Effect of cash compensation on livelihood restoration among project affected persons: a case of the Kampala-Entebbe Expressway

Abstract

Globally, development induced displacement and resettlement have potentially run the risk of impoverishing local populations, threatening people’s livelihoods and truncating their chances for sustainable development. To address the effect of impoverishment among Project Affected Persons (PAPs), a resettlement guided by the World Bank resettlement principles; avoid, minimize/mitigate and restore have been increasingly adopted by numerous development agencies focusing on mitigation policies, plans and strategies. Particularly, the impoverishment of inconsiderable numbers of Project Affected Persons (PAPs) has gained recognition over the years from a magnitude of donor funded projects/programs. This thesis aims to evaluate the effect of cash compensation on the livelihood among Project Affected Persons and whether they were able to restore affected or lost assets, upon receipt of compensation. Precisely, a sample population of 70 persons affected by the Kampala Entebbe Expressway (KEE) project participated in the study. Data was collected throughout the month of May to June 2019. The KEE project specifically implemented cash compensation which exposed certain Project Affected Persons (PAPs) to risks of impoverishment while others prospered. The looming risks of impoverishment that resulted from the methods used for compensation or relocation included; Homelessness, Landlessness, Joblessness, marginalization, loss of access to common property resources, increased morbidity and mortality and community disarticulation, among others. Whilst noting, Project Affected Persons who had no access to livelihood resources before resettlement but only the affected assets such as residential homes and land reported failure of restoring lost assets. It is evidenced that PAPs who obtained cash compensation for land and structures were only able to restore land but could not reconstruct their structures using the same compensation money. Although the findings of this research identified some challenges experienced by the PAPs such as, the reduction of agricultural and grazing land area, none were perceived to be major threats that were preventing them from achieving their livelihood objectives. The findings of this study indicated that cash compensation is not entirely to blame for impoverishment of Project Affected Persons (PAPs) but rather, the livelihood status of an individual before resettlement. This is particularly realized from the PAPs who previously had access to livelihood assets and resources such as businesses, jobs and structures who were able to restore lost assets at least to pre-project stage or even better.