Annex 3. Equity-Based Local Prioritization Criteria
Annex 3. Equity-Based Local Prioritization Criteria
Annex 3. Equity-Based Local Prioritization Criteria
The Philippine DRRM Act of 2010 mandates LGUs to allocate at least five percent (5%) of
their annual regular income for DRRM, regardless of their exposure and vulnerability to
hazards, The financial picture is grim for highly vulnerable, low income municipalities which
are highly dependent (about up to 80 percent) on their internal revenue allotment (IRA) for
their operations. The IRA serves as the biggest share in the annual regular income of LGUs,
which then marks the baseline for local DRRM fund allocation.
The proposed prioritization criteria will put emphasis on equity by prioritizing highly
vulnerable and low income local government units. In the absence of risk estimates based
on hazard probability, exposure data and vulnerability, secondary or leading indicators will
be used to come up with an indicative risk profile of LGUs.
Income class of an LGU is a leading indicator of the capability of an LGU to finance DRRM.
Higher income means the amount of Local DRRM Fund is higher and vice-versa for lower
income LGUs.
OCD has the database for the indicators of each criteria, and the ranking results on various
applications of the prioritization tool:
(1) for ranking of all LGUs;
(2) for ranking of LGUs in a given region; and
(3) ranking of LGUs affected by a disaster event which will add additional criteria on intensity
of impact.
Annex 3 Notes
1. Methodology for Ranking All LGUs for Allocating NDRRMF for Preparedness
A database is available with OCD which includes data for all LGUs for each of the criteria
used and ranking of all LGUs.
Step 1: Assign weights to the prioritization criteria. The weight below gives emphasis to
geographic vulnerability and poverty incidence having a uniform weight of 30 percent for
each of these criteria. Population density and income class are likewise given the same
weight of 20% each
Total 100
Step 2: Derive the score for geographic vulnerability. There are three sub-indicators for
geographic vulnerability. A score of 10 is given to a city/municipality if it is located in the 22
the provinces identified by CCCAM. The same score is given if the city and municipality is
located in a major riverbasin, and if classified as a coastal municipality. Otherwise for these
three instances, a score of zero is assigned. These three criteria have separate columns in
the database. A 10 or a zero is for each LGU for each sub-indicator of vulnerability.
Step 3: Derive the score for population density . The higher the population density, the
higher the vulnerability score. Population density data is from the Philippine Statistics
Authority. Due to the large number of datapoints, the methodology groups LGUs by decile
in ascending order. Those belonging in the 1st decile shall get a score of 2, 2nd decile 4, 3rd
decile 6 and so on. The highest possible score shall be 20, for LGUs with population density
in the 10th decile. See the database for deriving the deciles.
Step 4: Derive the score for poverty incidence. The higher the poverty incidence, the higher
is the vulnerability score. Similar to the population density criterion, data on poverty
incidence comes from the Philippine Statistics Authority. Due to the large number of
datapoints, the methodology groups LGUs by decile in ascending order. Those belonging
in the 1st decile shall get a score of 2, 2nd decile 4, 3rd decile 6 and so on. The highest
possible score shall be 20, for LGUs with population density in the 10 th decile. See the
database for deriving the deciles.
Step 5: Derive the score for income class of LGU. LGUs are classified from 1st to income
class with 1st as the highest. A graduated scoring with 5th to 6th class LGUs getting the
maximum score of 20.
Step 6: Add up the scores for all criteria to get the final score. Since the application for all
LGUs has a large set of data points, further clustering using the decile approach may be
adopted. Another use is to select, say, the top 100 most highly vulnerable and low income
LGUs.
The methodology can be applied to a specific region or regions by extracting the LGUs
covered from the main database. Specially for a single region application of the
methodology, there are fewer regions covered, groupings of LGUs may be by quintiles
(grouping by 5). Still, the user may still opt to group by decile as described above. In still
more manageable data points, say 50 LGUs, a ranking from 1 to n using the final score is
possible.
The methodology can be applied in determining allocation of available of NDRRMF for the
rehabilitation and recovery from a certain disaster event. The suggested methodology is to
add criteria on impact on population, housing, agriculture and infrastructure; and give a
weight of 60 percent to the final score in the equity criteria.
Disaster Event
criteria