ABOUT MOVE UP 4 MINDANAO

The project “Moving Urban Poor in Mindanao Towards Resilience” or MOVE UP 4 is an urban DRR project. It is funded by the European
Union’s Civil Protection and Humanitarian Aid Office (ECHO) and implemented by a consortium of development and humanitarian
organizations, namely Action Against Hunger, Plan International, Cooperative for Assistance and Relief Everywhere (CARE), and
Assistance and Cooperation for Community Resilience and Development (ACCORD). The principal objective of the MOVE UP project in
its fourth iteration is “to contribute in building the resilience of urban poor populations to withstand and manage the impact of natural and
human-induced disasters by strengthening urban disaster preparedness, response, and management capacity of the National, Sub-national
and Local government units, and other stakeholders through the adaption and/or replication of tested Urban Resilience strategies”. The
strategies were introduced and developed under successive MOVE UP projects that began in 2016 funded also by ECHO.

ABOUT THE CONSORTIUM

Action Against Hunger (AAH) is a global humanitarian organization that takes decisive actions against the
causes and effects of hunger. For over 19 years, AAH has taken purposive action in preparedness measures,
emergency response, early recovery, and development work in the Philippines.

CARE (Cooperative for Assistance and Relief Everywhere, formerly Cooperative for American Remittances to
Europe) is a major international humanitarian agency delivering emergency relief and long-term international
development projects. Founded in 1945, CARE is non-sectarian, impartial, and non-governmental. It is one of
the largest and oldest humanitarian aid organizations focused on fighting global poverty. In 2016, CARE
reported working in 94 countries, supporting 962 poverty-fighting projects and humanitarian aid projects, and
reaching over 80 million people and 256 million people indirectly.

Assistance and Cooperation for Community Resilience and Development, Inc (ACCORD) is a non-stock, non-
profit civil society organization, working with the vulnerable communities in the Philippines in resilience building.
ACCORD works in partnership with the least-served, most vulnerable communities.

Plan International is a global child-centered organization working in 72 countries and has been in the Philippines
for almost 57 years to help realize children’s rights to education, health, participation, livelihoods, and
protection. Plan works directly and with partners in delivering its programmes, and has worked in 14 regions,
35 provinces, 78 municipalities and 894 villages across the Philippines. Plan cochairs the Emergency
Preparedness Working group with UN-OCHA. For humanitarian programming, Plan has responded to various
emergencies and was involved in post disaster rehabilitation efforts both to armed conflict and disasters from
natural hazards.

ABOUT THE FUNDER

The European Union and its Member States are the world’s leading donor of humanitarian aid. Through
its Civil Protection and Humanitarian Aid Operations department (ECHO), the European Union helps millions of
victims of conflict and disasters every year. With headquarters in Brussels and a global network of field offices,
the EU provides assistance to the most vulnerable people based on humanitarian needs.

DISCLAIMER
Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect
those of the European Union or the MOVE UP Consortium. Neither the European Union nor the granting authority can be held responsible
for them.

CREDITS
Lead Organization: Action Against Hunger (AAH) Philippines
Lead Author: Alvin M. Silva
Contributors: Suresanathan Murugesu, Roger Cabiles Jr., Juan Blenn Huelgas, Menchie Lacson, Lyndon Arbes, Momina
Andik, Louie Bullanday, John Tamayo, Arnel Sanchez, Abigail Genito, Rowena Salino, Atty. Salic “Exan”
Sharief, Jr., Christopher Villarino.
Design and Layout: Hazel Mae De Veyra
Issued: May 2021
 ABOUT THIS PROCESS MANUAL i
CHAPTER I: INTRODUCTION TO LIVELIHOODS AND MSMEs 1
CHAPTER II: PROFILING AND CALCULATING LIVELIHOOD RISKS AND HAZARDS 7
A. LIVELIHOOD RISKS AND HAZARDS EXPOSURE 8
B. PROFILING LIVELIHOOD RISKS AND HAZARDS EXPOSURE AND SCORING LEVEL OF 10
EXPOSURE
C. LIVELIHOOD SENSITIVITY TO RISKS 17
D. CALCULATING LIVELIHOOD RISKS SCORE 18
CHAPTER III: LIVELIHOOD ASSETS AND MARKET ASSESSMENT 20
A. LIVELIHOOD MARKET ASSESSMENT 21
1. OVER-ALL MARKET ANALYSIS 22
TABLE OF CONTENTS

2. INDUSTRY ANALYSIS 24
3. VALUE CHAIN ANALYSIS (VCA) 24
B. LIVELIHOOD COPING STRATEGIES 25
1. COMMON COPING STRATEGIES OF POOR HOUSEHOLDS 25
2. CURRENT COPING STRATEGIES IN MOVE UP MINDANAO AREAS 26
C. LIVELIHOOD INTERVENTIONS 26
D. IDENTIFYING GAPS AND NEEDS 28
E. LIVELIHOOD ASSETS ASSESSMENT 29
CHAPTER IV. LIVELIHOOD RESILIENCE DEVELOPMENT AND MANAGEMENT 30
A. LIVELIHOOD RESILIENCE AND LIVELIHOOD VULNERABILITY INDEX 31
B. SETTING LIVELIHOOD OUTCOMES AND INDICATORS 33
C. LIVELIHOOD RESILIENCE AND SUSTAINABLITY PLANNING 34
1. BUILDING AND ENHANCING ECONOMIC AND INFRASTRUCTURE RESILIENCE 34
TOWARDS ENABLING GROWTH FOR FINANCIAL AND PHYSICAL CAPITAL
1.1 STEPS IN DEFINING STRATEGY 34
1.2 VARIOUS LIVELIHOOD STRATEGY OPTIONS TO BUILD ECONOMIC AND INFRASTRUCTURE 37
RESILIENCE
1.3 STEPS IN DEFINING STRATEGIC POSITIONING 37
1.4 DESIGN THINKING APPROACH: THE FOUNDATION IN GROWING ASSETS 38
1.5 BUSINESS MODEL AND REVENUE MODEL DESIGNING AND VALIDATION: ALIGNING 39
ECONOMIC AND FINANCIAL RESILIENCE
1.6 ASSESSING CRITICAL LIVELIHOOD PROCESSES AND FUNCTIONS 41
1.7 TRIPLE BOTTOMLINE ACCOUNTING 42
1.8 RISK TRANSFER MECHANISMS 39
1.9 MAXIMIZING TECHNOLOGY AND DIGITIZATION 45
2. BUILDING AND ENHANCING INSTITUTIONAL AND SOCIAL RESILIENCE: 45
IMPROVING SOCIAL CAPITAL AND ENABLING GROWTH AND RETURNS FROM
LIVELIHOOD ASSETS
STEPS IN BUILDING AND ENHANCING INSTITUIONAL AND SOCIAL RESILIENCE 46
STEP 1. Conduct Stakeholders Analysis 42
STEP 2. Organize Livelihood Primary Stakeholders 47
STEP 3. Align and Integrate Livelihood Strategies into Local Development Priorities, Policies, and 48
Plans
STEP 4. Seek Representation(s) of Livelihood Associations into the Local Governing Bodies 49
STEP 5. Carry out Social Marketing 49
3. BUILDING AND ENHANCING PERSONAL RESILIENCE: IMPROVING HUMAN 50
CAPITAL
4. LIVELIHOOD CONTINUITY PLAN 53
TOOLS SECTION 54
ANNEXES 74
REFERENCES 84
 LIST OF TABLES
Table 1. LEGAL AND STATISTICAL DEFINITIONS OF ENTERPRISE SIZE IN THE PHILIPPINES
Table 2. ASPECTS OF LIVELIHOODS
Table 3. REFERENCE TABLE FOR COMMON VULNERABILITIES OF THE POOR HOUSEHOLDS
Table 4. REFERENCE TABLE FOR INTERPRETING LIVELIHOOD RISK SCORE
Table 5. EXAMPLES OF TRENDS, PATTERNS AND FUTURE DIRECTIONS OF THE EXTERNAL
LIST OF TABLES AND FIGURES

ENVIRONMENT AND THEIR RELEVANT OPPORTUNITIES AND THREATS

Table 6. REFERENCE TABLE FOR COMMON COPING STRATEGIES OF URBAN AND RURAL POOR
HOUSEHOLDS
Table 7. CURRENT LIVELIHOOD INTERVENTIONS AND EMPLOYMENT PROGRAMS IN MOVE UP 4
AREAS
Table 8. REFERENCE TABLE FOR INTERPRETING LVI
Table 9. COMPARISON BETWEEN DIRECT EMPOWERMENT AND DEVOLUTIONARY STRATEGIES
Table 10. COMPARISON BETWEEN FUNCTIONAL INTERMEDIATION AND PROGRESSIVE
INTERMEDIATION STRATEGIES
Table 11. EXAMPLES OF REVENUE MODELS
Table 12. INSITUTIONALIZING RTM IN LOCAL GOVERNANCE
Table 13. MICROINSURANCE PARAMETERS IN THE PHILIPPINES
Table 14. THE INCLUSIVE BUSINESS POLICY OPTIONS FOR GOVERNMENTS
Table 15. KEY STRATEGIES ON HOW THE PRIVATE SECTOR MAY CONTRIBUTE TO LIVELIHOODS
Table 16. POLICIES MANDATING LGUs TO INTEGRATE LIVELIHOODS AND LIVELIHOOD
INTERVENTIONS, DRR, CCA AND PEACE-BUILDING STRATEGIES
Table 17. ACTIVITIES, OUTPUTS, AND TOOLS IN EVIDENCE-BASED ADVOCACY TO INVEST IN
LIVELIHOODS
Table 18. CHARACTERISTICS OF AN ENTERPRISE INVESTING ON GROWTH MINDSET AS PART OF
HUMAN CAPITAL DEVELOPMENT

LIST OF FIGURES
Figure 1. LIVELIHOODS IN THE SPHERE OF SOCIAL PROTECTION
Figure 2. THE SUSTAINABLE LIVELIHOOD FRAMEWORK
Figure 3. BASIC SERVICES FULLY DEVOLVED TO LGUs EFFECTIVE 2022
Figure 4. FIVE KEY VULNERABILITY CRITERIA
Figure 5. RISK SCORES OF BARANGAYS
Figure 6. SAMPLE INSTANT HAZARD ASSESSMENT REPORTS FOR CAGAYAN DE ORO CITY
Figure 7. SAMPLE FLOOD ASSESSMENT REPORT FOR ILIGAN CITY
Figure 8. SAMPLE LIQUEFACTION ASSESSMENT REPORT FOR BRGY. CHICO PROPER, MARAWI
CITY
Figure 9. SAMPLE LIVELIHOOD RISK EXPOSURE TO COVID -19 PANDEMIC FOR KIDAPAWAN CITY
Figure 10. APPROACHES IN MARKET ANALYSIS
Figure 11. ANALYTICAL FRAMEWORK IN CONDUCTING THE OVER-ALL MARKET ANALYSIS
LIVELIHOOD INTERVENTIONS CONTRIBUTING TO DISASTER RISK REDUCTION OVER
ALONG DRRM / DEVELOPMENT PHASES
Figure 13. MOVE UP RESILIENCE FRAMEWORK
Figure 14. SHOCK RESPONSIVE SOCIAL PROTECTION & SHOCK-RESPONSIVE LIVELIHOOD
FRAMEWORK
Figure 15. SAMPLE RATIONAL, SEQUENTIAL, AND ANALYTICAL STRATEGY: ROADMAP FOR
RESPONSES ANALYSIS
Figure 16. THE SIX (6) STEPS OF DESIGN THINKING APPROACH IN DESIGNING
PRODUCT/SERVICE/SOLUTION
Figure 17. THE BUSINESS MODEL DEFINITION – THE MAGIC TRIANGLE
Figure 18. SIMPLE STAKEHOLDERS ANALYSIS
Figure 19. MOWBRAY’S FRAMEWORK IN STRENGTHENING PERSONAL RESILIENCE
Figure 20. SAMPLE INSTANT IDR-MT RESULT
 LIST OF NOTE BOXES
Note Box 1. SOCIAL PROTECTION AND LABOR MARKET POLICY
Note Box 2. MOVE UP 4’s ALIGNMENT TO MAJOR LIVELIHOOD FRAMEWORKS
Note Box 3. RISK, HAZARD, AND VULNERABILITY
Note Box 4. ABSORPTIVE CAPACITY
Note Box 5. LIVELIHOOD SENSITIVITY TO RISKS
LIST OF NOTE BOXES AND TOOLS

Note Box 6. CRITERIA IN CHOOSING MARKET ASSESSMENT APPROACH

Note Box 7. STEPS IN CONDUCTING LIVELIHOOD MARKET ASSESSSMENT (LMA) AND MAPPING
Note Box 8. WHAT IS A VALUE CHAIN?
Note Box 9. COPING VERSUS ADAPTATION
Note Box 10. TYPES OF LIVELIHOOD INTERVENTIONS ALONG THE DRR / DEVELOPMENT PHASES
Note Box 11. VULNERABILITY AND RESILIENCE
Note Box 12. DEFINING SHOCK-RESPONSIVE LIVELIHOOD
Note Box 13. LIVELIHOOD OUTCOMES
Note Box 14. LGUs’ BEST POLICIES AND PRACTICES IN ENHANCING ECONOMIC AND INFRASTRUCTURE
RESILIENCE ENABLING FINANCIAL AND PHYSICAL CAPITAL GROWTH
Note Box 15. VARIOUS ENTERPRISE STRATEGIES AS LIVELIHOOD STRATEGY OPTIONS
Note Box 16. ON BUSINESS MODEL
Note Box 17. REVENUE MODEL DESIGNING AND VALIDATION
Note Box 18. RISK TRANSFER MECHANISMS AND MICROINSURANCE
Note Box 19. LGUs’ BEST POLICIES AND PRACTICES IN ENHANCING INSTITUTIONAL AND SOCIAL
RESILIENCE ENABLING GROWTH FOR LIVELIHOOD ASSETS
Note Box 20. INCLUSIVE BISINESSES FOR INCLUSIVE GROWTH
Note Box 21. PERSONAL RESILIENCE
Note Box 22. GROWTH MINDSET

LIST OF TOOLS
Tool 1. POTENTIAL PARTNERS THAT MAY COMMIT IN PROVISION OF LIVELIHOOD INTEVENTION
(LMA STEP 1)
Tool 2. PRIORITIES OF REGIONAL DEVELOPMENT COUNCIL, REGIONAL CONVERGENCE COMMITTEE,
DTI PRIORITY PRODUCTS, KEY DEVELOPMENT GENERATORS (LMA STEP 2)
Tool 3. AVAILABLE AND ACCESSIBLE NATURAL RESOURCES WITHIN THE LIVELIHOOD AREA (LMA
STEP 3)
Tool 4. EXISTING COMMERCIAL AND FINANCING INSTITUTIONS WITHIN THE LIVELIHOOD AREA
(LMA STEP 4)
Tool 5. ENABLING AND DISABLING POLICIES, SYSTEMS AND PROCESSES OF
ORGANIZATIONS/AGENCIES AND INSTITUTIONS FOR THE URBAN VULNERABLE
COMMUNITIES
Tool 6. ANALYSIS OF LIVELIHOOD MARKET FORCES (LMA STEP 5)
Tool 7. LIVELIHOOD MARKET ASSESSMENT AND MAPPING REPORT
Tool 8. EXAMPLE OF MARKET MAP IN NORMAL TIMES (BASELINE MAPPING TOOL)
Tool 9. EXAMPLE OF MARKET MAP AFTER A SHOCK (SHOCK MAPPING TOOL)
Tool 10. CHECKLIST IN ANALYZING AN INDUSTRY
Tool 11. KEY QUESTIONS TO BE ANSWERED IN VCA
Tool 12. SAMPLE SIMPLE FLOW CHART OF LEATHER VALUE CHAIN
Tool 13. CATEGORIZING COPING STRATEGIES IN MOVE UP 4 AREAS
Tool 14. SUMMARY OF LIVELIHOOD RISKS AND ASSET CALCULATION
Tool 15. LIVELIHOOD RISK PROBABILITY IMPACT CHART
Tool 16. SAMPLE NEEDS, GAPS, COPING AND RESPONSE MATRIX
Tool 17. LIVELIHOOD ASSETS ASSESSMENT TOOL
Tool 18. CONVERTING LIVELIHOOD OUTCOMES TO INDICATORS
Tool 19. ENTERPRISE DELIVERY SYSTEM: FROM RESOURCES TO OUTCOMES
Tool 20. EMPATHY MAP
Tool 21. TANDEMIC SOCIAL BUSINESS MODEL CANVAS
Tool 22. BUSINESS MODEL VALIDATION CANVAS: STEPS IN VALIDATING THE VALUE PROPOSITION
Tool 23. CRITICAL LIVELIHOOD PROCESS CHECK
Tool 24. CRITICAL LIVELIHOOD FUNCTIONS TO RESILIENCE AND RECOVERY
Tool 25. PERSONAL RESILIENCE ASSESSMENT QUESTIONNAIRE-1
Tool 26. PERSONAL RESILIENCE ASSESSMENT QUESTIONNAIRE-2
Tool 27. SIMPLE COACHING GUIDE FOLLOWING GROWTH MINDSET
ABOUT THIS PROCESS MANUAL
BACKGROUND
The MOVE UP 4 Mindanao Project with the
help of various stakeholders, carried out two
closely linked studies as stated hereunder:
1. Review of Vulnerability Criteria and
Indicators in Targeting the Most
Vulnerable and At-Risk Urban Poor in
LGUs’ Social Protection Programs in
Mindanao.
2. Assessment of Shock-Responsive,
Resilient, and Sustainable Livelihood
Options and Modalities for Urban Poor
Households in Mindanao.
These studies were able to uncover various
international standards, national and local
policies, plans, principles and practices on
livelihoods and livelihood interventions. The
two studies reaffirmed claims of various
studies the intersections of vulnerabilities
from various risks facing by the livelihood
ecosystem in Mindanao. The landscape in
all the areas covered are characterized by
being volatile, uncertain, complex, and
ambiguous (VUCA). Also, it was pointed out
that in all areas, there is still a low level of
capacity across the livelihood stakeholders in
promoting and strengthening shock-
responsive, resilient, and sustainable
livelihood options despite existence of
international and national, and local players
investing huge resources and implementing
various interventions. The persistence of
“disabling” livelihood coping mechanisms
and strategies of the primary stakeholders
are manifestations of such low capacity.
PURPOSES OF THE PROCESS
MANUAL
This Manual is consisting of four (4)
interrelated chapters: I. Introduction to
Livelihoods and MSMEs; II. Profiling and
Calculating Livelihood Risks and Hazards; III.
Livelihood Assets and Market Assessment;
and IV. Livelihood Resilience Development
and Management. Chapter I provides the
most straightforward and important concepts
and frameworks for understanding
livelihoods and MSMEs, and the necessity to
blend the two technical concepts as
instruments for addressing or reducing
vulnerabilities of urban communities.
Chapters II to IV provide frameworks,
principles, and steps in promoting and
strengthening livelihoods as enterprises and
livelihood interventions going beyond
integration into local governance processes.
Specifically, the purposes of this manual are
the following:
1. To ensure that livelihoods and livelihood
interventions are risk-informed, culturally
appropriate, conflict-sensitive, and are
adequately targeting the most vulnerable
and at-risk urban population.
2. To adopt modern and innovative
approaches that usually applied in
complex and chaotic contexts.
3. To guide all the livelihood stakeholders in
a detailed manner emphasizing on the
mutuality of their roles in every stage of
livelihood development and
management.
INTENDED USERS
The simple ‘how-to” guidelines described in
this manual are the results of careful selection
and amalgamation of various international,
national, subnational, and local frameworks
and standards. Amalgamating these
frameworks and standards was geared
towards considering a wide range of
intended users, especially the primary
stakeholders and LGUs in Mindanao. The
Manual is a multidisciplinary tool. Therefore,
the tool could be more useful if a team with
multidisciplinary background is co-owning
the complex vulnerability issues towards co-
creating innovative solutions pointing to
shock-responsive, resilient, and sustainable
livelihoods.
Process Manual |i
 HOW TO USE THIS MANUAL

The layout of this manual is designed to guide the reader throughout the process in an easy and
recognizable way, as shown in the illustrations below. Further, this Manual would become incoherent
without its principal accompanying tool – the Livelihood Vulnerability Index- Calculation System (LVI-
CS), a vulnerability-pragmatic scoring system which serves both as a tally sheet and calculation for
livelihood exposure, sensitivity, and resilience scores gotten from various existing data-based online
measuring tools or consensus of stakeholders/experts on a given score based on past historical events
or quick estimations. It is currently, formatted as Google spreadsheet or MS Excel spreadsheet with
automated calculation to arrive with LVI. It is composed of four (4) sheets: LVI scoring sheet; guidance
notes on calculations and using data-based online measuring tools; reference table for interpreting LVI;
and list of data sources for possible risks/hazards in times when data-based online measuring tools are
not accessible, or its data sources are outdated.

ii | Process Manual
 CHAPTER NUMBER AND TITLE

accessible, or its data sources are outdated.

DIAGRAM CHAPTER LOCATOR

NOTE BOX INTRODUCING

CONCEPTS, THEORIES, AND
PRINCIPLES

FIGURE AND ILLUSTRATION

FOLLOW THE CHECK THE TOOL IN CLICK THE BUTTON

ENUMERATED STEPS THE TOOL SECTION PROVIDED

MEANINGS OF MAJOR ICONS

USED
NEED FOR QUALITY AND UPDATED DATA
1. Establishing vulnerability indexes and
systematically analyze current livelihood assets
and market arrangements heavily require
updated data, both primary and secondary.
But for easy and quick data access, the Manual
displayed how to utilize existing online
webapps or softwares employing big data,
data analytics and artificial intelligence which
application programming interfaces (APIs)1 are
connected to credible international and
national database of various authorities and
institutions.
2. In times of disruptions, however, the utility of
existing online webapps or softwares may be
limited to none. There would be a need for data
collection from the household or barangay
level. And in the near future, the databases
where all those online webapps and softwares
are connected will need data updating. Data
and information generated from the household
or barangay level can update and contribute to
a more comprehensive database at the local,
regional, and national levels.
3. Data and information gathered could be
processed using the frameworks and tools
suggested in this Manual. Processed and
quality data provide the stakeholders a real
picture of the livelihoods ecosystem. Having a
real picture combined with correct frameworks
and tools facilitate developing and managing
shock-responsive, resilient livelihoods and
livelihood interventions.
4. When only secondary information is available,
it is necessary to check the quality of said
secondary data. A probe must be done by for
the most recent or updated data or validating
the indicators with local stakeholders and
experts. Collecting, processing, probing, and
validating data or information shall always
uphold consent, privacy and confidentiality.
RELATED TOOLS AND PUBLICATIONS
There are several tools, toolkits, manuals, and
publications that are already available which are
designed by various stakeholders and practitioners
1
Application Programming Interface or API is a software
intermediary that allows two applications to talk to each other.
on comprehensive “sustainable livelihoods” and
“resilient livelihoods”. Most of these tools and
publications served as references of this Manual,
and they were properly cited. These comprehensive
publications on “sustainable”, “resilient”
livelihoods and livelihood interventions include:
1. The Livelihood Assessment Toolkit published by
Food and Agriculture Organization (FAO),
Rome; and International Labour Organization
(ILO), Geneva.
2. The Livelihoods Resource Centre (online) by
International Federation of Red Cross (IFRC).
3. Humanitarian Innovation Guide (online) by
Elrha and European Union Civil Protection and
Humanitarian Aid (ECHO).
4. Guide to Market-Based Livelihood
Interventions for Refugees by ILO and United
Nations High Commissioner for Refugees
(UNHCR).
5. Community-Based Enterprise Development (C-
BED) for Livelihood Resilience and Social
Protection in the Informal Economy (SP) by
International Labour Organization (ILO).
VALUE ADDITION OF THE MANUAL
Blending of traditional standards and innovation.
Pursuing livelihoods and livelihood interventions
require following set of standards according to
international and national conventions.
However, due to complex contexts, adaptation of
innovative practices is equally important. Hence,
this Manual considered both standards and
innovation, and blended it accordingly.
Integration of Various Technological Tools. This
Manual is an enabling guidance in the proper use
of existing online technological tools which make
assessments and analyses quicker and more
accurate.
Please see a quick video about API through this link:
https://www.mulesoft.com/resources/api/what-is-an-api
Process Manual | iv
Integration of Various Technological Tools. This Manual is an enabling guidance in the proper use
of existing online technological tools which make assessments and analyses quicker and more
accurate.

Process Manual |1
LIVELIHOOD INTERVENTIONS are programs under labor market policies of the social
protection cluster of socio-economic development thrust of a specific government. In the Philippines,
labor market policies or programs consist of four distinct parts (Acosta et.al., 2018):
a) measures to protect workers’ conditions and terms of employment;
b) active labor market interventions;
c) programs and measures to protect the large numbers of Filipinos working overseas
(OFWs); and
d) entrepreneurship and microcredit programs intended to support income-generating
activities, mainly for the vulnerable population and workers in the informal sector.

LIVELIHOOD2 is a method of increasing an earning capacity to sustain necessities of life.

Livelihoods
FIGURE 1. LIVELIHOODS IN THE SPHERE OF SOCIAL PROTECTION

Labor Market Policy

Social
Protection

NOTE BOX 1: SOCIAL PROTECTION AND LABOR MARKET POLICY (Acosta, et.al., 2018)

SOCIAL PROTECTION - policies and programs that seek to reduce poverty and vulnerability to risks and enhance the
social status of and rights of marginalized groups by promoting and protecting livelihood and employment, protecting
against hazards and sudden loss of income, and improving people’s capacity to manage risk.” Social protection
programs or social safety net programs are classified into four (4) components.

Social Insurance – Programs that seek to mitigate income risks by pooling resources and spreading risks across time
and classes. These are designed so that beneficiaries pay a premium over a given period to cover or protect them
from loss of income and unemployment because of illness, injury, disability, retrenchment, harvest failure, maternity,
old age, etc. This component includes micro-and area-based schemes to address the vulnerability at the community
level (such as micro-insurance and social support funds).
Social Welfare – Preventive and developmental interventions that seek to support the minimum essential requirements
of the poor, particularly the poorest of the poor, and reduce risks associated with unemployment, resettlement,
marginalization, illness, disability, old age, and loss of family care. Social welfare and assistance programs usually
comprise direct assistance in the form of cash or in-kind transfers to the poorest and marginalized groups and social
services, including family and community support, alternative care, and referral services.
Social Safety Nets – Stop-gap mechanisms or urgent responses that address the effects of economic shocks, disasters,
and calamities on specific vulnerable groups. These are measures that specifically target affected groups with a
particular objective of providing relief and transition. Measures include emergency assistance, price subsidies, food
programs, employment programs, retraining programs, and emergency loans.
Labor Market Policy/Program - All social expenditure (other than education) which is aimed at the improvement of
the beneficiaries' prospect of finding gainful employment or to otherwise increase their earnings capacity.

