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Land for equity? A benefit distribution model for mining‐induced displacement and resettlement

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  • Han Wang
  • John R. Owen
  • Guoqing Shi

Abstract

Land access is central to natural resource development projects. Business strategy for securing continuing tenure to support operational activities is therefore a key factor in determining the overall success of resource projects. A major shortcoming in resettlement planning has been the failure to address basic inequities stemming from the transfer of land assets. Compensation for land in conventional models neglects to account for the potential or intended use of the developer, meaning that affected people (APs) assets are grossly undervalued in the environment in which they acquired. Not only do resource projects under‐compensate APs for their losses, but programming for livelihood restoration and the enjoyment of project benefits more generally has proven to be almost universally poor. Performance outcomes reflect short‐term project milestones but lack a strategic dimension regarding how the company will maintain land access and the continuing support of its nearest stakeholders. Innovations are needed on at least two fronts: (i) the recognition of AP land values in mining project developments and (ii) enterprise financing to avoid the issue of companies driving incurred compensation costs downward. This article outlines the conceptual basis of a land pooling model as the means for securing financial equity for people displaced by mining projects. The authors conclude that the land pooling model of resettlement (LPMR) can improve the short‐ to medium‐term economic conditions of APs and advances suggestions to further promote a balance of interests in mining‐induced displacement and resettlement cases.

Suggested Citation

  • Han Wang & John R. Owen & Guoqing Shi, 2020. "Land for equity? A benefit distribution model for mining‐induced displacement and resettlement," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3410-3421, December.
    • Handle: RePEc:bla:bstrat:v:29:y:2020:i:8:p:3410-3421
    DOI: 10.1002/bse.2585
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    References listed on IDEAS

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    1. Le Meur, Pierre-Yves & Horowitz, Leah S. & Mennesson, Thierry, 2013. "“Horizontal” and “vertical” diffusion: The cumulative influence of Impact and Benefit Agreements (IBAs) on mining policy-production in New Caledonia," Resources Policy, Elsevier, vol. 38(4), pages 648-656.
    2. Craik, Neil & Gardner, Holly & McCarthy, Daniel, 2017. "Indigenous – corporate private governance and legitimacy: Lessons learned from impact and benefit agreements," Resources Policy, Elsevier, vol. 52(C), pages 379-388.
    3. Marc J. Epstein & Sally K. Widener, 2011. "Facilitating sustainable development decisions: measuring stakeholder reactions," Business Strategy and the Environment, Wiley Blackwell, vol. 20(2), pages 107-123, February.
    4. Yang, Xiuyun & Zhao, Heng & Ho, Peter, 2017. "Mining-induced displacement and resettlement in China: A study covering 27 villages in 6 provinces," Resources Policy, Elsevier, vol. 53(C), pages 408-418.
    5. Rouwette, Etiënne & van Kranenburg, Hans & Freeman, Edward, 2017. "Reviewing the role of stakeholders in Operational Research: A stakeholder theory perspectiveAuthor-Name: de Gooyert, Vincent," European Journal of Operational Research, Elsevier, vol. 262(2), pages 402-410.
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    Cited by:

    1. Xu, Hongzhang & Pittock, Jamie & Daniell, Katherine, 2022. "‘Sustainability of what, for whom? A critical analysis of Chinese development induced displacement and resettlement (DIDR) programs," Land Use Policy, Elsevier, vol. 115(C).
    2. Ruilian Zhang & John R. Owen & Deanna Kemp & Guoqing Shi, 2022. "An applied framework for assessing the relative deprivation of dam‐affected communities," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(1), pages 176-190, February.
    3. Guoqing Shi & Yuanke Zhao & Xiaoya Mei & Dengcai Yan & Hubiao Zhang & Yuangang Xu & Yingping Dong, 2022. "Livelihood Resilience Perception: Gender Equalisation of Resettlers from Rural Reservoirs—Empirical Evidence from China," Sustainability, MDPI, vol. 14(17), pages 1-22, September.
    4. Yuangang Xu & Guoqing Shi & Yingping Dong, 2022. "Effects of the Post-Relocation Support Policy on Livelihood Capital of the Reservoir Resettlers and Its Implications—A Study in Wujiang Sub-Stream of Yangtze River of China," Sustainability, MDPI, vol. 14(5), pages 1-22, February.

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