Effects of Industrial Park Induced Displacement on Natural, Economic and Social Assets of Small-Scale Farm Holders in Peri-Urban Area of Kombolcha, Ethiopia

To carry out various infrastructural and developmental projects displacement of local peoples from their original land becomes increases. This imposes cost for the poor and marginalized peoples due to the failure to restore their livelihood. Industrial parks are one of the state vital infrastructures to promote industrialization and economy reformation in Ethiopia. At this time government is highly committed in attracting investors to increase FDI (Foreign Direct Investment) of the country. FDI driven by investor’s interest in new industrial park development. The availability of large plot of land including low cost of production, and the increasing demand of FDI triggered IPD (Industrial Park Development) in the study area.The only option for government might be expropriating agricultural land and make available for investment activities. However, the establishment of IP (Industrial parks) fails to exemplify the community context.As a result, this study aimed at explaining effects of Industrial Park Induced Displacement (IPID) on natural, economic and social asset of small scale farm holders in peri urban area of kombolcha city, Amhara, Ethiopia. Furthermore, the study explained about the property rights held by small scale farm holders whose land were expropriated, and how were the small scale farm holders affected by expropriation compensated, the changes in livelihood (natural, economic and social asset) of the displaced farm holders,what areadaptation strategies adapted by households to deal with the new changing conditions. In order to carry out this study, primary and secondary data collection sources such as semi structured interview, observation, desk review, and content analysis of relevant secondary sources have been used. Accordingly, qualitative analysis employed for analyzing the findings of the study.Expropriation of land for IPD implemented with no consultative, consent, and honest involvement of the displaced farm holders. This showed that IPD deprived property rights of displaced farm holders by changing land use from agricultural land towards non farming activity. Furthermore, delay in compensation provision, corruption, and improper calculation generated insignificant amount of compensation. The result of this study indicated that IPD affected displaced farm holders’ access to farm land, grazing land and natural resources, this generated landlessness, joblessness and triggered economic marginalization.of the displaced. Additionally, their relationship with neighbours, their engagenement in labor association and their mutual supporting mechanisms also affected. Moreover, the study depicted out that displaced farm holder’s livelihood adaptation strategies rely on off-farm employment (as permanent and temporary worker), and most of the displaced are fails to adapt. Keywords:IPID, Expropriation, Property rights, Compensation, Natural asset, Economic asset, Social asset, Livelihood adaptation strategies, Small-scale farm holders DOI: 10.7176/RHSS/11-15-02 Publication date:October 31st 202