Governing farmer rehabilitation and resettlement in India

Viac o knihe

An important aspect of land acquisition for development projects is farmer resettlement, which aims to restore their standard of living. To achieve this and mitigate negative impacts, the rehabilitation framework under the Land Acquisition Act 1894 has undergone several modifications, often taking hybrid organizational forms. Land is acquired through a top-down approach based on monetary compensation, requiring displaced farmers to reorganize their income activities through market mechanisms. This thesis demonstrates that institutional efficacy is crucial for achieving desired outcomes. Utilizing the Institutions of Sustainability framework, it explores three interrelated approaches: transaction cost economics, access-based property rights, and institutional fit, to address rehabilitation challenges. A comparative institutional analysis employs both qualitative and quantitative methods. The findings reveal that farmers incur high transaction costs under the current system and face ex-post hazards. Furthermore, the benefits derived from property rights are contingent on actual access to those rights. The study also highlights that farmers' preferences for various compensation options significantly influence the contextualization of rehabilitation arrangements. Ultimately, the thesis concludes that while institutions play a vital role, they must be tailored to local conditions and align with farmers’ expectations.