Development Projects, Human Displacement, and the UN Global Compact: A visit with different sectors of Indian Society.
By Marie Mainil (mmainil)
Part I
September 24, 2008
“We need a new understanding of business ethics and governance, with more compassion and less uncritical faith in the magic of markets.”
Today, as upheaval on Wall Street steered anger in the U.N. annual meeting of the General Assembly, Ban Ki-moon, known for his discrete diplomatic style, let out these forceful words that brought me back to my recent trip to India, August 16-30, 2008.
Intro
With a grant from the India China Institute at the New School in NYC, and the generous support of the Stanley Foundation Rising Powers project, I embarked on a sort of interview it all field trip, partly designed as professional development. The topic: Development induced displacement, with a United Nations Global Compact twist to it. Not always sticking to a proposed itinerary in part because of security issues, I traveled the skies and roads—survived the roads, see, it’s not only that India drives on the left side of the road, both directions actually too often drive on both sides of the road, in the midst of vehicles of all sizes and shapes, yes, including elephants but also speedy modes of transportation—of India through Mumbai, Pune, Lavassa City, Pen, Kochi, Ernakulum, Trivandrum, Delhi, and Bhubaneshwar. I met with NGOs, tribals, farmers, villagers, officials, academics, and businessmen. Whenever I had access to a TV, I would hear about Singur and how India grapples with how to convert its farmland into factories.
On August 22nd, I reported to my superiors through what seemed (at the time at least) the life-saver blackberry the foundation had recently hooked me on:
“In terms of findings, the trends that appear now are 1. Land grab for development purposes is a huge problem in India and beyond in the context of rising powers. (Even in cities themselves! See documentary Road to Shangai via Mumbai, available at the India China Institute (ICI) in NYC.) Special Economic Zones (See SEZ NCAS documentary, available at ICI) where often foreign investment is involved, is a prominent example. Locals are not made partners in these endeavors and they rebel—some of them on terrorist lists. Hence the need for global rules such as the Global Compact if we mean sustainable development when we say development. If governments are going to pressure businesses, they better set up a good example themselves. Often they are both involved in the same projects. Not a piece of cake. But this seems so important in many regards, including in terms of multilateralism we promote at the foundation, that if I had my say I would suggest a Global Compact special advisor at the UN, who should also take on specific campaigns, and land grab is definitely up there as an issue. Locals agree. 2. Water Conflict is another huge issue. The needs of locals vs. powering industries. 3. In these contexts, it is my sense that in today’s world multilateralism cannot only mean horizontal top level multilateralism among countries, but also needs to mean multilateralism across different sectors of society at both national and international levels. Here again locals agree. Let’s see what discussions with officials will bring to the table. Lastly, I am, as I write, in a quite amazing state of India: Kerala. Communist state, definitely capitalist as far as the economy goes. Democratic. Often described as most balanced development in India and I see that. You just don’t see some of the misery you see elsewhere. Christians, Muslims, and Hindus also seem to cohabitate and collaborate peacefully here. I am about to meet with academics at the Center for Development Studies in Trivandrum to try to find out what Kerala’s secret is. More later…also thanks to all of you who helped in one way or another with the preparation of the trip, I am using all your recommendations and they are very helpful during this fascinating yet difficult trip. M”
Pen, Maharastra
It is in a basement office that I met with a committee of farmers from the village of Pen in Marahastra. They were eager to tell me about the controversial SEZ (Special Economic Zone) situation they find themselves in:
“No agitation is allowed”
“An SEZ on our farmland would be administered like a foreign territory.”
Special Economic Zones (SEZs) are enclaves whose tax breaks and relaxed regulatory requirements are intended to attract foreign investment, spur the creation of world-class infrastructure, and create jobs. India’s recent adoption of the SEZ concept in 2005-2006 seems to have been inspired by the success of China’s SEZs such as Shenzhen or Dongguan. [i] If so, tells us political scientist Prof. Rob Jenkins, “it still remains a mystery why India’s SEZ policy is so strikingly different from the Chinese one.” It does seem that in China the emphasis was on large sites (as the theory behind SEZs favor larger sites) whereas Indian SEZs can be as small as 10 hectares. The farmers’ anger and wonders was certainly along the same lines as Prof. Jenkins’ observation:
“We have the right to our land”
“What will an SEZ do for us?”
