Global concerns in compulsory purchase and compensation processes
Viitanen, Kauko & Ibimina Kakulu
The basic principles and processes in compulsory purchase and compensation are perceived to be quite similar even though the practice may vary in different nations or regions. More often than not the assessment of compensation which is described in technical parlance as Statutory Valuationn is usually influenced by local and national statutes, enactments or laws that provide the basis upon which existing professional standards and methods may be applied. This process introduces some complication into the practice of valuation for compensation that is not usually associated with other forms of valuation. At an International Seminar on Compulsory Purchase and Compensation held in Helsinki Finland 6th to 8th September, 2007, a number of issues were raised in connection with compulsory land acquisition, compulsory purchase, expropriation, land take and other nomenclature used to describe the use of eminent domain powers to obtain land for public purposes. Presentations were made by over 40 speakers from about 20 countries. Their experiences though localised were quite similar overall and certain global concerns were highlighted particularly the need for intervention in the form of global standards and practice codes. This paper represents a synthesis of the issues addressed at the seminar and highlights the potential challenges if the concept of globalization of standards is to be extended to statutory valuation practice, procedures or methods. The paper recognizes that compulsory acquisition and compensation problems are associated with the level of national and regional development of a particular country. This is deduced from the similarities in experiences of various presentations categorised by the level of development of a particular country. It also suggests who the potential stakeholders are likely to be and their respective roles in the development of global codes of practice for use in the assessment of compensation in compulsory acquisition and expropriation.
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