Livelihood Rebuilding of Dam-Affected Communities: Case Studies from Sri Lanka and Indonesia

This paper discuss two cases of resettlement related to dam development: the Saguling project in West Java and the Kotmale project in Sri Lanka. Resettlers of these two projects were offered new livelihoods created by the project. Their successes and failures in restoring income subsequent to relocation are discussed. In both the projects, alternative compensation schemes had to be formulated because it was not possible to provide resettlers with the same amount of farmland in the vicinity. The strategic use of new opportunities, by way of providing new prospects in aquaculture development, was promoted as compensation for resettlers of Saguling and, as a result, they were able to enjoy superior economic and social benefits. Two options, based on income restoration through land-based alternatives, were offered for Kotmale resettlers: move away to new settlements or resettle in riparian areas after receiving tea plots. Two decades after relocation, their socioeconomic conditions are better than those who were not affected by the project. However, many questions remain which raise doubts whether resettlers were able to reap the intended benefits; these are discussed in this paper. Some of them include issues of social marginalization and inequality, the negative consequences of lack of access to credit, and over-exploitation of resources that eroded the earnings potential. The following lessons were learnt from the two case studies: livelihood rebuilding efforts should be complemented by introducing opportunities of securing financial assistance; attitude towards risk is crucial in the success of livelihood rebuilding; resettlement options should address the dynamism of local socio-economic conditions and be designed with local collaboration; sustainability of production capacity and economic viability in the long term should be emphasized; and while outsider influence cannot be controlled, the capacity of the local community can be strengthened.