Damages Caused by Natural Disasters and the Number of Natural Calamities’ Effect on Philippine Government’s Spending on Disaster Management

  • Tricia Ann Rhemae Alcaraz Cunanan College of Commerce and Business Administration, University of Santo Tomas, Manila, Philippines.
  • Ediana Frances Leyva Lagasca College of Commerce and Business Administration, University of Santo Tomas, Manila, Philippines.
  • Christine Janelle Joya Noriega College of Commerce and Business Administration, University of Santo Tomas, Manila, Philippines.
  • Ronaldo Cabauatan College of Commerce and Business Administration, University of Santo Tomas, Manila, Philippines; Research Center for Social Sciences and Education, University of Santo Tomas, Manila, Philippines; The Graduate School, University of Santo Tomas, Manila, Philippines; Social Sciences Division, National Research Council of the Philippines, Philippines.
Keywords: Natural disaster, Disaster management, Spending, Healthcare


This study examines the relationship between the damages caused by natural disasters and the Philippine government's spending on disaster management and healthcare, especially that despite the country's exposure to natural disasters, the Philippine government significantly decreased its disaster funds for the 2020 national budget. Several studies have concluded that most of the local government units in the Philippines were evaluated as only 'partially prepared' when it comes to disaster preparedness. As part of the Pacific Ring of Fire, an average of 7.5 typhoons and increased exposure to earthquakes are experienced in the Philippines annually, which should make public spending on disaster management and healthcare a national priority. Results show that disaster management expenditure and economic losses are positively related, while no relationship exists between disaster management expenditure, and deaths and exposure. Meanwhile, healthcare spending and deaths are negatively related, healthcare spending and economic damages are positively related, and healthcare spending and exposure have no relationship.


Download data is not yet available.


Ahmad, R., & Hasan, J. (2016). Public Health Expenditure, Governance and Health Outcomes in Malaysia. Jurnal Ekonomi Malaysia, 50(01). https://doi.org/10.17576/jem-2016-5001-03

Alcayna, T., Bollettino, V., Dy, P., & Vinck, P. (2016). Resilience and Disaster Trends in the Philippines: Opportunities for National and Local Capacity Building. PLOS Currents Disasters, 1, 1–11. https://doi.org/10.1371/currents.dis.4a0bc960866e53bd6357ac135d740846

Anbarci, N., Escaleras, M., & Register, C. A. (2005). Earthquake fatalities: The Interaction of Nature and Political Economy. Journal of Public Economics, 89(9-10), 1907–1933. https://doi.org/10.1016/j.jpubeco.2004.08.002

Anttila-Hughes, J. K., & Hsiang, S. M. (2013). Destruction, Disinvestment, and Death: Economic and Human Losses Following Environmental Disaster. SSRN Electronic Journal, 1–86. https://doi.org/10.2139/ssrn.2220501

Aranas, L. L., Khanam, R., Rahman, M. M., & Nghiem, S. (2020). Combining Microfinance and Health in Reducing Poverty-Driven Healthcare Costs: Evidence From the Philippines. Frontiers in Public Health, 8. https://doi.org/10.3389/fpubh.2020.583455

Balgos, B. (2013). From Typhoon Ondoy to the Unnamed Monsoon (2009-2012): Policy Reforms and Challenges in the Philippine Disaster Management System. Natural Disaster and Reconstruction in Asian Economies, 185-199. DOI:10.1057/9781137364166_12

Baquiran, J., Castillo, B., Chong, C. (2017). A cross-sectional descriptive study on the earthquake preparedness of selected highly vulnerable barangays in Metro Manila. UERM Health Sciences Journal, 6(1), 15-22.

Bein, M., Unlacan, D., Oluwu, G., Kalifa, W. (2017) Healthcare spending and health outcomes: evidence from selected East African countries. African Health Sciences, 247–254. doi: 10.4314/ahs.v17i1.30

Benson, C. (1997). The economic impact of natural disasters in the Philippines. Overseas Development Institute Working Papers No. 99. https://cdn.odi.org/media/documents/7026.pdf

Bram, J., Haughwout, A., & Orr, J. (2002). Has September 11 affected New York City’s growth potential? Modeling Spatial and Economic Impacts of Disasters, 8(2), 81–96. https://doi.org/10.1007/978-3-540-24787-6_4

Bredenkamp, C., Buisman, L. R. (2016). Financial protection from health spending in the Philippines: policies and progress. Health Policy Pelan, 31(7), 919-927. doi: 10.1093/heapol/czw011.

