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Financing ASPFiji’s Case – TC Winston in 2016
Financial Tools and Approaches for Shock-responsive Safety Nets
Rupeni FatiakiDirector of the Department of Social Welfare
Ministry of Social Welfare, Women and Poverty Alleviation, Fiji
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Outline
• Country Overview • Economic Overview • Tropical Cyclones in Fiji & Implication of TC
Winston • Policy Responses to TC Winston • Lessons Learnt
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Country Overview • Has a well-educated (literacy
rates > 90%) & mobile population of around 885,000
• Main sources of foreign exchange inflow are tourism, agriculture and mining
• Serves as an important hub of the South Pacific
• Major trading partners include Aust., NZ, US, Eurozone, Japan and China
• GDP per capita around US$6,300 Fiji is an archipelago of around 330 islands
In the South Pacific, approximately 2,700km east of Australia
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Outline
• Country Overview • Economic Overview • Tropical Cyclones in Fiji & Implication of TC
Winston • Policy Responses to TC Winston • Lessons Learnt
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Economic Overview Stable and Sustainable
Growth
Accommodative Foreign
Reserves
Low inflation
Increased Investment
Increased Fiscal Discipline
Low levels of external debt
Improving BOP
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Outline
• Country Overview • Economic Overview • Tropical Cyclones in Fiji & Implication of TC
Winston • Policy Responses to TC Winston • Lessons Learnt
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Tropical Cyclones In Fiji• Fiji is highly exposed and vulnerable to natural disasters• It has weathered over 20 tropical cyclones since 1990• The average annual loss is around US$80 million• The most recent and most devastated being TC Winston in 2016 with
following disaster effects, equivalent to around 1/3 of national GDPDamage Production Losses Total
Productive 241.28 580.37 821.65 Agriculture 30.29 285.03 315.32 Livestock 9.24 5.08 14.31 Fishery 40.66 131.47 172.13 Forestry 1.09 28.23 29.32 Manufacturing 70.37 61.94 132.31 Commerce 2.45 7.98 10.43 Mining 11.00 16.69 27.69 Tourism 76.19 43.95 120.14
Social 834.80 39.95 874.75 Education 69.21 7.37 76.58 Health 7.69 6.24 13.93 Housing, inc shelter 757.90 26.34 784.24
Infrastructure 207.71 39.70 247.41 Electricity 32.57 7.54 40.11 Water and sanitation 16.91 7.79 24.70 Transport 127.00 2.40 129.40 Communications 31.23 21.97 53.20
Cross-Cutting 239.65 626.15 865.80 Culture 5.10 0.84 5.94 Disaster Risk Managemen 2.02 29.49 31.51 Environment 232.52 595.82 828.34
Total 1,523.44 1,286.17 2,809.60
Disaster Effects
DaLA by Division
DamageCentralEasternNorthernWestern125.75786545814054138.39739914306418272.06276736752693729.09471075542979Change in flowsCentralEasternNorthernWestern124.9932997876898473.382129232304067290.12143849339469253.21743623852797
Geographica DaLA pie
CentralEasternNorthernWestern250.75116524583038211.77952837536824562.18420586092157982.31214699395775
Per capita DALA by Division
DamageCentralEasternNorthernWestern343.940907285732183474.1791129396572053.27291186191132225.3260816317847Change in flowsCentralEasternNorthernWestern341.849861851584991842.10586485350112189.5627122110964772.86442607941137
Per capita disaster effects, F$
Income vs Losses
Household income, F$/person341.849861851584991842.10586485350112189.5627122110964772.8644260794113727508.315616.9714102.9421477.91
per capita production losses, f$/PERSON
annual household income, f$/person
GEOGR SUMM
CentralEasternNorthernWesternTotalCentralEasternNorthernWesternTotal
Agriculture47.7332.2492.6041.03213.60Agr. Flow changes0.230.150.440.181.00
Damage0.851.242.583.858.52Agroindustry food processing7.945.2515.256.3034.74
Change in flows46.8931.0090.0337.17205.09Trade of processed foods8.465.6016.256.7137.01
Sugarcane- 0- 015.7159.6675.36
Damage5.8315.9521.78
Change in flows9.8843.7053.58
Livestock3.960.881.088.4014.31
Damage2.650.560.715.329.24
