 Unlocking Land: The participants felt, in the Indian and especially Mumbai context, existing laws and regulatory frameworks inhibited urban development, and therefore, needed to make way for simpler laws and regulations conducive to the growth of the land market. The participants called for changes in the Urban Land Ceiling Act, Rent Control Act, Central Government regulations (relating to Coastal Regulatory Zone, No Development Zone), and relaxation of rules on Floor Space Index (FSI), and TDR (Transfer of Development Rights). Some suggested a more flexible land use policy and a simpler regime for property title regulation. The MoRD s presentation on India s R&R Policy showed how the government agencies faced difficulty in handling Land Acquisition (LA) due to an imperfect system of land recording and land management. Without a more efficient and transparent land management system in place, it was felt, finding additional land for urban development would remain an uphill task. Information regarding land availability, maintenance of community-level database on land use and land ownership, and easy accessibility to information were suggested as steps to open the land market. The participants also argued that the procedure for housing needed to be considerably simplified 5. Many participants felt private players should be encouraged with the government playing a facilitator s role, and argued that public-private partnership held the key to unlocking land for urban redevelopment/development. 32 Financial Tools for Resettlement: The Bogota experience showed how the presence of an active real estate market could provide space for assisted resettlement offering a bigger role to market players and wider choice to affected individual families. The Tianjin experience showed how the government could adopt market solutions for providing the affected people with a wider choice and motivate them to opt for better housing with additional investments. The participants felt non-tradable/non-transferable resettlement vouchers could be an answer; others opined that provision of conclusive title and assistance for making a choice of available lands could be a good option. Most agreed that there was a need to make an assessment of market demand for land and encourage land supply through appropriate policy incentives. 33 Project Design and Planning Issues in Resettlement: Participants favoured development of city-wide resettlement plans, integrating resettlement in development plans (DP) and country and town planning (CTP); and having in place a multi-sector team to plan and implement urban resettlement. Some argued for treating resettlement as stand alone projects, whereas other favoured resettlement to be an integral part of development projects. Most agreed that problems of institutional coordination affected resettlement planning and implementation and felt a nodal body should be in place for implementing well integrated resettlement strategies. 34 Land Acquisition: The presentation on the existing legal framework for LA showed several problems associated with the Indian LA Act, 1894, reason why states like 5 In the state of Maharashtra, at present one requires 54 no objection certificates from regulatory agencies for building a house. 11

12 Maharashtra and Tamil Nadu have taken recourse to alternative legislations on slum development for acquiring land. Shortcomings in the LA Act identified included: rigid process for declaration of intent and acquisition, problems associated with methods of valuation, the lengthy time schedule. The lack of clear definition of public purpose and eminent domain in the Indian LA Act allowed the government even to acquire land for private enterprises, whereas the private agency requiring land should ideally follow the market process. During the discussions on India s R&R Policy, it was indicated that a key objective behind the Government s moves to amend the National Policy on R&R, 2003 was to define public purpose, and specify limits to the application of LA in order to minimise displacement. The MoRD pointed at the diverse and outdated nature of land administration systems in Indian states, which needed to be modernised. 35 Discussion on ways in which to make LA process more transparent, flexible and simple resulted in consensual recommendations for inclusion in the LA Act of provisions for negotiated settlement, rationalisation of stamp duty, clear guidelines for realistic valuation of land through computation methods reflecting the market trends, and removal of multiplicity of rules and agencies. The participants agreed that compensation for both land and asset should be paid at replacement value. 