philippinesacountryin-depthreviewreport-PreventionWeb.docVIP

Philippines: A Country in-depth review report Introduction Barely 20 years ago, the Philippines had a period of poor economic performance with the GDP annual rate of growth dipping at 0.6% in 1990-1991. Contributing to this were “decreasing investments, lower demand for exports, and slackening industrial growth accentuated by a continuing security problem and higher oil prices as the Gulf crisis of 1990-91 caused a deterioration in the balance of payments.” This was aggravated by the most damaging natural disasters in terms of economic losses that occurred during this period: the Northern Luzon (Baguio) earthquake of July 16, 1990; Ormoc flood during typhoon Uring of November 5, 1991; typhoon Ruping of November 10-14, 1990; and Mount Pinatubo eruption in June 9-15, 1991. The magnitude of disaster losses in 1990 alone was PHP28.317 billion or 11% government’s national budget. During the 10-year period between 1985 and 1995, economic losses were equivalent to 4.6% of the national budget. According to a World Bank study (2005), the Philippines suffered an average annual direct damage (to losses to agriculture, infrastructure and the private sector) of PHP15 billion per year (in real 2000 prices) between 1970 and 2000. (Note: The total cost of damage to infrastructure and agriculture of Typhoon Frank alone was PHP13.525B. Sixty percent of the damage was in the Western Visayas region, which contributes 6.5% to the national GDP). The amount is equivalent to 0.7% of annual GDP. The report also cited the losses equivalent to 2.6% of GDP in 1991 due a major earthquake and very damaging typhoons that year. Human and social impacts are worst felt locally. These are manifested in terms of displacement of people and homelessness, lost household incomes, occupation of school buildings as evacuation centers, increased exposure to diseases, psychosocial illnesses. These impacts have not been very well understood and quantified until the present. With repeated destruction o