Valuation, compensation and rehabilitation for expropriation and its impact on the expropriated households in Ethiopia: evidence from Debre Markos city

Abstract

PurposeThe purpose of this paper is to examine expropriation, valuation, compensation and rehabilitation practices and their impacts on expropriated households.Design/methodology/approachThis study employed a mixed research approach. The target populations of the study were expropriated households in Debre Markos City from 2019 to 2022. The study uses purposive and systematic random sampling techniques. The data were analyzed using descriptive statistics, narration and thematic clustering.FindingsThe findings of this study revealed that the expropriation process was not participatory and the right holders were not treated as what is expected. It is further found that economic losses, moral damage and social disturbance payments were not considered in the compensation package. The displacement compensation given was also inadequate and sometimes delayed and the time value of money was not taken into account for delayed payments. This creates social and economic problems. The rehabilitation and resettlement program was inadequate and ineffective. The expropriation, valuation, compensation and rehabilitation practice in general lack transparency and accountability.Practical implicationsTo ensure efficient and effective expropriation, valuation and compensation, there should be a well-organized government system that provides an accurate valuation on the one hand and restores the livelihood of the displaced on the other.Originality/valueThis paper is the first on expropriation, valuation, compensation and rehabilitation within the framework of transparency, accountability, effective rehabilitation and resettlement and institutional arrangements to ensure the sustainable livelihoods of affected households.