2
as defined by Robert Chambers and Gordon Conway

2 | Process Manual
SUSTAINABLE LIVELIHOOD3 refers to people’s capacity to generate and maintain their
means of living and enhance their well-being and future generations. A livelihood is sustainable when
it can cope with and recover from stresses and shocks, and maintain or enhance its capabilities and
assets, both now and in the future, while not undermining the natural resource base.

FIGURE 2. THE SUSTAINABLE LIVELIHOOD FRAMEWORK

c

Objectives of
the people

What people
are currently
and should be
doing

Source: Extracted from DFID’SLF through the Livelihood

Resource Centre. IFRC and Spanish Red
Causes of What people Governance Cross.https://www.livelihoodscentre.org/documents/11
vulnerability have / have Environment 4097690/114439590/364594/076e1b50-a80b-0bcb-
access to f740-51cb24a3bd1b2021. Accessed May 22, 2021

MICRO SMALL AND MEDIUM ENTERPRISE (MSME) is defined as any business

activity or enterprise engaged in industry, agribusiness, and/or services, whether single
proprietorship, cooperative, partnership, or corporation whose total assets, inclusive of those arising
from loans but exclusive of the land on which the business entity's office, plant, and equipment are
situated, must have value falling under the following categories4:

TABLE 1. LEGAL AND STATISTICAL DEFINITIONS OF ENTERPRISE SIZE IN THE PHILIPPINES

Magna Carta for MSME, by asset size Approximate Value in Philippine Statistics Authority,
(excluding the land on which the business is USD5 classification by number of
operated) in PHP employees
Micro Up to 3 million Up to 63,000 1 to 9 employees
Small Between 3 million and 15 million 63,000 - 317,000 10 to 99 employees
Medium Between 15 million and 100 million 317,000 - 21.2 million 100 to 199 employees
Large More than 100 million More than 21.2 million More than 200 employees

Source: R.A. 9501. https://thecorpusjuris.com/legislative/republic-acts/ra-no-9501.php

Accessed May 22, 2021

MSME APPROACH is an alternative pathway for livelihoods to become sustainable

(Warren, 2002). The two concepts are interrelated, and both are aiming to reduce vulnerabilities.

3
Based on DFID’s Sustainable Livelihood Framework.
4
Section 3, R.A. No. 6977 as amended.
5
Rounded figures, based on eexchange rate of 26 November 2015 – PHP: USD was 47:1.

Process Manual | 3
LIVELIHOODS or MSMES, consist of complex and dynamic activities which shall consider
the following necessary aspects:
a) Diverse stakeholders involved (details are introduced in this Chapter and are recurring
topics in Chapter II, III, and IV)
b) Risks, Hazards, and Vulnerabilities (components are presented in Table 2, but details are
discussed in Chapter II)
c) Assets, Capabilities, and Strategies (components are introduced in Table 2, but details are
discussed in Chapter III and IV)

TABLE 2. ASPECTS OF LIVELIHOODS

DIVERSE STAKEHOLDERS INVOLVED* RISKS, HAZARDS, AND ASSETS, CAPABILITIES &
VULNERABILITIES STRATEGIES
*Actors with a stake in the success or Exposure Personal resilience
failure of livelihoods • Environment, Climate Change and
Disaster Risks vs. Five Key Social Resilience
Individuals or community beneficiaries/ Vulnerabilities to Impact Institutional resilience
recipients /partners • Social, Governance, and Political
Risks
Local government Sensitivity Economic Resilience
Government agencies • Economic Risks Environmental Resilience
Civil Society Organizations • Technological Risks Infrastructure Resilience
• Population with inherent vulnerabilities
Private Sector
• Individual Life Cycle Risks

DIVERSE STAKEHOLDERS INVOLVED in livelihoods are active actors and change

agents with stakes in the success or failure of livelihoods. They are influenced by or may influence
political, economic, demographic, social, environmental, and technological trends. They also define
the institutional arrangements; are responsible for the effectiveness and efficiency of service delivery
systems or otherwise; may intervene in market structures and competition; may intervene in the
conduct of business ethics and performances; shapes public policy; determinants of public goods and
services delivery; and actors in urbanization, urban livelihoods, demand and supply for goods and
services, characterizes the primary conditions of livelihood ecosystem, and provision or transfer of
various forms of technology.

a) Individuals or primary stakeholders /community beneficiaries / recipients / partners are core

stakeholders and direct implementers of the livelihood. They are the primary stakeholders and
ultimate recipients of returns from the assets they have acquired. If not, they are the ones who
bear the brunt of various risks and hazards.
b) Local government – refers to the local authority which prepares and executes ordinances. The
6
Mandanas Doctrine reversed the previously 40%-60% sharing from the national taxes to
40%-60%, in favor of increasing LGUs’ Internal Revenue allotment (IRA). Apart from IRA, it
can mobilize and allocate resources from other sources to support livelihoods. It also monitors
and reports the status of livelihood interventions.
c) Government agencies – refer to the various agencies under the executive branch of the
national government. They prepare and implement multiple livelihood interventions with pre-
defined implementing guidelines. Due to Mandanas Doctrine, national government agencies
are mandated to transfer the implementation of major social protection programs, including

6 The Mandanas Doctrine clarifies that the share from the Internal Revenue Allotment (IRA) of the local government units (LGUs)
does not exclude other national taxes like customs duties. The exclusion of other national taxes like customs duties from the base
for determining the just share of the LGUs contravened the express constitutional edict in Section 6, Article X of the 1987
Constitution. Accordingly, all national government is mandated to implement full devolution all functions, services, and facilities
based on Section 17 of the Local Government Code and other pertinent laws, covers all agencies and instrumentalities of the
Executive Branch with devolved functions to LGUs, but it excludes LGUs in Bangsamoro Autonomous Region in Muslim Mindanao
(BARMM).

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 livelihood interventions and other basic services and facilities, to LGUs by 2022. The fully
devolved services and facilities include agricultural extension and on-site research, community-
based forestry projects**, tourism facilities promotion and development**, telecommunication
services**, field health and hospital services**, public works and infrastructure**, housing
projects for provinces and cities**, investment support, industrial research and development,
7
school building program, and social welfare services** .

FIGURE 3. BASIC SERVICES FULLY DEVOLVED TO LGUs EFFECTIVE 2022

Source: Adapted from Powers and Devolved Services of Local Government Units (LGUs) by Dr. Maria Ela
Atienza (Professor and Chair), Asst. Prof. Jan Robert Go (Assistant Professor), and Herby Jireh Esmeralda
(Research Assistant). Retrieved from https://halalan.up.edu.ph/powers-and-devolved-services-of-local-
government-units-lgus/

d) Civil Society Organizations (CSOs) – Depending on the nature of the CSO by its legal existence, its
operation may cover national, subnational, and local boundaries. Each CSO has its thematic
priorities according to its strategic direction. Their resources may come from various sources, and its
delivery of services is defined by its project influentials like funders and donors.
e) Private Sector – Are either local or foreign businesses with local or national, or international
operations in various industries. They also operate corporate social foundations. Most raw materials
come from local sites where individuals or community beneficiaries/recipients/partners reside.

PURSUING LIVELIHOODS AND LIVELIHOOD INTERVENTIONS in the

context of MOVE UP 4, are closely aligned to current major livelihood frameworks and policies
(See Note Box 2). The frameworks mentioned in Note Box 2 are widely accepted, with a wealth
of experiences and research as references. They tackle different intersecting terms aligned to similar
meanings, livelihood strategies, outcomes, and all of which ultimately aspire to achieve similar
Resilience and Inclusive Agenda along with the Sustainable Development Goals. Further,
international conventions, national policy frameworks, principles, and legal bases are enablers in
promoting and strengthening sustainable, resilient, and shock responsive livelihood interventions
and options (please see Annex 1).

7
** Basic services which are growth drivers and are facilitating services to access human, financial social, physical, and natural assets;
returns on assets; and meeting consumption needs for the vulnerable poor.

Process Manual | 5
 NOTE BOX 2. MOVE UP 4’s ALIGNMENT TO MAJOR LIVELIHOOD FRAMEWORKS

Sustainable Livelihood Framework – Illustrated through Figure 2. The DFID defines sustainable livelihoods
approach as a way of thinking on the objectives, scope, and priorities for development activities. It is based on
evolving thinking about the way the poor and vulnerable live their lives and the importance of policies and
institutions. The sustainable livelihoods approach facilitates the identification of practical priorities for actions that are
based on the views and interests of those concerned. It does not replace other tools, such as participatory
development, sector-wide approaches, or integrated community development. SLF is not a new paradigm, it is a
collection of best practices, and it gives due recognition to other development approaches. The hallmark of such
framework is to bridge the gap between macro and micro by ensuring that the higher level policy is informed by the
insights from the lower level and by the priorities of the poor and vice versa.

MOVE UP and DSWD Sustainable and Resilient Livelihood – Resilient livelihood is defined by MOVE
UP as adaptive practices such as identifying alternative livelihood options within existing value chains and
accumulating savings that can be used in times of disaster. This also includes financial literacy activities intended to
change the mindset and attitude of the urban poor to one in which social and economic protection are viewed as
their obligation. With proper social preparation and readiness, the action introduces effective and appropriate
models of savings, livelihood improvement options and risk transfer. Meanwhile, DSWD-SLP describes sustainable
livelihood as a method of increasing capacity to earn but one which is “independent of external support, can
maintain the long-term productivity of natural resources, it does not undermine the livelihood options of others,
resilient, can recover from shocks, can maintain or enhance its capabilities and assets both now and in the future.”
DSWD’s Sustainable Livelihood and MOVE UP’s Resilient Livelihood took a sharp turn in 2020, when the two terms
were agreed by both parties, as interrelated operational concepts. These two interrelated operational terms from
separate initiatives became the take-off point in reviewing the implementing guidelines of DSWD-SLP towards
enhancing it as a livelihood intervention which deliberately increases resilience capacity and mechanisms for the
vulnerable communities. Thus, it recognizes the need for aligning livelihood implementing guidelines to macro
policies such as the reviewed policies to international conventions, national policies and plans tackling resilience,
DRR and CCA.

DTI’s Disaster Resilient Enterprise - The MSME Road Map prepared by Asian Disaster Preparedness Center
and DTI defined disaster-resilient enterprise as one that has the capacity to anticipate, resist or absorb, and then
accommodate or recover from a hazard that affects it, returning to at least the equivalent state of economic health
that it enjoyed beforehand, and continuing to grow and develop without detrimental long-term effects.

DOLE’s Livelihood or Kabuhayan – The DOLE Department Order No. 173, Series of 2017, livelihood
refers to any kind of legitimate economic activity that will serve as a source of viable employment option to generate
income among the low income groups. Such definition is covered by the objective of the DOLE Integrated Livelihood
and Emergency Employment (DILEEP)to contribute the poverty reduction and reduce vulnerability to risks of the
poor, vulnerable and marginalized workers either through transitional emergency employment or promotion of
livelihood and entrepreneurship.

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Process Manual | 7
A. LIVELIHOOD RISKS AND HAZARDS EXPOSURE

NOTE BOX 3: RISK, HAZARD AND VULNERABILITY

Risk is defined as the potential loss of life, injury, or destroyed or damaged assets
which could occur to a system, society or a community in a specific period of time,
determined probabilistically as a function of hazard, exposure, vulnerability and capacity
(TRANSFORM, 2020). Represented as a formula:

RISK = HAZARD, SHOCK OR STRESS X

CAPACITY
EXPOSURE X VULNERABILITY

Hazards are uncertain events that may damage a system (this includes livelihoods), society,
community. Hazards and risks could be used interchangeably.

Vulnerability is a degree to which a system (this includes livelihoods), society, or a

community is exposed or sensitive to adverse effects of risks and hazards, considering its
adaptive or resilient capacity. Its application is employed with flexibility in numerous risks
contexts.

Holistic approach of vulnerability shall cover and differentiate its three dimensions
(Schneider, et.al., 2007)
- exposure, sensitivity and resilience capacities. It is therefore, represented with the
formula:

VULNERABILITY = EXPOSURE + SENSITIVITY – RESILIENCE

With this formula, since exposure and sensitivity represents risks, the simple formula for
risk adopted in this Manual is:

RISK = EXPOSURE + SENSITIVITY

Exposure is the degree to which system(this includes livelihoods), society, or a community

could be affected by risks or hazards (Schneider, et.al., 2007). Vulnerability criteria under
exposure include:

Climate Change, Environment and Disaster Risks vis-à-vis Five (5) Key Vulnerability Criteria
– Locations of livelihoods with prevalence or occurrences of typhoon, flooding,
earthquake, storm surge, volcanic eruption, landslide, drought, fire, and pests/animal
diseases. The locations of prevalence or occurrences of hazards risks are collocated with
the five key vulnerability criteria such magnitude of impact, distributional aspect of impact,
timing, persistence, and reversibility of impact, likelihood, and confidence of impact.

Social, Governance, and Political Risks – The system(this includes livelihoods), society, or
a community are greatly affected with occurrences of social and, governance, and political
risks such as terrorist violence/violence extremism, rebellion, election-related violence,
ethnic conflict, harassment from political group, military harassment, violent gangs, sexual
violence, death due to crimes, demolition, domestic violence, exclusion from political
processes, corruption, witness to crimes, kidnap for ransom, illegal drug trade, illicit arms
trade, burglary, robbery, gender discrimination, harmful traditions, child abuse, and child
labor.

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TABLE 3. REFERENCE TABLE FOR COMMON VULNERABILITIES OF THE POOR HOUSEHOLDS

COMMON VULNERABILITIES AMONG THE POOR HOUSEHOLDS

LEGAL STATUS
Informal employment Those in informal employment generally lack labor rights. They are therefore susceptible to
sudden unemployment and the dangers accruing to unprotected working conditions (long
hours, poor pay, unsanitary or unsafe conditions)
Shelter and land Urban residents are living on illegally occupied land or in informal low-cost rental housing lack
legal tenure rights. As such, they experience poor housing quality and face the threat of
summary eviction. Linked to housing rights, those residents undertaking urban agriculture may
also lack legal tenure and risk losing their land and crops.
Political rights Informal residents lacking legal registration may be disenfranchised and excluded from political
decision making and, in addition, may suffer from police harassment and bureaucracy
Services and Lack of legal status may also limit the access of informal residents to basic social services
infrastructure (health and education) or financial services (e.g., bank loans). In addition, the prevalence of
illegal connections to infrastructure (such as electricity or water) means that many informal
residents are vulnerable to the sudden withdrawal of key services and may also be fined or
punished in some way for illegal use of these services.
THE LOCAL ENVIRONMENT
Physical environment Poor living environments often endanger the lives and health of the urban poor, especially
where they are forced to live and work in marginal areas through a lack of cheap alternatives.
Cheap alternatives create further vulnerability, as ill-health undermines one of the chief assets
of the urban poor -their labor
Social Environment The social context in cities may be characterized by crime, fragmentation, and other social
problems, which will reduce the ability of households to support one another to further their
livelihood strategies (Wratten, 1995). In addition, poor men and women may be excluded
from livelihood opportunities due to differences such as culture/ethnicity, which results in their
exclusion from social networks.
Dependence on the “Free” goods and services, such as common land, clean water, and fuel, are rare in cities.
cash economy Most of the basic living needs of urban residents must be paid for in cash - making the urban
poor particularly vulnerable to market vagaries such as inflation and the removal of
government subsidies (Moser 98). In addition, dependence on the cash economy frequently
means that poor households are vulnerable to debt (mainly where they cannot rely on informal
on social networks for loans). Borrowing, typically at usurious rates, may lead to long-term
indebtedness with disastrous results such as bonded child labor.

Source: Adapted from Meikle, S., et.al. January 2001. Working Paper No. 112. Sustainable
Urban Livelihoods: Concepts And Implications for Policy

FIGURE 4. FIVE KEY VULNERABLITY CRITERIA (Adapted from Chapter 19 of the 4th IPCC Assessment Report)

• Impact is key if it persistent, and;

• Irreversible

Process Manual | 9
 B. PROFILING LIVELIHOOD RISKS AND HAZARDS EXPOSURE AND SCORING LEVEL
OF EXPOSURE

Profiling livelihood exposures to risks and
hazards entails gathering baseline data,
secondary data, and first-hand data. Baseline
and secondary data are necessary to reduce
subjectivity in setting the profile. Obtaining first-
hand data through household surveys, focus
group discussions, and key informant interviews
is needed to update or validate the baseline and
secondary data.
There are available impressive practitioner’s
manuals in profiling livelihood exposures to risks
and hazards at the household level. Worthy to
mention are the following:
a) Action Against Hunger – International
Network’s Participatory Risk, Capacity,
and Vulnerability Analysis (PCRVA).
December 2013
b) UN Habitat’s Climate Change
Vulnerability and Risk Guide: A Guide for
Community Assessment, Action Planning,
Implementation. 2020.
c) Climate Change Commission’s
Vulnerability and Risk Assessment (VRA),
Training Manual. 2017.
Further, there are available websites, web
applications, and database which can
provide instant risk score and hazard
assessment reports such as Philippine Risk
Hazard Map, HazardHunterPH, and
GeonAnalyticsPH for the typhoon, flooding,
earthquake, storm surge, volcanic eruption,
and landslide; Global Drought Observatory
for drought; EndcovPH for COVID-19
pandemic; Humanitarian Data Exchange
through the Armed Conflict Location & Event
Data (ACLED) Database for conflict and
violence indicators; and Numbeo for crimes
and discrimination indicators. See Annex 2
for the details of these various online tools.
MOVE UP 4 came up with Livelihood
Vulnerability Index Calculation System
(LVI-CS). Please ee Annex 3. The scoring
in each indicator follows the scoring system
herein:
0 - Not Applicable; 1 - Low; 2 - Moderate;
3 – High

1. LIVELIHOOD RISKS PROFILING BY LOCATION OF TYPHOON, FLOODING, EARTHQUAKE,

STORM SURGE, VOLCANIC ERUPTION, AND LANDSLIDE

OPTION 1 – Determining the level of risk exposure to typhoon, flooding, earthquake, storm surge,
volcanic eruption, and landslide of barangay locations using the Philippine Hazard Risk Map
8
(PHRM)

PHILLIPPINE HAZARD RISK MAP

8
As an alternative in clicking the button, the PHRM can be accessed through this link - https://hazard-risk-map.firebaseapp.com/

10 | Process Manual
 FIGURE 5. RISK SCORES OF BARANGAYS (Extracted from Philippine Risk Hazard Map)

Source: Philippine Risk Hazard Map. https://hard-risk-map/firebase.app.com/

OPTION 2– Determining the level of risk exposure to typhoon, flooding, earthquake, storm surge, volcanic
9
eruption, and landslide of city/municipal location using HazardHunterPH.

HazardHunterPH

FIGURE 6. SAMPLE INSTANT HAZARD ASSESSMENT REPORTS FOR CAGAYAN DE ORO CITY (Extracted from HazardHunterPH)

9
As an alternative in clicking the button, HazardHunterPH can be accessed through this link - https://hazardhunter.georisk.gov.ph/

Process Manual | 11
2. DETERMINING THE LIVELIHOOD RISK EXPOSURE TO DROUGHT, FIRE, AND PESTS/ANIMAL
DISEASES OF LIVELIHOOD LOCATIONS

OPTION 1- Gather secondary data from the Department of Agriculture (for drought and pest/animal
diseases) and Bureau of Fire Protection (for fire) on past and present occurrences and decide on
level/score of exposure. The higher number of past events, the higher the exposure.

OPTION 2- Determining the risk exposure (in terms of location, magnitude, distribution, timing,
10
persistence, and likelihood of impact) to drought through Global Drought Observatory.

Click the button GLOBAL DROUGHT OBSERVATORY

Zoom into the preferred location.

Toggle on the variables in the left pane.

Decide on level/score of exposure.

3. LIVELIHOOD RISKS PROFILING BY LOOKING AT MAGNITUDE AND DISTRIBUTIONAL IMPACT OF

TYPHOON, FLOODING, EARTHQUAKE, STORM SURGE, VOLCANIC ERUPTION, AND LANDSLIDE

OPTION 1 – If the risk and hazard assessment reports obtained from 1st and 2nd options in determining
the level of risk exposure to typhoon, flooding, earthquake, storm surge, volcanic eruption, and
landslide of barangay/municipal /city locations are sufficient, decide on the level/score of exposure.
If assessment result in HazardHunterPH is safe = 0, least susceptible-1; moderate susceptible= 2; high
susceptible = 3.

10
As an alternative in clicking the button, Global Drought Observatory can be accessed through this link -
https://edo.jrc.ec.europa.eu/gdo/php/index.php?id=2001

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 OPTION 2 - Determining livelihood risks exposure to the magnitude and distributional impact of the
11
typhoon, flooding, earthquake, storm surge, volcanic eruption, and landslide using GeoAnalyticsPH.

FIGURE 7. SAMPLE FLOOD ASSESSMENT

REPORT FOR ILIGAN CITY (Extracted from
GeoAnayticsPH)

Source: GeoAnalyticsPH.
Accessed March 29, 2021.

4. LIVELIHOOD RISKS PROFILING BY LOOKING AT TIMING, PERSISTENCE, AND LIKELIHOOD

IMPACT OF TYPHOON, FLOODING, EARTHQUAKE, STORM SURGE, VOLCANIC ERUPTION,
AND LANDSLIDE AT THE BARANGAY/MUNICIPAL/LEVEL

OPTION 1 - If assessment result provided in GeoAnalyticsPH is safe = 0; if low potential -1; if

moderate potential = 2; if high potential = 3.

11
As an alternative in clicking the button, GeoAnalyticsPH can be accessed through this link - https://geoanalytics.georisk.gov.ph/

Process Manual | 13
 FIGURE 8. SAMPLE LIQUEFACTION ASSESSMENT REPORT FOR BRGY. CHICO PROPER, MARAWI CITY
(Extracted from GeoAnalyticsPH)

OPTION 2 – 1. Gather official online reports, announcements, warnings, and forecasts of DOST-
PHIVOLCS, DOST-PAGASA, and DND-OCD on typhoon, flooding, earthquake, storm surge, volcanic
eruptions, and landslides; 2. Decide on the level/score of exposure based on the announced timing
and likelihood of hazard occurrence.

5. SOCIAL, GOVERNANCE, AND POLITICAL RISKS TO LIVELIHOOD AT THE BARANGAY/

MUNICIPAL/CITY LEVEL

12
a. PROFILING LIVELIHOOD RISK EXPOSURE TO COVID-19 PANDEMIC USING ENDCOV.PH

ENDCOV.PH

12
As an alternative in clicking the button, ENDCOV.PH can be accessed through this link - https://endcov.ph/map/

14 | Process Manual
 FIGURE 9. SAMPLE LIVELIHOOD RISK EXPOSURE TO COVID -19 PANDEMIC FOR KIDAPAWAN CITY (Extracted from ENDCOV.PH)

b. PROFILING LIVELIHOOD RISKS EXPOSURE TO VIOLENCE AND CONFLICT USING THE

13
ARMED CONFLICT LOCATION AND EVENT (ACLED) PROJECT

ACLED

ACLED

c. PROFILING LIVELIHOOD RISKS EXPOSURE TO EXCLUSION FROM POLITICAL PROCESSES

How to calculate the exclusion rate?

Gather data on the total number of CSOs.

Check the proportion of CSOs represented and participating in local special bodies.

Decide on the level of exposure. If 0-40% CSO only is represented = Low, if 41-69%=
Moderate; if 70-100% = High

13
As an alternative in clicking the button, ACLED can be accessed through this link - https://acleddata.com/#/dashboard

Process Manual | 15
 d. PROFILING LIVELIHOOD RISKS EXPOSURE TO CRIMES AND DISCRIMINATION USING
14
NUMBEO

e. PROFILING THE LGU’s RISK EXPOSURE TO THE IMPACT OF EXHAUSTIVE CAPACITY

BUILDING

NOTE BOX 4: ABSORPTIVE CAPACITY

WHAT IS ABSORPTIVE CAPACITY? It is the measure of the rate at which an organization can learn and use scientific,
technological, or other knowledge that exists outside of the organization itself. It is a measure of an organization’s ability to
learn (Bessant, J. and Trifilova, A., 2017).

WHY DETERMINE ABSORPTIVE CAPACITY? Due to the intersections of risks and hazards in Mindanao, there is a surge of
funding from international and local development players. Local governments in Mindanao are receivers of various types
of projects. Measuring the level of LGU’s capacity to seek, absorb and apply new knowledge will provide the stakeholders
an insight as to the level of difficulty it will be for an LGU to adopt new solutions. That include those that were presented in
two studies related to this Manual, and even the strategies that will be presented in this Manual. Determining absorptive
capacity applies to all types of organizations or communities.

WHAT TO ANTICIPATE FROM THE MANDANAS DOCTRINE? In the light of the implementation of Supreme Court’s decision
on the Mandanas Case, supported by Executive Order No. 138, the sudden increase of LGUs’ IRA for the year 2022,
obliged all the LGUs to underwent major capacity building activities. Likewise, it mandates the national agencies involved
to provide various capacity building interventions as preparation to the full implementation basic services devolution
including livelihood interventions.

If LGUs have low absorptive capacity, it may exacerbate the risks of wasting development funds especially from the
government, may elicit corruption, and may reinforce social and political exclusion.

DETERMINING ABSORPTIVE CAPACITY OF DIFFERENT LEVELS OF LGU UISNG THE BESSANT &
15
TIDD ABSORPTIVE CAPACITY SELF-ASSESSMENT TOOL

Click this button BESSANT & TIDD ABSORPTIVE CAPACITY SELF-ASSESSMENT

14
As an alternative in clicking the button, NUMBEO can be accessed through this link -
https://www.numbeo.com/crime/country_result.jsp?country=Philippines
15
As an alternative in clicking the button, Bessant and Tidd Absorptive Capacity Self-Assessment Tool can be accessed through this link -
https://docs.google.com/forms/d/e/1FAIpQLSf4NJPU_8za87tfh6k29DWxQ2VlamOKdksejy2qfRITWQsZcg/viewform?usp=pp_url

16 | Process Manual
 Take and complete the Bessant & Tidd Absorptive Capacity Self-Assessment Tool.

Wait for the result. The LGU may call an inter-department or interagency meeting to
discuss the results and decide on how to develop absorptive capacity.

Note: No need to add the score here in the LVI-CS or in Annex 3.

