displacement, resettlement and adverse incorporation in andhra pradesh. the case of the ...

364 Pages·2012·10.55 MB·English

Mariotti, Chiara (2012) Displacement, Resettlement and Adverse Incorporation in Andhra Pradesh: 
The Case of the Polavaram Dam. PhD Thesis. SOAS, University of London 
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DISPLACEMENT, RESETTLEMENT
AND
ADVERSE INCORPORATION
IN ANDHRA PRADESH.
THE CASE OF THE POLAVARAM DAM

CHIARA MARIOTTI

Thesis submitted for the degree of PhD in Economics

2012

Department of Economics
School of Oriental and African Studies
University of London
1
Declaration for PhD thesis

I have read and understood regulation 17.9 of the Regulations for students of
the School of Oriental and African Studies concerning plagiarism. I undertake
that all the material presented for examination is my own work and has not
been written for me, in whole or in part, by any other person. I also undertake
that any quotation or paraphrase from the published or unpublished work of
another person has been duly acknowledged in the work which I present for
examination.

Signed: ____________________________ Date: _________________

2
Abstract

This thesis investigates the reasons of the failure for resettlement programmes in
preventing the impoverishment of people displaced by development projects. It is also
concerned with the contribution that economics can make to the improvement of
resettlement theory and practice, in particular through political economy and choice
experiment methodologies. The investigation is carried out through a case study of the
Polavaram dam in Andhra Pradesh, which will lead to the submersion of 177 villages and
the displacement of 200,000 people. The research originates from the acknowledgement
that the failure of resettlement programmes is determined at, and reflected through, the
theoretical, methodological and practical levels.
The thesis is divided into three parts. The first part looks at the existing literature on
displacement and resettlement and identifies where failures are located at theoretical and
methodological levels. The unsatisfactory use of economics in dealing with the problem of
resettlement is pinpointed as a major cause of theoretical and methodological deficiencies.
In order to tackle these, alternative approaches from within the discipline are suggested.
These include the use of choice experiments to consult the affected population directly
about their resettlement. Also emphasised is the potential contribution of political economy
to the theoretical understanding of resettlement, and a framework based on the notion of
adverse incorporation is developed.
The second part clarifies the methodology employed to investigate displacement and
resettlement in the case study, and describes the case study itself.
The third part describes the findings of the choice experiment and the adverse
incorporation framework as applied to the case study and assesses their potential
contribution to resettlement research. Evidence of the performance of resettlement in
Polavaram in practice is also provided. It is found that the resettlement of the Polavaram
affected people is likely to fail in preventing further impoverishment and to lead instead to
their adverse incorporation into the local process of development.

3
Table of contents

List of Tables.......................................................................................................................... 8
List of Boxes .......................................................................................................................... 9
List of Figures ...................................................................................................................... 10
Acronyms and abbreviations ................................................................................................ 11

Introduction .......................................................................................................................... 15

PART I

Chapter 1
Resettlement & Rehabilitation of people displaced by development:
an unresolved challenge ....................................................................................................... 25
1.1. Introduction ............................................................................................................... 25
1.2. Development-induced Displacement, past and present ............................................ 26
1.2.1. The increase and systematicity of Development-Induced Displacement today .. 26
1.2.2. A theoretical discourse and a policy and legal framework for development-
induced displacement .................................................................................................... 27
1.3. Displacement, forced migration and the human rights discourse ............................. 28
1.4. Resettlement as a problem of policy and management............................................. 34
1.4.1. The preponderance of a 'reformist-managerial' approach to Development-
induced Displacement ................................................................................................... 34
1.4.2. International Financial Institutions and their policy frameworks: the World
Bank and others ............................................................................................................. 41
1.4.3. Resettlement models: the Four-Stage Model and the Impoverishment Risks and
Reconstruction Model .................................................................................................... 47
1.5. Overview and Concluding Remarks ......................................................................... 50

Chapter 2
The Contribution of Economics to Resettlement & Rehabilitation ...................................... 52
2.1. Introduction ............................................................................................................... 52
2.2. The economics of compensation and resettlement ................................................... 53
2.3. Cost-Benefit Analysis for Displacement-Inducing Projects ..................................... 59
2.4. The Compensation Principle ..................................................................................... 69
2.5. Estimating the costs of displacement with State Preference Methods. Is it possible
and what good can it do? .................................................................................................. 76
2.6. Conclusion ................................................................................................................ 88

Chapter 3
A Political Economy approach to Displacement and Resettlement:
the Adverse Incorporation framework ................................................................................. 90
3.1. Introduction ............................................................................................................... 90
3.2. Critique of the reformist-managerial approach to resettlement: lack of political
economy ............................................................................................................................ 90
3.3. Impoverishment as a regularity: relational approach to poverty and adverse
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incorporation framework .................................................................................................. 95
3.3.1. Relational approach to poverty .......................................................................... 95
3.3.2. The Adverse Incorporation Framework ........................................................... 100
3.4. Resettlement of displaced people as a process of adverse incorporation ............... 105
3.4.1. The economic dimension of adverse incorporation: accumulation by
dispossession and surplus labour ................................................................................ 109
3.5. Overview and Conclusion ....................................................................................... 119

