Managing indirect economic displacements for development
Infrastructure development plays a key role in overall development of a country and Sri Lanka, as a fast-developing nation, has recently invested a lot in upgrading its road network.
Amid many other negative consequences of development such as irreversible environmental damages and acquisition of productive agricultural land for development projects, loss of livelihoods became more prominent in many infrastructure development projects happened recently in Sri Lanka. The direct economic displacements due to land acquisition and removal of traditional business locations are often addressed through a well-structured compensation plans and alternative solutions. However, loss of livelihoods due to the indirect impacts of development is rarely addressed in the country. The issue becomes more significant with the proposed and ongoing expressway projects that will connect many large towns and visitor destinations in Sri Lanka.
We have a clear case for this situation after opening the first ever expressway in Sri Lanka, the Kottawa-Matara section of the Southern Expressway. The total travel time from Colombo to Matara has significantly improved and the convenience of driving through the expressway becomes a strong motivation for many travellers to avoid the busy Galle road.
Over a period of time, generations of people who were engaged in micro-level businesses along the Galle road, have earned their living by providing various products and services to the Galle road users, especially the long distance travellers. These include (but not limited to) sale of products such as king coconut, roasted peanuts, wadey and fruits and providing services such as restaurants, vehicle repairs, tyre services and accommodation. There are several micro industries those are unique to certain areas. Rice and curry with ‘Jadi’, sale of boatdried dry fish (Bottu Karawala) and bamboo products in Wadduwa area are some examples from Galle road between Panadura and Matara. These products are purchased mainly by the long-distance travellers who pass these areas, and when the traffic is diverted, they usually run out of business. Also, there are some SME level good industries including a well-known restaurant in Maggona area have already collapsed due to lack of business after opening the southern expressway.
This is not an article to create a dialogue against expressways or any other development, but to suggest providing opportunities for the indirectly affected communities in a reasonable way to come out of this unfortunate fate. The Southern expressway extension from Matara to Mattala will be opened for public shortly. There are thousands of micro level business establishments such as roasted cashew sellers in Gandara area, vegetable and fruit stalls in Bata-atha and beyond, pillow sellers, boiled corn and ‘beli mal’ drink sellers, Kirala drink outlets in Nonagama – Ambalanthota area, curd sellers in Hambanthota - Weerawila area and Dodol industry in Hambantota will be some of the critically affected industries while the cashew, corn, kirala and beli mal sellers will probably be left out without giving any alternatives for their loosing livelihoods. Similarly, the Central Expressway will affect the location-specific industries such as the cashew sellers in Pasyala, cane product outlets in Weweldeniya, fruit sellers in Kadugannawa area and many other fruit stalls along the existing Colombo – Kandy A1 road.
Cane product store in Weweldeniya
For the purpose of identifying these indirect impacts on communities, strong social and environmental assessment process (including assessments on loss of livelihoods for these indirectly affecting communities) is necessary. On most occasions, loss of livelihoods due to land acquisition, removal of business locations such as the weekly ‘pola’ locations and loss of access to traditional livelihoods are addressed and compensation is provided. However, indirectly affected communities described above are often neglected since identification or prediction of impacts is difficult as they will not ‘lose’ any assets or opportunities to continue business directly. Further, these communities operate their businesses in the traditional roads those are outside the area under development. They will not be affected even during construction period or immediately after completion of the development, but after opening the expressways and the traditional road users diverted to these expressways.
The interviews carried out by the writer with the cashew and cane sellers revealed that most of them are even unaware of the Kandy – Colombo expressway project, which means that these communities have been ignored in the stakeholder consultation process. Further, the impacts on their businesses and future plans to support their livelihoods have not been properly communicated to these stakeholders.
Cashew outlet in Pasyala
It will not be a solution to give an allowance as compensation to the affected individuals as it will utilise taxpayer’s money unproductively, whilst creating avenues for corruption. The Government shall create new opportunities for these affected communities either to continue their business or to shift into new businesses.
Opening special stalls in suitable locations (rest areas) in the expressways for area-specific industries and providing access to use these facilities exclusively for the people who traditionally engaged in the same industries may be an option for communities engaged in cane products, cashew, dodol and curd sellers etc. Likewise, allocating some stalls in food corners exclusively at a concessionary rate for established restaurants and food outlets that might be affected by the expressways due to loss of business, will help them to at least retain a portion of their business without allowing them for complete exits. However, these cannot be applied to micro level individuals such as the king coconut, corn and beli-mal sellers who are widespread in some areas and also unable to afford to move into new business locations. Providing training and supporting their new business start-ups could be a solution, provided that the issues and the best possible alternatives are properly identified and are included in the Environmental and Social Management Plans.
There are corporate entities who benefit from these expressway projects. The construction firms who obtain contracts or sub contracts for road building, consultation firms involved in the project, financial institutions, supermarkets, gas stations and restaurants providing their services to the expressway users are examples and there is an opportunity to channel some of their CSR allocations towards improving livelihoods for the indirectly affected communities. However, a proper mechanism should be established to coordinate these firms, maintaining transparency on selection of beneficiaries and utilisation of funds.
Development is a necessity of a country and many people will benefit directly or indirectly through these development activities. However, it is necessary to ensure the security and well-being of communities who operate micro business establishments in the areas considered for development projects and buffer zones, as well as in remote areas away from these projects, but will have adverse indirect social impacts to make the development more sustainable and bring happiness to many as a result of such projects.
(The writer is the Assistant Manager – Sustainable Business at HNB and
holds an MSc in Environmental Science).