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The short-term impacts of development-induced displacement on wealth and subjective well-being in the Brazilian Amazon

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  • Randell, Heather

Abstract

Displacement due to development projects such as dams, mines, and urban infrastructure often leads to livelihood decline among affected communities. The challenge, therefore, lies in implementing projects that achieve national or regional development goals while also generating positive social and economic outcomes for displaced populations. This paper uses a longitudinal, mixed-methods design to understand the short-term changes in wealth and subjective well-being of households displaced due to construction of the Belo Monte Dam in the Brazilian Amazon. The households were compensated by either cash or credit for their lost land and assets, and were then responsible for finding and purchasing new property. Using pre- and post-displacement household survey and semi-structured interview data, as well as data from a small comparison group, I find that wealth increased for the majority of the study population and that socioeconomic inequality decreased, as poorer households experienced greater improvements in housing conditions, assets, and property ownership. In addition, subjective well-being improved for most households, particularly among those who did not own land at baseline, those who gained assets such as vehicles, those who remained closer to the original study area, and those who remained in close proximity to other households from the study population. Moving to an urban destination was strongly associated with declines in well-being, as was moving far from family or friends. These results suggest that investing sufficient resources in a compensation-based resettlement program can benefit households displaced by large infrastructure projects in the short term, but additional data collection is needed after the completion of dam construction to determine whether these benefits are sustained over the longer term.

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  • Randell, Heather, 2016. "The short-term impacts of development-induced displacement on wealth and subjective well-being in the Brazilian Amazon," World Development, Elsevier, vol. 87(C), pages 385-400.
    • Handle: RePEc:eee:wdevel:v:87:y:2016:i:c:p:385-400
    DOI: 10.1016/j.worlddev.2016.07.005
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    2. P. P. Braga, Daniel & Pokorny, Benno & Porro, Roberto & Vidal, Edson, 2023. "Good life in the Amazon? A critical reflection on the standard of living of cocoa and cattle-based smallholders in Pará, Brazil," World Development Perspectives, Elsevier, vol. 31(C).
    3. Gutu O. Wayessa & Anja Nygren, 2023. "Mixed Methods Research in Global Development Studies: State-Sponsored Resettlement Schemes in Ethiopia," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 35(6), pages 1440-1464, December.
    4. Xia, Bingqing & Qiang, Maoshan & Chen, Wenchao & Fan, Qixiang & Jiang, Hanchen & An, Nan, 2018. "A benefit-sharing model for hydropower projects based on stakeholder input-output analysis: A case study of the Xiluodu Project in China," Land Use Policy, Elsevier, vol. 73(C), pages 341-352.
    5. Reyes-García, Victoria & Fernández-Llamazares, Álvaro & Bauchet, Jonathan & Godoy, Ricardo, 2020. "Variety of indigenous peoples’ opinions of large infrastructure projects: The TIPNIS road in the Bolivian Amazon," World Development, Elsevier, vol. 127(C).
    6. Mayer, Adam & Lopez, Maria Claudia & Moran, Emilio F., 2022. "Uncompensated losses and damaged livelihoods: Restorative and distributional injustices in Brazilian hydropower," Energy Policy, Elsevier, vol. 167(C).
    7. Łukasz Wiejaczka & Danuta Piróg & Joanna Fidelus-Orzechowska, 2020. "Cost-Benefit Analysis of Dam Projects: The Perspectives of Resettled and Non-resettled Communities," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 34(1), pages 343-357, January.
    8. Kuhnt, Jana, 2019. "Literature review: drivers of migration. Why do people leave their homes? Is there an easy answer? A structured overview of migratory determinants," IDOS Discussion Papers 9/2019, German Institute of Development and Sustainability (IDOS).
    9. Sgarbi, Felipe de Albuquerque & Uhlig, Alexandre & Simões, André Felipe & Goldemberg, José, 2019. "An assessment of the socioeconomic externalities of hydropower plants in Brazil," Energy Policy, Elsevier, vol. 129(C), pages 868-879.
    10. Burger,Martijn & Hendriks,Martijn & Ianchovichina,Elena, 2022. "Anatomy of Brazil’s Subjective Well-Being : A Tale of Growing Discontent and Polarization in the 2010s," Policy Research Working Paper Series 9924, The World Bank.
    11. Shabir Hussain Khahro & Aftab Hameed Memon & Nafees Ahmed Memon & Zubair Ahmed Memon & Rawal Naresh, 2023. "Influence of Social and Economic Factors on Construction Project Performance in Pakistan," Sustainability, MDPI, vol. 15(3), pages 1-22, January.

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