PART II

Chapter 4
Methodology, Strategies of Inquiry and Methods .............................................................. 121
4.1. Introduction, Research Questions and Hypothesis ................................................. 121
4.2. Methodology: Case study ....................................................................................... 124
4.3. Strategies of inquiry ................................................................................................ 125
4.4. Fieldwork ................................................................................................................ 127
4.5. Methods for data generation and collection ............................................................ 129
4.5.1. Household Survey ............................................................................................. 130
4.5.2. Consultation exercise with Choice Experiment Approach ............................... 138
4.5.3. Focus Groups ................................................................................................... 141
4.5.4. Interviews and informal conversations ............................................................ 142
4.5.5. Government documents and other official sources .......................................... 143
4.6. Conclusion .............................................................................................................. 143

Chapter 5
The case-study: the Polavaram dam project and the displaced population ...................... 145
5.1. Introduction ............................................................................................................. 145
5.2. The Polavaram dam project .................................................................................... 152
5.2.1. Technical details and claimed benefits ............................................................ 152
5.2.2. The negative effects: details of submergence and displacement ...................... 156
5.2.3. The controversies surrounding the project ...................................................... 160
5.2.4. Cost and sources (lack there)of funding ........................................................... 164
5.3. The Polavaram displaced population: socio-economic characteristics and sources of
livelihood ........................................................................................................................ 166
5.3.1. Scheduled Castes and Scheduled Tribes in Andhra Pradesh ........................... 167
5.3.2. Tribal land alienation and forest eviction ....................................................... 175
5.4. The legal and policy framework of resettlement in Polavaram ............................... 179
5.4.1. The Indian policy and legal framework on Resettlement and Rehabilitation .. 179
5.4.2. The Andhra Pradesh Resettlement and Rehabilitation policy and the Polavaram
Resettlement and Rehabilitation package ................................................................... 183
5.5. State of advancement of resettlement operations in Polavaram ............................. 188
5.6. Conclusion .............................................................................................................. 195

PART III

Chapter 6
Adverse Incorporation and Surplus Labour in Andhra Pradesh ....................................... 197
6.1. Introduction ............................................................................................................. 197
6.2 Displacement, resettlement and the economic dimension of incorporation in
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Polavaram ....................................................................................................................... 198
6.2.1. Accumulation by Dispossession and Surplus Labour in India ......................... 200
6.2.2. Rural sector, agrarian crisis and surplus labour in Andhra Pradesh ............. 205
6.2.2.1. Employment in the rural sector .................................................................. 205
6.2.2.2. Agrarian Crisis in Andhra Pradesh ............................................................ 209
6.2.2.3. Fragmentation of landholdings and increase in tenancy ............................ 214
6.2.2.4. Wage labour in rural Andhra Pradesh ........................................................ 217
6.2.3. The livelihoods of the Polavaram affected people: a snapshot ......................... 220
6.2.3.1. Social composition of the survey villages ................................................... 221
6.2.3.2. Poverty level and consumption of durable goods ....................................... 223
6.2.3.3. Main sources of livelihood .......................................................................... 226
6.3 Displacement, resettlement and the political dimension of incorporation ................ 230
6.3.1 Decision-making about the dam as an exclusionary process ............................. 231
6.3.2 Resettlement as a space of contestation ............................................................. 233
6.3.3 From resistance to resignation and negotiation: possible explanations ........... 236
6.4. Spatial and socio-cultural dimension of the incorporation of the Polavaram affected
people .............................................................................................................................. 242
6.5. Conclusion .............................................................................................................. 246

Chapter 7
An assessment of Resettlement in Polavaram .................................................................... 248
7.1. Introduction ............................................................................................................. 248
7.2. Consulting people about their resettlement preferences: focus groups and choice
experiment ...................................................................................................................... 249
7.2.1. Focus Groups in Polavaram ............................................................................ 250
7.2.2. Consulting people with a Choice Experiment Approach ................................. 252
7.2.2.1. Description of the compensation packages ................................................ 255
7.2.2.2. Description of the exercises ....................................................................... 260
7.2.2.3. Summary and discussion of the findings .................................................... 278
7.3. The main shortcomings of the Polavaram Resettlement and Rehabilitation package
........................................................................................................................................ 283
7.3.1. The Loss of the Forest ....................................................................................... 284
7.3.2. Land Compensation .......................................................................................... 285
7.3.3. Limitations of Cash Compensation: money does not buy a new livelihood ..... 289
7.4. Conclusion .............................................................................................................. 293

