A Giant Economic Baby Is in the Have Altered Watersheds That Account for Process of Being Born.” Over 40 Percent of the Country’S Total M.M
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Pipe Dreams The World Bank’s Failed Efforts to Restore Lives and Livelihoods of Dam-Affected People in Lesotho By Ryan Hoover Published 2001 Map of Lesotho Table of Contents Introduction 1 A Lesotho Snapshot 3 Setting the Stage 5 The Damage Done 7 Scattered by the Dam: LHWP Resettlement 17 Replacing What Was Lost: The Compensation Plan 25 Back to the Drawing Board: Experiments in Rural Development 34 Selling the Dream: The Community Participation Strategy 48 Conclusion 54 About IRN 59 Introduction “A giant economic baby is in the have altered watersheds that account for process of being born.” over 40 percent of the country’s total M.M. Lebotsa, Minister of Lesotho Highlands area. Water and Energy Affairs Not only is Lesotho a small country, it is The Lesotho Highlands Water Project also one of the world’s poorest. Lesotho (LHWP) is the most massive infra- is landlocked and totally enveloped by structure project ever constructed on the its large, economically powerful African continent. It involves six large neighbor, South Africa. Its geographic dams, which, if completed, will transfer position, combined with the relative the equivalent of one swimming pool dearth of natural resources within its full of water every second (over 70 cubic borders and its long history as a South meters) to South Africa’s industrial African labor reserve, make Lesotho center, Gauteng Province, and supply almost completely economically 72MW of hydroelectricity to Lesotho. dependent on South Africa. The country Katse Dam, the first dam to be com- has one of the ten highest income pleted in the scheme, is the tallest dam in disparities in the world, which means the Africa at 186 meters – the size of a 52- majority of its 2.1 million citizens story building. The second completed (called Basotho) subsist on far less than dam, Muela, is 55 meters high, and is the the GNP per capita of $550 per year. In only hydropower dam in the scheme. 1993, the wealthiest 10 percent of Currently, construction is well underway Basotho households enjoyed 44 percent on Mohale Dam, which will be a of the national income whereas the looming 146 meters. The project also poorest 40 percent of households sur- involves 260 kilometers of water vived on just 8 percent of the national delivery tunnels; hundreds of kilometers income.1 Basotho mineworkers have in of access roads and bridges, electricity recent years been laid off from South transmission lines, and large base camps African mines in droves, adding to for the thousands of laborers and foreign already staggering unemployment rates, contractors working at the construction and the HIV/AIDS epidemic is driving sites. Companies from at least nine down the 55-year average life different nations are involved in the expectancy. project’s construction. The World Bank and numerous other financial institutions Placed in this context, the economic from three different continents provided impact of the multi-billion dollar LHWP the more than US$4 billion worth of is profound. In 1998, it accounted for financing that the LHWP has already 13.6 percent of the value of Lesotho’s required. Gross Domestic Product (GDP). Over one third of all construction in the Ironically, this enormous project is being country is LHWP-related. Royalties built in one of Africa’s smallest from the project make up 27.8 percent of countries. Lesotho is approximately the all Government revenue.2 Some 4,000 size of Belgium, and the project’s dams Basotho got temporary jobs at the Katse 1 Introduction Dam construction site and hundreds successful resettlement requires more flocked to the area to service the sufficient political will, institutional workers as food vendors, shopkeepers, capacity, and funding. All three of these and prostitutes. A thousand more local elements are present in the LHWP people will work at Mohale Dam. The scenario, but the restoration of World Bank uses statistics like these to livelihoods is undeniably far from being argue that the LHWP “provides the only achieved. In fact, the World Bank itself source of development for Lesotho.”3 even admitted that, “The results on the social side…are clearly distressing. While the project has increased the Despite the fact that LHWP was fortunes of the nation’s elite, the prepared with professionals covering majority of Basotho were not able to socio-economic and environmental cash in on the LHWP. Katse and Muela issues which resulted in a high quality alone dispossessed nearly 20,000 people environmental action plan, despite of land and resources, while Mohale will professional advisers and close similarly affect approximately 7,000 supervisions over the years, the more while displacing hundreds of production of resettlement plans and the households. In total, approximately 1.5 satisfactory implementation of percent of Lesotho’s citizenry is directly compensation and rural development affected by the project. It weakened programs have been dangerously local economies and severely strained delayed.”5 The experience of the LHWP the social fabric of nearby villages. suggests that “best practice” may look Despite a long-term compensation good on paper, but is insufficient to program, huge amounts of resources prevent and offset significant harm to devoted to “rural development”, and affected communities. many good intentions, the welfare of affected people has been compromised – 1 World Bank, Lesotho Poverty Assessment, 1995, pp. iv-ix, 9. perhaps irrevocably. 