Change in flows1.320.320.373.085.08
Fishery41.7710.8288.2165.71206.51
Damage8.516.107.9818.0740.66
Change in flows33.264.7280.2347.64165.86
Forestry2.180.948.0718.1329.32
Damage0.130.020.290.641.09
Change in flows2.050.927.7817.4928.23
Manufacturing26.835.9262.8470.17165.76
Damage10.320.3024.6634.2169.49
Change in flows16.515.6238.1835.9696.27
Tourism1.3019.5132.1667.17120.14
Damage0.786.5812.9855.8476.19
Change in flows0.5212.9319.1811.3343.95
Commerce9.025.9717.327.1539.46
Damage0.560.371.080.442.45
Change in flows8.465.6016.256.7137.010.230.150.440.18
Education14.4014.408.7139.0976.60
Damage13.0413.657.7534.7969.23
Change in flows1.360.740.954.317.37
Health4.373.771.064.6713.87
Damage2.572.640.382.107.69
Change in flows1.791.140.682.576.18
Water & Sanitation5.091.955.0412.2024.28
Damage2.991.854.467.6016.91
Change in flows2.110.100.574.607.37
DRR3.044.168.9613.3229.49
Damage0.200.650.290.882.02
Change in flows2.853.518.6612.4427.47
Housing67.2787.56168.00455.22778.05
Damage64.7683.93163.12439.89751.70
Change in flows2.513.634.8815.3326.35
Subtotal226.97188.12509.75861.921,786.77
Damage107.35117.90232.11619.601,076.97
Change in flows119.6270.23277.64242.32709.80
0.100.110.220.581.00% distribution
0.170.100.390.341.00
FALTA MINING!!!!
Transport13.0614.1428.3173.88129.40
Damage12.6613.9027.3773.06127.00
Change in flows0.400.240.940.822.40
Communications6.825.5915.3225.4753.20
Damage3.113.426.7317.9731.23
Change in flows3.702.178.597.5021.97
Electricity4.524.319.9721.3140.11
Damage3.253.577.0218.7432.57
Change in flows1.270.752.952.577.54
TOTAL COUNTRY251.37212.17563.36982.582,009.48
Damage126.37138.79273.24729.371,267.76
Change in flows124.9973.38290.12253.22741.71
0.130.110.280.49
Population 2014365,63839,836132,502327,635865,611
Per capita6875,3264,2522,9992,321
Damage3463,4842,0622,2261,465
Change in flows3421,8422,190773857
CentralEasternNorthernWesternTotal
TOTAL COUNTRY250.75211.78562.18982.312,007.03
Damage125.76138.40272.06729.091,265.31
Change in flows124.9973.38290.12253.22741.71
Per capita685.795,316.284,242.842,998.192,318.62
Damage343.943,474.182,053.272,225.331,461.76
Change in flows341.851,842.112,189.56772.86856.87
CentralEasternNorthernWestern
Damage125.76138.40272.06729.091,265.31
Change in flows124.9973.38290.12253.22741.71
250.75211.78562.18982.31
CentralEasternNorthernWestern
Damage343.943,474.182,053.272,225.33
Change in flows341.851,842.112,189.56772.86
685.795,316.284,242.842,998.19
DivisionAnnual Per Capita Income $Per capita production losses
Central27,508341.85
Eastern15,6171,842.11
Northern14,1032,189.56
Western21,478772.86
FIJI22,565856.87
CentralEasternNorthernWestern
Production losses. F$/person341.851,842.112,189.56772.86
Household income, F$/person27,508.3015,616.9714,102.9421,477.91
Hoja1
For total DaLA
CentralEasternNorthernWesternCountryRangeColor
Damage and losses, million F$250.75211.78562.18982.312,007.03> 751
501 to 750
249 to 500
< 250
Per capita damage and losses, F$/person685.795,316.284,242.842,998.1913,243.10
RangeF$/person
> 5,001
3,001 to 5,000
1,001 to 3,000
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TC Winston Social Effects
• 62 percent of the national population were affected
• 48.8% (263,000) women were affected by the disaster
• those whose livelihoods were affected account for 90 percent of the affected
– 57 percent relate to the agricultural sector,
– 17 percent to commerce– 10 percent manufacturing– 8 percent to tourism– 8 percent transportation
• those whose lives were lost, the injured, ill - together accounted for 0.03 percent
• Displaced - those whose homes were totally destroyed accounted for 10 percent
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Outline
• Country Overview • Economic Overview • Tropical Cyclones in Fiji & Implication of TC
Winston • Policy Responses to TC Winston • Lessons Learnt
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TC Winston Policy ResponsesExisting Fiscal Policies• Around $10m allocated annually in
the Government Budget for disaster relief, contingency, and disaster risk and climate change adaptation.
