Financing ASP Fiji’s Case – TC Winston in...

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

Outline

• Country Overview • Economic Overview • Tropical Cyclones in Fiji & Implication of TC

Winston • Policy Responses to TC Winston • Lessons Learnt

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

Outline



Economic Overview Stable and Sustainable

Growth

Accommodative Foreign

Reserves

Low inflation

Increased Investment

Increased Fiscal Discipline

Low levels of external debt

Improving BOP

Outline



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


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


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

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

Outline



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

TC Winston Response Timeline

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.

Social Protection Interventions and Cash flow post-TC Winston

Impact Evaluation of PBS Response overwhelmingly positive

Outline



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.

Thank you.

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

Financing ASP Fiji’s Case – TC Winston in...

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