Chapter 8
Conclusion and Policy Recommendations ......................................................................... 296
8.1. Summary of the findings.......................................................................................... 296
8.2. Resettlement of people displaced by development: a problem in theory, a problem in
practice ............................................................................................................................ 302
8.3. Policy Recommendations for Polavaram and beyond ............................................. 305

Bibliography ....................................................................................................................... 308

APPENDICES
Appendix I – Village Questionnaire .................................................................................. 324
Appendix II – Household Survey Questionnaire ............................................................... 329
Appendix III – Questionnaire for Choice Experiment ....................................................... 334
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Appendix IV – Cards used to represent the resettlement packages offered in the Choice
Experiment ......................................................................................................................... 338
Appendix V – Questionnaire for Focus Groups (preliminary and ex-post focus groups) . 346
Appendix VI - Main Sources on the Polavaram dam project ............................................ 350
Appendix VII - Main benefits under the Andhra Pradesh Resettlement and Rehabilitation
Policy, 2005 ....................................................................................................................... 352
Appendix VIII - The failure of Resettlement: empirical evidence .................................... 354
Appendix IX – Maps of Polavaram ................................................................................... 360

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List of Tables

Table 5.1 Summary of displacement estimates according to different sources p.157
Table 5.2 Details of affected villages and populations according to R&R
Commissioner p.158
Table 5.3 Distribution by district of SC and ST population as a percentage of
Total Population p.168
Table 5.4 Head-Count ratio (HCR) at the All-India and Andhra Pradesh levels,
2004-2005 P.168
Table 5.5 Regional level estimates of poverty (Head-Count ratio)
p.170
Table 5.6 Distribution of households by occupation of chief earner and
household income quintile, 2004-05 all-India level p.171
Table 5.7 Distribution of households by source of income and household income
quintile, 2004-05 all-India level p.172
Table 5.8 Proportion of households income by source, for All-India and by
social group p.172
Table 5.9 Percentage distribution of rural households by household type p.173
Table 5.10 Percentage of Casual Labour to the Total Employed p.173
Table 5.11 Area operated by different size classes (SC) (area in lakh hectares) p.174
Table 5.12 Area operated by different size classes (ST) (area in lakh hectares) p.175
Table 5.13 No. of holdings from 1976-77 to 2000-2001 by social group
(individual holdings, number in lakhs) p.175
Table 5.14 Details of financial benefits to each agricultural labourer/farmer under
R&R package in Polavaram Mandal in West Godavari District (tribal and non-
tribal); all monetary amounts in INR p.189
Table 5.15 Status of R&R villages as at 31-05-2011 p.190
Table 5.16 Status of R&R centres as at 31-05-2011 p.190
Table 5.17 Status of R&R Infrastructure as at 31-05-2011 p.191
Table 5.18 Status of R&R BPL housing units as at 31-05-2011
p.191
Table 5.19 R&R package benefits for the project affected families; all figures in
INR p.195
Table 6.1 Growth and Elasticity of Employment in Andhra Pradesh and India p.206
Table 6.2 Percentage distribution of rural persons by household type, Andhra
Pradesh p.207
Table 6.3 Unemployment rates in rural areas of India and Andhra Pradesh
according to usual, weekly and daily status p.209
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Table 6.4 Growth rate of gross state domestic product of Andhra Pradesh at
constant (2004-2005) prices (percentage change over previous year) p.210
Table 6.5 Percentage distribution of operational holdings by size class, 1956-
2006 P215
Table 6.6 Percentage of SC and ST population on total population in Andhra
Pradesh, 1961-2001 p.215
Table 6.7 Social composition of the villages and families below the poverty line
(West Godavari District, Polavaram Mandal) p.222
Table 6.8 Social Composition of the villages (East Godavari District,
Devipatnam Mandal) p.222
Table 6.9 Social Composition of the villages (Khammam District) p.223
Table 6.10 Three less frequently and three most frequently owned consumption
goods p.224
Table 6.11 Ratio of items owned by families having received cash compensation
to items owned by the sample as a whole p.225
Table 6.12 Details of income sources outside agriculture
p.229
Table 7.1 Aggregate results of exercise Resettlement attributes (First, second and
third round) p.261
Table 7.2 Aggregate results of Exercise Willingness to Accept p.270
Table 7.3 Results of Exercise Willingness to Accept, First and Second Round p.271
Table 7.4 Results of Exercise Willingness to Accept, Third Round p.271
Table 7.5 Summary of ranking results p.276

List of Boxes

Box 7.1 Details of First, Second and Third Round of the Choice Experiment p.255
Box 7.2 Package Forest p.256
Box 7.3 Package Money p.256
Box 7.4 Package Land for Land p.257
Box 7.5 Package Self-employment p.258
Box 7.6 Package Forest no Village p.258
Box 7.7 Package Instalments p.259
Box 7.8 Package Money no Community p.259

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