edward arriba - jan 18 2014
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The Aftermath
of Yolanda:
A Case Study
Submitted by: Edward Vange P. Arriba
Submitted to: Prof. Allan Cledera
Date: January 18, 2014
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Last November 8, 2013, our country has made a history. A tragic history that the Philippines and
the rest of the world will never forget. It was last November 8, 2013 when the strongest tropical
cyclone on record to make landfall in world history landed Guiuan, Eastern Samar. It was the
start of the most tragic history that killed 6201 people, injured 28,626 individuals and 1,785
people reported missing up until this very moment.(1)
It was Typhoon Yolanda or Typhoon
Haiyan as renounced internationally that stunned the whole world with its extreme destruction to
some parts of the Philippines. Typhoon Yolandas massive size also left a big damage to almost
half of the demographics of the country. In accordance to NDRRMC, Typhoon Yolanda
damaged Regions IV-A, IV-B, V, VI, VII, VIII, and CARAGA garnering a total cost of damage
amounting to PhP36,690,882,497.27 with PhP18,336,576,627.39 for infrastructures and
PhP18,354,305,869.88 for agriculture . But Typhoon Yolandas trail was mostly centered on the
Eastern Visayas and most of its effects are concentrated to those parts of the country.
With an extremely strong maximum sustained winds plus continuous rains, agriculture sector
will surely be greatly affected. Knowing that Eastern Visayas is mainly an agricultural region
with rice and corn two of its major crops, a strong typhoon will surely ruin the agriculture
economy of the region. Luckily, Yolanda landed after the main harvest of the region thus, almost
all of the crops and corn were harvested prior to the landfall of Yolanda in their region thus
minimizing the effects of the super typhoon to the farm lands but still the country has a total
damage cost of 18 Billion pesos just in the agriculture sector alone. Some other effects of
Yolanda to the economy of the Philippines will be discussed by the researcher segregated in
accordance to most important sectors and topics in our Economy.
1 According to NDRRMC Update as of January 14, 2014
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Prices of Commodities
According to National Economic and Development Authority (NEDA), Typhoon Yolandas
devastation and power hikes raised prices of basic commodities, pushing headline inflation to 4.1
percent in December 2013. The 4.1 inflation was greatly affected by the increase of food prices
in the economy that can be attributed to the devastation of Typhoon Yolanda. Food prices from
the affected regions of Typhoon Yolanda skyrocketed. This is because almost all of the
farmlands were destroyed completely by the Typhoon Yolanda. In Eastern Visayas (Region
VIII), prices of vegetables went up by 11.3 percent in December 2013 from 5.8 percent of
November 2013. While in Central Visayas (Region VII), prices of rice increased by 12.2 percent
from 9.4 percent, 11.2 percent from 7.8 percent for fruits, and 11.3 percent from 6.6 percent for
vegetables. Also, in Western Visayas (Region VI), vegetable prices surged by 11.8 percent from
2.3 percent in November 2013.(See in figure # 1)
Figure 1 (Comparative Figure: Inflation)
05
1015
Comparative Figure: Inflation
Nov-13
Devember 2013
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In the figure above, we can surely notice the difference between the inflation percentage
of November 2013 and December 2013. All the Inflation percentages increased in the month of
December. And almost all of the agricultural products inflation gradually increased during the
month of the devastation of Typhoon Yolanda. This because of the price freeze that was
implemented during that time and also because of the enough supply of agricultural products in
the region because almost all of the agricultural products were harvested prior to Yolanda. The
increase of inflation in December 2013 is because of the long term effect of having a frozen
agriculture sector because almost all of the farmlands were destroyed thus they cant have output
in the long run and even the destruction of roads and airports may possibly cause disruption in
the supply chain and fuel the increase in the inflation.
Effect to GDP
The impact of Yolanda to Visayas will surely make their economy stagnant and slack. This is
because almost all of the farm fields, offices and other things needed for economy to run were
destroyed by the Typhoon. Thus, the country expects a low economic productivity but not a zero
economic activity. This is an indication that the effect of the Typhoon Yolanda to the real GDP
of the country can be contained and is manageable.
