RISK, SHOCKS, BUILDING RESILIENCE Proceedings of the Second Annual Public Policy Conference 2016 RISK, SHOCKS, BUILDING RESILIENCE Proceedings of the Second Annual Public Policy Conference 2016 Philippine Institute for Development Studies Surian sa mga Pag-aaral Pangkaunlaran ng Pilipinas Bangko Sentral ng Pilipinas Copyright 2017 Published by Philippine Institute for Development Studies Bangko Sentral ng Pilipinas Printed in the Philippines. Some rights reserved The views expressed in these proceedings are those of the authors and do not necessarily reflect the views of any individual or organization. Please address all inquiries to: Philippine Institute for Development Studies 18th Floor, Three Cyberpod Centris - North Tower EDSA corner Quezon Avenue, 1100 Quezon City Telephone: (63-2) 8774000; 3721291 to 92 Fax: (63-2) 8774099 E-mail: [email protected] Website: http://www.pids.gov.ph This volume is published annually and is under the Creative Commons Attribution Noncommercial License. It shall not be used for commercial purposes. Anyone can use, reuse, distribute, and build upon this material as long as proper attribution is made. ISSN 2546-1761 RP 09-17-600 Editorial and production team: Sheila V. Siar, Mark Vincent P. Aranas, Jane C. Alcantara, Carla P. San Diego, and Rejinel G. Valencia Syntheses writers: Sheila V. Siar and Gizelle G. Manuel (About the conference), Sheila V. Siar (Agricultural resilience), Mark Vincent P. Aranas (Health resilience), Misha M. Borbon (Macroeconomic resilience), and Rejinel G. Valencia and David Feliks M. Bunao (Urban environment) Table of Contents List of Tables, Figures, Appendixes, and Boxes .................................................................................................................. x Foreword ..................................................................................................................................................................................... xv Preface ....................................................................................................................................................................................... xvii List of Acronyms ..................................................................................................................................................................... xix About the Conference ......................................................................................................................................................... xxiii CONFERENCE FRAMEWORK PAPER .................................................................................................................................... 1 Risks, Shocks, Building Resilience: Philippines Gilberto M. Llanto The evolving global risk landscape .................................................................................................................................. 1 Building resilient systems ................................................................................................................................................... 4 Vulnerability and building economic resilience ............................................................................................................ 4 Resilient systems in the Philippines ................................................................................................................................. 7 Developing resilience thinking: The way to go ............................................................................................................ 8 References .............................................................................................................................................................................8 SESSION 1: AGRICULTURAL RESILIENCE 1 | Climate Change Adaptation and Mitigation for the Agriculture Sector ...................................................13 Marites M. Tiongco Abstract ................................................................................................................................................................................13 Introduction .........................................................................................................................................................................14 Climate change and Philippine agriculture ...................................................................................................................17 The current government framework in support of adaptation and mitigation .................................................19 Mainstreaming adaptation and mitigation strategies ..................................................................................................22 The effectiveness of agricultural adaptation and mitigation initiatives .................................................................26 Agricultural finance to build resilience to climate change ........................................................................................32 Summary and policy implications ...................................................................................................................................34 References .............................................................................................................................................................................41 2 | Improving Irrigation Water Governance for a Resilient Agriculture ..........................................................45 Agnes C. Rola Abstract .................................................................................................................................................................................45 Introduction .........................................................................................................................................................................45 Threats to water in agriculture .........................................................................................................................................46 Framework of analysis ......................................................................................................................................................48 Analysis of irrigation sector performance ...................................................................................................................49 Analysis of irrigation water governance structure .....................................................................................................50 Conclusions and policy recommendations .................................................................................................................59 References .............................................................................................................................................................................61 vi 3 | Review of Design and Implementation of the Agricultural Insurance Programs ..............................65 of the Philippine Crop Insurance Corporation Celia M. Reyes, Christian D. Mina, and Reneli Ann B. Gloria Abstract .................................................................................................................................................................................65 Introduction .........................................................................................................................................................................65 Overview of the agricultural insurance programs in the Philippines ..................................................................66 Assessment of the design of the program ..................................................................................................................69 Assessment of the implementation of the program .................................................................................................74 Concluding remarks ...........................................................................................................................................................78 References ...........................................................................................................................................................................79 Session Synthesis...................................................................................................................................................................... 81 SESSION 2: HEALTH RESILIENCE 4 | The Challenge of Reaching the Poor with a Continuum of Care: ............................................................ 85 A 25-Year Assessment of Health Sector Performance Orville Jose C. Solon and Alejandro N. Herrin Introduction ..........................................................................................................................................................................85 Despite rising health expenditures and health reforms, progress in improving health outcomes ..................85 Devolution fragmented the delivery and financing of public health services .....................................................86 DOH identified major problems in the delivery and financing of health services ...........................................86 Reform initiatives attempted to address fragmentation .............................................................................................87 Fundamental weaknesses of the health system ...........................................................................................................87