The Impact of Development-Induced Urban Resettlement Schemes on Relocated Households: The Case of Sheraton Addis Hotel Project,. Addis Ababa
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Date
2000-06
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Addis Ababa University
Abstract
The central part of Addis Ababa in characterized by the predominance of
unplanned neighborhoods and slums. These inner city areas are predominantly
occupied by low income households since most of the economic and public activities
are located in the inner city that provides a multitude of formal and informal income
earning opportunities. Since May 1991 the country has been introduced to a free
market economic system and this new policy environment resulted in the private real
estate developers becoming involved in urban development activities. At present more
than 400 project proposals have been submitted to the Local Government requiring
inner city land to redevelop for other purposes in accordance with the 1984 Master
Plan. As a result, a sUbstantial number of inner city residents have been displaced
and more are expected to be displaced in the near future. Therefore this thesis
examines the consequences of such urban development on the livelihood of the inner
city slum dwellers taking a case study of the Sheraton Addis Hotel Project.
The sample size consisted of 86 relocated households (12%) drawn from a total
population of 718. The sample households were selected randomly and proportionally
from the housing units stratified into different housing types.
The findings of the study indicated that the resettlement scheme has resulted in
providing decent housing units among which 99% of the households were highly
satisfied. It was also identified that there was a significant improvement in toilet, and
kitchen facilities. However, the public facilities and the infrastructure provided in the
new site lagged far behind. The study demonstrated that the resettlement scheme has
resulted in a dramatic increase in the unemployment rate from 1.2 percent in the
previous settlement to 11 .1 percent in the new site. Among the factors that brought
about this change lack of potential clients and markets was the major one. In addition
to this the study revealed that the partial resettlement scheme led to problems in
social integration manifested in the breakup of former neighborhood ties. The
locational preference of the relocatees was raised and it was identified that their
preference depends upon the type of employment and location of working place.
Hence among those who were involved in temporary and casual work 73 percent
preferred to live in the inner city. Among those who were permanent full-time workers
only 50 percent would prefer to go back to the inner city. The disadvantages of moving
from the inner city were the increase in transport costs, disruption of former
neighborhood ties and the reduction of monthly income of some household heads.
The study also demonstrated that the majority of the households have remained in the
resettlement area by overcoming the problems resulting from the resettlement
scheme.
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Keywords
Development-Induced Urban