C. LIVELIHOOD SENSITIVITY TO RISKS

NOTE BOX 5: LIVELIHOOD SENSITIVITY TO RISKS

Sensitivity is the degree to which livelihoods could be harmed by that exposure (Schneider, et.al., 2007). Enumerated
below are the types of risks with each corresponding specific risk indicators:
a) Economic Risks – poverty, unemployment, underemployment, accidents in workplace, victim of scams, victims of
illegal recruiters, transfer of residence, no life insurance, no livelihood property insurance, working without
SSS/GSIS, bankruptcy of livelihoods, pawning personal properties, borrowing money from relatives and friends,
with elderly family member w/o pension.
b) Technological Risks
c) Population with inherent vulnerabilities - demographic profile with inherent vulnerabilities (classifications of
vulnerable groups under Republic Act 8425 or the Social Reform and Poverty Alleviation Act). Said population
includes farmer-peasant, children, women, youth, artisanal fisherfolk, workers in the formal sector, ,migrant
workers/OFW, workers in the informal sector, indigenous peoples and cultural communities, differently-abled
persons, senior citizens, victims of calamities and disasters, internally displaced persons, living in informal
settlements, and homeless.
d) Individual Life Cycle Risks - pregnant and lactating women, not-able to have pre and post- natal check-up, abortion,
miscarriage, death of child or mother during birth, children not immunized, family member having disability due
chronic illness/accident, death due to accident, prolong chronic illness, cannot buy needed medicines, death due
to illness, children not enrolled in day care/preschool, children not enrolled in elementary, children not enrolled
in high school, drop outs from elementary/high school, unable to enroll/stop studying in college, substance abuse
(drugs and alcohol), teenage pregnancy (below 18 years old), stowaway children, separation of espouse, death
of espouse /solo parent, insufficient food/hunger, and lack of WASH facility.

1. PROFILING LIVELIHOOD SENSITIVITY TO ECONOMIC RISKS

How to determine the prevalence of risk in a target population and the level of sensitivity to
various economic risk variables?

Gather secondary data in each variable or conduct household interviews.

Calculate the prevalence rate or count of reported occurrences in each variable.

Decide on the level of sensitivity score. Please check Annex 3 on specific indicators under
economic risks.

2. PROFILING LIVELIHOOD RISK SENSITIVITY THROUGH PROPORTIONS OF THE BASIC SECTORS

Determine the possibility of suffering from the potentially harmful event (natural disaster events,
violence and conflict occurrences, economic shocks, and individual life cycle emergencies).

Indicate the prevalence of risk in each population segment.

Calculate vulnerability – Number of vulnerable individuals in a primary sector over total basic
sector's population (example: proportion of vulnerable children over the total population of
children).

Decide on the sensitivity score.

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3. PROFILING LIVELIHOOD SENSITIVITY TO INDIVIDUAL LIFE CYCLE RISKS

D. CALCULATING LIVELIHOOD RISKS SCORE

Compute the average score of all indicators’ score under exposure to climate change/
environmental and natural disaster risks = Average Score of Exposure to climate
change/environmental and natural disaster risks or:

Livelihood Exposure to Climate Change/Environmental and Natural Disaster Risks =

∑climate change/environmental and natural disaster risks
number of factors * number of indicators

Compute the average score of all indicators’ score under exposure to social, governance, and
political risks = Average Score of Exposure to under social, governance, and political risks or:

Livelihood Exposure to Social, Governance, and Political Risks =

∑social, political, and governance risks
number of factors

Calculate the Livelihood Exposure Indicator Score = (Average Score of Exposure to climate
change/environmental and natural disaster risks + Average Score of Exposure to under social,
governance, and political risks)/2 or:

Livelihood Exposure Indicator Score =

∑ climate change/environmental and natural disaster risks + ∑social, political, and governance risks
2

Compute the average score of all indicators’ score under sensitivity to economic risks =
Average Score of Sensitivity to Economic or:

Livelihood Sensitivity to Economic Risks=

∑economic risks
number of factors

Compute the average score of all indicators’ score under sensitivity due to magnitude of
population’s proportion of the basic sector = Average Score of Sensitivity of Basic Sectors with
Inherent Vulnerabilities or:

Livelihood Sensitivity to Basic Sectors with Inherent Vulnerabilities=

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 ∑basic sectors with inherent vulnerabilities
number of factors

Compute the average score of all indicators’ score under sensitivity due to individual life cycle
risks = Average Score of Sensitivity to Individual Life Cycle Risks or:

Livelihood Sensitivity to Individual Life Cycle Risks=

∑individual life cycle risks
number of factors

Calculate the Sensitivity Indicator Score = (Average Score of Sensitivity to Economic Risks +
7 Average Score of Sensitivity of Basic Sectors with Inherent Vulnerabilities + Average Score of
STEP

Sensitivity to Individual Life Cycle Risks)/3 or:

Livelihood Sensitivity Indicator Score =

∑economic risks + ∑ basic sectors’ population magnitude + ∑individual life cycle risks
3

Calculate Livelihood Risks Score = (Exposure Indicator Score + Sensitivity Indicator Score)/2
8
STEP

or:

Livelihood Exposure + Livelihood Sensitivity

2

TABLE 4. REFERENCE TABLE FOR INTERPRETING LIVELIHOOD RISK SCORE

Livelihood Risk Score Interpretation
Low Low Risk indicates that the livelihood risk is low in terms of exposure and sensitivity. It is essential to
(0.1– 1.5) examine the specific indicators that score the lowest and eventually probing on the success drivers of
low exposure and sensitivity to risks. Low livelihood risks score rarely happen in Mindanao.
Moderate Moderate Risk indicates that the livelihood risk is moderate. Livelihood may, however, have
(1.6 – 2.5) significant exposure or sensitivity issues. The livelihood implementors should thoroughly examine
indicators with high-risk scores. It is also necessary to investigate indicators with low-risk scores.
These indicators with low-risk scores are stabilizing factors of livelihood. All the major destabilizing
and stabilizing indicators should be studied very well by verifying and validating if the data used are
appropriate, updated, and correct.
High High Risk indicates that the livelihood is highly exposed to various natural and man-made disaster
(2.6 – 3.0) risks, social, political, and governance risks, high sensitivity to economic risks, surrounded by
population having inherent vulnerabilities, and households with high individual life cycle risks.

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20 | Process Manual
A. LIVELIHOOD MARKET ASSESSMENT

For livelihood interventions to become effective, it is crucial to have a good grasp of the economic
environment, including current market trends, anticipated developments, sectors and subsectors with
potential employment opportunities for livelihoods, which market demand exists. In practice, there are
three (3) different options of approaches in market assessment: Overall-Market Analysis, Industry
Analysis, and Value Chain Analysis. Figure 10 illustrates which of these approaches are general and
specific.

FIGURE 10. APPROACHES IN MARKET ANALYSIS

OVER-ALL MARKET ANALYSIS

INDUSTRY
ANALYSIS

VALUE CHAIN
ANALYSIS Source: Nutz, N. (2017). Guide to Market-
Based Livelihood Interventions for Refugees.
ILO & UNHCR.

Having three (3) options of approaches in market assessment, Nutz (2017) specified three criteria to
determine which among the 3 would be an appropriate approach. Such criteria should be thoroughly
examined. See Note Box 6.

NOTE BOX 6. CRITERIA IN CHOOSING MARKET ASSESSMENT APPROACH

Potential for Growth and Employment Creation

What is the overall size of the subsector with respect to volume and value of output, and contribution to gross domestic
product, foreign direct investment, and employment share?
What is the job creation potential, based on industry growth, size, employment elasticity, and number of and relative value
added by medium, small, and micro-enterprises in the sector?
What is the previous and forecast growth of the sector?
What are the current levels of innovation, productivity, and competitiveness and/or collaboration in the sector?
What are the main issues in relation to working conditions and are there opportunities to improve them?
Do livelihoods face barriers to accessing markets in this sector? If so, what are they?

Relevance to the Target Population / Communities

What is the estimated number of refugees already engaged in the sector (gender disaggregated)?
How do refugees participate in the sector (as producers, workers, or consumers)?
What are the major problems refugees face in the work they do in this sector?
Is there potential to integrate (more) refugees in the sector?
Do skills needed in the sector correspond to the profile of refugees in the location?

Feasibility of Interventions
What is the feasibility of addressing the most significant challenges faced by poor workers given the current economic and
political environment?
What are the relevant government policies and programmes which influence this sector?
Which donor programmes are present, where, and what are they doing/funding?
Are there market players willing to change their business models/adapt new practices?
Are there available training institutions, government ministries or other partner organizations that are willing to take part in
and/or take responsibility for some elements of intervention in this sector?

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 FIGURE 11. ANALYTICAL FRAMEWORK IN CONDUCTING THE OVER-ALL MARKET ANALYSIS

POLITICAL, ECONOMIC, SOCIAL, ENVIRONMENT & TECHNOLOGICAL TRENDS

Markets & Competition
Structure Livelihoods/MSMEs
· Trader & producer associations Institutional Arrangements · Assets
· Barriers to entry · Vulnerability
· Scaling effects · Outcomes
Conduct
· Business ethics & power
· Contractual arrangements
· Pricing, grading & standards
Performance
· Post-harvest losses Service Delivery Systems
· Equity esp. gender
· Innovation

Private Sector Civil Society LGUs Government Agencies

Public Goods and Services Public Policy

Basic Conditions · Macroeconomic and Trade
· Transport
· Urbanization · Legal/Regulatory
· Infrastructures
· Urban Livelihoods · Market Information
· Telecommunications
· Demand and Supply · Governance
· Water and Power Supply
Characteristics
· Market Information
· Technology

Source: Adapted from Dorward, A. and Poole, N. Markets, Risks, Assets and Opportunities:
The Links Between the Functioning of Markets and The Livelihoods of the Poor.

1. OVER-ALL MARKET ANALYSIS

The analytical framework set out in Figure 11, highlights the interrelationships of various factors
and actors surrounding livelihoods/MSMEs. The framework presents the close relationships of
livelihoods (top right corner) with the broader environment (political, economic, social,
environmental, and technological), and especially with the market (at the top left corner) through
institutional arrangements. Essentially, livelihoods should also be aware of the basic conditions,
the level of urbanization, existing urban livelihoods, demand and supply, and technological
characteristics.

Markets have established structures, business conduct standards, and performance

characteristics. These three market arrangements affect the opportunities they present to the
livelihoods. If institutional arrangements are functional as a bridging instrument for livelihoods,
the latter will find it easy to interact with the market.

The framework also presents the influence of the private sector, civil society, LGUs, and
government agencies to implement livelihood interventions through defined service delivery
systems. Each actor has its role (for example, the LGU is expected to set an enabling public
policy), own priorities, own interests in shaping service delivery systems. The effectiveness and
efficiency of these service delivery systems shall significantly affect both livelihoods and markets
and livelihood activities.

This framework helps structure and prioritize actions that would benefit the urban poor towards
designing shock-responsive, resilient, and sustainable livelihoods.

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TABLE 5. EXAMPLES OF TRENDS, PATTERNS AND FUTURE DIRECTIONS OF THE EXTERNAL ENVIRONMENT AND THEIR
RELEVANT OPPORTUNITIES AND THREATS

MACRO-ENVIRONMENT OPPORTUNITIES THREATS

POLITICAL Increase in IRA for the LGUs Low Absorptive Capacity may waste
(Mandanas Ruling) allocated resources
ECONOMICS Financing costs would go down. Can Less number financing institutions would be
(Decrease in interest rates) opt for greater financial leverage for lending money and wait for the increase in
expansion interest rates.
SOCIAL Increased demand for products and Increased supply for products and services
(Increasing population with greater services offered Greater sales from competitors, with lower prices.
purchasing power) potential.
ENVIRONMENT Fewer incidences of respiratory More difficulty in applying for business
(Stricter anti-pollution controls and diseases. permits due to environmental regulations.
implementation)
TECHNOLOGICAL Less cost and effortless transfer of Availing products and services are less
(Proliferation of e-wallets) payments attractive if no option to pay through e-
wallets
Source: Morato, E. (2006). Strategic Planning and Management. Strategizing,
Organizing and Implementing. Pearson Prentice Hall

PRINCIPLES IN UNDERSTANDING MARKET AND LIVELIHOODS

The three guiding principles for markets to provide benefits to the vulnerable population (DFID,
2000).
• Facilitating access to human, financial, social, physical, and natural assets.
• Improving the returns on their assets.
• Meeting consumption needs.

NOTE BOX 7: STEPS IN CONDUCTING LIVELIHOOD MARKET ASSESSSMENT (LMA)

AND MAPPING*

List down potential partners that may commit and engage in the provision of livelihood intervention.

Look for alignment of the livelihood interventions with priorities of regional development council, regional convergence
committee, DTI priority products, key development generators are necessary.

Gather data on available and accessible natural resources within the province/city/municipality, government
investments including LGU's Annual Investment Plan, Provincial/City/Municipal Development Plan, list of nearby
commercial and financing institutions.

Determine the institutional arrangements in the province/city/municipality.

i. Describing the policies, systems and processes of organizations/agencies and institutions.
ii. Identifying the enabling policies, systems and processes of organizations/agencies and institutions for the urban
vulnerable communities.
iii. Identifying the disabling policies, systems and processes of organizations/agencies and institutions for the urban
vulnerable communities.
iv. Identifying areas of improvements and innovations in current institutional arrangements in which the urban
vulnerable communities will benefit.

Carry out these activities/tasks to identify market opportunities, threats, and community economic activities.
1. Identifying traders and producers’ associations
2. Identifying barriers to entry and determining the transaction costs and risks for different stakeholders
3. Determining the effects to the urban vulnerable communities of business scaling up of current market players.
4. Describing the business ethics and power.
5. Describing the contractual arrangements
6. Describing the arrangements in pricing, grading and standards.
7. Determining the losses of current market players
8. Describing the potential participation or entry points, income, and livelihood opportunities of urban vulnerable
communities from the current market arrangements.
9. Identifying current assets of the urban vulnerable communities, activities they are engaged in, aspirations, and
current livelihood strategies. Identifying the disabling policies, systems and processes of organizations/agencies
and institutions for the urban vulnerable communities.

Check Tools 1 to 7: Livelihood Market Assessment (located in the Tools Section)

Process Manual | 23
OVER-ALL MARKET VISUAL MAPPING

Analyzing and consolidating market information could be best illustrated by preparing a generic baseline
map for a market system "in normal times" and another map visualizing the market system after a shock.

Check Tool 8: Baseline Map, and Tool 9: Shock Map. These tools present generic mappings for markets.
These tools illustrate how to visually present assessed market information. The two maps need to be
analyzed together. It is important to note that market mapping is an iterative process.

How to use Tools 8 and 9?

These are used to compare and analyze both market maps, to decide:

• which market actors and key informants the team should meet and the main issues to ask during
their interviews (if needed);
• what are bottlenecks/constraints:
• how can livelihood interventions contribute to restoring the market system (e.g., products, prices,
infrastructures, transport); and
• who would be the target beneficiaries (e.g., traders, producers, consumers).

2. INDUSTRY ANALYSIS

INDUSTRIES are defined according to raw material supply sources (essential ingredients like crops
such as cassava, wheat, rice), intermediate products processed (like flour which comes from various
crops), or end-products (like bread which comes from flour). Industries can also be defined according to
product types, functions of the product or service.

Check Tool 10: Checklist in Analyzing an Industry

3. VALUE CHAIN ANALYSIS (VCA)

NOTE BOX 8: WHAT IS A VALUE CHAIN?

A VALUE CHAIN describes the full range of activities that are required to bring a product or service from conception,
through the different phases of production (involving a combination of physical transformation and the input of various
producer services), delivery to final consumers, and final disposal after use (Kaplinsky and Morris, 2000).

A value chain is a sequence of target-oriented combinations of production factors that create a marketable product or
service from conception to the final consumption. This includes activities such as design, production, marketing, distribution,
and support services to the final consumer. The activities that comprise the value chain can be contained within a single firm
or divided among different firms, as well as within a single geographical location or spread over wider areas. The term
“value chain” refers to the core idea that value is added to preliminary products through the combination of other resources
(ILO, 2006).

Common purposes of doing value chain analysis include:

• To identify areas in the process where a livelihood can increase its profits or reduce its cost.
• To identify barriers in a certain industry affecting a livelihood as a part of the whole value chain.
• To determine the relevance of a certain value chain to intended direct beneficiaries of a livelihood intervention.
• To determine needed resources vis-à-vis available in terms of budgets, skills, and time frame and capacities of the
implementing agencies.

The key to a VCA is to analyze the whole market system of the value chain, including the relevant supporting functions and
rules and regulations, while keeping the specific skills and background of the target population in mind.

Analyzing the value chain needs to examine the three fundamental factors: processes and key players, supporting functions,
and governing rules and regulations.

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Check: Tool 11: Key Questions to be Answered in VCA; and Tool 12: Sample Simple Flow Chart of
Leather Value Chain

B. LIVELIHOOD COPING STRATEGIES

NOTE BOX 9: COPING VERSUS ADAPTATION

The terms “adaptation” and “coping” are sometimes used interchangeably, leading to confusion about the similarities and
differences between these two essential concepts. The following lists of characteristics are a compilation of brainstorming
sessions by groups of development practitioners documented by CARE International and Climate Change, Agriculture and
Food Security (CCAFS).
COPING ADAPTATION

• Short-term and inmediate • Practices and results are sustained

• Oriented towards survival
• Not continuous
• Motivated by a crisis; reactive
• Often degrades the resource base
• Prompted by lack of alternatives
• Oriented towards longer-term livelihood security
• A continuous process
• Involves planning
• Uses resources efficiently and sustainably
• Focused on finding alternatives
• Combines old and new strategies and knowledge

Source: Jost, C., Ferdous, N., and Spicer T. D. p.17 (2014)

1. COMMON COPING STRATEGIES OF POOR HOUSEHOLDS

Meikle and her colleagues (2001) identified common coping strategies undertaken by poor urban
households but are not sustainable (Table 6). These identified coping strategies are also employed by
poor urban communities in the Philippines.

TABLE 6. REFERENCE TABLE FOR COMMON COPING STRATEGIES OF URBAN AND RURAL POOR
HOUSEHOLDS
Mainly Urban Urban and Rural
Income raising
• Domestic service – e.g., cleaning • Home gardening
and childcare (est. girls and • Processing, hawking, vending
women) • Transporting goods
• Urban agriculture • Casual labor/piece work
• Renting out rooms • Specialized occupations (e.g., tinkering, food preparation, shoe-shining,
prostitution)
• Child labor
• Mortgaging and selling assets
• Selling children into bonded labor
• Migration for seasonal work
• Seasonal food for work, public works & relief
• Begging
• Theft
Lowering expenditures
• Scavenging • Changes in purchasing habits (e.g., frequent small purchases, rather than cheap
• Cutting transport costs (e.g., bulk buys, and more inferior quality food than needs more extended preparation)
walking to work) • Stinting on goods and services (e.g., buying less and cheaper food)
• Discrimination and triage (e.g., giving less food to weaker / less favored
household members)
Social capital
• Community kitchens (soup • Mutual help (e.g., loans from friends or saving groups)
kitchens) • Family splitting (e.g., putting children out to others)
• Shared childcare • Remittances from household members working away
Source: Adapted from Meikle, S., et.al. January 2001. Working Paper No. 112. Sustainable
Urban Livelihoods: Concepts And Implications for Policy

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2. CURRENT COPING STRATEGIES IN MOVE UP 4 AREAS

Check Tool 13: Categorizing Coping Strategies in MOVE UP 4 Areas

Some “survival” coping strategies are normal, positive and can be supported. However, other
strategies, sometimes called “disabling” strategies, may permanently undermine future financial and
physical assets by negatively irreversibly impacting livelihoods. Several strategies identified are
“empowering” coping strategies that facilitate access to human, financial, social, physical, and natural
assets; improve the returns on assets; and meet consumption needs.

STEPS IN ANALYZING LIVELIHOOD COPING STRATEGIES

Identify how households preserve their productive assets to protect their livelihoods and ensure
longer-term self-sufficiency in food and income. Identify and list the coping strategies mainly used for
the different wealth/livelihood groups.

Identify what coping strategies threaten health, safety, or dignity by relating them to livelihood
strategies commonly used and considered socially acceptable in each culture.

Distinguish between “coping” and longer-term “adaptation” strategies that may be applied as
livelihood patterns change over time in response to the changing environment.

Identify existing livelihood strategies that may already be damaging the environment because they
use up natural resources. Some coping strategies may put the environment at greater risk, such as
increased production of charcoal and increased pressure on pasture around remaining water holes.

Categorize coping strategies to help you with the interpretation and analysis of the severity of a
situation

C. LIVELIHOOD INTERVENTIONS

To build livelihood resilience or to allow livelihood speedy recovery after a disaster or conflict, livelihood
interventions need to build on livelihoods-related capacities that already exist and that are viable in the
local economy. Figure 12 represents several types of livelihoods interventions based on the most priority
and most appropriate actions along the various DRRM and development phases. Such types of livelihood
interventions are discussed in Note Box 10.

FIGURE 12. LIVELIHOOD INTERVENTIONS CONTRIBUTING TO DISASTER RISK REDUCTION OVER ALONG DRRM /
DEVELOPMENT PHASES

Source: IFRC/ICRC, 2008. Guidelines for Assessment in Emergencies

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 NOTE BOX 10: TYPES OF LIVELIHOOD INTERVENTIONS ALONG THE
DRR / DEVELOPMENT PHASES

REPLACING ASSETS. These types of interventions aim to replace social, physical, and financial assets and resources that
have been lost. The immediate concern is to save lives and reduce immediate suffering through provision of basic resources
like food, water, shelter, and health services required for survival. For livelihoods: productive assets and tools may be lost
or damaged; employment opportunities and jobs vanished; breadwinners dead or injured; farmland assets and crops lost;
and outside remittances unavailable. Addressing these immediate needs is often through resource transfers such as cash
grants, free vouchers, or free food alongside labor-intensive cash-for-work schemes for activities such as debris clearing,
environmental cleaning and road repairs that provide the population with much-needed cash until people can return to
their previous occupations.

RESTARTING LIVELIHOODS. These types of interventions aim to restart or restore livelihood activities disrupted by disaster
or conflict by repairing or replacing assets that were lost or damaged, provide inputs and support livelihoods-related
markets so people can resume their income-generating activities. Programming here is less standard and depends on the
disaster-affected population in each context; needs are examined and appropriate targeting mechanisms can be
established.

STRENGHTENING LIVELIHOODS. These types of interventions aim to strengthen then the use of human and natural assets,
resources, and coping strategies to achieve greater economic security and to increase resilience to future disasters or
conflicts. Interventions can focus on improving the quality of physical assets, developing skills and techniques (for example,
using better technology for irrigation or weaving, identifying new and improved marketing methods). Interventions should
be designed to contribute to disaster risk reduction through promotion of more resilient livelihoods.

PROTECTING LIVELIHOODS. These types of interventions aim to protect livelihoods activities throughout the post-disaster
or post conflict phase to allow the vulnerable population meet their immediate and ongoing needs. Resource transfers
provided in relief and recovery interventions are often design to protect against a further loss of assets for the household.
Other ways to protect livelihoods include better management of the natural resources used for livelihoods, improvement of
early warning for disasters at the community level and access to financial services such as micro-finance including savings
and microinsurance.

DIVERSIFYING LIVELIHOODS. These types of interventions aim to diversify or transform livelihoods to achieve greater
economic security and development. Disasters can open a window of opportunity to improve people’s resilience and to
support poorer households to develop new livelihoods strategies and new skills. Diversification is usually more successful
when it builds on an existing area of knowledge or experience and a sound understanding of the economy comlimented
by various sustainable development interventions.

Annex 4 presents criteria for identifying appropriate livelihood interventions.

There are existing livelihood interventions and employment programs in MOVE UP 4 areas. Table 7
enumerates these livelihood interventions, and indicates the percentage of research respondents who
perceived and confirmed that these interventions are implemented in their areas.

TABLE 7. CURRENT LIVELIHOOD INTERVENTIONS AND EMPLOYMENT PROGRAMS IN MOVE UP 4 AREAS

% OF RESPONDENTS CONFIRMED THE
CURRENT LIVELIHOOD AND EMPLOYMENT PROGRAMS
IMPLEMENTATION IN THEIR AREA
DSWD-Sustainable Livelihood Project 80%
Social Pension for Indigent Senior Citizen 77%
Social Amelioration Program (SAP) 74.30%
Cash Assistance for Individual in Crisis(CAICs) 65.70%
Cash for Work 62.90%
Conditional/Unconditional Cash Transfer 62.90%
DOLE Integrated Livelihood Program (DILP) 60%
SPES or Special Program for Employment of Students (for in-and-out of school
57.10%
youth)
Training for Work Scholarship (TWSP) with TESDA 48.60%
Training on cooperative and governance & strategic planning 48.60%
Communal gardening 45.70%
Training on financial literacy and value formation 42.90%
Tulong Panghanapbuhay sa Ating Disadvantaged / Displaced Workers (TUPAD) 40%
Training on the processing of agricultural commodities and inland fishery 40%

Process Manual | 27
 Support for marketing of farmer’s products 40%
Provision of start-up /operating capital for cooperatives 40%
Loan for agricultural production 37.10%
Government Internship Program (GIP) 34.30%
Skills for Employment Scholarship Program (SESP) 34.30%
Provision of processing facilities, farm inputs, and machinery 34.30%
Free Crop Insurance (Subsidized) –rice, corn, HVCC, livestock, fishery 28.60%
National Reintegration Center for OFWs (NRCO) program 25.70%
Education and Livelihood Assistance Program (ELAP) with DOLE 25.70%
DOLE Educational Support Program (DESP) 25.70%
Sa Pinas "kaw ang Ma'am/Sir (SPIMS) program 22.90%
Assist WELL (Welfare, Employment, Legal, Livelihood) program 22.90%
Community-based Training Mobile Laboratory 22.90%
OFW Dependents Scholarship Program (ODSP) 22.90%
Affordable Life Insurance (ADSS) for all Agriculture Stakeholders 22.90%
Congressional Migrant Workers Scholarship Program (CMWSP) 20%
Pre-employment orientation seminar for overseas 20%
Halal Capital/investment program 2.90%

The top five (5) existing livelihood interventions and employment programs in MOVE UP 4 areas include
DSWD -Sustainable Livelihood Program (80%), Social Pension for the Indigent Senior Citizens (77%),
Social Amelioration Programs (74.3%), CAICS (65.70%)l Cash for Work and Unconditional/CCTs
(62.90%). DOLE Integrated Livelihood Programs (DLIP) is at top 6 with at 60%), and at top seven is
Special Program for Employment of Students (SPES) with 57.10%.

Several LGUs have their livelihood interventions and employment programs, while other LGUs
piggyback their livelihood interventions and employment programs with that of national agencies'.

