By Eric Lutzen
On November 8, a super typhoon named Haiyan (Yolanda) hit the central Philippines and caused much devastation to the country. This typhoon has become the second most deadly typhoon in the Philippines “with the death toll raised to 3,633” Filipinos (CNN). The typhoon has completely flattened many cities, destroyed homes, and left “an estimated four million people in the Philippines” displaced (Typhoon Haiyan). The estimated amount of total damages that the super typhoon caused are about 15 billion dollars. In addition to the horrible death tolls and damages the typhoon will affect the rest of the country by externally shocking the economy to take a turn for the worse.
Before the typhoon hit the Philippines the economy was growing at about 6 percent a year and things were looking up for the Filipino economy in total. Yet, a storm like typhoon Haiyan will definitively cause much dismay to the economy. First of all the people that were forced to leave their homes due to the typhoon are most likely out of work and will not be earning a wage. Due to this many more people in the Philippines will be leaving at standards far below the poverty line. Many more people can be seen holding signs that read “Please Help” and “We Need Food” along the streets of the Philippines (Economist). While many countries and charity organizations have generously given to help these displaced people there is no way to this aide will equate to their lifestyles before the storm hit the Philippines.
In many cities, places of business received a great deal of damage. Now these business will have to deal with the damages that were caused by the typhoon rather creating and providing their goods or services. This will take away many opportunities that business could have expanded on and now businesses will be fighting to get back to where they were before the typhoon hit.
One of the greatest areas impacted by the typhoon will be agriculture. Growing of “rice, sugar cane and other cash-crops” are essential to the Filipino economy (SMH). “A third of the country's rice-producing land was destroyed by the super storm, according to US-based Commodity Weather Group” (SMH). The destruction of the farmland will handicap the Filipino. Also the decrease of the supply of foods essential to the Filipino diet like rice will raise the price for rice. This increase in the price of food compounded with the increase of unemployment will cause additional harm to standard of living to people living in the Philippines.
Despite all of the destruction that the typhoon caused some areas of the Filipino economy will see a boom. Construction companies will see a great increase in demand as the Philippines began to rebuild itself. The effort to rebuild will return many Filipinos back to work as well as bring more individuals into the workforce. This increase in construction will not negate the negative effects of the harm to the economy that the typhoon cause but the boom in construction will lessen the severity of the damage that this external shock cause.
Links for images:
http://a.abcnews.com/images/International/gty_typhoon_nt_131111_ssh.jpg
http://i2.mirror.co.uk/incoming/article2791290.ece/ALTERNATES/s615/Typhoon-Haiyan-2791290.jpg
Works Cited
"Typhoon Haiyan: More cadaver bags sent to Philippines as toll climbs to 3,633 dead." CNN. Cable News Network, 16 Nov. 2013. Web. 19 Nov. 2013. <http://www.cnn.com/2013/11/15/world/asia/typhoon-haiyan/>.
"Rice prices skyrocket as Typhoon Haiyan shreds Philippines economy." The Sydney Morning Herald. N.p., n.d. Web. 19 Nov. 2013. <http://www.smh.com.au/world/rice-prices-skyrocket-as-typhoon-haiyan-shreds-philippines-economy-20131118-2xr99.html>.
"Super Typhoon HAIYAN (YOLANDA) Update Number 007 | Weather Philippines." Super Typhoon HAIYAN (YOLANDA) Update Number 007 | Weather Philippines. N.p., n.d. Web. 19 Nov. 2013. http://weather.com.ph/announcements/super-typhoon-haiyan-yolanda-update-number-007>.
"Typhoon Haiyan." Wikipedia. Wikimedia Foundation, n.d. Web. 19 Nov. 2013. <http://en.wikipedia.org/ wiki/Typhoon_Haiyan#Effects_on_the_economy>.
"Typhoon Haiyan: Worse Than Hell." The Economist. N.p., n.d. Web. 17 Nov. 2013. <http://www.economist.com/news/asia/21589916-one-strongest-storms-ever-recorded-has-devastated-parts-philippines-and-relief>.
I think that over all the Philippines economy will take a long time to recover and get back to increasing but you made a good point that not all industry's will hurt from the typhoon. Although it is a tragic situation it could create a better output in years to come.
ReplyDeleteIt is sad to hear that the Philippines economy has been increasing at about 6% a year before the typhoon hit. I agree with Cassidy when she says that it will take a long time to recover and get back to that increasing 6%. Hopefully, the Philippines can recover and go back to their growing economy.
ReplyDeleteSummer, I think you can add a little more depth to this. Bring something new to the table.