Buchanan, J.M. (1972): The Samaritan's Dilemma, reprinted in: Buchanan, J.M. (1977): Freedom in Constitutional Contract, Texas A&M University Press: 169-185.

Budhdeo, S., Watkins, J., Atun, R., Williams, C., Zeltner, T., & Maruthappu, M. (2015). Changes in government spending on healthcare and population mortality in the European Union, 1995–2010: A cross-sectional ecological study. Journal of the Royal Society of Medicine, 108(12), 490–498. https://doi.org/10.1177/0141076815600907

Chacko, S., Randolph, R., Morsch, G. (2019) Disaster Medicine: Public Health Preparedness for Natural Disasters. National Library of Medicine, FP Essent, 487, 17-22, PMID: 31799816

Cohen, C., Werker, E. (2008) The Political Economy of “Natural” Disasters. Journal of Conflict Resolution, 52(6), 795-819. https://doi.org/10.1177/0022002708322157

Dangcalan, R., Dela Cruz., R., Amparo, J., Jimena, C., Alviar, N., (2019). Designing a Disaster Resilient City: A Study of the Institutionalization Process of the Marikina City Disaster Risk Reduction and Management Office. International Journal of Sciences: Basic and Applied Research, 45(2), 64-82.

Dariagan, J. D., Atando, R. B. & Asis, J. L. B. (2021). Disaster preparedness of local governments in Panay Island, Philippines. Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, 105, 1923–1944. https://doi.org/10.1007/s11069-020-04383-0

Dayrit, M. M., Lagrada, L. P., Picazo, O. F., Pons, M. C., & Villaverde, M. C. (2018). The Philippines Health System Review. Health Systems in Transition, 8(2), 1-352. doi:978–92-9022–673-4

Doroteo, H. (2015, December). Disaster Risk Profile and Disaster Risk Management Framework of the Philippines: Natural Disasters. University of Oviedo - Department of Medicine Unit for Research and Emergency and Disaster. Conference: Erasmus Mundus Master in Public Health in Disasters. doi: 10.13140/RG.2.1.4656.3922

Emanuel, K. A. (2013). Downscaling CMIP5 climate models shows increased tropical cyclone activity over the 21st Century. Proceedings of the National Academy of Sciences, 110(30), 12219–12224. https://doi.org/10.1073/pnas.1301293110

Espallardo, N., Geroy, L. S., Villanueva, R., Gavino, R., Nievera, L. A., & Hall, J. L. (2015). A snapshot of catastrophic post-disaster health expenses post-Haiyan. Western Pacific Surveillance and Response Journal, 6(1), 76–81. https://doi.org/10.5365/wpsar.2015.6.2.hyn_017

Fankhauser, S., McDermott, T, (2014). Understanding the adaptation deficit: Why are poor countries more vulnerable to climate events than rich countries? Global Environmental Change, 27, 9-18, https://doi.org/10.1016/j.gloenvcha.2014.04.014

Ferreira, S., Hamilton, K., & Vincent, J. R. (2013). Does development reduce fatalities from natural disasters? New evidence for floods. Environment and Development Economics, 18(6), 649–679. https://doi.org/10.1017/s1355770x13000387

Fisher, D., & Dugan, L. (2019). The Importance of Governments’ Response to Natural Disasters to Reduce Terrorist Risk. Justice Quarterly, 1–32. https://doi.org/10.1080/07418825.2019.1685120

Gaiha, R., Hill, K., Thapa, G., & Kulkarni, V. S. (2015). Have Natural Disasters Become Deadlier? Sustainable Economic Development, 1, 415–444. https://doi.org/https://doi.org/10.1016/B978-0-12-800347-3.00023-6

Giorgadze, T., Maisuradze, I., Japaridze, A., Utiashvili, Z., Abesadze, G. (2011). Disasters and their consequences for public health. Georgian Med News, 194, 59-63. PMID: 21685525.

Hallegatte, S. (2015). The indirect cost of natural disasters and an economic definition of macroeconomic resilience, Policy Research Working Paper Series 7357, The World Bank.http://hdl.handle.net/10986/22238

Heijink, R., Koolman, X., & Westert, G. P. (2012). Spending more money, saving more lives? The relationship between avoidable mortality and healthcare spending in 14 countries. The European Journal of Health Economics, 14(3), 527-538. doi:10.1007/s10198-012-0398-3

Howe, B. & Bang, G. (2017). Nargis and Haiyan: The Politics of Natural Disaster Management in Myanmar and the Philippines. Asian Studies Review, 41, 58-78. 10.1080/10357823.2016.1265484.