Bangko Sentral ng Pilipinas Deputy Governor Diwa Guinigundo said that the effect of Typhoon
Yolanda to the real GDP of the Philippines will be minimal. This is because the remittances of
the OFW will be a counterweight to the effect of the typhoon to our countys GDP. Remittances
from our OFW will surely shield the economy from slowdown since remittances provide for
consumption spending. The remittance inflow in the Philippines during calamities and crises is
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counter cyclical. It means that during the times of calamities and crises, OFW tend to send more
money to their loved ones in the Philippines for their survival. Thus, the effect of Yolanda to the
GDP will be contained and minimized.
Figure 2: Effect of Yolanda to GDP
According to Banko Sentral ng Pilipinas, the areas devastated by Yolanda account for 12% to
13% of the economy. Since the economic activities of those areas will be slack, other
neighboring regions will surely have an increase of economic activities to cope up to the
economic activities that cannot be done by the Visayas Region. This means that the supply that
was provided before by Visayas will be supplied by other regions thus creating a zero sum game
in the economy. It means that all the economic losses in terms of the economic activities of the
affected regions are the gain of other regions.
Effect of Yolanda
OFW Remittances
Minimized Effect to Real GDP
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Agriculture and Food Security
Agriculture Sector was greatly affected by the Typhoon Yolanda. In accordance to NDRRMC,
the total damage of Typhoon Yolanda to the agriculture sector is amounting to
PhP18,354,305,869.88. United Nations Office for the Coordination of Humanitarian Affairs
(OCHA) estimated that up to 450,000 farmers and fisher households were directly affected by
the typhoon and Nearly 5.6 million people require food assistance and support to prevent food
insecurity and restore agricultural and fishing livelihoods. The massive number of affected
farmers is because the area affected by Typhoon Yolandas main livelihood is agriculture.
NDRRMC also provided the breakdown of the cost of damage of Typhoon Yolanda. (See figure
3)
Figure 3: Breakdown of damages to Agriculture
42%
16%
32%
1%
9%
Breakdown of Damage to Agriculture
Crops (rice, corn other crops): Livestock:
Fisheries: Irrigation facilities:
Other agricultural infrastructure:
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In accordance to figure 3, it was stated that 42% of the total damage to agriculture came
from the crops. The strength of the typhoon Yolanda almost wiped out all the farm fields of
visayas. The effect was just minimized because almost all of the crops were harvested before
Yolanda has devastated the region. 32% of the total damage cost to agriculture came from the
Fisheries. This is because of the extreme flash floods in the region destroyed almost all of the
ponds and killed fishes in the region. 16% came from the livestock. 9% from other agricultural
structures and 1% came from the irrigations.
The effect of Yolanda will surely be felt for years. It has surely affected us Filipinos and as well
as other counties as well may it be economically, emotionally and spiritually. May this be a
lesson to each and everyone to prioritize the safety of each and everyone by putting up an
effective disaster risk management. I personally believe that the effect may have been minimized
if only we prepared for it properly. But at the end of the day, blaming people or pointing fingers
will benefit no one. We should stop blaming other people and start working as a country.
Yolanda opened a new chapter in our country. Yolanda taught us many things. At the end of the
day, we just have to learn from all the lessons given by our past shortcomings and make it as an
inspiration to be a better country and an economy.
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References:
Storm Haiyan (Yolanda) Update: Whos to Blame for the Looting of Gaisano Mall in Tacloban at the Height of the Megatyphoon? - International Business Times. 2014. Storm Haiyan
(Yolanda) Update: Whos to Blame for the Looting of Gaisano Mall in Tacloban at the Height of the Megatyphoon? - International Business Times. [ONLINE] Available at:
http://au.ibtimes.com/articles/521162/20131111/storm-haiyan-yolanda-update-who-s-
blame.htm#.UyKyh4U8V73. [Accessed 7 JANUARY 2014].
