FROM THE MARGINS
The Department of Agriculture (DA) reported last week that El Niño’s damage to agriculture has reached P6.35 billion. The prolonged dry spell is also drying up reservoirs, making communities struggle to meet basic water needs. El Niño has also disrupted schools and businesses; classes had been suspended and flexible work arrangements adopted to protect the population from heat-related illnesses.
Beyond the damage to our agricultural sector, the health risks, and the inconveniences caused by record-high temperatures, El Niño is also having a negative impact on our economy. In a recent article, “El Niño-nomics: How Intense Heat is Drying Up the Philippine Economy,” written by economist JC Punongbayan and published in Rappler, I found out that there is already a study by the Bangko Sentral ng Pilipinas (BSP) which quantifies the effects of heat increases on our macro-economic indicators. Apparently, increases in temperature reduces gross domestic product (GDP) growth and leads to higher inflation. It brings down productivity not just in agriculture, but in manufacturing and services production as well.
All these underscores the need for all of us to do our share in addressing the challenges of El Niño, La Niña and other climate change phenomena.
El Niño forum
Last month, I was invited to be one of the speakers in the “El Niño Resilience Forum for Microenterprises” that was organized by ARISE Philippines and Restart-Micro-Enterprise, Inc. (RestartME) – two organizations that have been at the forefront of disaster and resilience management in the country. ARISE Philippines is a local network of ARISE (the Private Sector Alliance for Disaster-Resilient Societies), while RestartME is an NGO that extends financial and non-financial assistance to microentrepreneurs affected by disasters through selected microfinance institutions (MFIs).
Attended by more than 100 participants representing MFIs, NGOs, government and practitioners in the field of disaster risk reduction, the forum was a productive venue to assess the impact of El Niño and the adaptation measures that are needed to mitigate its adverse effects. I congratulate the organizers for fostering a deeper understanding of the current status and impact of this phenomenon in the country, and for promoting stakeholder engagement, especially to help MFIs and microenterprises. These sectors are most vulnerable to the ravages of climate change, yet, their role in our economic development cannot be gainsaid.
The briefing by Ms. Ana Liza Solis, OIC of the Climatology and Agrometeorology Division of PAGASA, on the widespread effects of El Nino not only on agriculture but on our water supply was very informative. She showed maps superimposing the provinces worst-hit by El Nino and how long its effects will be felt. Thus, farmers may have to shift to drought-resistant crops or stop planting altogether so as not to suffer losses. I can confirm, from several farm visits, that the effects of El Nino are evident: water sources are dwindling, soil is dry and cracked, crops are withered, and livestocks are suffering. I can only surmise the long-term devastating effects of El Nino in agriculture, and how the livelihoods of our farmers hang in the balance.
The situation calls for both government and private sector support to agriculture and agri-based microenterprises. Small farmers and microentrepreneurs are the most vulnerable to economic shocks, extreme weather events and natural disasters. They really need our help.
Developing resilience
MFIs provide financial and non-financial services to small farmers and microenterprises. How can they help their clients cope with El Niño and climate change?
First, they should encourage savings mobilization. MFIs can help their clients prepare for any eventuality by encouraging them to save more. Having savings means they have resources that they can draw upon to deal with the adverse effects of weather disturbances.
MFIs should also provide clients with emergency funds and microinsurance. Agricultural insurance, as well as life and health insurance are critical safety nets for farmers and their families.
By conducting Credit with Education sessions during center meetings, MFIs can promote environmental awareness and understanding of climate change. Since MFIs operate at the grassroots level, this intervention will go a long way towards enabling people to mitigate the adverse effects of the El Niño and La Niña phenomena in their communities.
MFIs should partner with local government units, government offices and other groups to implement community projects like tree-planting, rain water harvesting, developing communal irrigation systems and similar activities.
MFIs could also encourage clients to plant trees and keep gardens in their backyards. There are more than 13 million microfinance clients nationwide, per Microfinance Information Data Sharing Inc (MIDAS) data. Imagine if all of them would plant one tree each. Perhaps, the two biggest MFI networks – MCPI and APPEND -- can collaborate and declare a one-day tree-planting activity for microfinance clients. What a great impact this could make!
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“We don’t have time to sit on our hands as our planet burns.” – Alexandria Ocasio-Cortez
(Dr. Jaime Aristotle B. Alip is a poverty eradication advocate. He is the founder of the Center for Agriculture and Rural Development Mutually-Reinforcing Institutions (CARD MRI).)