36 Key Issues and Recommendations: Re-aggregation of urban space through redevelopment and resettlement is necessary for future development and expansion of Indian cities. Existing laws and regulatory frameworks inhibiting future urban development need to be modified to accelerate growth of land and real estate market. A flexible land use policy, encouragement to private players; private-public partnership; simpler property title regulation regime; transparent, efficient, and updated land administration system are required to unlock land for future urban development. Steps such as providing non transferable and non-tradable resettlement vouchers; offering conclusive title along with assistance for choosing from available lands; and encouraging land supply through appropriate policy incentives are means to enhance market participation in the resettlement process. The LA Act needs to be modified making the process simpler, cheaper, flexible, and transparent reflecting market trends and enlarging scope for negotiated settlement. Resettlement Strategies and Implementation Issues in Urban Context 37 Presentations on urban resettlement experiences underscored the point that diverse contexts with a unique constellation of micro-level factors posed specific challenges and opportunities, which rendered the one size fits all principle unworkable. Flexibility and innovation therefore remained the key to success of urban resettlement strategies. The Bogota (Colombia) experience presented a case of assisted resettlement in which the implementing agency played a facilitative role. The Abidjan (Ivory Coast) case illustrated 12

13 the key role of the affected people in self-construction for houses for resettlement. The Tianjin experience offered an example of specific role played by market players (estate companies) in the resettlement process under overall state coordination. The Ban Mekong experience exemplified a more radical bottom-up approach marked by community-based planning and implementation. The Mumbai experience on the other hand represented a case of mega resettlement projects, in which a range of standard and innovative tools (TDR) were used. Group discussions focussed on issues identified during experience sharing in order to identify generic steps required for a successful R&R implementation strategy in the Indian urban context. 38 Participation, Consultation, and Information Disclosure: The Ban Mekong and Abidjan resettlement experiences showed how participative resettlement processes worked better. Consultation and participation minimised risks of resistance and conflicts, offered innovative local solutions, enhanced community ownership, improved project quality, and facilitated timely completion of projects. The Ban Mekong, Abidjan, and Mumbai experiences showed how NGO participation had positively contributed to the implementation process. The participants felt the role of NGOs was useful for bringing in social mobilisation and community development skills into the implementation process. All the resettlement experiences, which involved formal and informal consultation processes, showed how this contributed to informed decision making on the part of both the implementing agency and the affected people. The participants felt stakeholder consultations and negotiations were essential at both planning and implementation stages. Consultative processes helped protect rights and address concerns of the affected people, and enabled the implementing agency to explore innovative solutions. The participants emphasized information disclosure on all aspects of resettlement as important for ensuring transparency, enhancing credibility, and enabling informed choices. 39 Adverse Impact Assessment, Base Line Survey: During the course of discussions on various themes and experiences, emphasis was laid on participative Impact Assessment (IA) surveys supplemented by technical support from experts as a tool for minimising displacement. The participants felt transparent and participative IA and baseline survey recording impact and identifying the affected people was the key to realistic resettlement planning and successful implementation. They added that outcomes of such exercises should be disclosed for the information of PAPs and other stakeholders. 40 Involvement Multiple Stakeholders: The Ban Mekong experience showed how the involvement of multiple stakeholders, such as community groups, NGOs, research and training institutes, community architects, and local bodies made the implementation process more effective and inclusive. The Bangalore (India) experience showed how the urban local bodies played an important role throughout the implementation cycle enhancing effectiveness and accountability. The participants felt the involvement of multiple stakeholders in the implementation process posed challenges of coordination, however, offered opportunity for achieving better outcomes through synergy. 41 Capacity Building: Ban Mekong and Bogota experiences highlighted the importance of capacity building in handling complex urban resettlement problems and issues. In 13

14 Bogota, social professionals were hired and trained to work as facilitators in the implementation process, whereas in case of Ban Mekong, networking with research and training institutes provided a continuous institutional linkage for capacity building. The need for sensitising field level implementing staff on R&R issues and enhancing their social development skills was emphasized. 42 Grievance Redress, Independent Monitoring and Evaluation: In the course of discussions on policy and implementation issues, the participants agreed that mechanism for grievance redress was essential for addressing the concerns of the affected people, especially those in the vulnerable category. Suggestions were made for instituting an independent monitoring mechanism in order to make the resettlement process transparent and accountable. External evaluation of resettlement impacts was considered a useful tool for assessing effectiveness of the implementation strategy. 