Written by Mekong Institute
The country of Cambodia attracts foreign investment in land, and China ranks at the top of the investors. China is the largest foreign investor in Cambodia and is one of the leading investors in natural resources, energy, infrastructure, construction, agriculture, tourism, and telecommunications. One of the biggest impacts of China‘s investment projects is resettlement schemes which remain highly controversial. Based on the literature, five key determinants: 1) public participation, 2) pre-planning, 3) resettlement policy, 4) adequate compensation, and 5) legislation, have been identified that determine the success of the preparation and operation of resettlement schemes.
The aim of this study is to uncover whether the resettlement schemes for the large-scale land leases to the Union Development Group Co., Ltd (UDG) have been successful and to identify the underlying causes. Specifically, the study examined the five determinants contributing to the success of resettlement schemes and provided policy implications. In-depth interviews, focus group discussions, and case study were conducted with the communities affected by resettlement; key informant interviews were conducted with local authorities at the village, commune, and district levels, government ministries, and concerned local and international non-governmental organizations (NGOs).
The results of the study show that there was no public consultation prior to relocation, and the affected households had very limited information about the UDG‘s investment project in their communities. While information about the project was shared a number of times through dissemination meetings in the communities, the families who lived in the leased areas were not fully informed and did not give free prior and informed consent. They were also excluded from the development of the resettlement schemes, including in the pre-planning and displacement processes. Since Cambodia does not have a national policy and legal framework covering resettlement and compensation, there is no national standard. Resettlement and compensation of UDG is based on decisions taken by the government and the company involved.
The practice of compensation of UDG in Cambodia is inconsistent and irregular. The five determinants of resettlement did not fully function in terms of the formulation and execution of the resettlement schemes for the UDG project. As a consequence, the resettlement schemes for this project were unsuccessful. Hence, national policy on resettlement and compensation should consider establishing and the participation of local communities and concerned stakeholders should be involved appropriately.