D. IDENTIFYING GAPS AND NEEDS

STEPS IN IDENTIFYING GAPS AND NEEDS

Assess gaps and needs through Livelihood Risks versus Livelihood Resilience or Livelihood Assets.
Livelihood Risks can be calculated using the Livelihood Vulnerability Index Calculation System. Please
see Annex 3 for the calculation. In deciding appropriate indicators and calculating LVI, it is critical to
take note of priority risks (exposure and sensitivity indicators) and priority resilience indicators for
interventions. Livelihood Assets can be calculated by converting the descriptors in the second column
of Tool 17 into numerical scores. As a summary, the result is shown in Tool 14. The illustration indicates
that the Livelihood Risks outweigh the Livelihood Resilience/Assets.

Check Tool 14: Summary of Livelihood Risks and Assets Calculation

Identify gaps and needs using Impact Probability Chart. The visualization of risks impact (I) and
probability of occurrence (O) is a tool in identifying gaps and needs (Tool 15) by looking at high-level
risks and moderate-level risks as priority gaps or risks in this case, that need to be addressed with
higher resource investments.

Check Tool 15: Livelihood Risk Probability Impact Chart

The gaps that could be deduced in Tool 14 and 15 are pointing to a low level of Livelihood Assets or
a Low Level of Resilience Capacities. Therefore, the needed interventions are to grow livelihood assets,
build livelihood resilience capacities (as informed by livelihood risks), and address the livelihood risks
through effective, efficient, and inclusive economic policies, programs, and projects; climate change
adaptation strategies; employment of disaster risk reduction and management strategies; conflict-
sensitive and peace-building measures.

28 | Process Manual
 Identify gaps by comparing the results of current coping strategies versus contemporary livelihood
interventions. For example, disabling and survival coping strategies may indicate that the current
livelihood and employment interventions need to expand its target reach and covered areas. These
two coping strategies also suggest that there is a need to review its targeting criteria.

Check Tool 16: Sample Needs, Gaps, Coping, and Response Matrix

Identify gaps through assessing knowledge and skills in applying Shock-Responsive, Resilient, and
Sustainable Livelihood Interventions. During the conduct of collective analyses and validation exercises,
there were obvious reasons why there is a need to hone knowledge and skills in the following areas:
• Designing appropriate livelihood intervention guided by the results of LVI-CS.
• Business development services to strengthen critical livelihood functions and operations.
• Gathering necessary baseline and secondary data on livelihood risks and assets context.
• Conducting of Livelihood Assets and Market Mapping in combination with the value-chain
approach.
• Determining empowering coping strategies and livelihood resilience-building strategies. It was
observed that more attention is needed on the risk-transfer mechanisms (RTMs).
• Scaling up the application of Islamic finance practices and principles.

E. LIVELIHOOD ASSETS ASSESSMENT

LIVELIHOOD ASSETS refer to the resource base of people. Assets are consisting of the following
five categories: natural resources (also called natural capital), reproducible physical goods (physical
capital), monetary resources (financial capital), human resources with different skills (human capital),
social networks of various kinds (social capital).

These various livelihood assets may be be assessed by livelihood primary stakeholders using Tool 17,
the Livelihood Assets Assessment Tool. It considered SLF and insights from two studies related to this
Manual. The scoring in each indicator adopts a simple scoring as follows:

1 - Low; 2 - Moderate; 3 – High

Low or 1 indicates that the area or population being assessed has low possession or access to all
capital/assets. Moderate or 2 means that the area or population being considered has moderate
possession or access to several capital/assets. High or 3 indicates that the area or population being
assessed has high possession or access to almost all the capital/assets.

Criteria and indicators in this assessment tool are guides for Shock-Responsive, Resilient, and Sustainable
Livelihood Planning, the core content of the next chapter.

Check Tool 17: Livelihood Assets Assessment Tool

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 CHAPTER 4:

30 | Process Manual
A. LIVELIHOOD RESILIENCE AND LIVELIHOOD VULNERABILITY INDEX

NOTE BOX 11: VULNERABILITY AND RESILIENCE

Resilience is the degree to which a system can tolerate the potential harm from exposure or sensitivity to risks, while it
maintains its structure, basic functioning, operation and organization (TRANSFORM, 2020).

Adaptive capacity is the degree of social and technical skills and strategies of human systems to mitigate the potential
harm from exposure or sensitivity to risks.

Resilience and adaptive capacity are not similar, but their definitions are aligned. Resilience covers a broader system, an
interplay of human and natural systems, or one or the other of these subsystems, adaptive capacity meanwhile is more
narrowly focused on the specific skills and mechanisms that are deployed by human systems to contribute to resilience.

Both resilience and adaptive capacity are opposites of exposure and sensitivity . Either resilience or adaptive capacity can
complete the whole equation of vulnerability assessment. Therefore, climate change adaptation (CCA) is a technically
correct nomenclature in the parlance of climate change. It is also correct to use adaptive capacity in the mathematical
equation employed in vulnerability assessment for climate change and natural disasters. Thus:

VULNERABILITY = EXPOSURE + SENSITIVITY – ADAPTIVE CAPACITY

When multiple risks are already included in the whole picture like in the context of Mindanao , wherein there are apparent
intersections of climate change, environment, natural disasters, social, governance, political, economic, and individual life
cycle risks; replacing adaptive capacity with resilience in the mathematical equation to assess vulnerability is the most
scientific and technical approach. Thus:

VULNERABILITY = EXPOSURE + SENSITIVITY – RESILIENCE

This explains why the use of five (5) variations of resilience (social, economic, infrastructure, environmental, and
institutional) in Livelihood Vulnerability Index Calculation System. It is a correct expression of adopting the MOVE UP
Resilience Framework (See Figure 13) And since this Manual also adopts Sustainable Livelihoods Framework, the criteria
and indicators assessed under resilience are combined with criteria and indicators of livelihood assets.

Personal resilience is added due to demand and need of research participants-respondents, and as suggested by DSWD-
SLP and MOVE UP 3 in 2020 (Silva, 2020).

Please see Annex 3. This systematic combination, gives stakeholders a room to enhance the whole process. Thus:

Building or Enhancing Personal Resilience = Improving Human Capital

Building or Enhancing Social Resilience = Improving Social Capital
Building or Enhancing Economic Resilience = Enabling Growth for Financial Capital
Building or Enhancing Infrastructure Resilience = Enabling Growth for Physical Capital
Building or Enhancing Environmental Resilience = Protecting and Preserving Natural Capital
Building or Enhancing Institutional Resilience = Enabling Growth and Returns from Livelihood Assets

FIGURE 14. SHOCK RESPONSIVE SOCIAL PROTECTION

FIGURE 13. MOVE UP RESILIENCE FRAMEWORK
& SHOCK-RESPONSIVE LIVELIHOOD FRAMEWORK

Source: Silva, A. (2020). Policy Research Report Source: TRANSFORM (2020). Shock Responsive Social Protection

Process Manual | 31
 NOTE BOX 12: DEFINING SHOCK-RESPONSIVE LIVELIHOOD (TRANSFORM, 2020)

What is shock?
A potentially damaging hazard or other phenomenon. A shock can also refer to the moment at which a s low-onset process
(a stress) passes its ‘tipping point’ and becomes an extreme event. Not every shock result to an ‘emergency’, ‘crises or
‘disaster’.

What are the categories of shocks?

• Covariate shock: shocks that affect a large proportion of the population simultaneously.
• Idiosyncratic shock: shocks that affect individuals or households.

What is Shock-Responsive Social Protection (as illustrated in Figure 14) is a program or policy addressing poverty and
vulnerability engaging all social protection sectors to better meet people’s needs compared to the status quo and compared
to any alternative through:
• greater coverage, adequacy, and comprehensiveness of assistance
• ensuring timeliness, cost-effectiveness, accountability, predictability, and ownership & sustainability.

Therefore:

Shock-responsive livelihoods (as a subset of social protection) is a protection intervention addressing poverty and vulnerability
engaging livelihood ecosystem to achieve livelihood outcomes through:
• greater coverage, adequacy, and comprehensiveness of assistance; and
• ensuring timeliness, cost-effectiveness, accountability, predictability, and ownership & sustainability.

STEPS IN CALCULATING LIVELIHOOD RESILIENCE

Plot the livelihood assets assessment output.

Compare the livelihood assets output to Livelihood Resilience Section of Annex 3. Look for
factors or indicators which are present in livelihood assets output but not in the Livelihood
Resilience Section of Annex 3.
Add factors or indicators which are present in livelihood assets to Livelihood Resilience Section
of Annex 3. Decide on the level of resilience in each indicator.
Calculate Livelihood Resilience by getting the average scores of personal resilience,
social resilience, economic resilience, infrastructure resilience, environmental resilience,
institutional resilience and divide the result by six (6) or:

Livelihood Resilience =
∑personal resilience + ∑social resilience + ∑economic resilience + ∑infrastructure resilience + ∑environmental resilience + ∑institutional resilience
6

STEPS IN CALCULATING LIVELIHOOD VULNERABILITY INDEX

Go back to Section D of Chapter 2 of this Manual or in Exposure and Sensitivity Sections of

Annex 3. Add the scores of Livelihood Exposure and Sensitivity.
Subtract the score you got on Livelihood Resilience.
Get the Livelihood Vulnerability Score. The formula is:

LIVELIHOOD VULNERABILITY (LV) =

LIVELIHOOD EXPOSURE + LIVELIHOOD SENSITIVITY – LIVELIHOOD RESILIENCE

Calculate the Livelihood Vulnerability Index (LVI) with this formula:

LVI = Livelihood Vulnerability Score - Minimum (Livelihood Vulnerability Score)

Maximum (Livelihood Vulnerable Score) – Minimum (Livelihood Vulnerable Score)

LVI = Livelihood Vulnerability Score - 3

6-3

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The Livelihood Vulnerability Index (LVI) is scaled version of the Livelihood Vulnerability Indicator
Score, with values ranging from 0 (least vulnerable value) to 1 (most vulnerable value). To interpret
LVI, see table below:

TABLE 8. REFERENCE TABLE FOR INTERPRETING LVI

LVI Interpretation
Low This indicates a relatively resilient livelihood. The best strategy to employ is to encourage replication of best practices and
(0.0 to policies to other livelihoods with high vulnerability. It is still possible, however, that moderate exposure and sensitivity
0.2) exist in the livelihood with regards to one or several indicators or factors under exposure or sensitivity. Prioritization
measures should be taken into account after examining the LVI structure when doing the Livelihood Resilience Planning.
Moderate This indicates that the livelihood being assessed is in moderate condition. It may already has a major exposure and
(0.3 – sensitivity issues, however, with regards to either technical support or resilience capacity-building. Thus, major
0.5) interventions in Livelihood Resilience Planning shall be indicated to prevent near-crisis scenario. Stakeholders should
focus on the main risks identified after examining the LVI structure, and interventions should be designed to overcome
key risks faced by the livelihood. A longer-term and livelihood strategies should be made, with a focus on strengthening
livelihood resilience capacity to deal with risks and hazards.
High This indicates the livelihood is highly exposed to risks and hazards, and has high sensitivity to various risks and hazards.
(0.6 – It has also a poor resilience capacity. Resilience building and mitigating risks will require major commitment and
1.0) resources from both government and other stakeholders. Resilience strengthening will be a long process, and an
integrated resilience plan should be made at the system level, with involvement from international, national, local level
agencies, CSOs, and private sector.

B. SETTING LIVELIHOOD OUTCOMES AND INDICATORS

Knowing LVI is the take-off point to set the Livelihood Outcomes. Studying the structure of LVI will guide
the stakeholders on what priority directions shall be set. Livelihood outcomes can be summarized into
eight (8) measurable priority outcomes: 1) Survival and Livelihood Protection Threshold, 2) Ownership
and Access to Productive Assets, 3) Productivity Enhancement, 4) Increase and/or Diversification of
Incomes, 5) Gain and Application of Livelihood Activities Knowledge, 6) Access to Livelihood Support
Services and Markets, 7) Disaster Risk Reduction and Natural Resources Management, and 8) Livelihood
Rights, Policies and Regulations Improvement.

NOTE BOX 13: LIVELIHOOD OUTCOMES

(Adapted from IFRC - Livelihoods Resource Centre within the framework of the ERC-ECHO program)

Survival and Livelihood Protection Threshold – Change or improvement of household ability to meet survival and livelihood
protection thresholds. It includes households’ capacity to respond to their immediate needs, to restore their livelihoods and
to change the use of negative coping strategies.

Ownership and Access to Productive Assets - Change in number of productive assets owned or accessed by target population
(households, communities, productive associations). It includes the capacity to protect or replace productive assets after a
shock, increase the number and/or the improvement or access to improved assets. Considers the equitable access to
productive assets.

Productivity Enhancement - Increase of productivity (primary production, income generation activities, etc.), considering that
it means the relationship between production and resources/time dedicated to obtaining them. It includes the increase of
production, the reduction of resources and/or the reduction of production losses.

Increase and/or Diversification of Incomes - Increase and/or diversification of household’s income in a sustainable way. It
includes all kind of interventions that promote and strengthen formal or informal employment creation (considering both
employment and self-employment), promote the income generation sources diversification, and stabilize and strengthen
existing sources of incomes to increase the net incomes.

Gain and Application of Livelihood Activities Knowledge - Improvement of livelihood activities knowledge and application
of these livelihood new practices/knowledge/techniques; it includes both aspects GAIN OF KNOWLEDGE and
APPLICATION of this new knowledge for all kind of livelihood activities (primary production, transformation, etc.)

Access to Livelihood Support Services and Markets - Increase the households/ communities/ productive associations’
capacity to access to markets and/or other livelihood support services (formal or informal). It includes access to markets,
extension workers training and services, veterinary services, legal advisor services or all kind of formal/informal financial
services.

Process Manual | 33
 Continuation of NOTE BOX 13: LIVELIHOOD OUTCOMES

Disaster Risk Reduction and Natural Resources Management . Protection and strengthening of household/community livelihoods
through Disaster Risk Reduction, Climate Change Adaptation and Natural Resources Management practices. It includes all
kind of activities aimed to strengthen, adapt, and protect households/community livelihoods and/or their productive
assets/capitals (such as natural or physical capital) against natural hazards and damaging production practices.

Livelihood Rights, Policies and Regulations Improvement - Strengthen enabling environment for improving livelihood
development. It includes all levels of advocacy interventions (community, local and national level) to allow equal rights, access,
and opportunities in livelihoods; as well as interventions aimed to reinforce local and national structures and processes to allow
the improvement of livelihood development and protection.

Check Tool 18: Converting Livelihood Outcomes into Indicators

C. LIVELIHOOD RESILIENCE AND SUSTAINABLITY PLANNING

1. BUILDING AND ENHANCING ECONOMIC AND INFRASTRUCTURE RESILIENCE:

ENABLING GROWTH FOR FINANCIAL AND PHYSICAL CAPITAL

NOTE BOX 14. LGUs’ BEST POLICIES AND PRACTICES IN ENHANCING ECONOMIC AND
INFRASTRUCTURE RESILIENCE ENABLING FINANCIAL AND PHYSICAL CAPITAL GROWTH

1. Supporting micro, small, and medium enterprise (pp68 of National Capital Regional Development Plan).
2. Formulating ordinance for risk financing, better risk adaptation and recovery financing for MSMEs like livelihood
insurance or livelihood asset insurance, fire insurance, natural catastrophe insurance, and insurance for enterprise
employees with streamlined procedures, rapid payment, a repayment exemption period, and incremental increases
in repayment amounts.
3. Allocating not less than 5% of the estimated revenue from regular sources to the LDRRMF. Payment to premiums for
calamity insurance may be included (Section 6.1). The basis for the allocation shall be the LDDRM Plan and should be
incorporated in CDP, LDIP, and AIP (Section 6.1 of DILG Memorandum Circular No. 2015-77 on Guidelines on
Mainstreaming Climate Change Adaptation and Disaster Risk Reduction in Local Development Planning).
4. Ensuring DRRM and CCA risk assessments as part of the legal requirements, and are implemented, for planning all
new economic zones or industrial precincts intended to cluster MSME and undertake risk assessments and any
necessary mitigation measures to reduce exposure in existing zones.
5. Identifying ways to focus livelihood resilience initiatives: at city level; within designated industrial areas, for example,
special economic zones, such as the Agro-Industrial Economic Zones, or Technology Parks and Centers and Tourism
related zones; and in particular industry sectors.
6. Inclusion of livelihood needs in city DRRM policies, plans, strategies and resource allocations for DRR, awareness-
raising, CBDRR, risk assessments, and risk mapping, especially in DRR, prevention and preparedness.
7. Formulating policies that promote locally driven and market-driven livelihood and putting emphasis on value chain
development support;
8. Using existing channels in business finance, insurance and taxation to provide financial incentives, exemptions,
conditions, and/or requirements for disaster risk assessments and evidence of resilient livelihood enterprise continuity
plan. For example: access to some forms of business registration and/or grants, training, or other business
development support could be made dependent on investment in disaster-resilient BCP; investment in disaster-resilient
BCM could be tax deductible, along with associated BCP-preparation and training; micro credit and small business
loans criteria could include environmental and enterprise disaster risk assessment and/or BCP or other mitigation
measures as part of the credit assessment (while ensuring this does not further restrict MSMEs access to credit).
9. Securing alignment of polices with DSWD’s SLP, DSWD Memorandum Circular 22 Series of 2019 and DOLE’s ILEEP
through complementation of resources in the delivery of livelihood interventions.

1.1 VARIOUS LIVELIHOOD STRATEGY OPTIONS TO BUILD ECONOMIC AND

INFRASTRUCTURE RESILIENCE

This Process Manual presents six (6) common livelihood strategy options. The main determinants for
the choice of strategy by livelihood stakeholders are the livelihood outcomes that were set. Other
factors that may influence the choosing of strategy may be the context and capacity of livelihood

34 | Process Manual
 stakeholders. These strategy options are not mutually exclusive. While a dominant strategy may be
used for specific purposes, a combination of these strategies can be pursued (see Note Box 15).

NOTE BOX 15. VARIOUS ENTERPRISE STRATEGIES AS LIVELIHOOD STRATEGY OPTIONS

Strategy is a plan covering the right duration for the industry situation, which defines and shapes the objective of an
organization - matching resources to the expectations and needs of customers, the market environment, and stakeholders
(Jones, 2015).

Strategic Positioning – aims to find a position of sustainable competitive advantage – through either doing different things to
the competition or doing the same things but in a better way (Jones, 2015).

VARIOUS ENTERPRISE STRATEGY OPTIONS

1. Empowerment Strategy (Dacanay, 2004)– have the objective of making the primary stakeholders (PS) own, control,
and manage livelihood/enterprise. Such strategy may be self-initiated by the primary stakeholders and led by social
entrepreneur from among their ranks, assisted by external stakeholders. There are two types of empowerment strategies
(see Table 9 for comparison):
• Direct empowerment strategy
• Devolutionary strategy

2. Intermediation Strategy (Dacanay, 2004) – are mainly concerned with providing primary stakeholders access to critical
services in their numbers. The social entrepreneurs in this context set up an enterprise they own, control, and manage
and make it grow. Such an enterprise acts as an intermediary organization. There are two variations of intermediation
strategy (see Table 10 for comparison):
• Functional Intermediation Strategy
• Progressive Intermediation Strategy

3. Adaptive Strategy (Morato, 2006) – naturally grows from existing livelihood/ enterprise activities. Natural ways of
strategy adaptation include:
• Geographic expansion (expansion from local to key cities and provinces)
• Product/service line expansion (cater to other market segments of the same industry)
• Organizational expansion (franchising, branching, distributing, outsourcing, subcontracting, and other forms of
networking and linkaging) idea for further elaboration and evaluation.
• Horizontal integration (entering industries that are related to, supportive of and complementary with the enterprise
‘s main products or services), and
• Vertical integration (the process of acquiring livelihood operations in the same industry or taking control over one
or more stages in the production or distribution of a product).

4. Creative Strategy (Morato, 2006) – At a certain point in the growth and development of an enterprise, there is a need
to craft creative strategies that would transform both the enterprise and the people. There are five (5) variations of
creative strategy:
• Benchmarking with other industries – Looking at similar industries to make meaningful comparisons towards
generating different and creative strategy
• Reconfiguring product or service – Listing down all the attributes of the product or service currently being delivered
by describing the product’s shape, size, color, features, accessories, and amenities. From each of these attributes,
list down alternative shape, size, color, features, accessories, and amenities. Once these alternatives are generated,
it is important to mix, combine, and permutate them into many possible reconfigurations until the most exciting ideas
come out.
• Altering customer attitudes and behavior – If a product or service is not attracting customers anymore, change the
customers’ attitudes and behavior to rediscover and becomes attracted with the product once again. Changing
customer behavior follows Foggs’ Behavior Design Model, with a formula of:

BEHAVIOR = MOTIVATION + ABILITY + PROMPT or B= MAP

Motivation – when motivation is high, people not only act when prompted, they can also do difficult things.
Ability – the harder a behavior is to do, the less likely the person to do it. Both motivation and ability can work
together.
Prompt – If there is no prompt, the levels of motivation and ability do not matter. Either the person is prompted to
act or not.

• Metaphoring and the Bonsai Method – Likening the enterprise to a situation or phenomenon that comes from
different world but shares similar characteristics with the enterprise. The process involves generating lots of possible
directions or solutions from the similar situation or phenomenon. These solutions are then brought back to the world
of the enterprise by asking how the similar situation could possibly translate into an enterprise solution. The bonsai
method is an extended metaphor. In a Japanese garden, the bonsai represents Mother Nature, albeit in a stylized
and miniaturized form.

Process Manual | 35
 Continuation of NOTE BOX 15. VARIOUS ENTERPRISE STRATEGIES AS LIVELIHOOD STRATEGY OPTIONS

• Brainstorming and Prototyping - originally developed by Alex Osborn in 1938, which admonishes the members of
the brainstorming group not to argue, criticize, debate, and evaluate ideas. The point of brainstorming is to produce
as many novel ideas or solutions as possible (50 to 100) within 10 to 20 minutes. The more promising ideas from
the brainstorming session must be converted into “tangible” or comprehensible opportunities. This can be done if
rough prototypes of products or services can be built for critiquing. The purpose of prototyping is to submit the
creative idea for further elaboration and evaluation.

5. Ideological Strategy (Morato, 2006) – The main determinant of the strategy is adherence to the spiritual dogma,
stipulated governance system or maximized benefits to disadvantaged beneficiaries. It also looks at how the enterprise
anchor its strategy on universal principles, core beliefs, and basic human tenets.

6. Rational, Sequential and Analytical Strategy (Morato, 2006) – Logical and step by step process that relies on the
faculties of the left brain. Such strategy uses science of correct reasoning. It suggests that inductive or deductive thought
processes must follow a sequential linear pattern (see Figure 15 for sample). The two sequential processes include:
• Top to Bottom
• Bottom - Up

TABLE 9. COMPARISON BETWEEN DIRECT EMPOWERMENT AND DEVOLUTIONARY STRATEGIES

TYPE OF OWNERSHIP AND PS ROLE IN STRATEGIC BENEFITS DERIVED BY PS AND THE
EMPOWERMENT CAPITALIZATION OF PS DECISION MAKING AND NATURE OF AVAILMENT PROCESS
STRATEGY OPERATIONS
Direct Majority-owned to fully Substantive to full control Characterized by gestation period of
empowerment owned at inception at inception capacity and capital build up to set up the
strategy enterprise; services and dividends/profit
share reaped after setup
Devolutionary None to less than None to insignificant at Services availed of immediately,
strategy majority at inception but beginning, but building simultaneous with capacity and capital
progressively divested undertaken toward build up; dividends/profit share
over time devolution proportionate to divestment

Source: Adapted from Dacanay, M.L.M (2004).

TABLE 10. COMPARISON BETWEEN FUNCTIONAL INTERMEDIATION AND PROGRESSIVE INTERMEDIATION

STRATEGIES
TYPE OF OWNERSHIP AND PS ROLE IN STRATEGIC DECISION BENEFITS DERIVED BY PS AND
INTERMEDIATION CAPITALIZATION OF PS MAKING AND OPERATIONS THE NATURE OF AVAILMENT
STRATEGY PROCESS
Functional None (owned by social Consulted and assisted to effectively Access to markets,
intermediation entrepreneur) participate in social enterprise system technological and other services
strategy secured
Progressive Initially none but over time Same as above at inception but would Same as above at inception but
intermediation may be brought in as progressively change over time, would progressively change
strategy minority shareholders, or commensurate to shareholdership and over time, commensurate to
some PS may be assisted to capacity built shareholdership and capacity
set up their own enterprise built

Source: Adapted from Dacanay, M.L.M (2004).

36 | Process Manual
FIGURE 15. SAMPLE RATIONAL, SEQUENTIAL, AND ANALYTICAL STRATEGY: ROADMAP FOR RESPONSE ANALYSIS

BOTTOM - UP (STEPS 1 - 4)

SHOCK/
EARLY
WARNING
TOP - BOTTOM
(STEPS 5 - 6)

Source: Maxwell, D., Stobaugh, H., Parker, J., and McGlinchy, M. (2013).

1.2 STEPS IN DEFINING STRATEGY (Jones, 2015)

Set direction in a given time period. A clear understanding of the appropriate and actionable
direction(s) it must follow over the right period for the industry.
Define the Scope and Blueprint. Scope may cover customer types, products, services, geographies,
and other dimensions. The blueprint is a sufficiently detailed, clear and unambiguous directions,
outcomes, objectives down to defining individual tasks that are appropriate, effective and consistent
with the desired direction. It is necessary to avoid unattainable targets, challenge every objective
being defined.
Determining and deploying resources effectively and efficiently. After detailing the blueprint, it is
important to determine the right amount (efficiency) of resources required to implement the strategy
(effectiveness).
Define the competitive advantage. Explaining why customers will pay for a product/service.

1.3 STEPS IN DEFINING STRATEGIC POSITIONING (Jones, 2015)

Find the unique position in the market or industry based on:

• A small set of products/services to many customer types
• Delivery of a wide range of products/services to a tightly focused group
• The wide range of needs of significant numbers of customers but only in a narrow segment (e.g.,
Targeting few barangays and small municipalities only)
Decide what the livelihood should not do. It should focus on addressing the current situation and
the future trends by combining:
• Anticipation of changes in buyer needs and competitive reactions
• Concerted and focused application of effort across the livelihood ecosystem

Process Manual | 37
 Set the great fit between what the livelihood does and the whole set of processes, metrics, skills,
structures, and resource/assets deployment. If the fit is weak, then there is a high risk of not
benefiting from the activities, and an analyst would expect a zero to low return of assets.

Check Tool 19: Enterprise Delivery System: From Resources to Outcomes

1.4 DESIGN THINKING APPROACH: THE FOUNDATION IN GROWING ASSETS

To design a solution/product/service in a humanitarian context, it has to be within the Humanitarian
Parameters Box. It is critical to have a good understanding of such parameters box for one to
16
effectively innovate solutions for a humanitarian purpose. Click the button below to access the
Humanitarian Parameters Box:

HUMANITARIAN PARAMETERS BOX WORKBOOK

DESIGN THINKING is a non-linear, iterative process that successful enterprises use to understand
customers, challenge assumptions, redefine problems and create innovative solutions for rapid
prototyping and testing.