Extreme hunger triggering Yolanda survivors' impulse to loot psychologist | News | GMA News Online. 2014. Extreme hunger triggering Yolanda survivors' impulse to loot psychologist
| News | GMA News Online. [ONLINE] Available at:
http://www.gmanetwork.com/news/story/335654/news/regions/extreme-hunger-triggering-
yolanda-survivors-impulse-to-loot-psychologist. [Accessed 9 JANUARY 2014].
Yolandas effect on GDP minimal - Manila Standard Today. 2014. Yolandas effect on GDP minimal - Manila Standard Today. [ONLINE] Available at:
http://manilastandardtoday.com/2013/11/12/yolanda-s-effect-on-gdp-minimal/. [Accessed 7
January 2014].
GDP seen to withstand Yolanda impact | Business, News, The Philippine Star | philstar.com.
2014. GDP seen to withstand Yolanda impact | Business, News, The Philippine Star |
philstar.com. [ONLINE] Available at:
http://www.philstar.com/business/2013/11/17/1257586/gdp-seen-withstand-yolanda-impact.
[Accessed 7 January 2014].
Yolanda and the gdpminimal impact? | The Manila Times Online. 2014. Yolanda and the gdpminimal impact? | The Manila Times Online. [ONLINE] Available at:
http://manilatimes.net/yolanda-and-the-gdp-minimal-impact/58053/. [Accessed 7 January 2014].
Bangko Sentral says Yolanda impact on economy 'contained' - Yahoo News Philippines. 2014.
Bangko Sentral says Yolanda impact on economy 'contained' - Yahoo News Philippines.
[ONLINE] Available at: http://ph.news.yahoo.com/bangko-sentral-says-economic-impact-
yolanda-contained-064001811.html. [Accessed 7 January 2014].
2014. . [ONLINE] Available at:
http://www.ndrrmc.gov.ph/attachments/article/1125/NDRRMC%20Update%20re%20Sitrep%20
86%20-%20Effects%20of%20Yolanda.pdf. [Accessed 9 January 2014].
Typhoon Yolanda to trim PHL economic growth | Economy | GMA News Online. 2014.
Typhoon Yolanda to trim PHL economic growth | Economy | GMA News Online. [ONLINE]
Available at: http://www.gmanetwork.com/news/story/335060/economy/finance/typhoon-
yolanda-to-trim-phl-economic-growth. [Accessed 9 January 2014].
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Philippines: Agriculture and Infrastructure Estimated Economic Impact - Typhoon Haiyan
(Yolanda) (as of 22 November 2013) - Philippines | ReliefWeb. 2014. Philippines: Agriculture
and Infrastructure Estimated Economic Impact - Typhoon Haiyan (Yolanda) (as of 22 November
2013) - Philippines | ReliefWeb. [ONLINE] Available at:
http://reliefweb.int/map/philippines/philippines-agriculture-and-infrastructure-estimated-
economic-impact-typhoon-haiya-2. [Accessed 9 January 2014].
Yolanda pushed up commodities prices, but 4.7% CV inflation still within target | Sun.Star. 2014. Yolanda pushed up commodities prices, but 4.7% CV inflation still within target |
Sun.Star. [ONLINE] Available at:
http://www.sunstar.com.ph/cebu/business/2014/01/11/yolanda-pushed-commodities-prices-47-
cv-inflation-still-within-target-32261. [Accessed 15 January 2014].
NDRRMC Situation Report on the effects of the typhoon Yolanda, November 17, 2013 (6:00
a.m.) | Official Gazette of the Republic of the Philippines. 2014. NDRRMC Situation Report on
the effects of the typhoon Yolanda, November 17, 2013 (6:00 a.m.) | Official Gazette of the
Republic of the Philippines. [ONLINE] Available at: http://www.gov.ph/2013/11/17/ndrrmc-
situation-report-on-the-effects-of-the-typhoon-yolanda-november-17-2013-600-a-m/. [Accessed
15 January 2014].
The Yolanda effect | Parallaxis - Yahoo News Philippines. 2014. The Yolanda effect | Parallaxis
- Yahoo News Philippines. [ONLINE] Available at:
http://ph.news.yahoo.com/blogs/parallaxis/the-yolanda-effect-020913748.html. [Accessed 14
January 2014].
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