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.