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Blog post of the month: “We are looking at gold and calling it rock”: Supporting communities to calculate the replacement costs of their communal lands and natural resources

Rachael Knight's picture

Boundary tree planting committeeEach month People, Spaces, Deliberation shares the blog post that generated the most interest and discussion. In May 2015, the featured blog post is " “We are looking at gold and calling it rock”: Supporting communities to calculate the replacement costs of their communal lands and natural resources".

Across Africa, Asia and Latin America, investors are increasingly approaching rural communities seeking land for logging, mining, and agribusiness ventures. In response, international and national advocacy organizations are stepping forward to provide support to communities in negotiations with investors, often with a focus on ensuring adherence to international laws such as the right to free, prior, informed consent (FPIC).[1] Yet even in situations when investors have followed FPIC principles and conducted a formal “consultation” to seek community consent to their proposed business venture, these consultations are generally conducted in a context of significant power and information asymmetries. Communities are frequently pressured by high-level government officials to consent to deals that they do not fully understand or desire. Community members may not be aware of the rental value of their land on the national market, the expected annual profits the investor will gain from the venture, the overall net worth of the investors’ company, and other financial information critical to negotiating a fair contractual agreement, including the value they themselves are deriving from their common lands. As a result, they have difficulty calculating an appropriate rental cost that leaves them in an equal or better position than before the investment.

“We are looking at gold and calling it rock”: Supporting communities to calculate the replacement costs of their communal lands and natural resources

Rachael Knight's picture
Members of the Sihan Clan planting a boundary tree, Rivercess County, Liberia

Communal land, forests, and water sources are essential to the survival of many communities around the world. However, investors seeking resources may negotiate contracts that do not include rental payments. To address this imbalance, Namati and its partners designed an activity to empower communities to grasp the inherent value of their common areas to them, so that they can reject inequitable contract offers and negotiate contracts that will lead to community prosperity.

Across Africa, Asia and Latin America, investors are increasingly approaching rural communities seeking land for logging, mining, and agribusiness ventures. In response, international and national advocacy organizations are stepping forward to provide support to communities in negotiations with investors, often with a focus on ensuring adherence to international laws such as the right to free, prior, informed consent (FPIC).[1] Yet even in situations when investors have followed FPIC principles and conducted a formal “consultation” to seek community consent to their proposed business venture, these consultations are generally conducted in a context of significant power and information asymmetries. Communities are frequently pressured by high-level government officials to consent to deals that they do not fully understand or desire. Community members may not be aware of the rental value of their land on the national market, the expected annual profits the investor will gain from the venture, the overall net worth of the investors’ company, and other financial information critical to negotiating a fair contractual agreement, including the value they themselves are deriving from their common lands. As a result, they have difficulty calculating an appropriate rental cost that leaves them in an equal or better position than before the investment.

Reflections from Hells Gate National Park

Jan Mattsson's picture

​​​​​​Jan Mattsson visits Hells Gate National Park, KenyaJan Mattsson, a member of the Inspection Panel, describes his fact finding mission to Kenya and the truism that every case is unique and every case is complex.

I was recently appointed a Panel Member of the World Bank’s Inspection Panel, and I am blogging from the Rift Valley, Kenya where I am participating in my first fact finding mission related to a complaint filed by Maasai communities. The project in question is the Kenya: Electricity Expansion Project, which was funded by both the World Bank and the European Investment Bank (EIB) and has financed the construction of a geothermal plant within the Hell’s Gate National Park.

The project is geared to addressing Kenya’s growing demand for electricity, as only one out of four Kenyans have access to the national grid.  As with all countries, the growth of the economy and social development efforts relies on a reliable supply of electricity. The use of geothermal energy has the advantage of reducing the dependency on fossil fuels and being climate friendly, as well as lessening dependency on hydro-power resources in Kenya.
 

Technology Alone Will Not Save the World: Lessons from the 2015 Gates Letter

Suvojit Chattopadhyay's picture

Melinda and Bill Gates have made an annual tradition of publishing their thoughts on international development and its key challenges. Given the substance, I assume these letters reflect an annual manifesto for the organisation they head, the Bill and Melinda Gates Foundation (BMGF). Last year, I wrote about how the Gates Annual Letter was disappointing, perhaps not in the context of what the BMGF itself does, but what it ought to be doing, given its $42 bn muscle and its influential promoter, Bill Gates.

This year, the letter makes four “big bets” for 2030: child deaths will go down by half, and more diseases will be eradicated than ever before; Africa will be able to feed itself; mobile banking will help the poor radically transform their lives; and better software will revolutionise learning. In short, fast-tracking the identification ­technological fixes and expanding their reach over the next fifteen years will deliver a better world.

Unfortunately, these bets seem to me to be wildly optimistic. I may be quibbling, but from what we have learnt from research, there seem to be many reasons to suggest that we should be cautious with our optimism regarding what we can achieve with technology. The complexities of working on power, politics and implementation find no mention in the letter. Let us look a little more closely at each one of the bets to find out why that matters so much.