Not only does it focus on creating products/services that are human centered, but the process itself is
geared towards social innovation (Brown and Wyatt, 2010). Design thinking is compelling for urban
vulnerable communities because it taps into current capacities and undiscovered capacities of
stakeholders, but are overlooked by conventional problem-solving practices. By working closely with the
clients and consumers, design thinking allows high-impact solutions to rise from below rather than being
imposed from the top (Brown and Wyatt, 2010). It is most useful to tackle problems that are ill-defined
or unknown.

Design Thinking involves six (6) steps—Empathize, Define, Ideate, Prototype, Test and Implement.
Please see Figure 16 for the illustration.

Empathize. Feel the emotions of the urban vulnerable communities on various risks and hazards
they have been facing. Sense their challenges towards understanding problems, that the
organization or enterprise is trying to solve. Usually, enterprises conduct simple and brief survey
on customer needs. Other organizations, carry out an empathy map.

Check Tool 20: Empathy Map

Define. Compile, sort and clean the data and information gathered during Step 1. Then, analyze
observations and synthesize them to define core problems. Defining core problems are crafting
problem statements. In this Step, personas can be created. Personas are fictional characters, which
the enterprise create based on the result of the research, to represent the different customer types
that might use your product or service.

Ideate. Craft ideas and challenge underlying assumptions from the ideas crafted. The solid
background of knowledge from the first two steps means the enterprise can start to look for
alternative ways to view the problem and identify innovative solutions to the problem
statement(s) crafted.
Prototype. Too many, information, idea, and alternatives could lead to “analysis paralysis”.
Prototyping is a solution to such paralysis. In this Step, the aim is to identify the best possible

16
As an alternative in clicking the button, Humanitarian Parameters Box Workbook can be accessed through this link -
https://higuide.elrha.org/wp-content/uploads/2018/06/Humanitarian-Parameters-Box-GDC-0618.pdf

38 | Process Manual
 solution for each problem found. The primary stakeholders should produce some inexpensive,
scaled-down versions of the product (or specific features found within the product) to investigate
the ideas they have generated. Prototype could be a simple presentation, video, or a miniature
of a product using available indigenous materials.

Test. Sensibly test prototypes. Testing prototypes can redefine one or more problems. Primary
stakeholders can return to previous Steps to make further iterations and refinements until a
responsive, resilient, and sustainable solution is achieved.

Implement. The most critical Step is implementation. The enterprise needs to ensure that the
solution is materialized and change the lives of the customers.

FIGURE 16. THE SIX (6) STEPS OF DESIGN THINKING APPROACH IN DESIGNING PRODUCT/SERVICE/SOLUTION

Source: Adapted from Gibbons, S. (2016). Design Thinking 101. NN/g Nielsen
Norman Group

1.5 BUSINESS MODEL AND REVENUE MODEL DESIGNING AND VALIDATION: ALIGNING
ECONOMIC AND FINANCIAL RESILIENCE TO ADDRESS ECONOMIC AND
TECHNOLOGICAL RISKS

NOTE BOX 16. ON BUSINESS MODEL

55 major patterns of business models were identified in the last 25 years (Glassman, Frankerberger, and Csik, 2013), leading
to deve lopment of the St. Gallen Business Model Navigator™. The Navigator synthesized numerous dimensions of various
business models into four (4), which answer questions of Who, What, How, and Why. Please see Figure 17.

Business Model Canvas (BMC). A one-page business tool used to visualize all the building blocks when starting a
business. Strategyzer’s Business Model Canvas is the widely used by private sector. It draws into nine (9) building blocks to
complet e the foundation of a model. For further details of the guidance can be watched here - STRATEGYZER’S BUSINESS
MODEL CANVAS

Tandem ic Social Business Canvas. Is the more appropriate business model canvas for livelihoods and livelihood interventions,
as it tw eaked the canvas for social enterprises. Tool 21 is a step-by-step guide to build the canvas. For a more detailed
guidance to complete Tool 21, visit this link - https://cscuk.fcdo.gov.uk/wp-content/uploads/2016/07/BMC-for-Social-
Enterprise.pdf or click the button below:

BUSINESS MODEL CANVAS FOR SOCIAL ENTREPRISE DESIGN

Check Tool 21: Tandemic Social Business Canvas

Business Model Validation Canvas (BMVC). The BMC as a tool is continually used to refine the business model, and to clearly
describe the livelihood stakeholders’ ideas, this is where the BMVC as complementary tool is needed. t presented Some
enterprises make many pivots before they find the right product-market fit. It is essential to know where the enterprise has
been before moving on. The goal of the validation process is to learn as much as possible, as fast as possible. With that in
mind the livelihood stakeholders need to run experiments iteratively. The validation canvas is the central nervous system of
this process. Please use Tool 22 with a 4-step guidance notes in doing the BMVC. Please note that validation starts from
the value proposition stated in the business model canvas. The stated value proposition is the current hypothesis as to who
the customers are, what problem is solved for them, and what solution is appropriate for that problem.

Check Tool 22: Business Model Validation Canvas (BMVC)

Process Manual | 39
 FIGURE 17. THE BUSINESS
MODEL DEFINITION – THE
MAGIC TRIANGLE

Source: St. Gallen Business Model Navigator. (2013). Working Paper. University of St. Gallen

NOTE BOX 17: REVENUE MODEL DESIGNING AND VALIDATION

Revenue Model. There is no one best revenue model an enterprise could use– the best revenue model depends on the
solution, product, and customer base. As this is a critical part of the Business Model, designing this, shall also be part of the
Business Model Validation. This answers the questions:
• How does the enterprise capture the value?
• What does the cost structure of your startup look like?
• What are the different ways you can generate revenue?

It is important to consider different revenue options during the validation process. Testing customers’ willingness to pay to a
certain payment structure is crucial to note of.

Three core objectives in capturing value or generating revenue:

1. Being profitable (bottom line)
2. Generating cash
3. Attracting growth

To validate these core objectives, an enterprise shall focus on measuring the following basic metrics:
1. Customer Acquisition Cost (CAC) – divide your sales and marketing costs for a given period by the number of
customers you attracted during the same period.

CAC= SALES COST + MARKETING COST FOR A GIVEN PERIOD

TOTAL NO. OF CUSTOMERS ACQUIRED

2. Retention Rate– the number of customers you maintain even after initial purchase. Always check with inactive
customers to find out why they are not using your product or service.

RR = TOTAL NUMBER OF CUSTOMERS IN A COHORT WITHIN A SET PERIOD OF TIME

TOTAL NUMBER OF CUSTOMERS IN SAME COHORTWITHIN A PREVIOUSLY SET TIME

Example: 200 CUSTOMERS FROM JANUARY NEW CUSTOMER COHORT IN FEBRUARY = 20% Retention Rate

1,000 CUSTOMERS IN JANUARY NEW CUSTOMER COHORT

3. Churn Rate– the measure of customers who stop paying for the enterprise’s product.

CC = 1 – RETENTION RATE Example: 1 -- .20 = 80% Churn Rate

4. Life Time Value (LTV) – the duration customers stay with the enterprise multiplied by the monthly revenue expected to
get from the customer. LTV should always be 3x CONVERSION greater than CAC.

LTV = AVERAGE VALUE OF (paying customers) X AVERAGE NO. OF CONVERSIONS IN A TIME FRAME
X AVERAGE CUSTOMER’S LIFETIME

Example : THE AVERAGE AMOUNT PAID BY CUSTOMERS IS PHP2,500 X THE AVERAGE CUSTOMER MAKES 3
PURCHASES X THE AVERAGE CUSTOMER STAYS KEEPS ON PURCHASING THE ENTERPRISE’S
PRODUCT FOR 10 YEARS =
PHP75,000.00 LTV per CUSTOMER

40 | Process Manual
 Continuation of NOTE BOX 17: REVENUE MODEL DESIGNING AND VALIDATION

Revenue – the money you bring in through sales and other income. Pay specific attention to Monthly Recurring Revenue
(MRR).

MRR is the amount of predictable revenue that an enterprise can expect to receive on a monthly basis. It is based to

MRR = NO. OF CUSTOMERS BOUGHT THE ENTERPRISE’S PRODUCT IN THE LAST 30 DAYS

Example : 5 CUSTOMERS BOUGHT 2 HANDCRAFTED HAND BAG FOR LADIES AT PHP2,500 PER BAG =
PHP25,000 MRR

Profitability or bottom line is mostly influenced by CAC, LTV, Revenue and Churn. When you are validating your ability to
capture value, these metrics will matter the most.

Success Tip: Calculate the worst-case scenario first and then create estimates based on the higher end of predictions. These will
be helpful as yo actual metrics, making it easier to adjust your outlook into a realistic view.

TABLE 11. EXAMPLES OF REVENUE MODELS

REVENUE MODEL
Earned income – unit sales
Earned income - advertising
and leasing revenue
Earned income –
microfinance
Earned income - franchising
Earned income - blended
Contributed income
Hybrid blended income
DEFINITION
Revenue from volume or unit sales
of product
Revenue from sale of advertising
space and leasing of retail space
Deferred payment for product
Income from licensing branded
vending service
Fees from products and services
Indirect beneficiary (e.g.,
government or CSO pays for
product or service
Earned and contributed income
sources
KEY RISKS
Creating aspirational demand through branding, pull-
marketing; competition from knock-offs; rural
distribution
Maintaining high visibility of facilities
Transaction costs; interest rates; long payback period;
MFI’s capacity and reputation; credit default
Maintaining consistent quality and execution among
franchisees
Maintaining adequate revenue mix
Donor dependence; competing technologies
Donor dependence; market distortion from subsidies;
balancing cash flows from different sources;
maintaining sustainable

Source: Cabrera, P.V. (2014). Market Solutions to Public Needs, Mainstreaming Poverty Alleviation Initiatives in the ASEAN: Habitat for
Humanity Cambodia, Building Houses, Improving Lives. Singapore. Cengage Learning Asia Pte Ltd.

1.6 ASSESSING CRITICAL LIVELIHOOD PROCESSES AND FUNCTIONS

A livelihood’s capacity to respond quickly to any type of disruption could make the difference between
resilience and closure.

To determine the maximum amount of time a livelihood can endure being closed after a disaster, primary
stakeholders should identify its critical livelihood processes and functions and decide how long can a
livelihood continue without being able to perform such livelihood processes and functions.

Check Tool 23: Critical Livelihood Processes

CRITICAL LIVELIHOOD FUNCTIONS are high-level groupings of livelihood processes and

activities that are needed to run a livelihood. Livelihood stakeholders should identify their key livelihood
functions and processes and decide how long they can go without being able to perform them.

The following are common examples of livelihood functions: Finance. Accounts Payable, Payroll, Tax,
and Accounting.
• Production. The manufacturing of products or delivery of services.

Process Manual | 41
• Human Resources. Functions related to employees such as recruiting, benefits and performance
management
• Sourcing. The end-to-end process of purchasing materials, components, supplies and services. This
includes vendor and partnership management.

Identify what livelihood functions are critical to resilience or recovery. Use Tool 24 to record important
information as suggested. Duplicate the form for each livelihood function identified as critical to
resilience.

Check Tool 24: Critical Livelihood Functions Template

1.7 TRIPLE BOTTOMLINE ACCOUNTING

The triple bottom line accounting aims to measure the financial, social, and environmental performance
of an enterprise over time, rather than solely focusing on generating profit, or the standard “bottom
line.” It can be broken down into “three Ps”: profit, people, and the planet. This sub-section emphasizes
that this Manual actually is deeply aligned to the “three Ps”.

Profit: This refers to the criteria and indicators in economic, physical, and infrastructure resilience.
However, in Bangsamoro and in other Muslim communities, building of economic resilience is expected
to consider the Islamic Finance which is founded from the principles of Islamic economic thought. The
Islamic Financial Services Board issued a guidance notes on how to properly apply Islamic Finance. It
17
can be accessed by clicking the button below:

IFSB’s GUIDANCE NOTES ON CAPITAL ADEQUACY STANDARD

People: This refers to criteria and indicators under personal, institutional and social resilience. Further, it
also need to highlight the gender inclusion in programming processes. The CGIAR Research Program on
Climate Change Agriculture and Food Security (CCAFS), CARE International, World Agroforestry Centre
18
(ICRAF) prepared a well-written toolbox. It can be accessed through the button below:

GENDER INCLUSION TOOLBOX

Planet: This refers to the criteria and indicators under environmental resilience.

1.8 RISK TRANSFER MECHANISMS (RTM)

NOTE BOX 18: RISK TRANSFER MECHANISMS AND MICRO-INSURANCE

Risk transfer is the formal or informal shifting of financial consequences of particular risks. These are mechanisms where
individuals, households, communities and enterprises receive compensation from another party as a return to paid premium
(UNISDR). Risk transfer is the least understood and, therefore, the least practiced approach to building resilience in urban
poor communities. Many are not covered by PHILHEALTH and the Social Security System (SSS) insurance.

Risk transfer mechanisms (RTM) are acceptable to the urban poor only if these will be subsidized, or if their incomes are
increased for households to be able to afford them. It is at the bottom of the urban poor’s priorities due to insufficient income
and savings that can be used in times of disaster.

17
As an alternative in clicking the button, IFSB’s GUIDANCE NOTES ON CAPITAL ADEQUACY STANDARD can be accessed through
this link - https://www.ifsb.org/download.php?id=4371&lang=English&pg=/ar_index.php
18
As an alternative in clicking the button, GENDER INCLUSION TOOLBOX can be accessed through this link -
https://cgspace.cgiar.org/bitstream/handle/10568/45955/CCAFS_Gender_Toolbox.pdf?sequence=7

42 | Process Manual
 Continuation of NOTE BOX 18: RISK TRANSFER MECHANISMS AND MICRO-INSURANCE

Best practices from MOVE UP 1 to 3 facilitated and promoted RTM through:

• Actions focusing on financial literacy activities intended to change the mindset and attitude of the urban poor to one
in which social and economic protection
• Introductions of effective and appropriate models of savings and establishment of Community Savings Groups;
• Diversified livelihood options along with the existing value chain; and
• Accessing micro-insurance for the protection of livelihood properties and health of the primary stakeholders.

MOVE UP Project’s Operational Guidance Paper. The Operational Guidance Paper prepared by MOVE UP 2 provided a
table of activities, outputs, and tools to institutionalize RTM in local governance. Please see Table 12 for these activities,
expected outputs and tools.

MC 1 – 2010 specified the details of establishment of policy and regulatory environment that will facilitate increase
participation of private sector in microinsurance and ensure that the benefits of the insured poor are protected. Table 13 is a
comparison between microinsurance products (according to the regulations) and traditional insurance products.

Insurance Memorandum Circular 1 – 2010. It outlined the regulatory framework for Microinsurance as formulated by
Insurance Commission in coordination with Department of Finance – National Credit Council, other regulatory authorities,
associations of life insurance companies, non-life insurance companies, cooperative insurance societies, and mutual benefit
associations.

It specified the details of establishment of policy and regulatory environment that will facilitate increase participation of private
sector in microinsurance and ensure that the benefits of the insured poor are protected.

Insurance is a critical risk management tool for all livelihoods. Insurance can reduce the financial impact of accidents, fires, &
other business disruptions. Insurance protects livelihoods from events outside of primary stakeholder’s control & improves their
chances of survival.

TWO (2) KINDS OF INSURANCE SHOULD BE CONSIDERED TO PREPARE FOR A DISASTER:

1. Livelihood property insurance secures the value of livelihood assets, including buildings, computers, equipment,
furnishings, etc.
2. Livelihood interruption coverage reimburses for income lost during an involuntary shutdown

TABLE 12. INSITUTIONALIZING RTM IN LOCAL GOVERNANCE

ACTIVITIES OUTPUTS TOOLS

Conduct of micro-insurance
baseline study
Design of micro-insurance
options appropriate to the
needs and resources of the
urban poor.
Baseline data on perceptions, needs, and
capacities of community members for
microinsurance
MOUs with private providers of micro-
insurance for technical inputs into the design
of social protection mechanisms appropriate
to urban poor communities
MOVE UP Micro-insurance Study provides
information on the needs, capacities, and
resources of urban poor communities in terms
of increasing resilience against disasters and
risks microinsurance products.

Conduct sessions on social
readiness for social
protection and micro-
insurance
Lobby for the review of
subnational and city level
policies on risk transfer as a
form of social protection.
Financial literacy modules of local
agencies/offices enhanced with a DRR lens
to emphasize the value of savings, social
protection, and micro-insurance
• Advocacy to integrate social protection
into local plans and budget
• Local ordinance adopting social
protection, risk transfer mechanisms for
livelihoods
MOVE UP Convergence Strategy
is a venue for discussion involving LGU
offices (DRRM Office, Livelihood
Office, City Social Welfare and Development
Office, and Housing and Resettlement
Office), Barangay representatives, (DRRM
Committee and Livelihood Committee), and
microinsurance service providers, mutual
benefits associations, and micro-finance
institutions to identify risk transfer modalities
most appropriate to urban poor communities.

Source: Adapted from SDRI. (2018). MOVE UP Operational Guidance Paper

Process Manual | 43
OTHER IMPORTANT CONSIDERATIONS IN PROMOTING MICRO-INSURANCE

Promoting innovative, effective and efficient delivery channels. Affordability of premium payments and
accessibility to services are two of the key issues in microinsurance. The use of institutions, associations,
and points of sale in proximity to the clients play an important role in expanding the reach of
microinsurance.

Promoting the use of technology-based platforms. The availability and use of technology (e.g., mobile
phones, webapp) and technology-based solutions to bring down costs, improve product value to
policyholder, and cover more microinsurance clients. It also provides great potential for increasing
microinsurance reach.

Promoting index-based or parametric microinsurance products. With increased frequency of natural

calamities due to climate change, the use and adoption of index- based and parametric insurance
products are advised. These are alternative risk financing solutions from insurance providers to enable
livelihood or associations to transfer risk in a non-traditional way. These approaches tackle measurable
index and are based on predefined triggers or pay out mechanisms – without necessarily experiencing the
emotional devastation by witnessing livelihood assets washed away by a disaster.
• Parameters or indexes being used includes typical weather-related parameters like rainfall amount,
temperature and windspeed correlated to client’s loss. Example, due to an X amount of rainfall
that could possibly destroys a farmer’s crops a Y amount as covered by insurance contract could
be claimed.
• Claims of payment amount is fixed and should be simply stated in the policy contract and is
triggered upon exceeding the threshold conditions.
• It is not complex to review the parameters because weather stations, satellites, data computing
storage and software applications has been available to almost everyone, and these capture
accurate weather-related parameters.
TABLE 13. MICROINSURANCE PARAMETERS IN THE PHILIPPINES

Source: Adapted from Garon, M.P.S. (2013). Assessment of Microinsurance as Emerging Microfinance
Service for the Poor: The Case of the Philippines. Mandaluyong City. Asian Development Bank.

44 | Process Manual
1.9 MAXIMIZING TECHNOLOGY AND DIGITIZATION

Maximizing technology and digitization is a strategic decision to prepare livelihood for an extended
physical distancing arrangements and positioning livelihoods in a virtual ecosystem, hence, it must
explore utilizing existing simple and affordable softwares or apps. It would help livelihoods to restore
their services as widely and as quickly as possible.

STEPS IN MAXIMIZING TECHNOLOGY AND DIGITIZATION

Identify information technology systems (software, applications, etc.) and applications that
livelihood may utilize.

19
Use affordable or free digital tools which can be accessed by clicking the button below:

AFFORDABLE/FREE DIGITAL TOOLS

Document any procedures (such as manual workarounds) that would be implemented in the
event of an extended outage.

Ensure Backing Up Data. Backing up your data is essential. You should also understand the
basics of retrieving and restoring it, what that process entails, what data can be restored and
how long it will take.
• Be sure your data backup provider explains and demonstrates how its recovery process
works.
• Make sure your data is backing up with the frequency and completeness that you expect,
and the backups are tested from different locations.
• Have more than one person who understands where and how to access your backup data.

2. BUILDING AND ENHANCING INSTITUTIONAL AND SOCIAL RESILIENCE:

IMPROVING SOCIAL CAPITAL AND ENABLING GROWTH AND RETURNS FROM
LIVELIHOOD ASSETS

NOTE BOX 19: LGUs’ BEST POLICIES AND PRACTICES IN ENHANCING INSTITUTIONAL AND SOCIAL
RESILIENCE ENABLING GROWTH FOR LIVELIHOOD ASSETS

1. Promoting community-based and participatory approaches developing resilient livelihood including risk transfer
mechanisms and social protection;
2. Emphasizing the need for savings mobilization that shall be used for capital build-up, operational fund, and emergency
fund. The livelihood associations setting-up a system for the management of savings including savings mobilization;
provision for re-loans; and incentives and penalties for borrowers.
3. Enhancing interaction between the system for developing resilient livelihood (including risk transfer mechanisms and
social protection) and the DRRM/CCA system institutions by establishing a more formal system to improve links with
subnational offices of DTI, OCD and DSWD and DOLE concerning livelihood resilience.
4. Institutionalizing representation of livelihood associations in the DRRM system in the sub-national level, and clarifying
how private sector representatives and vulnerable group representatives become part of DRRM Councils.
5. Supporting further development of MSMEs or livelihood organizations, as they need their own voice and advocates in
the policy process. Emphasizing on institutional development support like formalizing associations and installing
governance mechanisms.
6. Strengthening open collaboration among players in the Science, Technology and Innovation (STI) ecosystem including
government, universities, and private sector-industries that promote resilient livelihood with RTM & SP.

19
As an alternative in clicking the button, AFFORDABLE/FREE DIGITAL TOOLS can be accessed through this link
https://grow.google/intl/en_ph/learn-skills/

Process Manual | 45
 STEPS IN BUILDING AND ENHANCING INSTITUTIONAL AND SOCIAL RESILIENCE

Conduct Stakeholders Analysis with Conscious Effort of Promoting Livelihood

Linkages to Inclusive Businesses Covering Both Local and Global Chains

FIGURE 18. SIMPLE STAKEHOLDERS ANALYSIS

PRIMARY
STAKEHOLDERS
Vulnerable communities
know their own needs and
capacities. These have to be
included in the policymaking
process, whether through
participatory processes or
other means. Sometimes,
providing direct support to
poor communities can be the
most effective way to further
inclusive business models.
Poor communities are often
represented by CSOs or
donors that know them well.
However, they also have
their own democratic
representative bodies, such
as cooperative unions of
smallholder farmers. or
indigenous people’
associations.
PRIVATE
SECTOR
Propose inclusive business
strategies, assess the
market potential, identify
barriers, and articulate
them in dialogue with
policymakers and donors.
While they may voice
specific concerns
individually and ad-hoc,
they often collaborate
with other companies on
platforms or in business
associations to agree on
and communicate joint
political agendas.
GOVERNMENTS
Formulate and adopt
policies, and
implement them
through their
administrative bodies
and public services.
They evaluate and
adjust policies
overtime. Encourage
private sector to invest
in livelihoods through
inclusive businesses.
CSOs/DONORS
RESEARCH CSOs can play an important
role in implementing inclusive
INSTITUTIONS business policies, especially
where they relate to poor
communities directly. They can
Whether public or also collect the data necessary
private, develop the to analyse the potential effects
knowledge and insight of a policy, and can help
necessary to create conduct pilot projects.
effective policies. They Donor often act as facilitators
within this broader ecosystem.
also help evaluate the
They provide advice and
actual impact of funding to governments,
policies and can make companies, poor communities
suggestions for and CSOs. They also have the
ability to share insights
improvements.
regarding inclusive business
policies across countries, and
often fund research with
precisely this aim.

Source: Gradl, K. T., et.al. (2013). Inclusive Businesses: How Governments Can Engage Companies in Meeting Development Goals. Endeva UG. BMZ
Federal Ministry for Economic Cooperation and Development and Future-makers.

TABLE 14. THE INCLUSIVE BUSINESS POLICY OPTIONS FOR GOVERNMENTS

TYPE
FINANCIAL STRUCTURE AND
INFORMATION RULES
RESOURCES CAPACITY
APPROACH
ENABLE • Data and • Sector regulation • Access to • Infrastructure
research • Standards finance/market rate-
• Peer learning • Overarching policy loans
frameworks
ENCOURAGE Awards • Obligatory inclusion • Financial support • Development
• Legal forms for businesses • Public procurement partnerships
with social mission
EMPOWER Awareness-raising • Legal framework for market • End-user subsidies • Livelihood/MSE
participation • Insurance schemes support
• Capacity building
Adapted from Gradl, K. T., et.al. (2013). Inclusive Businesses: How can Governments Can Engage Companies in Meeting Development
Goals. Endeva UG. BMZ Federal Ministry for Economic Cooperation and Development and Future-makers.

46 | Process Manual
 NOTE BOX 20: INCLUSIVE BISINESSES FOR INCLUSIVE GROWTH

Inclusive Busines Models include the poor on the demand side as clients, and on the supply side as distributors, suppliers of
goods and services, or employees at various points in the value chain. These business models build bridges between companies
and the poor for mutual benefit. Inclusive business models can effectively reach people with at least some capital. Inclusive
business policies can help them reach a larger scale.

Governments can leverage inclusive business models to further the achievement of development objectives (Gradl, K.T., et.al,
2013). In fact, inclusive business approaches can contribute to livelihood outcomes. Evidence shows that government action
has often been decisive for the success and growth.

Endeva, developed a so—called INCLUSIVE BUSINESS POLICY TOOLBOX FOR GOVERNMENTS. Table 14 illustrates a
framework of said toolbox. The inclusive business policy options ha two dimensions (Gradl, K.T., et.al.,2013): policy types
and approaches. Four different types of policy instruments are distinguished: 1) providing and sharing information, 2) setting
and enforcing rules, 3) levying and granting financial resources, and 4) employing a government’s own structures and
capacities. types of instruments that can be employed within three basic approaches to the support of inclusive business
models: enabling, encouraging, and empowering. The details of the toolbox can be accessed through this
link - https://2020.endeva.org/publication/inclusive-business-policies or by clicking the button below:

ENDEVA’s INCLUSIVE BUSINESS POLICY TOOLBOX

Governments cannot fight poverty alone (Confesor, 2014), and the private sector needs to be part of the whole equation.
Table 15 are the key strategies for private sector to invest in livelihoods through inclusive businesses approach.

