Development Induced Displacement and State Policy Implementation: A Case of Welkayt Sugar Factory in Tigray Region, Ethiopia
Issue:
Volume 10, Issue 2, June 2021
Pages:
22-29
Received:
5 April 2021
Accepted:
27 April 2021
Published:
14 May 2021
Abstract: Ethiopia is realizing several development projects out of which sugar development projects the major one. It is expected that a large-scale project would result in the displacement of people. When the displacement of people occurred due to development project, it is likely that government provide compensations and have clear procedures for the resettlement process. With the aim of evaluating the existence and implementation of resettlement policy and examining the relocation process in the case of Welkayt sugar factory development project, this research was conducted in Tigray region of Ethiopia. Precisely, the study aimed at evaluating the implantation of Ethiopia’s proclamation on landholding expropriated for public purposes and examining the resettlement process, and identifying major challenges encountered during the resettlement process. To meet these objectives, a household survey, focused group discussions, interviews, and observation was employed to gather the primary data. The research design and approach were descriptive and qualitative respectively. The study shows that Ethiopia has a proclamation on expropriation of landholdings for public purposes and payment of compensation since 2005. The Tigray regional state has likewise established a resettlement action plan for this specific development project. The Woreda administration was also active in the process of resettlement. This development project is evaluated to be positive in the fulfilment of basic service in the resettlement area. The government proclamation on the designation of property valuation committee, provision of replacement land, determination and payment of compensation, and establishment of complaints and appeals concerning the compensation were realized in the study case. Though evaluated to not have a similar purpose, replacement land was given for taken agricultural land, grazing land, and burial grounds. Compensation for the house removal related costs has been provided, while a promise was given by the government for the unreplaced agricultural land. Several challenges by the government, the project affected people, and the sugar development corporation were encountered in the process of resettlement. Similar projects of the future are recommended to be informative and transparent of the relocation process to the public.
Abstract: Ethiopia is realizing several development projects out of which sugar development projects the major one. It is expected that a large-scale project would result in the displacement of people. When the displacement of people occurred due to development project, it is likely that government provide compensations and have clear procedures for the rese...
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Unfairly Defiled: A Long Term Perspective on Portfolio Insurance as a Strategy for Limiting Portfolio Losses
Issue:
Volume 10, Issue 2, June 2021
Pages:
30-37
Received:
4 June 2021
Accepted:
24 June 2021
Published:
13 July 2021
Abstract: The invention of portfolio insurance as a strategy for limiting portfolio losses was introduced in the early 1980s and gained spectacular popularity throughout the decade, attracting between $60 billion to $90 billion from institutional money managers. The method provided downside protection against a long equity position by synthetically replicating a long put option using equity futures during an era when exchange-traded equity options were not sufficiently liquid. Unfortunately, the strategy came to a catastrophic end on the “Black Monday” of October 19, 1987, when the president of the New York Stock Exchange shut down the nascent technology used by index arbitrage program trading groups. This caused significant mispricings between futures and cash markets, making the required synthetic put option replication trading impossible. The portfolio insurance strategy was declared a complete failure and never has since regained widespread popularity. Three decades later, modern markets now fully embrace program trading, and the likelihood that program trading would be shut down for any reason ever again seems impossible. This paper examines how portfolio insurance would have performed during the 1991 to 2020 time period, during which 3 major stock market crashes occurred and program trading was never shut down. The paper concludes that portfolio insurance received unjust blame for the 1987 crash and its abandonment since then has been irrational and unfortunate for those seeking long equity exposure with a cost-efficient strategy for limiting portfolio losses.
Abstract: The invention of portfolio insurance as a strategy for limiting portfolio losses was introduced in the early 1980s and gained spectacular popularity throughout the decade, attracting between $60 billion to $90 billion from institutional money managers. The method provided downside protection against a long equity position by synthetically replicati...
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