Fernando was forced to leave his home as a result of a new hydropower project, receiving a large sum of cash as compensation but ultimately ending up in financial ruin. This situation raises the question: if resettlement cannot be avoided, is cash compensation an appropriate mitigation measure? This question is important because there are positive examples of how cash compensation can be used as an important driver of socioeconomic development. Such recognition has been gradually shifting the discussion toward seeking a greater understanding of the factors that favor or hinder the success of cash compensation schemes. The most common factors that could make a difference between development and impoverishment are …
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Part II: Safeguard Considerations in the Use of Cash Compensation in Resettlement Processes
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