“This SEZ policy is breaking the nation, divesting many people of their property.”
“Our land is our livelihood. We don’t live in luxury but have abundance.”
“We will fight for this to the bitter end, we are ready to sacrifice our lives for the livelihood of our children.”
Pen is close to Mumbai, which lays the foundation for much profit to be made if these farmers’ land is transformed into real estate. The practice of land grab has been an issue in India (and beyond). Land has been acquired for development purposes, several times under suspicious conditions such as middle men. The end result is often costing the poor, creating distrust between farmers, i.e., and public or private development projects. Corruption is thus part of the problem. But so is the Indian state’s record at Resettlement and Rehabilitation. For a reaction to the 2007 Indian National Rehabilitation and Resettlement Policy by the Asian Centre for Human Rights, click here.
I can’t think of better words than Prof. Jenkins’ to conclude this vignette:
“It is an open question whether SEZs will evolve into islands of placid modernity amidst a sea of chaotic dysfunction, in which case they will symbolize the malaise that has beset India’s democratic experiment, or whether SEZs can generate new and responsive modes of governance that the rest of India will selectively emulate to make the quality of its democracy as impressive as its inclusiveness.”
Lavasa City, Maharastra
Google Lavasa City and you end up at http://www.lavasa.com/
If you visit their corporate office in Pune, you will receive a book titled “Life in Full. Lavasa.” Here is an excerpt from the book:
“The vision behind Lavasa is to promote maximum living, and celebrate life in full. A unique setting to Live, Work, Learn and Play in harmony with the highest environmental standards. At 2000-3000 ft. above sea level, Lavasa offers a vibrant, self-contained world encircling 25,000 acres of lakes and hills with an extensive Master Plan covering half that area. With expanses of open greenery and an abundance of material and spiritual choices, Lavasa is ideal for living at one’s own comfortable pace, while working in a pollution-free environment.”
When I visited the Lavasa corporate office, I asked whether they had a social corporate responsibility program. They do. They built a hospital and run education and family programs for locals. But there is another side to the social aspect of the story, and Lavasa is far from being a unique case in this sense. Lavasa City is located in the Western Ghats, and covers a territory traditionally home to a tribal community/adivasi. Lavasa social corporate responsibility program also includes a resettlement and rehabilitation program for tribals displaced as a result of the new city constructions. The day prior visiting the Lavasa office, I went to the field with an NGO, NCAS, and visited with tribals affected by the Lavasa constructions.
A tribal woman told me about her losses. While the Indian government has made efforts to legally allocate tribal land to its tribal communities[ii], her husband was victim of a middle man alcohol related scheme that made him sell his land for a small amount, de facto leaving her/them destitute of a way to sustain themselves and their way of life. The middle man sold their land to the Lavasa project. She insisted she wasn’t the only one in her community in this type of situation. Members of her community have relocated in difficult conditions more than once, staying around the land that once belonged to them.
As “On the Margins of Profit, Rights Risk in the Global Economy,” a 2008 report from Human Rights Watch, comments:
“Business activity around the world has a profound effect on people’ lives and livelihoods, but international debates about business conduct frequently neglect to fully consider the many ways that businesses can advance or impede the enjoyment of human rights. Existing corporate social responsibility initiatives, many of which have emerged in response to specific controversies, typically cover only a limited set of rights and apply selectively to individual companies or industries or particular country contexts such as conflict areas. There are no widely agreed overarching standards for all businesses, but instead many different standards that address select human rights, select companies or industries, or select countries situations. The result is a messy and inconsistent patchwork of voluntary pledges that have limited application, generally do not fully align with international human rights norms, and in any case are frequently disregarded in practice.” For the full report, click here.
Some of the report general recommendations seem very applicable to development induced displacement in India and beyond:
*In assessing the impact of business activity on human rights, it is important to focus as much on corporate ties with third parties that commit abuse as on cases in which businesses themselves directly cause harm.
*Economic interests and other factors can lead governments to neglect victims of business-related abuses. If business-related abuses are to be curbed, greater attention needs to be paid to governmental obligations in the face of abuses perpetrated or facilitated by private actors.