Deletewhile this is a tragic situation i believe that it is up to the Filipino people to repair their country. if we were to send aid like we did with Haiti, yes there standard of life would go up following the event but their economy wouldn't improve because their own people weren't able to get jobs and earn revenue by rebuilding themselves. i also believe that our country shouldn't be aiding other countries due to the fact that we have our own homeless and starving people. we shouldn't be looked upon to bail every country that has a natural disaster out. relief efforts should be provided by the private sector such as churches, red cross, or donations towards a relief cause.
ReplyDeleteThis is a great topic to write about because it just happened and is a big topic of discussion in governments everywhere. I think that we can supply them with money, but sending them goods that they can produce won't help. Obviously they need help now, but one way we can help them is by letting them restore their economy. If they have the money and basic supplies to start their businesses up again, they will fix their own economy, which I think is the best way we can help them.
ReplyDeleteThis was a very prominent topic that I think everyone should read about. It's a great way of looking at something horrific and turning it into an opportunity to grow. It will be a great way for their country to start to get more jobs like you said as construction workers and cleanup workers, but the only question I have is where is that money coming from that they are going to get paid with? It was a very good article though and the pictures really displayed what it's like over there.
ReplyDeleteNice job Eric! This is a very relevant topic and I believe it is important for everyone to know what happened. The Philippines already had a poor economy to begin with, and just like the earthquakes in Haiti, this will only externally shock their economy more. It is our job to lend a hand to these people since we are more fortunate than they are and have a better economy. It is important that we help rebuild their country and get their economy to one that was better than before the hurricane hit.
ReplyDeleteIt's scary to see how much a natural disaster like this one could affect the economy and the overall lives of the people it hits. In response to Alex- I agree that we shouldn't be looked at to bail everyone out, but it would be unethical to not send any help at all. And it's not just a moral obligation, but an image issue as well. If we helped Haiti, but didn't give a dime to the Philippines, we would look like bad people. However, in my own personal opinion, everyone should help those in need out of kindness, not just because of image.
ReplyDeleteI think that, while this situation is obviously absolutely devastating, it's exactly the kind of culture shock that many people need. It puts things into perspective. It's almost impossible to go a day in America without hearing some sort of complaint about the economy or the government or even the places we live, the food we eat, etc. I'm not saying that any one problem is bigger than another, but to see the devastation that this storm has inflicted, at least for me, makes any personal or national problems seem a little less like problems and a little more like privledges.
ReplyDeleteGreat topic. It is a great demonstration how almost everything effects the economy in ether a positive or negative way. I wound how much damage compared to the earth quake and tsunami that hit Japan. It is amazing how we complain with a unemployment rate of 7.3% where the majority of the Philippines was either unemployed or cannot work. This is not saying that the employment of the US is not important but when everything is compared it really dosn't hold much weight against natural disasters.
ReplyDeleteThis is an excellent post Eric! It's incredible how mother nature can effect the world so many lives in a matter of days. While they do need help, I would say that we should limit the amount we do to help them. The United States already has its own issues to deal with, and we should focus on ourselves first, but it would be unethical to not help out someone in need. You also have to question if they get all this help, will they begin to rely on other countries too much?
ReplyDeleteEric great post, it's definitely an interesting issue/problem you presented. It's sad that there really is no defense for mother nature, and that the Phillipiness couldn't prepare for this. In regards to financial aid, I must say I agree with Steve, that we should limit the amount, but also help them because it would unethical not too. The point of interest for me, is to see what happens to their economy now. Obviously agriculture will take a hit, but the construction industry will be booming. I guess for me it'll be interesting to see how their economy changes, as in whether or not it will go back to agriculture, or rely on something else. Only a matter of time will tell.
ReplyDeleteReally good post Eric. You're tie in of external shocks and the effects felt by supply and demand from the complete devastation to the infrastructure and agriculture industry was really well done. We can't just narrow this to the Philippines either, other countries in the process of helping recover are going to feel the impact through the loss of the country's exports, as well as paying for the recovery of the country and survival of the citizens.
ReplyDeleteWhat happened to the Philippines is very tragic, especially on the economy. It is sad that this country is prone to natural disasters. Typhoons reduce household incomes by an average of 6.6 percent. Household expenditure decrease 7.1 percent for the average household in the average year. This is very devastating news that has put many things in perspective for our own country. Hopefully the economy of the Philippines can recover!
ReplyDeleteMaggie, do you have any new ideas to present?
DeleteGreat discussion topic Eric. This is a great example of an external shock affecting an economy. The Philippines could do nothing about it, but now they can't not hang their heads, they need to work hard to fix this. Some of the major parts of their economy, such as agriculture, will suffer for a long time, but there is some room for economic growth in certain areas such as construction work. So, even though many people lost jobs due to the natural disaster, many people will also gain jobs during the recovery. Hopefully the Philippines can take this tragedy and turn it into something that can help boost their economy as they try to recover from the terrible disaster.
