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This paper evaluates how the Philippines utilize social protection systems and programs to help households better manage disaster risk. Exposure and vulnerability to natural disasters and the effects of climate change are particularly high in the Philippines. At the same time, the Philippines has developed one of the most advanced social protection systems in the East Asia Pacific region. The Department of Social Welfare and Development is prominently integrated into the national disaster risk management framework of the Philippines, taking the lead coordinating role in disaster response activities. Consequently, social protection programs are on the frontlines of disaster response in the Philippines. This paper focuses specifically on the devastating impact of Typhoon Yolanda, which struck the country in November 2013, as a case study against which the Philippines’ social protection response can be assessed.

Malawi s economy is heavily dependent on agriculture, especially tobacco, which comprises a majority of the country s exports. Tobacco farmers have one harvest a year, and while their income stream occurs over several months it must last them for the entire year, making it difficult to smooth consumption throughout the year. The objective of this case study is to present the design and implementation of a commitment savings product for groups of tobacco farmers in Malawi. The product was successful in encouraging savings, increasing input purchases and yields for the next year s harvest, and increasing consumption after the harvest. The following sections describe the lack of formal savings options for rural farmers, the behavioral concept behind commitment savings accounts, the product designed to address these problems and subsequent changes to the original design, results of a field experiment evaluating the product, and lessons learned for other commitment savings products.

This report summarizes the knowledge shared and issues raised during a conference convened by the World Bank on the above topic held on November 3-5, 2014 in Manila, Philippines. Building on earlier conferences on this topic, the conference aimed to raise awareness about, and share good practice on, building a social protection system that integrates disaster risk management and climate change adaptation. It brought together 17 country delegations from Asia and Pacific region comprised of officials from the ministries managing social protection, disaster risk management, and financing and insurance.2 As such, it was both cross-global practice and cross-regional in focus. The conference offered a range of learning opportunities, including presentations from technical experts from the World Bank, country case studies from Asia, Africa and Latin America, roundtable discussions, and group work sessions. The conference was conducted in collaboration with the Government of the Philippines and was financed by the Rapid Social Response Fund and the Global Facility for Disaster Reduction and Recovery.

An appropriate rural investment climate (RIC) is essential for rural businesses to be successful and generate employment and income in their communities. Improving the investment climate could facilitate income-generation activities in both farm and nonfarm sectors, thus reducing rural poverty. Nonfarm sector focused growth, combined with agricultural growth, and has been shown by Delgado et al. (1998) to have a significant impact on the local economy through the generation of employment and income. This study is the first to focus on both farm and nonfarm enterprises in its 2010 surveys of RIC in Yemen, Burkina Faso, Nigeria, and Mozambique unlike six previous RIC assessment (RICA) pilot projects that focused only on nonfarm enterprises. This report assesses the weaknesses and strengths of all RIC components in farm and nonfarm enterprises of the four countries surveyed, and recommends measures to address the weaknesses. The report identifies similar business obstacles for farm and nonfarm enterprises and four critical areas of the RIC to be improved. The results of the RICA are based on analyses of obstacles perceived by rural entrepreneurs and on assessments by RIC indicators, enterprise entry and exit, and enterprise performance. To have maximum synergy effects, farm and nonfarm enterprises should be promoted together.

Nonfarm sector development in rural Ethiopia is central to generating employment and income and thereby reducing poverty. The improved investment climate could facilitate investments in farm and nonfarm sectors by contributing directly and indirectly to the generation of additional employment for women and men. Ethiopia Industrial Development Strategy 2003 involved efforts to create an enabling environment for the private sector to be a driving force for economic development. The sectoral focus of the strategy is on the development of agro-based industries and on strengthening nonfarm sector. The sustainable support system for rural women entrepreneurs is based on five main components: (i) women's economic empowerment, (ii) market development, (iii) access to markets, (iv) business management support services, and (v) access to credit. Necessary conditions to support nonfarm economic activities, such as physical market development, feeder roads, and transport, will also benefit agriculture and create a virtuous circle of increasing farm and nonfarm income. Women are more likely to be involved in and benefit from nonfarm enterprise activities. Although the system proposed could be targeted at men and women, women could be the main beneficiaries of the support system. This sustainable system is new and innovative in directly supporting the rural poor and women by building the capacity of entrepreneurs and supporting institutions linked to the existing projects. This system may derive maximum synergy effects by integrating with the Agricultural Growth Project (AGP) and the Household Assets Building Program (HABP) of the Productive Safety Nets Project (PSNP) in a complementary relationship.

This report aims to advance the dialogue on creative, forward-looking solutions for developing countries by presenting recent innovations on disaster risk financing and insurance developed by the private markets as well as the international donor community, from the macro (government) level down to the micro (household) level. It discusses how these innovations can be adapted and implemented in developing countries to better protect efficiently those countries against the financial consequences of natural disasters. Section one provides an introduction to the economic and fiscal impacts of natural disasters on developing countries. Section two examines examples of innovation in the private insurance and capital markets that may have applications in sovereign disaster risk financing for developing countries. Section three examines how innovations coming out of mature property catastrophe risk insurance (PCRI) markets could serve in low and middle-income countries. Section four considers how innovation is taking seed in creative disaster micro insurance programs in low- and middle-income countries. Section five wraps up the report with brief concluding remarks.

This paper presents a World Bank led and Russia trust fund financed work program to measure financial capability and the effectiveness of financial education in low and middle income countries. The two activities and their staging have been motivated by the lessons of high income countries with financial literacy programs and the deviating characteristics of low and middle income countries. While progress has been made in high-income countries to measure financial capability, there is little robust empirical evidence that financial education can improve it. While applying the financial capability concept in low and middle-income countries looks promising it will need to be adjusted to their characteristic and supported by innovative interventions and rigorous impact evaluation to improve it.