Building Disaster Resilient Local Economy: The Case of the Philippines

The study explored the key trends and various issues surrounding disaster risk reduction and management (DRRM) in the Philippines by analyzing the interrelationship of disaster risk, revenue generation capacity, and DRRM capacity of local governments in the Philippines. The study analyzed the economic implications of disasters to the local economy and analyzed how revenue generation capacity of local governments contributes to realizing disaster-resilient local economy. The study found out that while the law encourages local governments to invest on DRRM, the current system, however, puts local governments with lower income at a disadvantage as they have lower revenues and thus, less resources to utilize for DRRM. The varying income among local governments create disparity not just in local growth but also in performing their DRRM devolved functions. Therefore, the revenue generation capacity of local governments is crucial to strengthen DRRM at the local level. The study suggests that addressing disparity in income and the complexities in sourcing the local revenue as well as having entrepreneurial and transformational local chief executives are crucial factors to realize disaster-resilient local economy in the Philippines.