Poverty in Sub-Saharan Africa: “A historical perspective on land and labor”

Gareth Austin's picture
A Ghanaian carpenter shapes wood for a coffin in his workshop. ©Jonathan Ernst/World Bank

The inaugural Annual Bank Conference on Africa examined strategies for converting economic growth into poverty reduction. Taking an economic historian’s perspective, the prospects are complicated by long-term shifts in fundamental patterns, specifically from land abundance to land scarcity and, relatedly, from labor repression to landlessness as the principal source of poverty.

Weekly Wire: The Global Forum

Roxanne Bauer's picture

These are some of the views and reports relevant to our readers that caught our attention this week.

Aid Transparency Index 2014
Publish What You Fund
The 2014 ATI results follow the trends observed in previous years. A lead group of organisations are making significant and continuous improvements to the information they publish on their current aid activities – and many others have taken steps towards improving their publication in 2014 – but the majority have not made significant progress and continue to lag behind.
 
12 ways to communicate development more effectively
The Guardian
From fundraising to behaviour change, communications is key to development work. Our panel explain how to do it better. Sina Odugbemi, senior communications officer (policy), World Bank, Washington DC, USA, @WorldBank:

  • Make a case for development spending: Polls in Europe consistently show that support for development is wide but shallow. This is due to the limited power of emotive campaigns. People need to know if any of their money is doing permanent good or whether the cynics are right. That kind of case-making is, sadly, not done consistently and rigorously.
  • Avoid promoting quick fixes: What that does is provoke disillusionment down the road. We need to discourage young people particularly from thinking complex problems can be solved with a rush of energy and cool new tools. We need to be communicating that many tough challenges will require stamina and sustained effort and commitment.

Reaping the fruit of determination

Guang Z. Chen's picture


The highlands of Ethiopia, especially Tigray, were notorious for their severely degraded land. High population density, unchanged agricultural practices, climate change, the steep topography and intermittent and extreme rainfalls are the main causes of land degradation in the area.

Is Advocacy Only Feasible in Formal Democracies? Lessons from 6 Multi-Stakeholder Initiatives in Vietnam

Duncan Green's picture

Andrew Wells-Dang (right) and Pham Quang Tu (left) on how multi-stakeholder initiatives can flourish even in relatively closed political systems such as Vietnam

How can NGOs be effective advocates in restrictive political settings? Global comparative research (such as this study by CIVICUS on ‘enabling environments’) often concludes that at least a modest degree of formal democracy is necessary for civil society to flourish…including, but not limited to NGOs. Yet our experiences in Vietnam, which is commonly thought to be one of those restrictive settings, have shown that there is somewhat more space to carry out advocacy than appears at first blush – if advocates have a clear understanding of the national context and appropriate advocacy strategies.

We’ve seen effective advocacy take place around environmental and health issues through the initiatives of networks of formal and informal actors. At times, such as the disputes over bauxite mining in the Central Highlands (see here and here), networks have gone beyond the ‘invited spaces’ of embedded advocacy to boundary-stretching strategies of blogging, petitions and media campaigns. These actions defy the standard state-society dichotomy, bringing together activists and officials, intellectuals and community groups from around the country. At base is a realisation that social and policy problems are too big and chaotic to be resolved by state or non-state actors alone.

Land matters: Experts grapple with issues of measurement, ownership and equity

Merrell Tuck-Primdahl's picture

Good stewardship of land – whether fertile fields or tracts on the edges of growing cities – can drive sustainable and equitable development. Done well, good land governance can enable farmers, community leaders, city planners, remote sensing scientists, researchers and relief organizations to successfully deal with climate change, urbanization, gender equality, and food security. But the complexity of land administration, and its attendant institutional and political hurdles, often hamper progress and reinforce deep-seated inequalities and inertia instead of fostering growth and shared prosperity.

This is what makes the Annual World Bank Conference on Land and Poverty happening this week at the World Bank so important. Over 1,000 experts from 115 countries have gathered here for the event and are exploring a wide range of problems and potential solutions.

How Fair is “Fair Compensation” Under India’s New Land Acquisition Act?

I.U.B Reddy's picture

The much anticipated Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (“the Act”) has just come into force in India on January 1st, 2014. Unlike the replaced 1894 legislation, this act addresses the rehabilitation and resettlement of those who depend on land, in addition to land owners. As emphasized in its title the new act places a greater emphasis on transparent processes at various stages: for example, through its mandatory social impact assessments, public hearings, and dispute resolution mechanisms.  
 
The other key emphasis in the act’s title refers to a new compensatory mechanism. The new act now provides for up to two times market value, against one time in the previous act and this figure is then doubled by applying a one hundred percent “solatium” against 30% in the previous act (additional compensation). Though people get more compensation under new  act, an increase in multiplier does not address the fundamental question of determining “market value”  in a country where registered values under-represent land purchase price to evade high stamp duties.  The challenge is exacerbated in rural areas where there are fewer land transfers, and therefore fewer registered sales deeds to use as reference points. In such situations, a valuation that is perceived to be more “fair” can be found only through consultations and dialogue, as demonstrated by two case studies from World Bank financed projects in India:


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