*Individuals whose rights are affected by businesses often are unable to obtain meaningful redress; in too many cases, they face retaliation for even trying. This finding reinforces the need to promote access to justice for victims of business-related abuses and the importance of further examinations of the reasons states are not providing appropriate remedies and reparations.
*Many companies have not ascribed to business standards addressing relevant human rights and, even when codes of conduct or commitments to social responsibility exist, they often are not adequately implemented. Additional standards and compliance mechanisms are needed.
This was also the impression of locals I met in Kerala…
A note about Tata: Tata, Indian business giant, is a philanthropy pioneer who offers many impressive philanthropic programs. Yet it is Tata that found himself in the middle of the Singur controversy.
This example also shows, in my opinion, the need for overarching human rights standards for business instead of the present "messy and inconsistent patchwork of voluntary pledges that have limited application."
Kerala…
I arrived in Kerala the day after one of their Bandh. Two contacts involved in the water preservation movement picked me up at the Kochi airport, and here we were on our way to Vana Samrakshana Samithi (VSS), a forest protection area (i.e, at Athirapilly waterfalls area) promoted by government with civil society. As previously noted, the state of Kerala features development that is more balanced than anywhere else in India. Yet it is certainly not free of development related imbalances, and such is the case of water management and distribution.
On the way to the Athirapilly waterfalls and VSS, my hosts were gracious at answering my questions about Kerala. Kerala is 38, 000 km2, and has a self-sufficient energy policy largely based on water power. Kerala features 40 small rivers and a lot of dams. Water conflicts exist in Kerala as a result of poor planning. Kerala has almost exhausted its river power as the state is attempting to satisfy industries’ demand for energy. Something needs to be done to protect Kerala’s ecosystem or it will lose its natural power benefits. I asked about other possible sources of energy. My hosts acknowledged environment friendly possibilities (such as solar), but warned that the damn building business is a profitable one.
My hosts also told me about a coca-cola plant that was recently built in Kerala, with state authorization of course, but without consultation of the local panchyats by neither the state or coca-cola. The plant withdrew so much water, at the detriment of locals (including farmers), that it was closed after 2 years on Supreme Court order. The detrimental consequences had begun shortly after the plant had started running. Compensation for the damages endured did not follow the closing of the plant as official policy does not cover those who are indirectly affected by development projects.
At Athirapilly falls area, I met with locals and tribals (i.e, Kadars) at risk of being displaced (or further displaced in the case of tribals) from their ways of life by a state dam project proposed in the name of eminent domain. The law of eminent domain can be justified when appropriate, although what is appropriate and what is not is often up for debate. Having said that, there are cases where it is really difficult to understand what does justify the invocation of the principle of eminent domain, and this proposed dam seems to be such a case.
The Kerala State Electricity Board (KSEB) proposes to build a 23m high dam across the Chalakudy river at Vazhachal, 5.5 km upstream of Athirappily. 80% of Athirappily water would be diverted through tunnel to reach the main power house (2X80MW), 2km below Athirappilly. The implementation of the project is being resisted by the Chalakudyriver Protection Forum and Athirapilly Action Council for the following reasons:
“The project would practically issue a death-warrant on the water falls and the eco-friendly local business around it, the river, the rare riparian forest, the rich flore and fauna (including elephants) and the people downstream (including scheduled [protected] tribes).”
“The construction of the dam would dislocate two colonies of KADARS, a primitive tribal group almost endemic to this river basin; only 1500 of them remain in the world; the two colonies together host around 300—ie 20%”
“The 163 MW project would only have an efficiency of about 12% and hence would be a burden to the proponents of the project themselves.”
When asked what the KSEB should do instead, the Athirappily Council members I met that afternoon provided the following answers:
“Increase the efficiency of the existing units.”
“Minimize Transmission and Distribution loss that works out to 22% during normal hours and 40% during peak hours at present”
“Switch over to CFL/LED bulbs and in three years completely do away with ordinary bulbs.”
“Encourage energy-efficient technologies and machineries in all sectors.”
“Avoid wastage of electricity.”
Sounds reasonable.