2 Sechaba Consultants, Poverty & Livelihoods in Lesotho, 1999, April 2000, p. 40. Have the millions of dollars invested in 3 World Bank, “Lesotho Highlands Water Project to Benefit Lesotho, South Africa,” World Bank News, compensation and development June 4, 1998, p. 3. programs lent credence to proponents’ 4 Trans-Caledon Tunnel Authority, Lesotho Highlands claims that the LHWP is global “best Water Project, Vol. 5, May 2000, p. 2. 5 World Bank, LHWP Back to Office Report, April 4, practice” and “Africa’s biggest ongoing 1994, p. 4. success story,”4 or is the scale of the impact so great that Highlands com- munities will never fully recover? This paper focuses on the current situation of the people who sacrificed so much to allow this “giant economic baby” to be born and describes the outcome of the efforts taken to prevent them from becoming victims of “development.” Expert opinion concerning large-scale resettlement projects posits that 2 A Lesotho Snapshot A walk through the streets of Lesotho’s ecosystems that, until the LHWP, were capital, Maseru, reveals the extent to virtually roadless. The mountains are which the Lesotho Highlands Water home to the threatened spiral aloe and Project has become embedded in the scores of wildflower species. The daily life of Basotho. Scores of Toyota endangered bearded vulture and a 4x4s ply the crowded streets, bearing the variety of other bird species roost in the logo of the Lesotho Highlands steep gorges. Overhanging rock faces Development Authority (LHDA), the and caves shelter centuries-old San wall parastatal charged with constructing the paintings. project. Bumper stickers proclaiming, “The Big Turn On! Lesotho Delivers Herds of cattle, sheep, and goats graze Water To South Africa, 22 January high up on the slopes under the mostly 1998” adorn many private vehicles. watchful gaze of young herdboys Maseru professionals tote LHDA day wrapped in wool blankets and shod in planners. LHDA occupies space in the oversized gumboots. The large numbers Lesotho Bank building, the post office, of animals have taken their toll on the the Maseru Sun Hotel, and the Victoria steep, communally grazed mountain Hotel. Basotho discuss the LHWP on the sides. The brittle soil no longer supports radio, debate it in the schools, and healthy grasslands. Sheet erosion examine it in the courts. The LHDA exposes the Maloti’s basalt bedrock public relations machine even extends while woody, unpalatable weeds are into isolated Highlands communities. rapidly choking out all their competitors LHDA calendars full of glossy pictures in the remaining patches of soil.1 of the project can be found in houses in the most remote villages. Men wearing Trees are notable for their absence in “Highlands Water Venture” overalls and these mountains. Many families manage orange hard hats (obtained during stints to establish a few peach trees, but for the of work at Katse Dam) plough the fields most part, trees grow only in riparian behind teams of straining oxen, and the areas. The willows and poplar thickets ubiquitous white LHDA Toyotas zoom growing along streambeds are an along unpaved mountain roads. important source of fuel and building materials for highland households, and Lesotho’s fledgling tourist industry often are carefully maintained for ongoing touts the Maloti Mountains as the “Roof harvests. of Africa.” The rugged mountain range covers three quarters of the country and In the mountain valleys, farmers sow includes some peaks that reach higher maize, the staple crop, in terraced fields than 3,300 meters. Temperatures in the of relatively rich loam. However, even Highlands frequently dip below zero here, farmers report steadily declining degrees Celsius during the harsh winter yields. The over-exploited land is losing nights. In addition to being home to tens its fertility.2 The region’s erratic rain of thousands of rural farmers and patterns compound the problem. Maize herders, this range supports fragile crops need regular doses of water 3 A Lesotho Snapshot throughout their growth period, but are old, sick, disabled, and/or unem- rainfall in Lesotho rarely cooperates ployed. The remnants have been with this requirement. When the rain described as “a great mass of depend- comes, it often falls in heavy, hail-laced ants, seeking to eke out a living through downpours that can sometimes be more some combination of mining remit- damaging to the soil and crops than no tances, farming, beer brewing, and rain at all.