43 A group deliberation conducted to identify key steps required for successful implementation of urban resettlement strategies focussed on the following issues: Exit strategy for resettlement implementation, Specific steps needed to enhance effectiveness of implementation strategy, and Problems encountered during the implementation process. 44 Given below are suggestions/ recommendations made by different working groups. 45 Exit Strategy: Key indicators identified for implementing the exit strategy included: provision of security of tenure of resettled households, delivery of key entitlements including compensation and other rehabilitation assistance, restoration of livelihoods, satisfactory self sustenance of resettlement colonies, completion of all civil works at resettlement sites (water, electricity, connecting roads), formation of housing societies, completion of the post-resettlement support activities, improvement in physical environment and economic conditions, and impact assessment. It was felt that the implementing agency could exit from the resettlement site when at least 75% of these indicators have been fulfilled. 46 Effectiveness of Implementation Strategy: Some of the preconditions identified for enhancing the effectiveness of the implementation strategy included: transparent procedures and rules, resettlement implementation plans, robust base line survey, provision of identity cards, grievance redress mechanism, mechanism for participation, public information centres for information disclosure, improved support services, formation of housing societies, hiring of estate managers/professional agents for extending hand-holding support to the resettled households, and provision for commercial exploitation of resettlement sites for their sustainable self-management. Some participants felt alternative accommodation should be given only on nontransferable / non-tradable basis in order to prevent re-encroachments. No consensus was reached on the issue as others felt this was against the basic market process. 14

15 47 Difficulties Encountered in the Implementation Process: Difficulties encountered in the implementation process listed by the participants included: interference from the political quarters, lack of a uniform R&R policy framework, inadequate institutional coordination on account of multiplicity of agencies involved, weak enforcement of encroachment prevention laws, changes in the project design in the middle of the implementation process, large populations living in informal settlements, dealing with employees displacement from their jobs during the course of implementation, and excessive supervision by the funding agencies. 48 Key Issues and Recommendations: There is a need for creating room for flexibility and innovation in the R&R implementation framework. Participation of PAPs, NGOs, and local bodies at planning and implementation stages and pubic consultation and disclosure of project related information, grievance redress mechanism, independent monitoring and evaluation are necessary to enhance transparency, credibility, accountability and enable informed decision making. Sensitizing field level staff on R&R issues and enhancing their social development skills is crucial to improving programme quality. Security of tenure, delivery of key entitlements, restoration of livelihoods, self management of resettlement sites, completion of civil works and provision of basic services, post resettlement support activities, improvement in physical and economic conditions, and impact assessment are indicators for project exit. Transparent procedures and rules, RIPs, robust base line survey, identity cards, PICs, support services, post resettlement support, and commercial exploitation of resettlement sites for sustainable self-management are steps to improve effectiveness. Providing alternative accommodation on non-transferable / non-tradable basis may help prevent re-encroachment. Lack of adequate institutional coordination, uniform procedures; political interference, weak enforcement of encroachment prevention laws, and large affected populations pose challenges affecting the implementation quality. Outcome and Way Forward 49 In the closing session, the organisers of the workshop, bank officials and representative from the Maharashtra government made a joint declaration recording key lessons learnt during the workshop. It was agreed that the workshop provided a good opportunity for sharing experiences, problems, and opinions on various aspects of urban resettlement. It was also agreed that urban resettlement was a complex issue and no readymade solutions were to be easily found. However, it was felt that continuous dialogue and negotiation among wider stakeholders could offer opportunities to explore innovative solutions to problems encountered in the unique urban setting of Mumbai. It was felt that, differences in perception on certain issues notwithstanding, exchange of 15

