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Poverty

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:

Thinking Twice Before Having Children in Poland

The first thirty minutes of Elzbieta’s day are the most precious.
 
Between five and five-thirty in the morning is the only time she gets to herself, which she uses to work out, or read a book. After that, the grind of everyday life in Poland’s countryside takes over. She cooks, washes, cleans, irons, and cooks for her seven children, aged two to fifteen. And it doesn’t stop until late at night.
 
Elzbieta’s family and other families with multiple children are rather unique in Poland, which has one of the lowest fertility rates in the world. When asked why they didn’t have children in a recent country-wide survey, 71 percent of Poles said unstable employment and difficulties in balancing work and family life were big factors.
 
Their fears are not without reason -- with each child, the risk of poverty increases tremendously -- families with three or more children are more likely to be in the lowest income group, with 26.6 percent of households with four children living in poverty in Poland, according to the Main Statistical Office.
 
Even buying clothes for children is a daunting task, in such cases. “We have started participating in lotteries organized by local clothes stores, with no luck so far,” Elzbieta said. “We do it because taxes for children’s clothes and shoes were recently raised, and families like ours are most affected. Families with children are just not given a chance.”
 
Elzbieta talked to me as she picked flowers in a nearby field, while watching her five-year old daughter. The flowers she collected would later be dried on a bench outside her rural home and used for making herbal teas for the family. Even buying tea is a financial challenge for Elzbieta’s family, whose income, a total of PLN 3,280 (about $1,100) comes from social assistance for children, including a disabled child (PLN 2,000) and her husband’s income – after the payment of a home renovation loan – of PLN1, 280.
 
The Face of Poverty in Europe and Central Asia

 
But hospitality is not to be spared.

The Importance of Sour Cherries in Serbia

Caterina Ruggeri Laderchi's picture
“What a shame you cannot be here in two weeks,” our driver said, as we entered Toplica District in Southern Serbia, the poorest part of the country. It is an open countryside of rolling hills, with thick forests on the horizon. Next to the road, neat rows of bushes and low trees appear, dotted with red.

Sour cherries.

“In two weeks, everything will be red,” he said. “And what do you do with all these cherries?” I asked, half dreaming of one of my mother’s best tarts. 

Export to Russia, came the reply. A river of sour cherries flowing from this small corner of Serbia, across Europe and into Russia is a less interesting image than my mother’s spectacular tart, but in a country where signs of the ongoing economic crisis abound, this is good news.

Every field we looked at had new plantings alongside more established trees. A new parasite is apparently threatening these cherry orchards, and foreign experts are working with local growers to control it. Still, it seems clear that people are investing in the business, and this means jobs – though only temporary, tough and lasting long hours of cherry picking, these jobs are a blessing for those who have little else to rely on.

Ivan and his wife Daniela, in the village of Vlahovo, are a case in point - and the face of poverty in the region.
 
The Face of Poverty in Europe and Central Asia

Poverty Drives Daily Choices in the Kyrgyz Republic

There is nothing worse than having to wonder if you will be able to afford tomorrow's meal. Or the day after's.

But for millions of poor in the Kyrgyz Republic, it is routine - and their every day reality. The World Bank interviewed several families in the country recently to showcase the real face of poverty in the region, where the poor spend significantly more to stay warm and buy enough food to survive than in other parts of the world because of the region's extremely long and cold winters.

Watch the full documentary on poverty in Europe and Central Asia here.

Dreaming about a better future in Armenia

The World Bank recently interviewed several families in Armenia to depict the hardships people face when they cannot earn more than $5 a day per person. The country faces long, harsh winters and paying to stay warm and eat enough to survive the cold can quickly eat into the poor's meager incomes.

The Face of Poverty package aims to show how tough life can be for these families and their belief that education is the singular way out of poverty for their children.

Watch the full documentary here.

Logistics: a Critical Nexus Point for Inclusive Growth

Marc Juhel's picture
As I get ready to head back to Washington DC after a visit to The Netherlands, I don’t want to miss the opportunity to share with you some thoughts on sustainable logistics.

While some of you might be familiar with the term, transport logistics refers to the services, knowledge and infrastructure that allow for the free movement of goods and people. 

In today’s globalized economies, logistics is recognized as a key driver of competitiveness and economic development. And as policy making turns its attention to promoting sustainable growth paths, valuing scarce resources, and minimizing environmental impacts, sustainable logistics is indeed a key nexus point.

Efficient logistics systems are a precondition for regions, countries, cities and businesses to participate in the global economy, boost growth, and improve the living conditions of millions of people.

That’s why this topic is so important for the World Bank’s mission and our client countries in the transport sector. And that’s why this week in The Hague we organized, together with the government of The Netherlands and partners like Dinalog, the Dutch Institute for Advanced Logistics, our first Conference on Sustainable Logistics.

Growth, Migration and Violence in India: Impressions from a recent visit to KBK districts of Odisha

Dilip Ratha's picture
"For a moment I was bewildered. Then Nilambar muttered to the contractor that if we have legs at least, we could walk for the rest of our lives. We told the contractor he could take our hands…"
 - Odisha's vicious migration cycle, Indian Express, Sunday, Dec 22 2013, 11:00 hrs


In the middle of December 2013, Dialu Niyal (30) and Nilambar Dhangda Majhi (28) of Kalahandi, Odisha, paid an inhuman price for a breach of contract. The labor contractors had paid them (and 10 other villagers) Rs 14,000 ($225) each in advance to recruit them for work in another state. When the time came, the contractors tried to take them to a different place from the one agreed, but the villagers were not willing to go to the new place and escaped, except for these unfortunate two. The contractors detained them for a week trying to collect the debt, and in the end, became violent. 

Jishnu and Shanta Talk Transfers

Shanta Devarajan's picture

Shanta:  Jishnu, your blog post and mine on cash transfers generated a lot of comments.  Some people argued that giving poor people cash will not “work” because they will spend it on consumption rather than on their children’s education, which is something we care about.  What do you have to say to that?

Jishnu:  I don’t think the question “does giving cash to poor people work?” is well-defined.  It can only be answered in the negative if we (the donors who give the cash) impose our preferences and judge what poor people spend on relative to those preferences.  But if we give poor people cash so they will be better off, then—by definition—they are better off, regardless of how they choose to spend the extra money.

Politics in Development? Meet the New Institutional Economics

Kate Henvey DeMoss's picture

Around the end December of every year, the pundits start coming out with their forecasts for 2014. This past December, the World Bank pundits predicted everything from girls outperforming boys in developing countries (girl power!) to the staggering idea that for Europe, 2014 will be a better year.

This year though, the World Bank’s Future Development Forecasts blog, included a prediction that caught these two political scientists by surprise— “as more and more economists point to the primary [sic] of politics in development, political scientists will wake up and wonder why they have been left out of the discussion.”


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