The Economics and Politics of Resettlement in India

Chapter 3

Political Economy of Compensation

K.M. Reddy*

Introduction

In the India of the 1950s and 1960s, irrigation and power projects, like industrialization all over the Third World, were considered symbols of modernization that would bring widespread benefits of growth and prosperity. India also sought funds to finance these modern ‘temples’ of progress. But, soon, it became clear that these projects, particularly when adequate attention was not paid to the human element, were likely to destroy a large number of human settlements and also positive ecosystems. This resulted in growing protest against large irrigation and power projects on the grounds of adverse environmental impact as well as poor rehabilitation and resettlement of the displaced ...