16 ideas and experiences during the workshop had helped create new ground for common understanding on some key issues. The workshop also helped to set in motion a process for working towards a shared understanding on issues perceived as contentious in view of the constraints imposed by existing legal-institutional frameworks. 50 Agreed Views on Key Issues: In the course of discussions, a consensus was reached on a number of key issues. It was agreed that physical and spatial transformation needs are very large for urban development and that displacement of population becomes a necessary fact of life as cities grow. It was felt that resettlement in cities can and must be considered as an uplifting endeavor rather than a charitable compensation. This vision will lead the definition of the methods how to plan and implement land acquisition and resettlement. Up front planning at appropriate scales, including at the regional scale, and taking in consideration also the social impacts was considered important. The participants felt land acquisition and resettlement will be easier if done as much as possible on the basis of individual choices of the impacted people and by using the market mechanisms. Land acquisition through negotiation proved to be easier in some cases than through the use of the LA Act, although in some cases the law provided an efficient means to limit political pressures. Reforms aiming at removing regulatory constraints on land use and management would improve fluidity of the land market. It was felt that R&R should be minimized and LA and displacement of population should be done as much as possible through negotiation and on a voluntary basis. Sustainability of the resettlement depended largely on the affected people gaining a sense of ownership over their new residence and neighborhood; this could be gained through active participation at the planning stage and through pre-investment by the beneficiaries. The experience of Ban Mekong effectively brought forth this point. Distinction made between title holders and non title holders brought in by the Bogota experience appeared meaningful; title holders should receive compensation for their property and assistance, while non title holders would receive assistance only. Robustness of the base line survey and efficiency of the data management system were considered essential for a smoother implementation of the R&R process. Transparency, active consultation and delivery on commitments made publicly were considered essential. It was felt that building new tenements and relocating people did not extinct the political responsibility of the Government. There was a need to assist to a certain degree relocated people to sustain life in their new environment, and therefore to define an exit strategy, which could involve the assistance of a professional as post-resettlement agent. 51 Issues Lacking Consensus: Difference of perception remained on two key issues: restoration of livelihoods for large businesses without formal title and social affordability of projects. Restoration of livelihoods of resettled people was accepted as a key component of a successful resettlement and rehabilitation strategy. However there was no consensus on the necessity to full restoration of income in case of non-title holder businesses of large size. Some participants feared that such restoration in full, not only could lead to significant cash outlay in large slum areas, but more importantly would be seen as inequitably favoring large size encroachers, usually non-tax payers, versus a significant part of the population that endures long commute to respect the law and live in a formal settlement. Secondly, while participants generally recognized that urban 16

17 infrastructure projects may have large social impacts in addition of the economic and environmental ones, which need to be appreciated at the planning stage, there was no real consensus on the extent to which such consideration should prevail. Questions were raised as to if, in cases where a desirable resettlement strategy was very costly, the project should be modified or even avoided. 52 As way forward, it was agreed that efforts shall be made to continue discussions and joint efforts with the goal of attaining greater understanding on principles for satisfactory implementation of land acquisition, resettlement and rehabilitation for urban development. In that perspective, it was discussed to create a task force that would better formulate the principles on which a consensus was reached, which would deepen the discussion to better understand the causes of the remaining disagreements and try and solve them. It was understood that such effort will be done within the framework of the relevant Bank policies and the relevant Indian institutional frameworks and constraints. 17

18 Annex-1 SUMMARY OF PRESENTATIONS 1. Cities and Growth: Challenges of Urban Restructuring and Resettlement Urban expansion, population growth and economic development, and restructuring of city space are closely interlinked. The experience of cities such as New York, Tokyo, Seoul, Hong Kong, Singapore, Shanghai show that, varied patterns of development notwithstanding, all cities grow along a trajectory of urban agglomeration marked by internal restructuring and outward expansion. Economic growth and change drives urbanisation resulting in growth of population and multiple activity centres in cities. Accommodation of economic development and population growth requires expansion and internal restructuring of urban space marked by higher density development, emergence of diverse activity centres and changes in land use. The process of urban restructuring and development demands planned redevelopment and resettlement, which bring in challenges of balancing growth and equity in the redevelopment and resettlement continuum through strategic urban planning. 