|Project Rationale and Linkage to Country/Regional Strategy
The Philippines is a lower middle-income country with a human development index of 0.654, placing it 114th out of 187 countries. From 2003 to 2012, the country's gross domestic product (GDP) grew at an average annual rate of 5.2%, but poverty incidence increased from 24.9% to 27.9%. Incomes and poverty incidence differ significantly across provinces. Many geographically isolated, hazard-prone, or conflict-affected areas and indigenous peoples' ancestral domains have very limited health services, low female participation in the workforce and local politics, and wide gender wage gaps. Progress lags in meeting Millennium Development Goals on poverty, universal primary education, and maternal health. Limited access to basic services is a key cause of poverty and inequality in the country. Government estimates indicate that about 45% of the population is vulnerable to falling into poverty if confronted by external shocks such as health problems, family deaths, loss of employment, and disasters.
The Philippines is one of the world's most natural-hazard-prone countries. It ranks third on the global disaster risk index, behind Vanuatu and Tonga. Nearly 60% of the total land area is exposed to multiple hazards such as floods, earthquakes, landslides, and volcanic eruptions; about 74% of the population is vulnerable to disasters. About 1,000 lives, on average, are lost annually because of disasters. The country experiences about 20 typhoons every year. Tropical cyclones and associated flooding account for about 75% of recorded deaths and 63% of damage. The annual cost of disasters to the economy is estimated at 0.7% 1% of GDP. The frequency and ferocity of the disasters overstretch the capacity and resources of national and local governments to respond effectively.
On 8 November 2013, Typhoon Yolanda hit the central Philippines, leaving behind an unprecedented path of destruction. An initial disaster needs assessment has been carried out. As of 1 December 2013, the death toll stood at 5,632, with another 1,759 still missing, 26,136 injured, and about 890,000 families or 4.11 million people displaced. The Asian Development Bank (ADB) estimated that an additional 1.5 million persons may have fallen into poverty immediately after Typhoon Yolanda a 24% increase in the number of poor in central Philippines and 7.1% nationwide. Preliminary government estimates indicate that Typhoon Yolanda and other recent disasters may have cut the national economic growth rate by 0.3- 0.8 percentage points in the fourth quarter of 2013 alone, which is equivalent to $900 million -$2.5 billion of lost GDP in 2013. ADB's preliminary forecast for 2014 is that the drop in the GDP growth rate could be as high as 1 percentage point. The combined regional economies of Central Visayas, Eastern Visayas, and Western Visayas which account for 12.5% of the country's GDP could shrink by 4.0%- 8.0% in 2014. The Eastern Visayas' economy could contract by 30.0% or more in 2014.
Community-driven development (CDD) approaches have been used to address bottlenecks in the local delivery of basic services. The CDD principles of participatory planning and community control of investment resources are being applied in the Philippines by the government's Kapit-Bisig Laban sa Kahirapan (Linking Arms Against Poverty) Comprehensive and Integrated Delivery of Social Services (KALAHI -CIDSS) project, managed by the Department of Social Welfare and Development (DSWD). KALAHI- CIDSS has improved basic service delivery, effectively targeted poor communities, and responded to the needs of poor households, lessening the influence of patronage in resource allocation and job creation. The government identifies CDD as a pillar of the country's development and poverty reduction strategy, and is expanding KALAHI -CIDSS operations into the KC-NCDDP.
In the aftermath of Typhoon Yolanda, the KC-NCDDP will use CDD to support recovery and rehabilitation efforts in affected communities. International experience demonstrates the effectiveness of CDD in responding to disaster situations and reducing disaster risks. CDD is useful in emergency and post-calamity situations for the following reasons: (i) a community is the first to experience a disaster and the first to respond, (ii) communities have indigenous knowledge of hazards and mitigation, (iii) involving affected communities in determining needs and priorities helps ensure the appropriateness and sustainability of disaster responses, and (iv) organized communities are better able to demand downward accountability.
The presence of CDD projects, especially in poor, remote, and disaster-prone areas, also makes them well positioned to urgently respond to post-disaster needs and facilitate the coordination and cohesiveness of assistance. CDD projects that have established efficient management systems, including flexible procurement and disbursement procedures, can be tapped to quickly mobilize resources after a disaster. Indonesia expanded CDD programs to respond to urgent recovery needs after five major disasters from 2004 to 2010. The post-disaster experience of Aceh and Nias highlighted the following outcomes of CDD programs: (i) fully disbursed funds ahead of schedule, (ii) more outputs delivered than other programs, and (iii) greater transparency and accountability than most other government projects.
With the presence of KALAHI -CIDSS in about 90% of the Yolanda-affected areas, and building on the long-running KALAHI -CIDSS management systems, the KC-NCDDP will be well positioned to address the post-disaster needs of communities. The KC-NCDDP will provide support for recovery and rehabilitation activities in more than 14,000 barangays (villages) in more than 500 municipalities across 39 provinces affected by the typhoon, covering about 3.3 million households. It will provide (i) grants for planning and implementing CDD subprojects, (ii) capacity building and implementation support, and (iii) program management monitoring and evaluation.