As a result of casualties and damages caused by Typhoon Ketsana, locally known as Tropical Storm Ondoy, in 2009, the Republic Act (R.A.) No. 10121 was created. Known as the Philippine Disaster Risk Reduction and Management Act of 2010, this serves as the legal and institutional basis for the country’s framework in dealing with natural and human-induced hazards and providing a more efficient structure and response mechanism for communities and organizations. R.A. 10121 provides a multi-sectoral, inter-agency approach to disaster risk management. It encourages participation from the private sector, local government units (LGUs), non-governmental organizations (NGOs), civil society organizations (CSOs), community members, and volunteers in disaster management. It aims to strengthen the community’s ability to maintain basic functions and recover from disasters by shifting its focus from disaster response to disaster risk reduction. Through the DRRM Act, MSMEs and communities gain financial assistance through the creation of a calamity fund dedicated to disaster risk reduction or mitigation, prevention, and preparedness activities for the potential occurrence of disasters and not only for response, relief, and rehabilitation efforts.2 This provision allows LGUs to utilize 70 per cent of the total calamity fund on risk-reduction activities and 30 per cent on quick response measures. In return, MSMEs reduce their vulnerabilities, strengthen their resilience to ensure the health and safety of the employees, build client confidence, and minimize economic losses. MSMEs are uniquely positioned to promote economic recovery as a result of their existing relationships with the communities in which they operate, and their vested interest in contributing to rapid and lasting recoveries.
