The restoration of livelihoods in the event of involuntary resettlement is commonly based on providing compensation to those who are displaced. This policy has led to a series of horror stories. For this reason, it is proposed that by conducting resettlement as a development project in its own right, the performance of resettlements can be improved and the benefits will accrue to the local population. The Three Gorges Project on the Yangtze River is the first project in China in which the policy of resettlement with development was translated into practice. This paper uses the results of a survey of urban resettlers in two counties to demonstrate that development policies have been unevenly applied across the Three Gorges Region and that in some counties the policies have had some success in maintaining and raising the incomes of resettlers.

When farmers are dispossessed of their lands to make way for a development project it is often inevitable that there will not be enough land to go around. It is unlikely that parcels of fertile land are lying vacant in the surrounding areas awaiting distribution. It therefore becomes necessary for people who previously derived their livelihoods from the land to move into cities. This research explores what happens to a sample of such people and whether they are able to restore their livelihoods. It examines the Three Gorges Dam resettlement in China's Hubei province and discovers that while the Chinese government has devised an inspired toolbox of benefit-sharing initiatives, the gains accrue to a minority who live in the most amenable location of the Three Gorges area. It concludes that the availability of capital through benefit-sharing initiatives does not guarantee its productive use.

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