TABLE 15. KEY STRATEGIES ON HOW THE PRIVATE SECTOR MAY CONTRIBUTE TO LIVELIHOODS
Creating inclusive business
models
Developing human capital
Building institutional capacity
Helping to optimize the “rules of
the game”
Involving the poor as employees, entrepreneurs, suppliers, distributors, retailers,
customers, and sources of innovation in financially viable ways.
Improving the health, education, experience, and skills of employees, business partners,
and members of the community.
Strengthening traders and producers associations, market intermediaries,
universities, governments, CSOs, and grass roots associations who must all be able
to play their roles effectively within the system.
Shaping the regulatory and policy frameworks and business norms that help determine
how well the economic opportunity system works and to the extent which is inclusive of
the poor.

Source: Adapted from Confesor, N. (2014). Market Solutions to Public Needs, Mainstreaming Poverty Alleviation Initiatives in the
ASEAN: Responding to the Fall-Out, The Impact of the Global Economic Slowdown on Private Firms, Enterprises, Poverty Reduction,
and Development. Singapore. Cengage Learning Asia Pte Ltd.

Organize Livelihood Stakeholders Towards Formalizing Groups and

Associations. The MOVE UP Consortium have years of institutional experience with
organizing and sustaining Community Savings Groups (CSGs) as an internationally tried
and tested mechanism, and it has been increasingly promoted by other different
organizations in other settings. Using this expertise, the consortium can introduce the
templates and procedures. Building resiliency through CSGs involved three key components;
namely:

Livelihood assessment. The livelihood assessment provided a thorough analysis of

livelihood assets and strategies as well as opportunities and capacities for recovery
among the urban poor.
Financial literacy sessions. The financial literacy sessions highlighted the need to improve
the household expense and income structure among the urban poor to build security
through savings.

Process Manual | 47
 Training in alternative livelihoods. Training in alternative livelihoods involved the hands-
on production of items/learning of skills and forming linkages with markets. The CSG
was selected as the best example of good practice initiated under the project.

Align and Integrate Livelihood Strategies into Local Development Priorities,

Policies, and Plans. To ensure integration of livelihood strategies set out in the Livelihood
Resilience and Sustainability Strategy Plan, it need to establish the fact that it supports the needs
of vulnerable communities and of the workers, and strategies should be consistent with the
following:

a) Priorities of the Regional Development Council (RDC), Regional Convergence Committee

(RCC), and Regional Development Plans of Local Government Units.
b) Department of Trade and Industry (DTI) priority products:
• Coffee; coco-coir; cacao; rubber; support to tourism (crafts, processed foods, services)
c) Key employment generators
• agribusiness
• health and wellness
• eco-tourism
• manufacturing
• small transport
• whole sale and retail trade
• local based industries as indicated in the Local Development Plan

Which specific provision of the local development plan integration of livelihood strategies would
fit? Section of Local Development Plan / Local Development and Investment Plan (LDIP) / Annual
Investment Plan (AIP) referring to Labor and Employment / Social Services with Detailed
Estimates of Approved Project Expenditures or Estimated Expenses. In the Comprehensive Land
Use Plan (CLUP), it is also important to know the locations of dedicated livelihood and enterprise
zones. Annex 5 is a sample format on the review of policy/plan to integrate livelihood strategies
in Local DRRM Plan.

The National Anti-Poverty Commission (NAPC) and Department of Interior and Local
Government (DILG) issued IRR and various memorandum circulars mandating all LGUs to
integrate into their Local Development Plans or Sectoral Plans livelihood interventions for the
vulnerable poor. Table . presents various DILG memorandum circulars related to integration and
mainstreaming livelihoods and livelihood interventions, DRR, CCA and peace-building strategies.

TABLE 16. POLICIES MANDATING LGUs TO INTEGRATE LIVELIHOODS AND LIVELIHOOD INTERVENTIONS,
DRR, CCA AND PEACE-BUILDING STRATEGIES
Implementing Section 8. Duties of LGUs. It shall be the duty of all LGUs to exercise their powers and functions,
pursuant to the Local Government Code and other pertinent laws, in compliance of the State's
Rules and
obligation to respect, protect, and fulfill the rights of the poor, including but not limited to local
Regulations of legislation, generation and application of resources, delivery and maintenance of basic services and
R.A. 11291 facilities, and promotion of the general welfare.

All provisions in Section 10 that refer to undertake necessary actions to mitigate and alleviate hunger
especially in times of calamities/natural and human-induced disasters; and proactively engage the
poor in activities intended to promote their food self-­ sufficiency and strengthen their access to
resources and means to ensure food security

All provisions in Section 11 pertaining to right to decent work, especially paragraph 3 on promoting
livelihood among the poor where implementing agencies shall provide technical and administrative
support to help the poor establish their livelihood enterprise: shall provide capital and technical
support to the poor necessary in establishing, developing, and expanding micro-, small-, and medium-
enterprises which correspond to existing or potential economic activities in the community.

48 | Process Manual
 Section 15, paragraph b, the right to social protection which is the right to have access to basic social
security guarantees which reduce vulnerability to risks such as sudden loss of income, sickness,
maternity, disability, and old age. These social security guarantees include access to health care and
to basic income security which together secure access to necessary goods and services.
DILG MC No. Encouraging all provinces, cities, municipalities and barangays to support the promulgation of the IRR
of R.A. 11291, otherwise known as the Magna Carta for the Poor lead by National Anti-Poverty
2019-163
Commission (NAPC)
DILG MC No. Utilization of LDRRMF, Section B pertaining to Response.
• Provide alternative livelihood relief or assistance to fisher folks during typhoons.
2012 - 73
• Provide alternative livelihood relief or assistance to farmers if crops are destroyed after
disasters.
• Provide alternative livelihood activities and other small-scale entrepreneurial activities while in
the evacuation centers.
DILG MC No. Providing guidelines on mainstreaming CCA and DRR in local development planning. Section 6
provides ensuring financing of DRR and CCA measures; and Section 7.1 LGUs as lead in pursuit of
2015 - 77
their mandated roles in promoting general welfare of the inhabitants, delivery of basic services and
facilities; and the performance of their roles stipulated in RA 10121 and RA 9729.

Seek Representation(s) of Livelihood Associations into the Local Governing

Bodies

The Road Map for Disaster Resilient Enterprises (iPrepare Business Facility, 2017) is the result of
the various initiatives conducted under the “Strengthening the Disaster Resilience of SMEs”
Project administered by the Asian Disaster Preparedness Center (ADPC) and Department of
Trade and Industry. It operates together with the Micro, Small & Medium Enterprises Resiliency
Core Group (MSME-RCG).20 Most importantly, the Road Map is the only guidance document in
the country which stipulated a coherent strategy of MSME inclusion in DRRM and CCA policy,
planning, and local institutions. At the level of local governments, the following activities are
enumerated:
• Include MSME associations in Local DRRM councils.
• Involve MSMES in programming and utilization of local DRRM Funds.
• Develop guidelines on access to local DRRM funds for disaster risk reduction, e.g., through
enterprise and area business continuity planning (BCP).
• Organize MSMEs at the barangay level for information sharing on DRRM and CCA.
• Develop local area business continuity manual (BCM) with LGUs as drivers for MSMEs to
adopt BCP/DRRM plans and procedures.
• Geo-tag MSMEs and critical infrastructure in local Comprehensive Land Use Plans.
• Institutionalize BCM at local level, for example, by integrating Area BCM into Barangay or
Local DRRM Plans, which can be funded through local DRRM funds and other LGU
appropriations.

Carry out Social Marketing

SOCIAL MARKETING is the application of marketing concepts and techniques to exchanges

that result in the achievement of livelihood outcomes. Social marketing helps enterprises to decide which
people to work with, what behavior to influence, how to go about influencing this behavior and, finally,
how to measure if an enterprise have been successful or not. The MOVE UP Consortium has been
implementing one format of social marketing strategy called, EVIDENCE-BASED ADVOCACY TO

20
The primary working group comprises: the Bureau of Small and Medium Enterprise Development Department of Trade and Industry (DTI-
BSMED); Office of Civil Defense (OCD); Philippine Chamber of Commerce and Industry (PCCI); Philippine Disaster Resilience Foundation
(PDRF); Philippine Exporters Confederation (PHILEXPORT); Asia-Pacific Alliance for Disaster Management Philippines (A-PAD); Employers
Confederation of the Philippines (ECOP); Asian Disaster Preparedness Center (ADPC) and GIZ’s Global Initiative on Disaster Risk
Management (GIDRM); Department of Science and Technology (DOST); and Department of Interior and Local Government (DILG).

Process Manual | 49
INVEST IN LIVELIHOODS. Table 17 elaborates activities, outputs, and tools in Evidence-Based Advocacy
to Invest In Livelihoods.

TABLE 17. ACTIVITIES, OUTPUTS, AND TOOLS IN EVIDENCE-BASED ADVOCACY TO INVEST IN LIVELIHOODS
ACTIVITIES
Activity 1. Formation of
the
MOVE UP Technical
Working Group
Activity 2 Coaching and
mentoring on the MOVE
UP urban resilience model
Activity 3.dentifying
champions who
have significantly
contributed to building
resilience in urban poor
communities
4. Sharing of best
practices and lessons by
MOVE UP champions at
multi-stakeholders’
meetings
5. Lobby for integration
of livelihood, risk transfer
mechanism and social
protection in local
development and DRRM
Plans and investment
plans.
OUTPUTS TOOLS
Enhanced DRRM Office that includes relevant local MOVE UP Communications and
agencies/offices such as the CSWD, Engineer’s Office, Advocacy Plan is an effective tool
PESO, Building Officer’s Office, Cooperative Development in sending messages that define
Agency, etc. for each major stakeholder
• Scale up of MOVE UP strategies in livelihood, risk his/her role in building urban
transfer mechanism and social protection resilience at each level of the city
organization.
• Review of City Development Plans and Policies
related to livelihood, risk transfer mechanism and
social protection. Specifically, the MOVE UP
communication plan developed
• Individuals/ Groups/ Communities/
the following messages for the
Departments that have articulated MOVE UP DRR
Mayor, DRRM Office Head, and
resilience models through orientation, lobbying, and
Mothers in the community.
facilitation
• Mayor: Your constituents will
• Cities and barangays that have institutionalized
benefit from urban resilience.
Resilient Livelihood, RTM and Social Protection models
It will protect lives, properties,
in city and barangay plans (Annual Investment Plan,
and investments.
Contingency Plan, Comprehensive Land Use Plan,
DRRM Plan)
• DRRM Office Head: You are
the bridge between the
• Beneficiaries from cities and barangays who have
community and decision-
adopted urban resiliency
makers to increase the quality
documentation of proceedings leads to the development of of disaster and risk reduction
knowledge materials (case studies, video documentaries, management in the
etc.) that may be used for advocacy community.
• Mothers: You have the
capacity to protect your
MOVE UP beneficiaries who are capacitated in urban
family from disasters and
resilience and empowered to lobby to the city government
risks, and improve their
and barangay unit for the adoption of urban resilience
quality of life.
models in shelter, livelihood, and social protection

Source: Adapted from SDRI. (2018). MOVE UP Operational Guidance Paper

3. BUILDING AND ENHANCING PERSONAL RESILIENCE AND GROWTH MINDSET

CULTURE: IMPROVING HUMAN CAPITAL

NOTE BOX 21: PERSONAL RESILIENCE

Personal Resilience is the capacity to mobilize personal resources to tolerate and overcome adverse events without
experiencing stress, and to grow and develop because of such events. Some aspects of resilience are personality dependent
whilst others are skills determined. All elements can be learnt and strengthened.

Personal resilience should be considered as an essential part of social protection programs, whole livelihood functions, and
livelihood interventions. The MOVE UP Consortium and the DSWD collaboration starting 2020, led to appreciation of personal
resilience as component of resilient and sustainable livelihoods. This dimension of resilience heavily deals with mental health
and psychosocial support services (MHPSS). MHPSS is difficult to access in MOVE UP Mindanao areas. Further, the Mental
Health Act of the Philippines or R.A 11036 was enacted last 2018 and it mandated all LGUs to promote community- and
recovery-based approaches, and deliver culturally-appropriate mental health care services, including the development of
guidelines (in coordination with the DOH) to ensure the provision of community mental health services within one year after
the effectivity of the Implementing Rules and Regulations (IRR). The IRR became effective last January 2019. The Despite the
mandate, it is observed that majority of the LGUs were not able to conform. The COVID -19 pandemic uncovered that MHPSS
is not one of the priority human capital investments. It cannot be found in LDRRM Plan, and even in Contingency Plans.

Personal resilience has three components (Mowbray, 2014) : Personal Control Over Oneself, Personal Control Over
Responses to People, Personal Control Over Responses to Events. Figure 19 is an illustration of this framework on strengthening
personal resilience.

50 | Process Manual
 FIGURE 19. MOWBRAY’S FRAMEWORK IN STRENGTHENING PERSONAL RESILIENCE

Source: Mowbray, D. (2014). Strengthening

Personal Resilience. Management Advisory Service

There are lots of online versions of personal resilience frameworks and tools available in the web. Focus
varies depending on the discipline of a certain author. Mowbray’s framework is the simplest and has
greater fit for livelihoods.

STEPS IN BUILDING MOWBRAY’S PERSONAL RESILIENCE

Study Tools 2521 and 26. These are two complementary tools as an Introductory Personal
Resilience Assessment. Allow individuals to answer the questions in Tool 25 by circling the
number that best describe what the person feel. 1 = Never, 5 = Yes, always

Let respondents copy their number answers to the Score column in Tool 26. Item numbers in Tool
25 corresponds to item numbers in Tool 26.
Collate all individual answers. To have a sense on the group’s level of personal resilience, just
simply get the average of al the scores and identify priority areas for intervention. Any score of
3 and below indicates a need to strengthen this element of personal resilience.

Decide on specific appropriate interventions depending on available resources. Interventions

could be in a form of coaching, mentoring, facilitated trainings and workshops. And such
interventions should be linked in improving productive livelihood assets.

Repeat the process after a year, or every after important milestone.

NOTE BOX 22. GROWTH MINDSET

Growth Mindset is a belief that skills and abilities can be improved in ways that shape the purpose of the work that a person
does, leading to relational fulfillment, professional success, and enterprise growth (Derler, 2019). People with a growth mindset
believe that intelligence is something that can be honed overtime. Such belief framed people’s mind to focus on the importance
of effort and resilience.

Researches and best practices of enterprises proved that Growth Mindset can be a tool for framing enterprise’s decision on
maximizing internal strengths and weaknesses; and on navigating the external threats, trends, and opportunities. Table 16
presents the expected characteristics of an enterprise employing growth mindset compared to an enterprise nailed in a fixed
paradigm.

There are lots of available online versions of growth mindset test. The one which is simple and has greater fit for livelihood
interventions is the IDRLabs Mindset Test or IDR-MT with 20 carefully crafted questions. The IDR-MT was developed by
IDRlabs, and they based it from the work of Dr. Carol Dweck.

21
There is a longer and detailed version of Mowbray’s Personal Resilience Questionnaire, but one shall pay for subscription.

Process Manual | 51
TABLE 18. CHARACTERISTICS OF AN ENTERPRISE INVESTING ON GROWTH MINDSET AS PART OF HUMAN
CAPITAL DEVELOPMENT

VIEWS AND GROWTH MINDSET FIXED MINDSET

RESPONSES

Perception on Skill Growth
Facing Challenges
Navigating Disruptions
Managing Change
(Gallagher,2020)
Response to Weaknesses
Setting Goals
Peer Pressure
Perception on co-players in
the industry
Assessing Employee’s Traits
Locus of Control in
Decisions (Balinggan,
2018)
New Tasks
Reflections to Action
Can be largely improved; Continually try to Innate abilities are set/fixed; stick to what is
new things already know
Persistent; Find opportunities to learn and grow Seek blame; Avoid threats and obstacles
Embrace and change to improve the enterprise Resist and change by default
Include everyone in understanding context and Expect everyone to keep up and exclude
developing skills; provide structural support to those who resist
align with new systems and processes
Acknowledge Denial; blaming; intimidation to avoid
penalty
Optimistic and realistic Pessimistic and unrealistic
Not easily influenced Easily influenced
Find inspiration, learn success from others; Feel threatened; competition with other’s
“coopetition” success
Less important than effort More important than effort
Internal External
Exciting Feared
Seek learning from criticisms; identified Ignore/dismissed feedback
improvements frequently practiced

STEPS IN BUILDING GROWTH MINDSET CULTURE

Although the IDRLab Mindset Test (IDR-MT) is designed to be taken individually online, it can
also be taken by a group. But it must be a facilitated group self-assessment. The self-assessment
22
tool could be accessed by clicking the button below . To facilitate a group self-assessment, the
group shall agree on what will be their one and common response to all the 20 questions. The
test result is instantly provided after responding to all questions. Figure 19 is a sample test result.
Notice that a percentage between the two mindsets are provided. Knowing the percentage of
fixed mindset is key to determine the priority areas for interventions. Priority areas are those
beliefs inclining towards fixed mindset as presented in Table 16. Then, proceed to Step 3.

IDRlabs MINDSET TEST

If it is to be carried out by individuals, please remember that the test results will only be accessed
by individual test taker, so by emphasizing respect on consent, privacy and confidentiality, there
should have an agreement that everyone shall share each result to the facilitator by any means
convenient to everyone. After all are complete with self-assessment proceed to Step 2.

Collate all individual answers. It is suggested to tabulate all the answers through MS Excel for
an easy calculation of average and percentages. To have a sense on the group’s level of
personal resilience, just simply get the average of al the scores and share it group to all
respondents for their and identify priority areas for intervention.

Validate the Test Results. Allow a period of validation. Careful validation of the test results could
be done by having a conscious effort in observing the pattern of responses in frequent
opportunities of interactions. Through interactions for over a certain duration, the default

22
As an alternative in clicking the button, IDRLabs MINDDSET TEST can be accessed through this link
https://www.idrlabs.com/growth-mindset-fixed-mindset/test.php

52 | Process Manual
 responses of people involved can be established. Interactions are like dialogue, consultations,
trainings, and usual conversations.

FIGURE 20. SAMPLE INSTANT IDR-MT RESULT

Source: Extracted from IDRLabs. https://www.idrlabs.com/growth-mindset-fixed-

mindset/test.php

Decide on specific appropriate interventions depending on available resources. Interventions

could be in a form of coaching, mentoring, facilitated trainings and workshops. And such
interventions should be linked in improving productive livelihood assets.
Check Tool 28: Simple Coaching Guide Following Growth Mindset

Repeat the process after a year, or every after important milestone depending on the available
resources.

4. LIVELIHOOD CONTINUITY PLAN

A livelihood continuity plan may be composed of four (4) components: Livelihood Emergency Kit; Quick
Livelihood Resilience Checklist (Before the Disaster); Resiliency Quick Action Checklist (After the
Disaster); and Maintaining and Testing Livelihood Resilience.

Facebook already prepared a Small Business Resilience Toolkit. The Toolkit was designed for small
businesses, but there are a lot of useful sections for livelihoods and livelihood interventions. Go to page
46 of the Small Business Resilience Toolkit and extract the tools on: Small Business Emergency Kit; Quick
Small Business Resilience Checklist (Before the Disaster); Small Business Resiliency Quick Action Checklist
(After the Disaster); and maintaining and testing small Business resilience. Click the button below to
23
access the Toolkit.
SMALL BUISNESS RESILIENCE TOOLKIT

23
As an alternative in clicking the button, SMALL BUSINESS RESILIENCE TOOLKIT can be accessed through this link -
https://drive.google.com/file/d/1SgXJv7mFsoEjZIqBbiONEEgi05Ur_d8m/view?usp=sharing

Process Manual | 53
 TOOLS SECTION

54 | Process Manual
TOOL 1. POTENTIAL PARTNERS THAT MAY COMMIT IN PROVISION OF LIVELIHOOD
INTEVENTION (LMA STEP 1)

NAME OF TYPE OF GEOGRAPHICAL TYPES OF CONTACT DETAILS

ORGANIZATION OR ORGANIZATION / COVERAGE ACTIVITIES
INSTITUTION INSTITUTION UNDERTAKEN OR
SUPPORTED
1
2
3
4
5
6
7
8

TOOL 2. PRIORITIES OF REGIONAL DEVELOPMENT COUNCIL, REGIONAL CONVERGENCE

COMMITTEE, DTI PRIORITY PRODUCTS, KEY DEVELOPMENT GENERATORS (LMA STEP 2)
NAME OF DEVELOPMENT BODY, PRIORITY PROJECTS / ACTIVITIES / INDICATE SECTION OF THE
COMMITTEE, AGENCY SERVICES/PRODUCTS PLAN/POLICY/GUIDELINES
SUPPORTED OR FUNDED
1
2
3
4
5
6
7

TOOL 3. AVAILABLE AND ACCESSIBLE NATURAL RESOURCES WITHIN THE LIVELIHOOD

AREA (LMA STEP 3)
NATURAL RESOURCES IN THE AREA GOVERNMENT INVESTMENT IN PRIVATE SECTOR INVESTMENT IN
THIS NATURAL RESOURCE THIS NATURAL RESOURCE
1
2
3
4
5
6
7

TOOL 4. EXISTING COMMERCIAL AND FINANCING INSTITUTIONS WITHIN THE

LIVELIHOOD
COMMERCIAL INSTITUTIONS FINANCING INSTITUTIONS REMARKS
1
2
3
4
5

Process Manual | 55
TOOL 5. ENABLING AND DISABLING POLICIES, SYSTEMS AND PROCESSES OF
ORGANIZATIONS /AGENCIES AND INSTITUTIONS FOR THE URBAN VULNERABLE
COMMUNITIES (LMA STEP 4)

PLUS MINUS INTERESTING

Enabling Policies Disabling Policies Areas for Innovation
1
2
3
4
5
6
7

TOOL 6. ANALYSIS OF LIVELIHOOD MARKET FORCES (LMA STEP 5)

Driving Force INITIATIVES OR

Among Restrainin
Traders & PROPOSED ACTIONS g Force Barriers
Producers Among to Entry
Traders
1.
Driver 2.
Driving for
Force in
Scaling
3.
Business
Up 4. Barrier to Restrainin
Ethics Scaling g
5. Up Business
6. Ethics
Driving 7.
Force to
Income 8.
Easy
Entry Drivers 9. Barrier
for more
10. income
11.

56 | Process Manual
TOOL 8. EXAMPLE OF MARKET MAP IN NORMAL TIMES (BASELINE MAPPING TOOL)

Source: Adapted from ICRC and IFRC. Rapid Market Assessments.

TOOL 9. EXAMPLE OF MARKET MAP AFTER A SHOCK (SHOCK MAPPING TOOL)

Source: Adopted from ICRC and IFRC. Rapid Market Assessments.

Process Manual | 57
 TOOL 7: LIVELIHOOD MARKET ASSESSMENT AND MAPPING REPORT

(Adopted from Market Analysis Report. Rapid Market Assessment Report. ICRC and IFRC)

LIVELIHOOD MARKET ASSESSMENT (LMA) & MAPPING REPORT

(INSERT BARANGAY, MUNICIPALITY/CITY, PROVINCE, REGION)
(INSERT SHOCK TYPE AND YEAR)

Report Author:
Position/ Job Title:
LMA Team Members and Positions:

Report date:

Section 1: Shock and needs analysis summary

Type(s) of shock:

Date(s) of shock(s):
Date of LMA:
Affected areas assessed:
Total population in affected area:
(Number of households and people)
Affected population within
affected area:
(Number of households and people)

Average Household size:

(Source of information)

Location of affected population:

(IDP/ stationary in homes etc…)
Markets assessed:

Number of traders (wholesalers

and retailers) and market
representatives included in
assessment:

LMA [insert location] / [insert date] / [insert name of team/organization]

58 | Process Manual
 Commodity type(s), volume(s)
and duration requested by shock-
affected population

(quantity, frequency and duration and any

quality specifications if necessary)

Section 2: Market Mapping

2.1 Market maps, geographical location of markets to shock-affected population

The diagram below illustrates the location of local and influential markets within, and close
to the affected area, and their geographic proximity to the shock-affected population.
Ø Insert a basic map that illustrates the GEOGRAPHICAL location of the markets. See
Tools 8 and 9 for samples of market maps.
Ø Highlight the locations of the shock-affected population and markets visited and
include a key so that the user can easily identify the key markets, roads, location of
the affected populations etc. Make sure to include information on the impact of the
shock on the markets using the symbols suggested in Tool 9.

2.2 Commodity market maps

The commodity market maps below illustrate the movements of key commodities to the
markets near the affected populations – from wholesaler to trader and finally to consumer.

Ø Insert the maps that illustrate the market chain. Advice on how to do this is available
in the Tool 4. If you have one map that represents all the commodities, make sure
this is clearly stated.
Ø If you can illustrate data on prices, volumes and number of traders, please illustrate
this on the market maps or in a table.
Ø Include a key so that the user can easily identify the types of traders/ actors in the
supply chain. Make sure to include information on the impact of the shock on the
markets using the symbols suggested in Tool 4.

Section 3: Market maps and trader analysis

After reviewing the maps (above) and information collected using the LMA tools, the
following conclusions can be made:

1. The impact of the shock on physical access of the affected population to their markets.
(Outline the impact of the shock on market access – what has changed in consumer and trader behaviour? Are
such changes long term?)

2. Affected household purchasing power/ demand and changes in consumer behaviour.

(Does the shock-affected population have the financial means to purchase the food and non-food commodities they
need? If so, what percentage/ proportion of their needs can they meet themselves? Relate to information collected
in Step 1 of the RAM)

3. The impact of the shock on the supply chain of food and non-food commodities required
by the affected population.

LMA [insert location] / [insert date] / [insert name of team/organization]

Process Manual | 59
 (Using data from Steps 1 and 2 of the RAM, outline in what way the supply chain has been affected by the shock.
Outline any changes in consumer or trader behaviour as a consequence?)

4. The capacity of retailers and wholesalers to increase their supply to meet increased
demand for food and non-food commodities and related price implications (if any).
(Reflecting on Step 2 of the RAM and the key commodities requested by the shock-affected population, reflect on
whether or not traders in markets will be in a position to respond to a demand. If there are any implications for
price changes, please outline what they are and what the consequences would be of such changes. Be mindful of
wholesaler capacity, transport, warehousing and credit issues that may need addressing to enable this.)

5. Changes in the types (quality) and quantities of commodities demanded by traders and
households (if any).
(If the shock has affected household and trader preference for certain commodities – in terms of quality, volume
and frequency, outline this here.)

6. The impact of the shock on prices of the food and non-food commodities.
(Reviewing price data (secondary and primary), outline the impact of the shock on prices and the consequences of
such changes.)

7. Opportunities for market based interventions to support market rehabilitation.

(Reflecting on the market mapping exercises and interviews with traders, what interventions could support trader
capacity to increase supply, when they would be required and for how long?)

8. Market related considerations that urgently require attention or further analysis (using
LMA TOOLS 1-6) should any programming / advocacy take place.
(This can include concerns regarding issues of trader or beneficiary security, diversion, government policy, high
levels of beneficiary or trader debt, wholesaler monopoly etc…)

9. Assumptions, difficulties and challenges faced in the assessment that users of LMA Report
must be aware of.
(This can include assumptions made in the data collection and analysis and reflections of data reliability.)

