Abstract

The present study proposes welfare packages to be implemented as part of comprehensive compensation packages to mitigate the long-term socio-economic impacts of development-induced involuntary resettlement and to evaluate potential costs and benefits of the proposed welfare packages. Interviews using structured questionnaires surveyed randomly selected households affected by involuntary resettlement due to land acquisition for the Road Network Improvement and Maintenance Project II (RNIMP-II) in Chittagong-Dohazari area, Bangladesh to gather data on compensation status in the current compensation scheme, willingness to pay (WTP) for and satisfaction with the proposed welfare packages consisting of houses, skill training, health care, and education support. Results of cost-benefit analysis based on estimated WTP as a unit benefit value (n = 205) revealed that welfare packages in development-induced involuntary resettlement are economically viable and enhance satisfaction among affected people. The present study also shows that affected people have diverse attitudes in the evaluation of merits expected from welfare packages depending on socio-demographic characteristics such as education, number of children, income, and land ownership and perception of involuntary resettlement operations. These suggest that welfare packages contribute to enhancing quality of life and satisfaction among affected people by involuntary resettlement in the long run, and thus comprehensive compensation packages including welfare packages should be utilized for future development projects that involve involuntary resettlement.

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