Jang, S., Ekyalongo, Y., & Kim, H. (2021). Systematic Review of Displacement and Health Impact From Natural Disasters in Southeast Asia. Disaster Medicine and Public Health Preparedness, 15(1), 105-114. doi:10.1017/dmp.2019.125

Jha, S., Martinez, A., Quising, P., Ardaniel, Z., & Wang, L. (2018). Natural Disasters, Public Spending, and Creative Destruction: A Case Study of the Philippines. ADBI Working Paper Series., 817th ser., 1-30. http://dx.doi.org/10.2139/ssrn.3204166

Kahn, M. E. (2005). The death toll from natural disasters: The role of income, geography and institutions. The Review of Economics and Statistics, 87, 271–284. https://doi.org/10.2139/ssrn.391741

Kang, H. (2010). The Philippines Absorptive Capacity for Foreign Aid. Philippine Institute for Development Studies Discussion Paper Series No. 2010-15. http://hdl.handle.net/10419/126799

Khan, K. A., Zaman, K., Shoukry, A., Sharkawy, A., Gani, S., Sasmoko, S., Ahmad, J., Khan, A., & Sanil, H. (2019). Natural disasters and economic losses: Controlling External Migration, energy and environmental resources, water demand, and financial development for Global Prosperity. Environmental Science and Pollution Research, 26(14), 14287–14299. https://doi.org/10.1007/s11356-019-04755-5

Kim, H., & Marcouiller, D. W. (2015). Considering disaster vulnerability and resiliency: the case of hurricane effects on tourism-based economies. The Annals of Regional Science, 54(3), 945–971. https://doi.org/10.1007/s00168-015-0707-8

Knutson, T. R., McBride, J. L., Chan, J., Emanuel, K., Holland, G., Landsea, C., Held, I., Kossin, J. P., Srivastava, A. K., & Sugi, M. (2010). Tropical cyclones and climate change. Nature Geoscience, 3(3), 157–163. https://doi.org/10.1038/ngeo779

Mahapatra, B., Walia, M., & Saggurti, N. (2018). Extreme weather events induced deaths in India 2001–2014: Trends and differentials by region, sex and age group. Weather and Climate Extremes, 21, 110–116. https://doi.org/10.1016/j.wace.2018.08.001

Mercado, R. M. (2016). People's Risk Perceptions and Responses to Climate Change and Natural Disasters in BASECO Compound, Manila, Philippines. Procedia Environmental Sciences, 34, 490–505. https://doi.org/10.1016/j.proenv.2016.04.043

Miao, Q., Hou, Y., & Abrigo, M. (2016). Measuring the Financial Shocks of Natural Disasters: A Panel Study of U.S. States Professor of Public Administration and International Affairs (PAIA) Associate Directors. National Tax Journal, 71, 11–44. https://doi.org/10.13140/RG.2.2.29226.82889

Mochizuki, J., & Naqvi, A. (2019). Reflecting Disaster Risk in Development Indicators. Sustainability, 11(4), 996. https://doi.org/10.3390/su11040996

Obermann, K., Jowett, M., & Kwon, S. (2018). The Role of National Health Insurance for Achieving UHC in the Philippines: A Mixed Methods Analysis. Global Health Action, 11(1). doi:10.1080/16549716.2018.1483638

OECD. (2011). Classification of Health Care Financing Schemes (ICHA-HF). A System of Health Accounts 2011, 153-192. doi:https://doi.org/10.1787/9789264270985-en

Onuma, H., Shin, K.J. & Managi, S. (2017). Reduction of future disaster damages by learning from disaster experiences. Nat Hazards, 87, 1435–1452. https://doi.org/10.1007/s11069-017-2825-3

Pailoplee, S., & Boonchaluay, N. (2016). Earthquake activities in the philippines islands and the adjacent areas. Geosciences Journal, 20(6), 877–889. https://doi.org/10.1007/s12303-016-0017-x

Pelling, M., & Dill, K. (2009). Disaster politics: Tipping points for change in the adaptation of sociopolitical regimes. Progress in Human Geography, 34(1), 21–37. https://doi.org/10.1177/0309132509105004

Peters, D. H., Hanssen, O., Gutierrez, J., Abrahams, J., & Nyenswah, T. (2019). Financing Common Goods for Health: Core Government Functions in Health Emergency and Disaster Risk Management. Health Systems & Reform, 5(4), 307–321. https://doi.org/10.1080/23288604.2019.1660104

Phaup, M., & Kirschner, C. (2010). Budgeting for Disasters: Focusing on the Good Times. OECD Journal on Budgeting, 10(1), 1-24. doi:10.1787/budget-10-5kmh5h6tzrns