10. Implementation experience in the area and related lessons learned, and activities
planned or being implemented by other agencies.
(Applying lessons learned from past emergency programmes can benefit future interventions and influence
decisions. If any information is available from secondary data reviews etc., then this should be included here.
Knowing what other agencies are planning on doing can also influence decision makers, especially when there
cash programmes or market support interventions are planned.)

LMA [insert location] / [insert date] / [insert name of team/organization]

60 | Process Manual
 Section 4: Conclusions

SUMMARY OF MARKETS ANALYZED MATRIX: Summarizes all the markets analysed (by the LMA team and wider community of practice) and provides
comments for use during response analysis.
Ø Additional markets can be added if more than 4 were assessed. In such an instance, transferring this table to excel may be useful if a large number
of markets were assessed.
Ø Additional information can be added to the table; such as implementation timeframes, lag times, seasonal considerations etc. In such an instance,
the transference of the table to excel may be more appropriate to facilitate use.
Ø Where possible, data from other agencies undertaking market analysis should be included; to reduce duplication of data collection and support
coordination efforts.
Ø Reviewing the results of the application of LMA Tools 1-6, state what potential response options are recommended.

\SUMMARY OF MARKETS ANALYZED MATRIX

Markets with potential for an increase in supply for each commodity Market capacity to respond Potential response options for
including where additional trader support is required to increased demand further discussion and analysis

Commodity Insert market name Insert market name Insert market name Insert market name - Market supply unlikely to respond - No/ Very limited immediate potential for cash-
required by the - Supply chain may not respond based responses
-Supply chain may respond with - Very Limited CTP potential
shock-affected
support - Potential for market-based support
population - Supply chain may respond interventions and CTP
- CTP Potential + monitor
- CTP potential BUT with more analysis

LMA [insert location] / [insert date] / [insert name of team/organization]

Process Manual | 61
TOOL 10. CHECKLIST IN ANALYZING AN INDUSTRY
ITEM ITEM
Technology Levels and Process
Utilized
2 Investment and Capital
Intensity
3 Employment
4 Operating Costs, Profitability
Indices, and Efficiency
Measures
5 Product Quality, Attributes,
and Characteristics
6 Capital Structure and
Financial Leverage
7 Industry Policy
8 Industry Logic
DESCRIPTION OF THE TASK
Evaluate what process is employed -is it a labor-intensive or mechanized process?
Evaluate the absolute level, and growth of investments in the industry and how
much capital is needed to enter the industry regarding fixed assets and working
capital.
Analyze employment levels, skills needed, labor productivity, employee turnover,
labor demand, and supply.
-Evaluate the fixed and variable costs
-Evaluate profitability through % of sales, total assets, fixed assets, investments,
and equity, discounted cash flow, internal rate of return, NPV.
-Evaluate efficiency through capacity utilization, input-output conversion, capital
to sales ratios, wastage and reject levels, power consumption rates.
Evaluate the ability to meet local and international standards, attractiveness, taste
and appearance, storage and shelf life, color, weight, size, and shape.
Assess the accessibility and availability of financing schemes like suppliers’
credit, short-term credit, long-term credit loans, preferred or common shares.
-Evaluate the current policy objectives – pro-agricultural vs. pro-industrial, pro-equity
vs. pro-growth, pro-environment vs. pro-extraction, pro-market vs. pro-regulated
-Evaluate constraints of the existing policy
-Implications on other industry or sectors of the economy
-Evaluate the “roles of the games” (how an industry generate maximum returns
given the status and dynamics, critical factors for success, what does an industry
player need to survive and thrive, what causes downfall, how does the industry
logic change)

Source: Morato, E. (2006). Strategic Planning and Management. Strategizing,

Organizing and Implementing. Pearson Prentice Hall

TOOL 11. KEY QUESTIONS TO BE ANSWERED IN VCA

(Adopted from Nutz, N. (2017). Guide to Market-Based Livelihood Interventions for Refugees. ILO & UNHCR)

Analyzing the processes and key players in the value chain

Are there market opportunities that livelihoods could exploit?
Are livelihoods already working in the value chain, but suffering from decent work deficits or a lack of protection
mechanisms?
Is there increasing market demand for a certain product that could be livelihoods by launching new micro and
small enterprises?

Analyzing supporting functions in the value chain

Are there existing business development services (BDS), training providers, research institutions and public
employment?
Are supporting functions specific to this industry tailored to urban vulnerable communities’ needs?
Are livelihoods facing specific constraints that block their access to sector-specific supporting services?
How can supporting functions be improved and tailored to urban vulnerable communities’ needs?

Analyzing rules and regulations governing the value chain

Are the rules and regulations conducive to participation in the urban vulnerable communities?
Are there any industry-specific formal or informal rules that hinder or promote their participation?
What can be done to make rules and regulations more responsive to urban vulnerable communities’ needs.

62 | Process Manual
 TOOL 12. SAMPLE SIMPLE FLOW CHART OF LEATHER VALUE CHAIN
Depending on how much is already
known about the leather value chain it
can provide a quick visual overview on
the following:
• The main functions or activities involved in
the chain
• Their broad geographical spread
• The main operational categories or
stakeholders involved
• A rough idea of the relative size of each
element in terms of people involved
• Rough idea of the relative share of value
contributed and taken by actors at that
stage (not necessarily the same thing, one
group of people may add the value but
not receive a share of the benefits of that
value)

Source: Mayoux, L. and Mackie G., E. (2008). Making the Strongest Links: A Practical Guide to Mainstreaming Gender Analysis in Value Chain Development. ILO

Process Manual | 63
TOOL 13. CATEGORIZING COPING STRATEGIES IN MOVE UP 4 AREAS

SURVIVAL COPING STRATEGIES DISABLING COPING STRATEGIES

l Reducing the number of workers l Borrowing capital from loan
l Limiting components of livelihood providers even with high and
operations unreasonable interest
l Borrowing capital from relatives and l Selling livelihood properties or
friends personal properties
l Resorting to less expensive supplies and l Relying on remittances from
materials to continue livelihood relatives abroad
operations l Pawning livelihood properties or
l Reducing the number of customers or personal properties
clients
l Halting the operation temporarily while
attempting to create an alternative
source of income
EMPOWERING COPING STRATEGIES
l Maximizing high levels of diversity of skills
l Prioritizing access to health care
l Initiating access to experts for training on skills improvement
l Organizing and balancing out the use of common property resources like water and aquatic
resources, trees and forest products, wildlife, uncultivable fields, biodiversity, and wastelands
l Mobilizing savings, accessing capital
l Protecting labor rights and promoting safe and secure working environments
l Participating in community associations, reciprocal exchange, and trust
l Enabling access to utility and infrastructure services (power, communication, transportation,
roads, vehicles, recreational establishments, tools and technology, and city services
l Participating in local planning and policy decision-making
l Accessing information on local government decisions and services
l Claiming insurance compensation due to damages by shocks, emergencies, and disasters
l Accessing grants from social assistance programs of governments, CSOs, foundations,
humanitarian organizations, and international institutions
l Implementing resilience plan prepared before the occurrence of emergency, shock, or disaster
l Team building
l Government intervention on skill training
l Localized Bayanihan system
l Using online platforms in selling products and services
l Investing in personal resilience
l Transfer the business operation from other urban areas, and reduce the operational expenses.
l Livelihood development for PWD individuals to showcase their skills
l Provision of area resource-based skilling
l Linking with NGOs and CSOs for assistance

64 | Process Manual
TOOL 14. SUMMARY OF LIVELIHOOD RISKS AND ASSET TOOL 15. LIVELIHOOD RISK PROBABILITY IMPACT
CALCULATION CHART
HIGH O-LOW I
RISKS HIGH O-I RISKS
Livelihood Livelihood High Typhoon, Flooding.,
Risks - 1.90 Assets - 1.38 Drought, Pests & Animal Diseases, Epidemic/Pandemic
Earthquake, Violent extremism,
Conflict factors in Bangsamoro Population with
and in several parts of Mindanao,
Sexua Violence,Death due to
Inherent
crimes, Domestic violence, Child Vulnerabilities
Economic Risks -
2.1 labor, child abuse, Gender
discrimination
HIGH-LEVEL RISKS
Physical Capital
- 1.33 MODERATE-LEVEL
Environment, Clim 8
ate and
Disaster Risks -1.
Natura Capital
- 1.33
LOW O-I
RISKSRISKS

PROBABILITY OF
- 1.25 Storm Surge

OCCURRENCE
Human Capital
3
Social, Governanc
e and Social Capital - 1.8 HIGH I-LOW O RISKS
Political Risks - 1.7 Vulcanic Eruption
Typhoon, Flooding.,
le Risks - 2.1 Financial Capital
- 1.14 Violent
Individual Life Cyc Drought, Pests &
Population with
Inherent extremism Animal Diseases,
Vulnerabilities - 2.1
Burglary, Earthquake
Exclusion from MODERATE-LEVEL
RISKS
processes
LOW-LEVEL
Low RISKS High
IMPACT OF
RISK

TOOL 16. SAMPLE NEEDS, GAPS, COPING, AND RESPONSE MATRIX

LOCATION, POPULATION,
IMMEDIATE NEEDS/THRESHOLD GAPS/ AND PROPOSED ASSISTANCE /
AND DESCRIPTION OF COPING
IMPACT OF DURATION/ SEASONALITY RESPONSE OPTION
LIVELIHOOD AND WEALTH STRATEGIES
DISASTER
GROUP
FLOOD Loss of Use savings and Used up savings on transport, loss
a) Start-up capital for
Petty traders in customers and cross border of creditworthiness with suppliers
business (cash grant of
household items along suppliers due to suppliers to across borders, livelihood500US$ per trader
the border area excessive rebuild some outcomes at risk followed by business
Location (Area 5) flooding cutting stocks Assistance for three months until
training) to 30 traders
Population: 50,000 off trade routes road cleared and rebuilt (Govt
b) Transport vouchers
poor households plans dependent) (300US$ per trader per
month)
c) Support to micro-credit
institutions (US$??)
DROUGHT Loss of livestock Migration to 80% food needs for four months, Food and Cash/ Voucher
Poor IDPs in camps and crops urban centers/ 40% food needs for additional distribution
Location: putting children three months Food and basic (50Kgs + 150US$ per
Population: Number of to work and beg needs/loss of livelihoods household per month for
households In 7 months, seasonal crop four months, then 75US$
production and migration income for three months) to
should be sufficient to meet basic 200,000 households
needs Re-stocking program in 7
months with rains.
ETHNIC CONFLICT Loss of income Frequent 100% of household needs (food, Cash (protection and
IDPs in multiple urban generation migration to health, shelter, etc.) for at least mobility elements) –
locations (originally
Source: opportunities
Household Economic urban
Security (HES). centers,
Technical six for
Guidelines months approx.
Assessment, Analysis & Program Design 250US$/
(page 64).
small-scale market and shelter. temporary, high- Lack seasonal dimension due to household a month
gardeners) Protection issues risk employment conflict and displacement Conflict resolution?
Location:
Population:

Process Manual | 65
TOOL 17. LIVELIHOOD ASSETS ASSESSMENT TOOL
LIVELIHOOD ASSETS ASSESSMENT CRITERIA
Indicators Score
Scoring: 1 = Low; 2 = Moderate; 3 = High
1 HUMAN CAPITAL
1.1 Educational attainment Literacy rate
1.2 Personal experiences Number of shocks, disasters, and significant events experienced by
HHs.
1.3 Access to mental health and psychosocial Number of family members with mental health problems over a
support services number of mental health professionals or facilities
1.4 Access to mentors or life-coaches Number of professionals or technical experts doing life-coaching in
the area or nearby locations
1.5 Adoption of Growth Mindset Proportion of population who experienced hopelessness and
giving up of their life plans over the proportion of the population
with livelihoods operating for almost 2 years
1.6 Self-awareness and emotional intelligence Proportion of the population with livelihoods operating for almost 2
years
1.7 Maintaining meaningful relationships Proportion of the population with livelihoods operating for almost 2
years with any form of continuing partnerships related to the
operation of livelihood
1.8 Persuasive skills Proportion of the population with livelihoods operating for almost 2
years with having a positive annual net income
1.9 Contingency planning and organization Number of associations or livelihoods with resilience plan (business
of priorities continuity plan)
2 NATURAL CAPITAL
2.1 Ownership of land Number of livelihoods that owns the land
2.2 Ensuring sustainable consumption and Number of livelihoods utilizing natural resources
production patterns implementing/participating in environmental protection, restoration,
or recovery activities
2.3 Implementing climate change adaptation LGU has implemented CCA activities
activities for environmental protection
2.4 Political will in enforcing environmental Number of cases against companies with illegal operations
protection policies destructing the environment
2.5 Access to common property resources like Number of livelihoods utilizing natural resources
water and aquatic resources, trees and implementing/participating in environmental protection, restoration,
forest products, wildlife, uncultivable or recovery activities
fields, biodiversity, and wastelands.
2.6 Incorporation of ecosystem Number of environmental regulation services enforced and
support/regulation services implemented continuously in the past 3 years
3 FINANCIAL CAPITAL
3.1 Mobilizes savings Number of livelihoods with at least PHP20K savings in
3.2 Membership in a community savings Total number of member of CSGs in the present vs. last year
group
3.3 Capacity or access to expertise on Number of livelihoods with operating livelihood plan (business plan
livelihood planning of functional areas )
3.4 Capacity or access to expertise on project Number of professionals or technical experts on Project
development with feasibility assessments Development and Management in the area or nearby locations
and project management practices and
principles
3.2 Having resilience team to prepare Number of livelihoods with resilience team
livelihood resilience plan or livelihood
continuity plan
3.3 Has access to financial services, including Number of financing institutions in the area or nearby location
banks and affordable credit.
3.4 Capacity or access to expertise on value Number of professionals or technical experts on Value Chain
chain management Management in the area or nearby locations
3.5 Ensuring that livelihood is economically Proportion of the population with livelihoods operating for almost 2
viable. years with having a positive annual net income
3.6 Income diversification Number of the population with two or more sources of income
3.7 Protection of labor rights and promotion
of safe and secure working environments Number of labor cases in the municipality
for all workers.
3.8 Access and availment of livelihood Proportion of livelihoods with livelihood property insurance as
property insurance as well as social well as social insurance
insurance

66 | Process Manual
 4 SOCIAL CAPITAL
4.1 Membership in community associations
4.2 Participation/representation in local
governing bodies development councils
4.3 Participation/representation in local
DRRM councils
4.3 Access to information on local
government decisions, services, and
performance
4.5 Promotion of traditions of reciprocal
exchange, trust, and understanding.
4.6 Strengthening shared values
4.7 Leadership development
4.8 Access to /participation in social
protection programs
5 PHYSICAL CAPITAL
5.1 Ownership of house and lot
5.2 Access to WASH facility
5.3 Access to utility and infrastructure services
(power, communication, transportation,
roads, vehicles, recreational
establishments, tools and technology, and
city services.
5.4 Identified livelihood areas that would
need digitization and would need IT
assets.
Number of existing associations over a number of households with
membership to associations
Number of existing associations represented in local governing
bodies
Number of existing associations represented in local DRRM
councils
LGUs plans, and all necessary transactions as public documents are
accessible to the public
Proportion of the population with livelihoods operating for almost 2
years with any form of continuing partnerships related to the
operation of livelihood
Livelihood organizations with shared values
Number of livelihood participants with training on leadership.
Number of beneficiaries of any social protection programs over a
number of target beneficiaries of the specific social protection
program
Number of population and livelihoods owning house and lot
Number of the population with access to WASH
Proportion of HHs with access to utility and infra services
Number of livelihoods (needing IT assets) adopted digitization

TOOL 18. CONVERTING LIVELIHOOD OUTCOMES TO INDICATORS

LIVELIHOOD OUTCOMES
Survival and Livelihood
Protection Threshold
Ownership and Access to
Productive Assets
Productivity Enhancement
Increase and/or
Diversification of Incomes
Gain and Application of
Livelihood Activities
Knowledge
INDICATOR CODES FROM
RESILIENCE SECTION OF ANNEX
3 (COMBINED ASSETS/CAPITAL
DESCRIPTION OF INDICATORS TO BE INCLUDED
AND RESILIENCE INDICATORS).
Please refer to Annex 3 for the
codes.
Indicators that increase households’ capacity to P-R1 to P-R8, P-R10 to P-R11, S-
respond to their immediate needs, to restore their R1 and S-R10
livelihoods and to change the use of negative
coping strategies
Indicators that increase capacity to protect or E-R4 to E-R7, E-R8, IN-R1 to IN-
replace productive assets after a shock, increase R4, and EN-R5 to EN-R6
the number and/or the
improvement or access to improved assets.
Considers the equitable access to productive assets
Indicators that increase of production, the reduction I-R3, E-R1, E-R2, S-R7 and S-R9,
of resources and/or the reduction of production
losses
Includes all kinds of interventions that promote and E-R9 to E-R12
strengthen formal or informal employment creation
(considering both employment and self-
employment), promote the income generation
sources diversification,
and stabilize and strengthen existing sources of
incomes to increase the net incomes)
Includes both aspects GAIN OF KNOWLEDGE and E-R1 to E-R2, ER12, and S-R8
APPLICATION of this new knowledge for all kind of
livelihood
activities

Process Manual | 67
Access to Livelihood
Support Services and
Markets
Disaster Risk Reduction and
Natural Resources
Management
Livelihood Rights, Policies
and Regulations
Improvement
Includes access to markets, extension workers S-R1, I-R1 to I-R2
training and services, veterinary services, legal
advisor services
or all kind of formal/informal financial services.
It includes all kind of activities aimed to strengthen, P-R9, EN-R1 to ENR4, S-R3 to S-
adapt, and protect households/community R5, IR4, IR5, E-R3, and IN-R5
livelihoods
and/or their productive assets/capitals (such as
natural or physical capital) against natural hazards
and
damaging production practices
Includes all levels of advocacy interventions E—R13, S-R2, and S-R6 to S-R7
(community, local and national level) to allow
equal rights, access
and opportunities in livelihoods; as well as
interventions aimed to reinforce local and national
structures and
processes to allow the improvement of livelihood
development and protection.

TOOL 19. ENTERPRISE DELIVERY SYSTEM: FROM RESOURCES TO OUTCOMES

PRODUCT-
MARKET OR
RESOURCES INPUTS THROUGHPUTS OUTPUTS OUTPUT- OUTCOMES
OUTCOME
MATCHING
(Right (Right Quality (High Productivity, (Right (Perfect Fit) (Desired End Results)
Amount) and Quantity) Efficiency and Economy) Quality, Right
Costs, Right
Time)
Financial • Available Resource Flow Products and • Positioning Customer Outcomes
Capital Cash Services • Packaging • Quality
• Savings and • Place • Timely delivery
Insurance (location) • Affordability
Human, • Manpower, • Operation Systems and • People • Impact
Institutional • Management Procedures (selling and
and Social • Methods • Management Processes, distribution
Capital • Partners Supervision, and Control • Promotion Market Outcomes
• Worker Motivation, • Pricing • Sales
Skilling, Deployment, • Market Share
Compensation and Geographical Reach
Control • Product/Service
• Support Services Range
Physical and • Land • Volume Growth
Natural • Materials
Capital • Machinery
• Technology 8 Livelihood Outcomes

Source: Morato, E. (2006). Strategic Planning and Management. Strategizing, Organizing and Implementing. Pearson Prentice Hall

68 | Process Manual
TOOL 20. EMPATHY MAP

Process Manual | 69
 TOOL 21. TANDEMIC SOCIAL BUSINESS MODEL CANVAS
(APPROPRIATE FOR LIVELIHOODS AND LIVELIHOOD INTERVENTIONS)
KEY RESOURCES
What resources will you
need to run the livelihood ?
People, finance, access?
PARTNERS + KEY
STAKEHOLDERS
KEY ACTIVITIES TYPE OF LIVELIHOOD CUSTOMER VALUE PROPOSITION
/LIVELIHOOD SEGMENTS
INTERVENTION/
SOLUTION
VALUE FOR THE BENEFICIARIES
(Livelihood Outcomes)
____________ _____
BENEFICIARIES SOCIAL IMPACT
What is the format of the Who will benefits from
livelihood intervention? the livelihood
What specific product or intervention? How are you going to show that
service would it offer? ____________ you are creating social impact?
DELIVERY CHANNELS How will you measure social
impact?
____________ _____
CUSTOMER VALUE
PROPOSITION

CUSTOMERS
Who are the essential What activities will you How will you deliver the Who are the customers
groups you will need to be carrying out to product /service? How are that will pay for the What do your customers want to
involve to deliver your operate the livelihood? you going to reach your products /services? get out of your product/service?
products/services? target customers?
COST STRUCTURE SURPLUS REVENUE STREAM

What are your biggest expenditure areas? How do Where do you plan to How do you create revenue? Break down your revenue
they change as you scale up? invest your profits? sources by %.

70 | Process Manual
TOOL 22. BUSINESS MODEL VALIDATION CANVAS: STEPS IN VALIDATING THE VALUE PROPOSITION

Start Pivot 1 Pivot 2 Pivot 3 Pivot 4

Riskiest Assumption Identify the Riskiest Assumption in your proposed
from the Value value proposition,
Proposition
WRITE HERE. What is the current Riskiest
Assumption to test with an experiment?)
Customer Segment Define Customer Value Proposition / Define your
Value Proposition.

WRITE HERE. Who really is the target customer?

Customer Need WRITE HERE. What is the top most need of that
customer that the enterprise is solving?
Create Prototype for WRITE HERE. What is the solution that the
Validation or assume solves that problem?
Minimum Viable
Solution (MVS)
Method Validate the Riskiest Assumption

WRITE HERE. Describe the method you want to

test with. What kind of experiment is it?
Minimum Success WRITE HERE. What are the minimal criteria for
Criterion success?
Result: Pivot or Decide Based on the Validation Result
Persevere?
WRITE HERE. Did the experiment validated or
invalidated the assumption? What are the your
findings? Persevere or pivot? If pivot, write it up
there

TOOL 23. CRITICAL LIVELIHOOD PROCESS CHECK

Critical Livelihood Processes Check Notes
1 What is your main product or service?
2 How do you produce this product or service?
3 What are the things that are most likely to impact your ability to do
livelihood?
4 If your livelihood was impacted, who would you need to call? How would
you reach them?
5 What other business functions and processes do you perform to run your
overall livelihood?
6 Which of these livelihood functions and processes have legal, contractual,
regulatory or financial responsibilities?
7 Can the function be performed off-site or remotely? What equipment is
needed?
8 How much downtime can you tolerate for each livelihood function or
process?
9 What are the consequences if the function or process cannot be
performed?
10 Can your livelihood survive without a specific function?

Process Manual | 71
TOOL 24. CRITICAL LIVELIHOOD FUNCTIONS TO RESILIENCE AND RECOVERY
LIVELIHOOD FUNCTION:
EMPLOYEE IN-CHARGE:
PRIORITY:
Extremely High High Medium Low

IMPACT OF DOWNTIME
None Contractual Regulatory Legal

WHO PERFORM THIS FUNCTION (Name and Position of Employees)

SUPPLIERS/VENDORS Name of Suppliers/Vendors with their contact details
WHAT ARE NEEDED TO PERFORM THE Equipment:
FUNCTION? IT applications:
Facility(ies):
BRIEF DESCRIPTION OF THE FUNCTION
DESCRIBE ANY CONTINGENCY MEASURE OR
WORKAROUNDS
NOTES

TOOL 25. PERSONAL RESILIENCE ASSESSMENT QUESTIONNAIRE-1

1 I usually know how others perceive me 1 2 3 4 5
2 I am determined to achieve my lifetime ambitions 1 2 3 4 5
3 I can see my future clearly 1 2 3 4 5
4 I normally feel comfortable in new situations 1 2 3 4 5
5 I plan my next day in advance 1 2 3 4 5
6 I enjoy the challenge of unravelling puzzles and solving problems 1 2 3 4 5
7 In general, I like people 1 2 3 4 5
8 My most important relationships are my strongest 1 2 3 4 5

TOOL 26. PERSONAL RESILIENCE ASSESSMENT QUESTIONNAIRE-2

Criteria Description Score
Q1 Self-Awareness People who know themselves well often possess the insight to understanding others; are
more tolerant of others and are quietly inquisitive of others; they understand what makes
them tick and can respond to their behaviors more effectively.
Q2 Determination People with high levels of determination have the capacity to achieve things that those with
low determination tend not to be able to do. Determination is essentially self-driven, although
can be triggered by a reaction to an event, and requires considerable focus on a goal, task or
vision.
Q3 Vision Resilient people have a clear idea of what they are trying to achieve in their lives, and will
have written this down somewhere. They are likely to review the vision from time to time,
particularly when events seek to divert effort away from achieving the vision.
Q4 Self-Confidence Self-confidence which demonstrated in a subtle manner, and draws others to the self-confident
person, reinforcing their success with others and contributing significantly to their resilience.
Q5 Organization Resilient people know where they are, and can control their working environment by careful
planning and implementation.
Q6 Problem Solving Resilient people like to solve problems and rise to challenges, so long as they can resolve the
problems and meet the challenges successfully.
Q7 Interaction Interaction is about how the person behave towards other people. To survive and achieve the
person needs to be persuasive to others so that said person can help.
Q8 Relationships Resilient people have relationships that provide the appropriate reinforcement and support at
the time it is required. Resilient people never judge anyone else; they give of themselves to
each relationship and reap the rewards of friendship.

72 | Process Manual
TOOL 27. SIMPLE COACHING GUIDE FOLLOWING GROWTH MINDSET
Coaching Question
What have you learn out of this experience (e.g.,
emergencies, meeting, training or any important
activity for the livelihood)
What steps did you take to make you successful in
your task(s)?
What are some of the different strategies you could
have used?
How did you keep going when things got tough?
What can you learn from other enterprises offering
similar products with yours?
Example of Response Indicating Growth
Mindset
I have encountered several challenging scenarios, but I believe I can
learn how to figure it out.
We have not got it yet, but we will if we keep working and thinking
about it.
We were not able to figure out an appropriate strategy, we would
appreciate if there is someone who could help us out.
We saw some opportunities in some challenges that we
encountered, and we still took some risks to keep going because
we believe that’s how we could learn and improve our skills.
They are getting better than us, we will find a way to learn what’s
making them better and maybe explore areas where we could
collaborate.

