Publication: Measuring Natural Risks in the Philippines: Socioeconomic Resilience and Wellbeing Losses
Traditional risk assessments use asset losses as the main metric to measure the severity of a disaster. This paper proposes an expanded risk assessment based on a framework that adds socioeconomic resilience and uses wellbeing losses as its main measure of disaster severity. Using a new, agent-based model that represents explicitly the recovery and reconstruction process at the household level, this risk assessment provides new insights into disaster risks in the Philippines. First, there is a close link between natural disasters and poverty. On average, the estimates suggest that almost half a million Filipinos per year face transient consumption poverty due to natural disasters. Nationally, the bottom income quintile suffers only 9 percent of the total asset losses, but 31 percent of the total wellbeing losses. The average annual wellbeing losses due to disasters in the Philippines is estimated at US$3.9 billion per year, more than double the asset losses of US$1.4 billion. Second, the regions identified as priorities for risk-management interventions differ depending on which risk metric is used. Cost-benefit analyses based on asset losses direct risk reduction investments toward the richest regions and areas. A focus on poverty or wellbeing rebalances the analysis and generates a different set of regional priorities. Finally, measuring disaster impacts through poverty and wellbeing impacts allows the quantification of the benefits from interventions like rapid post-disaster support and adaptive social protection. Although these measures do not reduce asset losses, they efficiently reduce their consequences for wellbeing by making the population more resilient.
“Walsh, Brian; Hallegatte, Stephane. 2019. Measuring Natural Risks in the Philippines; Measuring Natural Risks in the Philippines: Socioeconomic Resilience and Wellbeing Losses : Socioeconomic Resilience and Wellbeing Losses. Policy Research Working Paper;No. 8723. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/d361b0da-305d-5a94-8444-f99e4360cb67 License: CC BY 3.0 IGO.”
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