International Finance Corporation

A project that involves involuntary resettlement—the economic and/or physical displacement of people—represents a significant challenge. Without proper planning and management, involuntary resettlement may result in long-term hardship for affected people and environmental damage to the locations in which they are resettled. Such potentially negative consequences diminish the developmental impact of the project, tarnish the reputation of the project sponsor, and are contrary to most companies’ aspirations to improve the lives of people through investment.

The purpose of this handbook is to provide guidance in the planning and execution of involuntary resettlement associated with IFC investment projects. IFC’s policy on involuntary resettlement applies to any project that may result in the loss of assets, the impairment of livelihood, or the physical relocation of an individual, household, or community. The audience for this handbook includes: IFC clients, host government agencies that support private investment in development projects, nongovernmental organizations, and the people whose lives and livelihoods will be affected by projects financed by IFC.