rapid assessment of the social impacts of - Philippines Development ...

Box 5: Selling purified water
Malaki ang pagbabago, parang naging times
two, kasi yung tubig na business malakas.
Pero po tindahan ko, hindi po. Sabi ko sa
kanila iinom kayo diyan, ang dumi baka
madisgrasya pa kayo. Eh di bumibili sila sa
akin ng tubig. (There was a great change [in
the business], [the profit] seemed to have
doubled. It was because the water business
became stronger, but not my store [variety
store]. I told the people about the danger of
drinking contaminated water. So they bought
water from me.) – ELSA, 43 YEARS OLD, DOÑA
IMELDA
approximately PhP300-PhP400. The higher demand for
purified drinking water also doubled the income of sellers,
partly compensating for the loss of sari-sari store profits
(Box 5).
Shifts in livelihood
In Marikina Heights, residents were forced to find other
work when the shoemaking business closed or slowed
down in the past year – before Ondoy. Most of those who
had lost their jobs put up their own small enterprises.
Some residents also took on multiple jobs or livelihood
activities, resulting in longer working hours. Those
engaged in vending, for instance, also did laundry work
once a week. There were a number of residents in these
areas who traded during the day and worked as
watchmen at night. Similarly, in the communities affected
by Ondoy, those unable to return to their old jobs or businesses ventured into new ones. Some
examples of these transitions observed during field work were, shifting from farming to being a
market helper or from shoemaking to being a tricycle driver.
Increased debt burden
A trend across all research sites was the increasing debt burden among the residents,
particularly women. A vicious debt cycle was apparent. Difficulties in repaying existing loans
led to difficulties in accessing new loans from microfinance institutions (MFIs). Without new
loans (and without recovery assistance), those engaged in livelihood activities will be unable to
re-establish their businesses and earn income to settle their outstanding obligations. If this
Box 6: Taking out loans
Kung wala ka talagang makukuhanan ng pera,
sa Bombay ka uutang. Pero kung ako may
pera, hindi ako uutang sa Bombay kasi
magkano ang interes? Malaki, tapos uutang
ka na, kailangan mo pa bumili sa kanila ng
mga items nila. (If you have no one to borrow
money from, you go to the “5-6”. But if I have
money, I will not borrow money from them.
Aside from the fact that the interest is high,
you are compelled to buy items from them.)
– NIDA, 40 YEARS OLD, 42 KAPILIGAN
remains unaddressed, the economic and social impact of
Ondoy on community life can be expected to continue in
the long term.
Even before Ondoy, procuring loans from formal and
informal sources to finance small enterprises had been a
common practice in all of the communities visited (Table
5). The women usually obtain loans from MFIs, with
interest rates ranging from 10 to 15 percent. They make
weekly repayments for six months. Others seek out
informal lending sources, including “5-6” moneylenders,
who are easily accessible but charge higher interest rates
and collect repayments every day for thirty to forty days
(Box 6). The residents reported that they did not have
difficulty paying debts before Ondoy.
The effects of the storm have indeed disrupted and altered the livelihood of the residents.
Lacking working capital for their business or resources to purchase a new stock of
merchandise, or having no harvest from their damaged fish pens and vegetable farms, people
do not have the income they normally use to repay debts. Compounding these difficulties is the
need to repair houses and provide for basic needs. Apparent in all sites was the concern about
how debts will be settled and livelihood activities re-established while leaving enough money
for basic household needs. The likely implications of this debt cycle could be profound. Debts
are likely to rise. There is a significant probability that residents engaged in livelihood activities
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