1.2 India s urban economic development reflects a gradual demographic transition marked by rapid increase in the rate of growth of urban population and a slow decline in the growth of rural population. India s fast urbanisation process and its rapid economic growth are mutually reinforcing in nature. The country s economic development is driven by its key urban centres, and vice versa. The Indian cities, which accommodate 33% of the country s population, account for 75% of its gross domestic product (GDP). Cities have become leading destinations for new investments with a major portion of foreign direct investment (FDI) focussing on real estates. This means the Indian cities will experience a significant increase in population and employment, incomes, urban land development, demand for housing and real estate facilities, and infrastructure. This brings in new challenges and opportunities for cities in India, and its economy as a whole. The current urban growth pattern in India, marked by fast expansion of the service sector, increasing motorization, and changes in patterns of space consumption pose challenges such as making land available for an expanding housing sector, infrastructure for transport, basic services, governance, redevelopment and resettlement. 1.3 The future of Indian cities depends on building proper urban transportation systems (roads, rail, mass transit networks, airports, and logistics centres), water and wastewater systems, educational and healthcare facilities, and civic amenities. Urban infrastructure requirements are enormous as the urban population is poised to grow at about 12 million persons per year. Achieving 100 percent water supply coverage and 75 6 Presented by David Dowall, Professor City and Regional Planning, University of California (Berkeley), USA 18

19 percent wastewater coverage alone would cost USD 12 billion; building urban transport investments would cost another USD 50 billion. Land requirements for such infrastructure investments will be significant. 1.4 Successful urban transformation is symbolized by a virtuous policy cycle wherein positive indicators such as high-gdp growth in cities, more built up space, increase in property values and taxes, increase in infrastructure investments are interlinked. An urban planning approach instead of a project oriented approach characterized by sectoral approach to floor-space index (FSI), focus on transit nodes, improved infra-structure, and improved public revenues will enable Indian cities to successfully engineer urban development. Such a planned approach will have to invariably address the issue of redevelopment and resettlement, which requires reflection on resettlement policy issues in a much broader context focusing on economic benefits of infrastructure investment, productivity enhancement, and livability of cities. Planning resettlement strategies should take into account providing options for in situ development and financial compensation, and linking resettlement compensation with project benefits. 2. Evolution of Indian Policy Framework on Resettlement and Rehabilitation The jurisdiction of land related matters lying with states under the Indian constitution explains inter-state diversity in legal approaches to land related matters in the country. The federal government s competence to formalise approaches to land is still under discussion. The broad countrywide statutory framework for acquiring land for public purposes and compensating the displaced can be attributed to the Land Acquisition Act (LA Act), 1894, law which predates national independence. States have framed their rules under the LA Act, according which the revenue departments acquire land for implementing agencies within the ambit of case law laid down by the courts. India formulated its first National Policy for Resettlement and Rehabilitation (NPRR) in 2003, which is binding on the Central government agencies. Making this policy instrument enforceable in the states is not yet decided. With diverse R&R polices, legislations, guidelines followed by different states and major central public undertakings 8, the issue is whether NPRR will act as a norm, or prevail over other similar legal and policy instruments, or create perverse federal fiscal incentives. 7 Presented by Ms. Viswanathan, Secretary, Ministry of Rural Development, Government of India 8 Central public undertakings like Coal India, National Highway Authority, the National Hydroelectric Power Corporation, National Thermal Power Corporation and joint ventures like the Tehri Hydro Development Corporation have their own policies. States like Andhra Pradesh, Orissa, Chhattisgarh and Madhya Pradesh have drafted R&R policies; Maharashtra and Karnataka have enacted their Rehabilitation Acts; Kerala depends on guidelines evolved from time to time; some follow procedures used in a large project for other projects, e.g. Karnataka applies norms set for the Upper Krishna Valley irrigation project. Jharkhand has a policy only for irrigation projects, Tamil Nadu for urban infrastructure projects and Orissa whose policy differentiates between industrial, mining, irrigation, urban & linear & all other projects. 19