ABSTRACT
The power of compulsory acquisition can be abused. Good governance is necessary to provide a balance between the needs of the government to acquire land rapidly, and the need to protect the rights of people whose land is to be acquired. In many countries, weak expropriation laws open the door for governments and companies to take land for private interests without adequately compensating or resettling displaced people. Payment of compensation for rights that are not legally recognized raises difficult policy questions. It is customary to adopt several methods of awarding compensation. The usual methods have included resettlement or relocation, land swaps, payment of grants and land bonds. According to Commissioner Stair, Land Bonds are a financial instrument which can be used to pay for lands acquired. Market value remains the basis of the valuation. Valuation methods, which rely on the use of the direct comparison method, are usually preferred.