Side yet important note: Kochi airport fares better in terms of public-private partnership.
Some roots
The idea for this field work project in India first came to me a couple years ago as I was studying South East Asia… “The story of the Narmada Valley is the story of modern India,” says Indian writer and activist Arundhati Roy in her video documentary dam/age. There is, in fact, striking resonance between the India described by Pratap Bhanu Metha in his The Burden of Democracy and, for example, India’s Sardar Sarovar Project (SSP), one of the thirty constituent dams of the Narmada Valley Dam Project. This resonance speaks to the theme of prosperity and inequality as it points out that while the sphere of politics has created opportunities for people to participate in Indian society, persistent social inequalities and a crisis of accountability shadows India’s democracy and prosperity. The SSP is the second largest, in terms of area submerged and population displaced, of the thirty dams planned in the Narmada Valley. It is a project that has met with much resistance from social activists and lower casts, consequently displaced, populations.
In a 2005 draft paper posted on the “Political Research Online” branch of the American Political Science Association, Peter Penz, Jay Drydyk, and Pablo Bose articulate norms for development relating to displacement. They offer a review of previously articulated and employed norms, with some update. These first step findings of theirs can be summarize in the following table, entitled Specific responsibilities in the case of direct displacement.
CONCERS
LIMITS—when development should not proceed
Responsible Design
(a) Design ignores safety or social or environmental impacts. (b) Planning excludes stakeholders. (c) Unnecessary displacement likely.
Equity
(a) Unmitigated long-term losses in basic capabilities regarding: (i) basic needs, (ii) morbidity/mortality, (iii) occupational freedom, opportunity, and security, (iv) education, (v) community life. (b) Oustees risk impoverishment if rehabilitation fails, while development will not bring net reductions in poverty or social inequalities.
Comparative and Democratic Participation
(a) Public acceptance and consent from stakeholders not sought or obtained by fraud. (b) No effective mechanisms for negotiation/arbitration. (c) Stakeholders deprived of democratic procedures. (d) Oustees lack legal recourse.
Indigenous Peoples
(a) Prior informed consent not obtained. (b) Unmitigated losses to traditional lands, to self-determination, or to prospects for cultural survival likely.
Human Rights
Implementation (a) perpetuates or worsens lack of security, lack of democratic decision-making, or other human rights failings, or (b) compounds conflict induced displacement.
Environmental
Extensive unmitigated harm likely to (a) biodiversity, (b) ecosystem health, or (c) livelihood capacity
Cultural Sites
Unnecessary and unmitigated harm likely to cultural, historic, or religious sites of unique value to the population
Transparency and Compliance
No reliable mechanisms for (a) freedom of information, (b) auditing, (c) independent social and environmental reviews, or (d) effective legal recourse.
A distinction must be drawn between best-practice standards and minimum requirements. The above table only covers minimum requirements, and in the sole context of direct displacement. To learn more about possible extensions of this chart, see draft paper.
For more information on water conflicts in India, click here.
August 29, 2008
Mumbai
“Dear Mike and Keith, I thought I would email you at least a few lines on this second week in India before I make my way to the airport and come back home. At the end of the day this week was about how to improve the UN Global Compact and why. One of the whys is that it has potential to be an instrument of understanding on development in the context of the multilateralism I described in a previous email (August 22nd). As we know from UNND, this is no small matter. But it's far from being there yet, esp. in terms of development induced displacement. In other words, in many opinions, the UN needs to seriously boost the effort. Also, in the process of these two weeks, the complexity of India as a rising power concerned with human development—through the lens of this topic of development induced displacement—was teased out to a fair extent and will be of interest, I think, to a TSF/rising power audience. I come back with details to back up my claims." See India Field Work--Part II...
Photo Essay
http://my.slideroll.com/galleries/members/mmainil/gallery/development-projects-and-human-displacement-india-field-work/?g=wtqk334k
Footnotes
[i] For a good read on China’s SEZs, see Factory Girls by Leslie T. Chang. http://www.randomhouse.com/spiegelandgrau/catalog/display.pperl?isbn=9780385520171
[ii] A recent such effort is the Scheduled Tribes Bill: http://www.indiatogether.org/2006/apr/law-forest.htm#hilite
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