• A 150% tax deduction for voluntary contribution of cash donation by businesses towards the Disaster Relief Fund with threshold ranging from $10,000 to $100,000.
• A 200% tax deduction for voluntary contribution of cash donation by taxpayers towards the Farmers Emergency Fund Account for disaster relief with minimum contribution of $10,000.
Specific Policies for TC Winston• Duty free on donated goods from families etc
abroad for a specified period. • Duty free on timber, roofing iron, electric
products for a specified time to assist with residential reconstruction.
• Transfer of funds to top up social protection initiatives ($20m).
• Transfer of funds to cater for rations ($16m) • Redeployment of funds to cover the Help for
Homes Initiative - affected residential ($70m). • Allowable withdrawal of $1,000 or $5,000
from national superannuation fund (FNPF). • Adopt a School Programme - foreign
governments, multilateral organisations, donor organisations, etc
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TC Winston Response Timeline
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Social Protection Initiatives• Poverty Benefit Scheme (PBS): Currently 25,259 people benefit from the scheme which
targets financial support to low-income households. $38.1 million allocated in the Budget. Increased budget stems from an upward adjustment in the monthly household allowance from $30-$110 per household to $35-$127 per household, as well as the absorption of an additional 544 new recipients under the scheme. PBS recipients, however, will continue to receive the monthly food voucher of $50.
• Social Pension Scheme: This programme provides a social safety-net for elderly citizens that are currently not receiving any form of Government assistance or pension support. Budget allocation increased from $14.0 million to $37.2 million to accommodate an increase in the monthly allowance from $50 to $100 as well as an increase in the number of recipients from 25,998 to 34,002 due to a reduction in the eligibility age from 66 years to 65 years.
• Food Voucher Programme for Rural Pregnant Mothers: to help prevent complications during pregnancy and infant malnutrition. Allowance increased from $30 to $50 per recipient, and also the number of recipients expected to increase from 1,548 to 2,076. These changes will be funded through an allocation of $1.7 million.
• Child Protection Allowance: allowances for children from low-income families, single-parent families and prisoner dependents. Increase monthly allowance from $25-$60 per child to $29-$69 per child and also increase the intake of child recipients from 4,152 to 4,696 in the upcoming financial year with a budget allocation of $6.8 million.
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Social Protection Interventions and Cash flow post-TC Winston
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Impact Evaluation of PBS Response overwhelmingly positive
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Outline
• Country Overview • Economic Overview • Tropical Cyclones in Fiji & Implication of TC
Winston • Policy Responses to TC Winston • Lessons Learnt
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Lessons Learnti. Need to update and improve existing Department of Social
Welfare beneficiary database, so that near-poor households can be reached.
ii. Need for an improved communication strategy, so that households are aware that the top-up payments are coming.
iii. Development of Standardized Operating Procedures to improve the coordination of disaster response.
iv. Introduction of affordable home insurance schemes in the future to assist the poor.
v. Strict enforcement of adherence to Fiji’s National Building Code.vi. Adequate provision of disaster contingency funds to cater for swift
and immediate relief.vii. Explore more options in financing such unexpected events –
negotiations on soft loans with reasonable interest rates with ADB or World Bank.
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Thank you.
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Keiko to provide map…
Financing ASP�Fiji’s Case – TC Winston in 2016Outline Country Overview Outline Economic Overview Outline Tropical Cyclones In FijiTC Winston Social EffectsOutline TC Winston Policy ResponsesTC Winston Response TimelineSocial Protection InitiativesSocial Protection Interventions and �Cash flow post-TC WinstonImpact Evaluation of PBS Response overwhelmingly positive Outline Lessons LearntThank you.Slide Number 18