What is the difference between voluntary and involuntary resettlers?
Voluntary resettlers are generally self-selected, young, and willing to pursue new opportunities. Involuntary resettlers are people of all ages, outlooks and capabilities, many of whom have no option but to give up their assets. Bank policy designates involuntary resettlers as requiring assistance. What constitutes fair compensation? Bank policy equates compensation to the “without” project situation, implying that replacement rates are required. People affected should be at least as well off after resettlement as they were before. Replacement costs are equal to market costs plus transaction costs only if the markets reflect reliable information about prices and availability of alternatives to the assets lost. Would payment of compensation by itself be sufficient recompense? Not necessarily. Most governments have policies, laws, and regulations requiring compensation for people losing assets, yet these might not be sufficient to restore livelihoods and living standards as required by B
