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Thursday, 27 November 2014 - Press, Highlight

New publication: Compensation Matters

BICC, in cooperation with Bread for the World and Working Group Chad has published the German version of the study “Compensation Matters. Securing community interests in large-scale investments.”

Oil production in Chad. Photo: BICC/L. Guesnet

The publication provides analyses of contentious issues in compensation matters such as power relations in negotiations, entitlements for compensation and types of compensation. Furthermore, it offers practitioners tools and ideas for how to approach compensation strategically, aiming for sustainable, just, and inclusive outcomes for affected communities.

The study “Compensation Matters. Securing community interests in large-scale investments” that offers practitioners tools and ideas for how to approach compensation sustainably, follows approaches such as Community Development Agreements and Biocultural Community Protocols. It also gives examples of how to improve the compensation and resettlement plan used in Chad.

Compensation comes into play wherever large-scale investments affect people and the environment. Extractive resources are a much sought-after commodity and their value has been on the rise over the last decade. Governments of resource-rich countries welcome international companies to extract their natural resources as they are often highly dependent on the income thus generated. Governments and companies promise that the wealth generated from natural resource extraction will benefit the entire country, making expectations for a better future run high amongst the population.

While income is generated at the national level, those living close to the production site are more likely to experience negative effects locally. In many producing countries the absence of the state exacerbates the power imbalance between companies and local communities. Ideally, affected communities prepare themselves early on to defend their rights. Compensation is one of the main instruments used to deal with the adverse effects of large-scale investments.

Press release (in German)