Rahman, M. M., Khanam, R., & Rahman, M. (2018). Health care expenditure and health outcome nexus: New evidence from the saarc-asean region. Globalization and Health, 14(1). doi:10.1186/s12992-018-0430-1

Raschky, P. A. (2008). Institutions and the losses from natural disasters. Natural Hazards and Earth System Sciences, 8(4), 627–634. https://doi.org/10.5194/nhess-8-627-2008

Raschky, P. A., & Schwindt, M. (2016). Aid, catastrophes and the samaritan's dilemma. Economica, 83(332), 624–645. https://doi.org/10.1111/ecca.12194

Ray, K., Ghimire, J., & BC, R. K. (2019). Effects of disaster on primary health care in low income countries. Journal of Nepal Health Research Council, 17(01), 1-8. doi:10.33314/jnhrc.v17i01.1688

Richter, C. F. (1935). An instrumental earthquake magnitude scale. Bulletin of the Seismological Society of America, 25(1), 1–32.

Rose, A. (2004). Economic principles, issues, and research priorities in hazard loss estimation. Modeling Spatial and Economic Impacts of Disasters, 13–36. https://doi.org/10.1007/978-3-540-24787-6_2

Salazar, M. A., Pesigan, A., Law, R., Winkler, V. (2016) Post-disaster health impact of natural hazards in the Philippines in 2013. Glob Health Action, 9(1). doi: 10.3402/gha.v9.31320.

Salkind, N. (2012). Time-Series Study. Encyclopedia of Research Design, 1, 1520-1528 doi:https://doi.org/10.4135/9781412961288.n465

Schumacher, I. & Strobl, E. (2011). Economic development and losses due to natural disasters: The role of hazard exposure. Ecological Economics, 72(C), 97-105. doi: https://doi.org/10.1016/j.ecolecon.2011.09.002

Schumpeter, J. A. (1962). The Process of Creative Destruction. In Capitalism, Socialism, and Democracy (3rd ed., p. 83). chapter, Harper Torchbooks.

Skidmore, M., & Toya, H. (2012). Natural Disaster Impacts and Fiscal Decentralization. Land Economics, 89(1), 101–117. https://doi.org/10.3368/le.89.1.101

Strobl, E. (2019). The impact of typhoons on economic activity in the Philippines: Evidence From Nightlight Intensity. ADB Economics Working Paper Series, 589th ser., 1-28. doi:10.22617/wps190278-2

United Nations International Strategy for Disaster Reduction. (2015). UN System Task Team on the POST-2015 UN Development Agenda. United Nations. Retrieved January 23, 2022, from https://www.un.org/en/development/desa/policy/untaskteam_undf/thinkpieces/3_disaster_risk_resilience.pdf

Uyanık, G. K., & Güler, N. (2013). A study on multiple linear regression analysis. Procedia - Social and Behavioral Sciences, 106, 234–240. https://doi.org/10.1016/j.sbspro.2013.12.027

Villacin, D. T. (2017). A Review of Philippine Government Disaster Financing for Recovery and Reconstruction. PIDS Discussion Paper Series, 2017-21, 1-51. doi:http://hdl.handle.net/10419/173598

Wannewitz, S., Hagenlocher, M., & Garschagen, M. (2016). Development and Validation of a Sub-national Multi-hazard Risk Index for the Philippines. GI_Forum 2016, 1, 133-140. doi:10.1553/giscience2016_01_s133

Wenzel, L., & Wolf, A. (2013). Protection against major catastrophes: An economic perspective Paper No. 137. Hamburg Institute of International Economics Research. http://hdl.handle.net/10419/69624

Xie, W.,Rose, A., Li, S., He, J., Li, N., & Ali, T. (2018). Dynamic Economic Resilience and Economic Recovery from Disasters: A Quantitative Assessment. Risk Analysis, 38(6), 1306–1318. https://doi.org/10.1111/risa.12948

Yezer, A. (2010). Expectations and Unexpected Consequences of Public Policy toward Natural and Man-Made Disasters. The Economics of Natural and Unnatural Disasters, 3, 39-64, DOI: 10.17848/9781441678812.ch3

How to Cite
Cunanan, T. A. R., Lagasca, E. F., Noriega, C. J. and Cabauatan, R. (2022) “Damages Caused by Natural Disasters and the Number of Natural Calamities’ Effect on Philippine Government’s Spending on Disaster Management”, Malaysian Journal of Social Sciences and Humanities (MJSSH), 7(2), p. e001284. doi: 10.47405/mjssh.v7i2.1284.