Understanding RA in the Context of Economic Impact of Disasters

Disaster Risk Management

Approximately 85.2% of the sources of
PHILIPPINE DISASTER PROFILE the country's production have been
reported to be susceptible to disasters,
One of the main reasons for the
and 50.3% of the total land area is
Philippines' vulnerability and high risk is
considered to be economically at risk.
its location in the Ring of fire and typhoon
Much of the country's exports and trade
belt in the Pacific Ocean, where many
income have relied on resource-
earthquakes and volcanic eruptions
extractive industry, which further creates
occur.
implications in terms of disaster
Poverty and underdevelopment also vulnerability and sustainable economic
make the country vulnerable to disasters. growth.

A study by the Asian Development Bank One of the most severe disasters to
shows that Filipinos living in poverty, directly hit the Philippines in recent
including those whose livelihoods history is typhoon Haiyan in 2013:
depend on agriculture, are most
• affected an estimated 16
impacted by climate change
million people
consequences and extreme events.
• destroyed more than 1.1
million houses
• affected hundreds of
thousands of hectares of crops
across 41 provinces
• overall damage to the
agricultural sector amounted to
$US 1,4 billion, 74% of which
was borne by the crops sector
• Fishing sector carried 20%
(approximately 280 million) of
the total losses of $US 9.6
billion in the form of destroyed
boats and other assets.

The World Risk Index 2023 assesses the Such impacts had far-reaching economic
disaster risk for 193 countries. consequences due to lessened future
production, which in turn decreased the
annual GDP by 0.9% following the event.
The greatest losses are not due to the
impact on agriculture; large-scale
typhoons have impaired the GDP growth
due to disrupted electricity production
infrastructure, affecting the output of
industry, manufacturing and services in 5. Resilient reconstruction: Informing
the long term. early and rapid estimate for
reconstruction.
Social Impact of Disasters
GOVERNANCE STRUCTURE ON
DISASTER MANAGEMENT
 Typhoon Haiyan caused an
estimated loss of 260,000 tons of The following chart shows the
rice crop, leading to severe food organization and membership of the
shortages across the country. Council:
 Approximately 2.5 million people
required food assistance, and
roughly a million farmers'
livelihoods were compromised as
over 67,000 hectares of rice crops
were destroyed.
 A large supply gap of rice has
been emerging as a result of crop
vulnerabilities, climate change,
and inefficiencies in production
and growing populations, and now
the domestic production is not
meeting the demand.

Risk information provides a critical

foundation for managing disaster risk
(as identified by the World Bank, 2012; Disaster management involves a system
2014): composed of large numbers of diverse
1. Risk identification: Understanding, interacting agencies, a complex web of
communicating, and raising interlinked bi-directional power
awareness of disaster risk. relationships among stakeholders with
2. Risk reduction: Informing policies, widely differing characteristics.
investments, and structural and
non-structural measures intended Disaster management involves the
to reduce risk. National Disaster Risk Reduction and
3. Preparedness: Informing early Management Council {NDRRMCJ, being
warning systems and emergency the country's highest policy-making body
measures and supporting on disaster risk reduction and
preparedness and contingency management.
planning at various levels.
4. Financial protection: Developing It likewise advises the President on the
financial applications to manage status of disaster preparedness,
and/or transfer risk including prevention, mitigation, response, and
i•nsurance.
rehabilitation undertaken at the national responding and recovering
and local levels. from the effect of any disaster
based on the following criteria:
 The Barangay Disaster Council, if
Key Stakeholders and Institutions on
a barangay is affected;
DRRM in the Philippines
 The City/Municipal DRRMC if two
NDRRM, Regional Disaster Risk or more barangays are affected;
Reduction and Management Council  The Provincial DRRMC if two or
(RDRRMC); and Local Disaster Risk more cities/municipalities are
Reduction and Management Office affected;
(LDRRMO)  The RDRRMC if two or more
NDRRMC advises the President on provinces are affected;
efforts in disaster management  The NDRRMC if two or more
undertaken by the government and the regions are affected
private sector, thereby serving as the  The Local DRRM Plans
highest policy- making body on disaster (LDRRMPs) are developed by the
management. LDRRMOs at the provincial, city
The NDRRMC is replicated at the and municipal levels and the
regional and local levels, and these Barangay Development.
bodies function substantially like the
NDRRMC, operating and utilizing DILG MEMORANDUM CIRCULAR NO.
resources at their respective levels. 2012-79

Regional Disaster Risk Reduction ''Seal of Disaster Preparedness''

Management Council
 RDRRMC is tasked to coordinate, The circular, which became effective in
integrate, supervise, and evaluate 2012, covers a high-risk province, city, or
the activities of the LDRRMC. municipality, and has its objectives the
 It is responsible for ensuring following:
disaster- sensitive regional  Establish a benchmark
development plans and in case of information on disaster
emergencies shall convene the preparedness of local
different regional line agencies governments from which will
and concerned institutions and evolve government interventions
authorities. to influence a progressive
Local Disaster Risk Reduction capacity build-up among
Management Council provinces, cities and
 LDRRMC is chaired by the Local municipalities
Chief Executive and has 18  Assess post-intervention disaster
member agencies. preparedness to determine
 It is responsible for taking performance gaps that need to be
the lead in preparing for aggressively addressed
 Incentivize institutionalized payment of premiums on calamity
disaster preparedness as a proof insurance.
of official recognition to the valuing
by a local government of public
safety and welfare.