Source: Extracted from Positive Coaching Alliance. https://twitter.com/PositiveCoachUS/status/964220635957231616/photo/1

Process Manual | 73
 ANNEXES

74 | Process Manual
ANNEX 1. INTERNATIONAL CONVENTIONS AND NATIONAL POLICIES ENABLING
RESILIENAND SUSTAINABLE LIVELIHOODS
Sendai Framework for DRR
APEC DRR Framework
New Urban Agenda
Philippine Development Plan
2017-2022
NDRRP 2011-2028
NCCAP 2011-2028
National Security Policy
2017-2022
Insurance Commission 1 -
2010
Roadmap for Strengthening
the Disaster-Resilience of
Micro, Small and Medium
Enterprises (MSMEs) in the
Philippines
DOLE Department Order No.
173, Series of 2017
DILG Memorandum Circular
No. 122 Series of 2018
DSWD Memorandum Circular
(MC) No. 22 Series of 2019
DILG/OPAPP Joint MC No. 2
Series of 2014
The substantial reduction of disaster risk and losses in lives, livelihoods, and health and the economic, physical, social,
cultural, and environmental assets of persons, businesses, communities, and countries (UNDRR, 2015). It is urgent and
critical to anticipate, plan for and reduce disaster risk to more effectively protect persons, communities, and countries, their
livelihoods, health, cultural heritage, socio-economic assets, and ecosystems, and thus strengthen their resilience.
Prevention and Mitigation. This pillar includes identifying and evaluating existing hazards, vulnerabilities, and exposure of
communities and livelihoods. Based on the identified hazards and risk evaluation, proactive structural and non-structural
measures need to be identified, evaluated, prioritized, funded, and undertaken to mitigate the impact of disasters.
Preparedness. This pillar focuses on establishing and strengthening the capacities of communities to anticipate, cope, and
recover from the negative impacts of disasters. It involves enhancing urban and rural planning using risk and hazard
mapping techniques and information and strengthening critical infrastructure, including social and cultural infrastructure. It
involves cooperation between government and businesses to increase the resilience of supply chains. It also includes the
development and promotion of financial tools, such as microinsurance and catastrophic risk insurance, to help protect
households, Micro, Small, Medium Enterprises (MSMEs), livelihoods such as agriculture, critical infrastructure, and
communities from financial and economic losses that each disaster brings, and promotion of business continuity planning
(APEC, 2015).
Incorporates a new recognition of the correlation between good urbanization and development. It underlines the linkages
between good urbanization and job creation, livelihood opportunities, and improved quality of life, which should be
included in every urban renewal policy and strategy. It further highlights the connection between the New Urban Agenda
and the 2030 Agenda for Sustainable Development, especially Goal 11 on sustainable cities and communities.
Fulfill their social function, including the social and ecological function of land, to progressively achieve the full realization
of the right to adequate housing as a component of the right to an adequate standard of living, without discrimination,
universal access to safe and affordable drinking water and sanitation, as well as equal access for all to public goods and
quality services in areas such as food security and nutrition, health, education, infrastructure, mobility and transportation,
energy, air quality and livelihoods (U.N. Habitat, 2017).
Provide adequate transition houses and livelihood opportunities for disaster victims during the early rehabilitation and
recovery period. Develop facilities for adaptation in local communities, including risk transfer mechanisms.
Highlights the importance of mainstreaming DRRM and CCA in the development processes such as policy formulation, socio-
economic development planning, budgeting, and governance, particularly in the area of environment, agriculture, water,
energy, health, education, poverty reduction, land-use, and urban planning and public infrastructure and housing among
others. Mainstreaming also puts forth the need to develop standard tools to analyze the various hazards and vulnerability
factors that put our communities and people in harm's way.
Priority 4. Human Security
Outcome: The objective of the human security agenda is to reduce the risks of women and men to climate change and
disasters
Immediate Outcome 3: climate change–adaptive human settlements and services developed, promoted, and adopted.
Priority 5. Climate-friendly industries and services
Outcome: NCCAP prioritizes the creation of green and eco-jobs and sustainable consumption and production. It also focuses
on the development of sustainable cities and municipalities.
Chapter 6. 12-Point National Security Agenda
Agenda 3. Economic and Financial Security. Harness science and technology for global competitiveness, level the economic
playing field, promote a multi-resource economy that guarantees the next generation's interests, develop infrastructure and
tourism attractiveness, enable our people to innovate and upgrade their capabilities to protect their livelihood and
resources (Ramos, 2018).
It specified the details of the establishment of policy and regulatory environment that will facilitate increase participation of
the private sector in microinsurance and ensure that the benefits of the insured poor are protected.
It contains the various rules and regulations for providing microinsurance products and services, the basic definition of a
microinsurance product, the features of a microinsurance policy contract, and who are allowed to sell microinsurance
products.
They are prepared by the Asian Disaster Preparedness Center and DRI in 2015. The Roadmap serves as a guiding document
that can inform the relevant concerned agencies and organizations for MSME development and disaster risk reduction and
management (DRRM) and policymakers on the ways forward for strengthening the resilience of smaller enterprises in the
country.
The policy orders to integrate all DOLE existing livelihood programs to KABUHAYAN Program. The policy seeks to
contribute to poverty reduction and reduce the vulnerability risks of the poor, vulnerable, and marginalized workers
through transitional emergency employment or Tulong Panghanapbuhay sa ating Disadvantaged/Displaced Workers
(TUPAD) Program; and promotion of integrated livelihood through entrepreneurship, otherwise known as KABUHAYAN.
KABUHAYAN as grant assistance can either be an individual or group livelihood to start, enhance and re-establishment.
The Sangguniang Panlalawigan, Sangguniang Panlungsod, Sangguniang Bayan as legislative bodies shall adopt measures
to provide relief services and assistance for victims during and after calamities and their return to productive livelihood
(pp7).
The policy clearly defines the program known being the Sustainable Livelihood Program (SLP) as the capability-building
program for the poor, vulnerable, and marginalized households and communities to help improve socio-economic
conditions through accessing and acquiring necessary assets to engage and maintain livelihoods. It seeks to uphold
inclusivity among vulnerable populations.
The PAMANA Program endeavors to attain its objectives by bringing back government to PAMANA areas and ensuring
that communities benefit from improved delivery of essential services and are served by responsive, transparent, and
accountable local government units. The institutionalization of PAMANA as a peacebuilding framework at various levels of
governance will be a crucial strategy for attaining the objectives mentioned above
Process Manual | 75
ANNEX 2. INTRODUCTION TO ONLINE HAZARD/RISK MEASURING TOOLS
FOR RAPID VULNERABILITY ASSESSMENT EXERCISES AND AS A
GUIDE IN DECIDING WHAT VULNERABILITY SCORE IS
APPROPRIATE

HazardHunterPH. A web application used to generate indicative hazard assessment reports on the
user's specified location. It is helpful as a reference of property owners, buyers, land developers,
planners, and other stakeholders needing immediate hazard information and assessment. It aims to
increase people's awareness to natural hazards and advocates the implementation of plans to
prepare for and mitigate the effects of hazards. All information used for the calculation of hazard
assessment results are based on the most recent updates provided by the corresponding mandated
government agencies through the GeoRiskPH Integrated System. To know more about other
archived data or more detailed information about the hazards, please contact DOST-PHIVOLCS for
seismic and volcanic hazards, DOST-PAGASA for storm surge and severe wind hazards, and
DENR-MGB for flood and rain-induced landslide hazards. It is a product of GeoRisk Philippines, a
multi-agency initiative led by DOST-PHIVOLCS and participated by DOST-PAGASA, DOST-ASTI,
DENR-MGB, DENR-NAMRIA, DND-OCD, and DepEd. It can be accessed through this link -
https://hazardhunter.georisk.gov.ph/

Philippine Hazard Risk Map. An Interactive online risk map that allows users to see the risk of any
Philippine barangay from various natural hazards. More darkly shaded areas indicate higher risk
from the hazard type selected. Places with higher population are also considered at higher risk.
For example, if two areas are hit by the same number of typhoons every year, the one with the
higher population will be at higher risk to typhoons. It already computed the overall “risk score”
for each barangay which combines a barangay’s risk from various types of hazards with
socioeconomic indicators like population and economic development. Municipal scores were
computed by getting the aggregated risk scores of each component barangay. It can be accessed
online through this link - https://hazard-risk-map.firebaseapp.com/

GeoAnalyticsPH. A data analysis web application designed to calculate how much of a location is
exposed to hazards and to provide graphs and charts. It is for planners and decision makers of
national government agencies and local government units to better prepare for disasters caused by
natural hazards. It was launched by PHIVOLCS last November 5, 2019. It can be accessed
through this link - https://geoanalytics.georisk.gov.ph/

Humanitarian Data Exchange (HDX). It is an open platform for sharing data across crises and
organizations. The goal of HDX is to make humanitarian data easy to find and use for analysis. Its
growing collection of datasets has been accessed by users in over 200 countries and territories.
HDX is managed by OCHA's Centre for Humanitarian Data. For violence and conflict data, it is
best to use the Armed Conflict Location & Event Data (ACLED) Database. This dataset contains
information on the specific dates and locations of political violence, the types of events, the groups
involved, fatalities and changes in territorial control. Information is recorded on the battles, killings,
riots, and recruitment activities of rebels, governments, militias, armed groups, protesters, and
civilians. It can be accessed through this link - https://data.humdata.org/dataset/acled-database

Numbeo. Numbeo.com is a website maintained by Numbeo doo incorporated in Serbia. The

research and available data in the site are not influenced by any governmental organization. It can
calculate levels of crime, burglary, robbery, carnaping, assault, racial attack, insults, discrimination,
drug trade, and other crimes. For data specific for Philippine cities, here is the direct link -
https://www.numbeo.com/crime/country_result.jsp?country=Philippines

76 | Process Manual
Global Drought Observatory. This system is the onset of a Global Drought Observatory (GDO)
mainly targeting at emergency response issues. Focus is on a Map Viewer and an information rich
report. GDO is developed by the team of the European Drought Observatory (EDO). It can be
accessed through this link - https://edo.jrc.ec.europa.eu/gdo/php/index.php?id=2001

Endcov.PH. Is an online dashboard mapping the COVID-19 pandemic in the Philippines. It is

maintained by the L4H consortium consists of professionals from academia, civil society, and
private sector. L4H Dashboard Release 2.0. June 2020.Maintained by CirroLytix Research Services
for the L4H Consortium. It can be accessed through this link - https://endcov.ph/map/

ANNEX 3. LIVELIHOOD VULNERABILITY INDEX CALCULATION SYSTEM (LVI-CS)

LVI-CS is a tool with automated calculations of livelihood vulnerabilities in terms of

livelihood exposure indicator score, livelihood sensitivity indicator score, livelihood
risks, livelihood resilience, and livelihood vulnerability index. It is encoded and
uploaded as google sheet. It could be accessed through this link -
https://drive.google.com/file/d/1Vsvy6UIj1jmVJHjggn38UHTsk6rv-
Vpt/view?usp=sharing

Process Manual | 77
ANNEX 4. CRITERIA FOR IDENTIFYING APPROPRIATE LIVELIHOOD
INTERVENTIONS
Source: Livelihoods Analysis and Identifying Appropriate Interventions (Special Supplement 3),
ENN Online

COMMON
TYPE OF
CRITERIA EMERGENCY ADVANTAGES DISADVANTAGES
INTERVENTION
CONTEXT
General food People are cut off from Acute emergencies. Most readily Tied food aid takes a
distribution normal sources of Large scale available resource. long time to reach
food. Lack of food emergencies. destination. High
availability. Displacement. logistics requirements.
Alternative ways of Can undermine markets
increasing access to and production if food
food would take too is locally available.
long.
Food for work Lack of access to food. Slow-onset or recovery Easier to target than Small scale. Not
(FFW) Lack of food stage of crisis. Chronic free food distribution. everyone can work.
availability. Labour food insecurity. Restores community
potential. assets as well as
Infrastructure providing food.
damaged. Security
and access. Target
population should not
suffer acute food
insecurity or high
levels of malnutrition.
Cash grants Food available and Early stages of Cost efficient. Choice Risk of inflation. Cash
markets functioning. emergency or for beneficiaries. may not be spent on
Risk of inflationary rehabilitation. Quick way of meeting intended programme
pressure is low. basic needs. objectives. Difficult to
Stimulates markets. monitor. Difficult to
target.
Cash for work Food available and Recovery phase. Choice. Creates Small scale. Not
(CFW) markets functioning. Chronic food community everyone can work.
Food insecurity result insecurity. infrastructure. May interfere with
of loss of income, Stimulates markets. livelihood strategies.
assets, or employment. Stimulates recovery High management
Risk of inflationary Easy to target. requirements.
pressure is low.
Security and access.
Vouchers Essential commodities Usually second phase Promotes purchase of Risk of forgery. May
can be brought in by response in acute local products. Can create parallel
traders. Opportunities emergencies. specify commodities. economy. May need
to make agreements Commodity vouchers regular adjustment to
with traders. Food protect from inflation. protect from inflation.
availability and Easy to monitor.
functioning markets.
Microfinance Functioning markets Recovery stage of Can be sustainable. High management costs.
and banks. Stable emergency. Relatively Risk of default on loans.
economy (no hyper- secure context. Home
inflation). Skilled based populations or
workforce. returnees.

78 | Process Manual
Market Food insecurity is Both emergency and Can bring about long Needs in-depth market
infrastructure result of fragmented development contexts. lasting change in analysis. Often done
markets. people's access to badly as part of FFW or
markets. CFW if focus is on
providing food or cash.
Monetisation Local food prices Early stage of No targeting. Can have negative
and subsidised volatile. Targeted at emergency. Potential for quick impact on markets if
sales areas that face food impact on large done when criteria are
deficits. Affected population. not met.
population still has
some purchasing
power. Direct
distribution not
possible because of
insecurity.
Seeds and tools Food insecurity due to Recovery stage or Re-establishes crop Requires knowledge of
reduction or loss in protracted production. local seeds. Imported
crop production. emergencies. Strengthens seeds may not be used.
Affected households agricultural systems in
lack seeds and tools. the longer term.
Lack of availability of
seeds and tools. The
lack of seeds/tools
limits production. Local
knowledge.
Livestock Sales causes collapse Depends on type of In line with people's Can usually only be
support in market prices. intervention but some own priorities, and done on small scale.
Deaths result from lack livestock intervention thus likely to get high
of pasture and/or can be implemented at levels of community
water. Livestock all stages. participation.
disease. Restrictions to
livestock movements.
Local knowledge.

Process Manual | 79
ANNEX 5. SAMPLE FORMAT IN INTEGRATION OF RESILIENT LIVELIHOOD
STRATEGIES INTO THE LOCAL DRRM PLAN

I. A FRAMEWORK FOR URBAN RESILIENCY POLICY/PLAN REVIEW AND INTEGRATING

STRATEGIES AND RECOMMENDATIONS

1. Illustration 1 is the graphic representation of MOVE-UP Urban Resiliency Review of Policies/Plans Framework. At the
core of the framework are the vulnerable communities. Such a framework embraces an idea of resilience as a process
characterized by a network of complex interdependent and interrelated aspects of resiliency on social, economic,
environment, institutional and infrastructural (illustrated by the middle circle).

2. Before coming up or enhancing a city level policy/plan with deliberate intention of building resilience capacities; creating
an enabling environment; and improving social relations, social inclusion, and empowerment, it has to consider
international and national trends, threats and hazards as shown by the broken arrows outside the larger circle in
Illustration 1.

3. The three boxes outside the larger circle illustrates the process of policy/plan review, gaps analysis, and policy
recommendations. Each box contains outputs aimed at directly contributing to the three major interventions in
strengthening urban resiliency prescribed by the MOVE UP Urban Resiliency Model – Building Resilience Capacities,
Improving Social Relations, and Creating an Enabling Environment. Specifically, it is apparent in this review process that
it always includes the intention of looking at how the MOVE UP thematic components (Alternative Temporary Shelter,
Resilient Livelihood with Risk Transfer Mechanism including Social Protection) are considered or aligned.

4. The three major interventions are thus, labeled as Policies/Plans recommendations on Building Resilience Capacities,
Improving Social Relations, and Creating an Enabling Environment that shall enumerates policy analysis of a specific
policy/plan.

Illustration 1. MOVE UP Framework for Urban Resiliency Policy/Plan Review, and

Integrating Policy Recommendations into the Reviewed Policy/Plan

80 | Process Manual
II. REVIEW OF URBAN RESILIENCY RELATED POLICIES/PLANS, POLICY/PLAN GAPS
ANALYSES AND POLICY RECOMMENDATIONS AND INTEGRATION CONSIDERATIONS
IN THE CITY OF _________________.

This report presents the reviews, presentation of gaps of Local Disaster Risk Reduction and Management Plan (LDRRMP) CY
______and in the City of _______ containing provisions or sections with themes on urban development, urban poverty,
urban resiliency, reducing vulnerabilities, disaster risk reduction and management (DRRM) , livelihood, risk transfer
mechanisms including social protection.It will also present some recommendations that would strengthen urban resiliency,
enhance DRRM capacities, as well as climate change adaptation measures.

A. Local DRRM Plan 2022– 2028 of ___________ City

1. The Essentials of LDRRM Plan

1.1 The plan presents city profile in terms of geo-physical environment, population and social context, environmental
management and natural resources, institutional arrangements, and it enumerates local policies related to DRRM.

1.2 It presents risk profile illustrating hazards and vulnerability to flood and landslides, and earthquake. It anticipates that
during typhoons and heavy monsoon rains, the Marikina River overflows in low lying areas near its banks affecting
10,000 residents for two weeks. It is also anticipating worst flooding like what happened last 2004 when Tropical
Cyclones “Winnie” and “Yoyong” displaced 3,586. It identifies seven (7) Barangays that are at high susceptibility for
flooding.

1.3 It also maps out the capacity of the ________ City DRRMO and DRRMC.

1.4 It presents an analysis of the situation by using SWOT as a framework. Specifically, it analyzed strengths and weaknesses
on Disaster Prevention and Mitigation, Disaster Preparedness, Disaster Response, and Rehabilitation and Recovery.

1.5 The plan envisions a city of _____________________. It seeks to deliver the vision through exercising good governance
in the delivery of quality services, accessible to various communities with responsible engagement.

1.6 Its goals are to implement sustainable development, Climate Change Adaptation (CCA) and Disaster Risk Reduction and
Management (DRRM) programs; to attain land, air and water quality at standard and compliant levels; to protect human
lives and properties. Its objectives are to comply with and implement the provision of Clean Air, Clean Water and Solid
Waste Management Act; to reduce the impact of hazards, exposures, and vulnerability; to strengthen the capacity in the
management of disaster risk reduction; and to form alliances with neighboring towns and cities on environmental
protection and risk reduction.

2. Related Provisions to MOVE UP Mindanao target outcomes, Identified Gaps, and

Recommendations
PROVISIONS RELATED TO CREATING ENABLING ENVIRONMENT for Resilient Livelihoods with Risk Transfer Mechanism
Including Social Protection
Related Provisions
1. To develop a system for risk financing. Allocation of budget to fund risk financing for city government employee and
constituents (pp67). Creation of ordinance and/or executive order for risk financing (pp67)

Identified Gaps
1. There is no provision ensuring DRRM and CCA risk assessments as part of the legal requirement, and are
implemented by MSMEs or b;
2. Did not identify ways to provide focus on risk transfer mechanisms of MSME and other resiliency mechanisms, at the
City level.

Recommendations
1. To support micro, small, and medium enterprise (pp68 of NCRDP)
2. Include in the formulation of ordinance for risk financing, better risk adaptation and recovery financing for MSMEs
like livelihood insurance or livelihood asset insurance, fire insurance, natural catastrophe insurance, and insurance
for enterprise employees with streamlined procedures, rapid payment, a repayment exemption period, and
incremental increases in repayment amounts.
3. …LGUs shall set aside not less than 5% of the estimated revenue from regular sources as the LDRRMF for… the
payment of premiums on calamity insurance (section 6.1). The basis for the allocation shall be the LDDRM Plan and
should be incorporated in CDP, LDIP, and AIP (Section 6.1 of DILG Memorandum Circular No. 2015-77 on
Guidelines on Mainstreaming Climate Change Adaptation and Disaster Risk Reduction in Local Development
Planning).

Process Manual | 81
 4. Ensure DRRM and CCA risk assessments as part of the legal requirements, and are implemented, for planning all
new economic zones or industrial precincts intended to cluster MSME and undertake risk assessments and any
necessary mitigation measures to reduce exposure in existing zones.
5. Identify ways to focus livelihood resilience initiatives: at city level; within designated industrial areas, for example,
special economic zones, such as the Agro-Industrial Economic Zones, or Technology Parks and Centers and Tourism
related zones; and in particular industry sectors.
6. Include livelihood needs in city DRRM policies, plans, strategies and resource allocations for DRR, awareness-
raising, CBDRR, risk assessments, and risk mapping, especially in DRR, prevention and preparedness.
7. Add a policy retaining locally driven and market-driven livelihood and putting emphasis on value chain
development support;
8. Use existing channels in business finance, insurance and taxation to provide financial incentives, exemptions,
conditions, and/or requirements for disaster risk assessments and evidence of resilient livelihood enterprise continuity
plan. For example: access to some forms of business registration and/or grants, training, or other business
development support could be made dependent on investment in disaster-resilient BCP; investment in disaster-resilient
BCM could be tax deductible, along with associated BCP-preparation and training; micro credit and small business
loans criteria could include environmental and enterprise disaster risk assessment and/or BCP or other mitigation
measures as part of the credit assessment (while ensuring this does not further restrict MSMEs access to credit).
9. Secure alignment of polices with DSWD’s SLP, DSWD Memorandum Circular 22 Series of 2019 and DOLE’s ILEEP
through complementation of resources in the delivery of livelihood interventions.
PROVISIONS RELATED TO BUILDING RESILIENT CAPACITIES for Resilient Livelihoods with Risk Transfer Mechanism Including
Social Protection
Related Provisions
1. Business continuity plan (BCP) for private sector that details their coordination mechanisms with the suppliers or
service providers to continue their operations during emergencies. This is very vital to sectors necessary for lifelines
such as hospitals, transportation, water, electricity and food (pp55)
2. To have available recovery assistance for the victims and business community after the disaster. Recovery package
for the business community such as referrals to banks and loan institutions, provision of tax reliefs and
incentives(pp71)

Identified Gaps
1. There is no provision to build the capacity of MSMEs to identify and evaluate existing hazards, vulnerabilities and
exposure of livelihood.
2. There is no provision to establish and strengthen capacities of specifically MSMEs to anticipate, cope, and recover
from negative impact of disasters like livelihood continuity planning or MSME Business Continuity Plan (BCP);
3. There is no mention to evaluate current developments in different types of affordable disaster risk transfer
mechanisms.
4. No support identified for institutional development like formalizing community associations or livelihood associations
5. Insufficient knowledge/awareness on disaster preparedness and mitigation. In times of disasters and climate events,
financial constraints and absence of information about occurrence of these events limit the effectivity of the initiatives
and interventions available (pp106 of NCRDP).

Recommendations
1. Provide policy to identify and evaluate existing hazards, vulnerabilities, and exposure of livelihoods.
2. Provide policy to establish and strengthen the capacities of vulnerable beneficiaries or groups to anticipate, cope,
and recover from the negative impacts of disasters like enterprise continuity planning.
3. Evaluate current developments in different types of affordable disaster risk insurance and risk financing, such as
those in parametric or event-based insurance with a fixed schedule of payments for natural hazards and facilitate
their development in Metro Manila both in the public and private sector.
4. Emphasize community-based development of resilient livelihoods with RTM including SP.
5. Emphasize the need for savings mobilization for MSMEs associations that shall be used for capital build-up,
operational fund, and emergency fund.
6. Develop and disseminate targeted tools and training like promoting, using, or developing Business Continuity
Manuals (BCM) and training programs that are based on a full risk assessment that includes natural and industrial
hazards resilient BCM.
7. Link MSMEs with large corporations on BCM. Facilitate engagement by large Philippine enterprises and foreign
companies to support resilient livelihood BCM for livelihood in their supply chain.

82 | Process Manual
ANNEX 6. OUTLINE OF SHOCK-RESPONSIVE, RESILIENT AND SUSTAINABLE
LIVELIHOOD PLAN

I. LIVELIHOOD RISKS PROFILE LIVELIHOOD VULNERABILITY INDEX

II. LIVELIHOOD MARKET ASSESSMENT AND MAPPING
III. LIVELIHOOD ASSETS ASSESSMENT
IV. LIVELIHOOD RESILIENCE DEVELOPMENT AND MANAGEMENT
1. LIVELIHOOD TARGET OUTCOMES AND INDICATORS
2. BUILDING AND ENHANCING ECONOMIC AND INFRASTRUCTURE
RESILIENCE: ENABLING GROWTH FOR FINANCIAL AND PHYSICAL
CAPITAL
2.1 CHOSEN LIVELIHOOD STRATEGY
2.2 DEFINED LIVELIHOOD STRATEGIC POSITIONING
2.3 ACTIVITIES IN THE DESIGN THINKING STEPS
2.4 BUSINESS MODEL
2.4.1 BUSINESS MODEL CANVAS
2.4.2 BUSINESS MODEL VALIDATION CANVAS
2.4.3 REVENUE MODEL
2.4.3.1 MAJOR REVENUE METRICS
2.5 IDENTIFIED CRITICAL LIVELIHOOD PROCESSES AND FUNCTIONS
2.6 HIGHLIGHTS ON THE TRIPLE BOTTOMLINE TARGETS
2.7 IDENTIFIED RISK TRANSFER MECHANISMS
2.8 APPROPRIATE TECHNOLOGY AND DIGITAL TOOLS

3. BUILDING AND ENHANCING INSTITUTIONAL AND SOCIAL RESILIENCE:

IMPROVING SOCIAL CAPITAL AND ENABLING GROWTH AND RETURNS
FROM LIVELIHOOD ASSETS
3.1 STAKEHOLDERS ANALYSIS TO PROMOTE LINKAGE TO NCLUSIVE
BUSINESSES
3.2 FORMALIZING THE LIVELIHOOD ASSOCIATION
3.2.1 STRUCTURE OF LIVELIHOOD ASSOCIATION
3.2.2 ACCREDITATION IN LOCAL GOVERNING BODIES TO SEEK
REPRESENTATION
3.3 ALIGNED AND INTEGRATED LIVELIHOOD STRATEGIES TO LOCAL
DEVELOPMENT PRIORITIES AND PLANS
3.4 EVIDENCE-BASED KEY MESSAGES FOR ADVOCACY
4. BUILDING AND ENHANCING PERSONAL RESILIENCE AND GROWTH
MINDSET CULTURE: IMPROVING HUMAN CAPITAL
4.1 PERSONAL RESILIENCE ASSESSMENT RESULT
4.2 PERSONAL RESILIENCE PRIORITY INTERVENTIONS
4.3 GROWTH MINDSET ASSESMENT RESULT
4.4 GROWTH MINDSET PRIORITY INTERVENTIONS
5. LIVELIHOOD CONTINUITY PLAN

Process Manual | 83
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