ABSTRACT
This chapter discusses the importance of safeguard policies for international projects in the context of weak country frameworks. Comparing two types of infrastructure projects – those led and implemented solely by government, and those involving international development institutions and their safeguard policies – this chapter sets out different scenarios from Timor-Leste illustrating different approaches to and outcomes of land acquisition processes. While waiting for the recently-approved Land Law and Expropriation Law – which will give legal recognition for some customary landholders in Timor-Leste – to become operational, infrastructure projects have used negotiated settlements to gain land access. International projects with safeguard policies guarantee people affected will be no worse off and will receive some assistance to rebuild their lives and livelihoods. For country-financed projects, there is no such guarantee and lower compensation standards apply. The chapter concludes that in fragile contexts, such as Timor-Leste, the benefits of involving international institutions with safeguard policies extend beyond financial support, allowing affected people to better protect their land rights and livelihoods. These benefits should be considered when international institutions consider financing national projects, as well as when they plan to reduce or eliminate their own safeguard mechanisms.