RAs1ss
An Act Amending Section 324
(D) Of Republic Act No. 7160

RA 7160
The Local Government Code
Of1991

The LDRRMF replaced the Local

Calamity Fund (LCF), consisting of not
less than 5% of the estimated revenue
from regular sources.
LGUs are mandated by RA 8185 since
1996 to allocate
5% of its Internal Revenue Allotment as
LDRRMF and can only be used upon
declaration of a "state of calamity" by the
local legislative body
Example:
In 2011, allocations to LGUs amounted to
P13, 257,391,000, 5% of which amounts
to P662, 869,550 representing the
LDRRM F for 2011.

• In 2003, a Joint Memorandum

Circular was issued by the DBM and the
DILG, allowing the use of the LDRRM F
for disaster preparedness and other pre-
disaster activities.

• This fund is set aside to support

disaster risk management activities such
as, but not limited to, predisaster
preparedness programs including
training, purchasing life- saving rescue
equipment, supplies and medicines, for
post-disaster activities, and for the
LECTURE 2 MITIGATION INCLUDES:
General Risk Assessment for Disaster  Structural mitigation includes
Risk Management improved construction practice,
flood protection levees,
Disaster risk management evacuation shelters and elevation
encompasses disaster risk reduction of structures in flood plains, for
and emergency management: example.
The concept and practice of reducing  Non-structural mitigation
disaster risks through systematic efforts includes any measure not
to analyse and manage the causal involving physical construction
factors of disasters, including through that uses knowledge, practice or
reduced exposure to hazards, lessened agreement to reduce risks and
vulnerability of people and property, wise impacts (e.g. building codes, land-
management of land and the use planning laws, research,
environment, and improved public awareness programmes).
preparedness for adverse events.
2. Risk Assessment for Disaster
Emergency Management Preparedness
The organization and management of  Preparedness lessens the
resources and responsibilities for severity of disasters by
addressing all aspects of emergencies, in preparing people for disaster,
particular preparedness, response and developing plans to ensure an
initial recovery steps. effective response and
recovery and training
The four main basic components of communities and
disaster risk management are; organizations to implement
plans when a disaster occurs.
1. Risk Assessment for Disaster  Risk assessment is
Mitigation fundamental to establishing
Mitigation lessens the likelihood of a appropriate warning systems
disaster and disaster impacts by as there needs to be an
implementing sustained actions to understanding of all
reduce or eliminate long-term risks to components of risk to
people, property, and the environment. determine likely lead times and
safe areas to evacuate.
This can be done by reducing the 3. Risk Assessment for Disaster
exposure (e.g. land use restrictions) or Response]
vulnerability (e.g. seismic retrofitting),  Response involves the
which demonstrates why risk measures and actions
assessments are an important input for taken during and
disaster mitigation. immediately after an event
to be ready for, and to
provide efficient medical,
rescue, emergency Two common ways of designing and
supplies, and equipment to implementing emergency plans:
those in need.
Top-down approaches rely on
 Risk assessment is useful
centralized authorities, such as
for disaster response
governments or agencies, to set the
because it is important to
goals, strategies, and resources for
know what resources will
emergency planning. They often follow
be required in a disaster. In
standardized procedures and guidelines
order to determine
and aim to ensure coordination and
resource requirements it is
efficiency across different levels and
important to understand the
sectors.
potential impacts to the
affected society (e.g. how Bottom-up approaches involve the
many people affected, participation and empowerment of local
number of buildings communities, groups, and individuals in
damaged). emergency planning. They often reflect
the specific needs, preferences, and
4. Risk Assessment for Disaster capacities of the people affected by the
Recovery disaster, and aim to enhance their
 Recovery actions involve resilience and autonomy.
rehabilitation,
Stakeholders and Partners
reconstruction,
psychological counselling, Stakeholders have an interest in and will
and long-term assistance be affected by the project, but they are
to rebuild the community. It not necessarily involved in the project.
is the implementation of Partners can actively participate in the
actions to promote planning and implementation of the
sustainable redevelopment project, and can also be a good source of
following a disaster. data.
 Risk assessment is a
Competencies and Professions for
fundamental aspect of
Risk Assessment
recovery because it is
important that Competencies required to complete a
redevelopment is risk assessment will depend on the
conducted in a sustainable hazards being investigated and targeted
way, with an understanding sectors for vulnerability analysis.
of the potential risks to
Participation includes those most suited
avoid the disaster
to lead and deliver the risk assessment
repeating or increasing
process, those best suited to collect,
exposure to other risks and
hazards. analyse and communicate the inputs to
the assessment, as well as those who will
manage, apply, and communicate the  Hazard Data Collection. The
assessment outputs. process of acquiring information
and knowledge from stakeholders
Risk assessment roles include
and hazard experts to inform the
leadership, delivery, support,
risk assessment process.
participation and governance. Some
 Risk Assessment + Advice. The
participants in risk assessment
process of assimilating the
processes may best be suited to carry out
information collected evaluated
several roles within various risk
and provided back to stakeholders
assessment functions.
and decision makers in the risk
