1. “ Disaster Risk Reduction Beyond Micro Financing: A Holistic Approach to Poverty Eradication” Presented by: MARK A. CERVANTES Program Specialist Disaster Risk Reduction and Climate Change Adaptation International Institute of Rural Reconstruction 4th Microfinance Best Practices Forum (MBPF) June 9-10, 2011, Mariott Hotel, Cebu City

2. Philippines Vulnerability to Disasters The Philippines is vulnerable to almost all types of natural hazards because of its geographical location It is located within the Circum-Pacific belt of fires and along a typhoon path. As an archipelago with 7,107 islands, the threat of tsunami affecting the country’s coastal areas increases. ANNUALLY: Average of 24 typhoons where 4-5 are destructive. Hosts to 300 volcanoes of which 22 are active. Billions of pesos are lost yearly due to disaster events.

3. The Philippines among Most Disaster-Prone Countries The Philippines shares with several Asian countries the unwelcome distinction of being one of the world’s most disaster-prone countries. 701 disaster incidents from 1900 – 1991 or almost eight (8) disasters a year on the average annually. In 2010, a total of 202 natural and human-induced disasters were reported in the Philippines. These killed 239 people, and affected more than 1.29 million families or 6.75 million people, and caused over Php 25 billion in economic damages . (Philippine Disaster Report, Disaster Statistics 2010, Citizen Disaster Response Center)

4. Climate Change is REAL! on the average annually.

5. Prediction: Year 2100 Increase in global temperature : 1.1C to 6.4C Sea level rise: 0.36 to 2.5 ft.

6. Climate Change Emissions of GhG Translates to Hydro-meteorological hazards As global climate change escalates, the risk of flood, droughts and severe storm increases.

7. According to the 4 th Assessment Report of the Inter-government Panel on Climate Change (IPCC), rising global temperature will cause increasing drought in mid-latitudes and semi-arid latitudes, increase water stress in many parts of the world, increased damage from storms, and coastal flooding affecting millions more people each year. A 2 degree Celsius increase in temperature have grave impacts to the natural ecosystem. Plants will unable to grow and marine life may become extinct.

8. Climate Change increases “disaster risk” in a number of ways: -It changes the magnitude & frequency of extreme events (flood, drought, sea level rise, typhoons); - It changes average climatic conditions & climate variability, affecting underlying risk factors and generates new threats, which a region may have no experience in dealing with.

11. Climate change will adversely affect the country’s watersheds and their population of around 24 M, the forests and their biodiversity, also affecting 1.5 M of agricultural lands dependent on these areas for irrigation water.

14. An effect of climate change in water quality is anticipated to be in the form of decreased oxygen level which may result to fish kill. This comes along with ocean acidification which affects mariculture and reduces production.

15. Approximately 50 M people are at risk from these climatic hazards, many of them marginal communities of fishers, because 70% of the country’s human settlements are located in its 32,400 km coastline. In terms of impact on food security, climate change could seriously affect coastal fisheries providing around 40-60 % of total fish catch, representing 4 % of the country’s gross national product and 70 % of the populations’ total animal protein intake. Over-all, the Philippines’ coastal and marine resources directly provide food and employment to around 1 M Filipinos.

16. Disaster Risk Reduction: A framework and tool that determines the degree of risk and describes measures to increase capacities and reduce hazard impact on the elements at risk so that disaster will be avoided. The Way Forward… Disaster Risk Reduction & Climate Change Adaptation

18. “ DRR in Micro Finance (why not?)”

19. An emerging framework for development and a tool

28. Mainstreaming DRR process is like the branch of water that joins the main stream which is the standard process in microfinance

35. Some attempts and efforts on integration of CMDRR at partners’ level • Information on practices like garbage segregation/solid waste management included in the Loan Form (USPD) • Inclusion of CMDRR orientation during Information and Education Campaign through symposia and General Assembly (USPD) • Integration in the “entrep skwela” modules (USPD) • CMDRR orientation included in the PMES (BCS/SEDFI) and credit investigation (BCS)

36. • Inclusion of CMDRR sessions in the Annual Development Plan of Paglaum MPC • Meetings of Barangay Captain and Municipal Disaster Committees were used as opportunities for introducing CMDRR concepts; • Company workers mobilized for mangrove rehabilitation and started pushing for tree planting (KASILAK) • Radio interviews were utilized as venue for CMDRR advocacies (KASILAK-Midsayap) • As an advocacy initiative, presentation of the film “Signus” followed with CMDRR concepts orientation during town fiesta (BCS)

37. In Summary Building upon community resiliency through developing and facilitating financial products that would help individual and community to survive and bounce back e.g. savings, crop insurance, risk assessment, inclusion of high risk individuals

40. Acknowledgement Mr. Rusty Binas, Global Advisor on DRR, Cordaid Ms. Rose Rivera, Micro Finance Sector, Cordaid Sheila Vergara, Training and Capacity Building Specialist, IIRR Dr. Oscar Zamora, Dean, Graduate Studies, UPLB

41. Thank You