Participants in risk assessment assessment process.
includes: Community Members
Risk assessment functions
 Community Resilience Leaders
represented in the table are:
 Community Response Leaders
 Community Emergency Services  Risk Communication. The
 Community Services/ Businesses process of communicating
 Community Governance concepts of hazard risk to
 Risk Analysts - State/ National stakeholders and
 State/ National Disaster community members.
Management  Risk Reduction Planning.
 State/ National Services/ The process of identifying
Business opportunities to reduce or
 State/ National Governance mitigate the consequences or
likelihood of individual
hazards, and securing the
Risk assessment functions resources necessary to realise
represented in the table are: reduction opportunities and
 Risk Identification. A collaborative goals.
process, supported by hazard  Community Resilience
experts, to identify the hazards Building. An ongoing process
and risk relevant to a particular of enabling communities to
location, organization, community, better withstand the impact of
region, state, etc. hazards when they occur. This
 Risk Analysis (Qualitative + can include enhancing
community cohesion and
Quantitative).The process by
communication, emergency
which the nature of the potential
preparedness, acquisition of
impacts and estimated.
response resources,
 Hazard+Risk Mapping. The
evacuation planning, etc.
process of developing a
 Physical Reduction
visual representation of relevant
Activities. Creation or new
hazard risk for the
organization, community or area. structures or modification to
existing structures, including
flood protection works, processes and organizational
enhanced building codes, arrangements.
removal of at-risk facilities,
Recovery Planning. Planning
hardening of critical
conducted prior to emergencies or
infrastructure, etc., to reduce
disasters occur, based on the estimated
the consequences or likelihood
impacts to communities, infrastructure,
of a hazard causing damage.
economic activities, and the natural
Risk assessment functions environment, and the organizational
represented in the table are: arrangements, information requirements,
coordination, leadership, and
Preparedness Planning -
engagement processes necessary to
Planning within and between
enable effective regeneration and
communities, commercial entities,
reconstruction after significant impacts
response and relief organisations,
occur.
government agencies, etc., in readiness
for response activities and transition from Recovery Management. Coordination
response to recovery. and leadership of the processes of
regeneration and reconstruction after a
Preparedness Leadership.
major emergency or disaster occurs.
Leading the process of
establishing, enhancing or Monitoring and Review. A systematic
maintaining preparedness for process of assessing the effectiveness
emergencies or disasters. and sustainability of risk assessment and
risk management arrangements and
Response Planning. The process of
capabilities, with the objective of on-
developing plans for communities,
going improvement.
organizations, government entities,
emergency response organizations and Spatial Scales of Disaster Risk
others to respond to the range of hazards Assessment
identified and communicated form risk
At the global level, disaster risk
assessment processes.
management is guided by the Sendai
Preparedness Activities. Preparedness Framework for Disaster Risk Reduction
includes a wide range of activities, 2015-2030. Sendai Framework was the
including response and recovery first major agreement that provides the
planning, acquisition of response Member States with concrete actions to
resources, training, exercising, and protect development gains from the risk
monitoring and review of preparedness of disaster.
capabilities.
Understanding Disaster Risk. Disaster
Response Coordination. Coordination risk management should be based on an
between organizations and community understanding of disaster risk in all its
groups responding to an emergency or dimensions of vulnerability, capacity,
disaster situation. Ideally carried out exposure of persons and assets, hazard
within a common, agreed set of characteristics, and the environment.
Such knowledge can be used for risk • Resource/land-use/management
assessment, prevention, mitigation, legislation;
preparedness, and response.
• ORM legislation and plans
Strengthening disaster risk
Local Level
governance to manage disaster risk.
Disaster risk governance at the national, Local level hazard assessments are
regional, and global levels is very conducted on a smaller scale than
important for prevention, mitigation, national level hazard assessments.
preparedness, response, recovery, and
rehabilitation. It fosters collaboration and The purpose of assessments at this scale
partnership. is often to inform land-use decision-
making policies and disaster mitigation
Investing in disaster risk reduction for approaches, such as:
resilience. Public and private investment
• Location plans;
in disaster risk prevention and reduction
through structural and non-structural • Engineered structures or
measures are essential to enhance the infrastructure plans;
economic, social, health and cultural
resilience of persons, communities, • Evacuation plans;
countries and their assets, as well as the • Local emergency response plans;
environment.
• Community development;
Enhancing disaster preparedness for
effective response, and "Building • Recovery plans (pre- and post-
Back Better" in recovery, disaster
rehabilitation, and reconstruction. The
growth of disaster risk means there is a
need to strengthen disaster
preparedness for response, take action
in anticipation of events, and ensure
capacities are in place for effective
response and recovery at all levels.
National Level
Risk assessment is commonly conducted
on a national level to determine which
geographical areas are at the greatest
risk from different hazards.
• Preparedness and emergency
response plans;
• Development plans;
• Building codes;