ReplyDeleteIn away natural disasters are good to spark an economy. Also people put on fundraiser for them to raise money for their economy which can benefit us in the long run. Americans are always helping others and when we're in need hopefully they will help us back.
ReplyDeleteGarrett, this is a bit short.
DeleteThis is most definitely a tragedy in this part of the world. It will impact the Philippines' economy for sure, and this typhoon was an external shock. The economy will recover in this area though, as new jobs will be created to help fix the damage that has occurred. The entire country will also receive much aid from other countries that are willing to lend a helping hand, and that will more than likely stimulate the economy in some way. So as bad as this event was and has been, some good will come out of it in the foreseeable future.
ReplyDeleteThis typhoon was so devastating to the Philippines, physically and economically. Even before this tragedy occurred, the economy was struggling just to get by and pay for the necessities. But now that this disaster has hit, I can't imagine how 15 billion dollars of damage will settle in the country. It probably took them forever to build up their economy, and within days, it has vanished. It's so sad to think that these natural disasters can cause so much harm.
ReplyDeleteThis natural disaster has set the Philippines years behind economically. 15 billion dollars is a serious set-back to a country already struggling economically. It's crazy to think about how much a natural disaster can destroy a country, especially developing countries like the Philippines. Also when it comes to the U.S.A's involvement in aiding them it should be done, but at a limit since we're in a deficit at the moment.
ReplyDeleteA poor nation like this being wrecked by a natural disaster, it seems like a Haiti v2. 15 billion dollars being taken out of the country will barely place a dent in the economy though as they have U.S.A. funds backing them up along with the United Nations. We're the ones who liberated them, so under our terrible President's logic, I guess we have to pay for a natural disaster affecting them when we still haven't even fixed New Orleans....
ReplyDeleteThe Philippines was already set back economically to begin with. With this natural disaster, clearly, it will take the Visayas much longer to be at a somewhat healthy state. Being from the Philippines, more specifically from the hit region, the typhoon has had a huge impact on my well-being because some of my own family members are suffering. With the help from other countries, the Philippines can hopefully have a somewhat easy recovery.
ReplyDeleteI think this was a good topic relating to economics seeing that the rebuilding efforts in the nation have begun to start. It’s horrible that something as massive as typhoon Haiyan had hit a country where the economy was doing well. Just hearing the 15 billion dollars in damage is insane and the fact that many people lost not only their businesses, but also their families is truly heartbreaking. Watching the Philippines work together and rebuild the country is something that most people should look further into. The economics of how a country comes back from all the money they had lost is a big feat. I do hope the Philippines can work with various other nations and get enough help and financial support to overcome the disaster.
ReplyDeleteIt is very sad to hear what happened to people in the Philippines. It's also sad to hear that there economy was on the rise and then this tragedy struck them. The amount of damage that has happened and the amount of money this is going to cost is a huge number and it will be awhile before the Philippines gets out of this whole. In the end, I believe it might take awhile to dig out of a 15 billion dollar hole, but the Philippines will get through it.
ReplyDeleteThis is a great post Eric. It is very tragic that all this has happened to the Philippines. It's heart breaking that everyone there basically lost everything they owned and all their hard work washed down the drain. The recovery of the Philippines will be long and depressing if the estimated cost of damage is 15 billion dollars plus finding everyone jobs and so on will be something that the Philippines will have to overcome to strive and get back on track.
ReplyDeleteI think the situation of the typhoon in the Philippines is terrible. We see them struggling and even thought we aren't a part of their country, our country is still willing to help out. They are going through things we have experienced before, such as demolishing homes, no food or water, and nowhere to go. There was a lot of damage done during this disaster and we are doing whatever it takes to give donations to help them out to restore their country once again. I really enjoyed this topic and thought you listed a lot of relevant information. Nice job!
ReplyDeleteThis brings up some really interesting points that I had never even thought of. It is awful to think from the economic perspective how much devastation this one storm has/is causing. I never really thought that a boom in one area of economics could occur after an event like this but it does make sense that construction jobs would be on the rise. However, how will people be able to pay to have their homes rebuilt since many are now unemployed and impoverished. I feel like it is going to take a very long time for this economy to bounce back.
ReplyDeleteWhen I was first reading your article, it seemed like there would be no way that the Philippines could recover from such a terrible storm. With the destruction of their main economy export, "cash crops", the economy has no choice but to crumble along with the million of already starving citizens of that country. Although it may not be enough to comeback completely from this treachery, the increase in the work for construction workers at least provides hope in this situation. If the people see that hope from at least some aspect of their country thriving again, that could spark a domino reaction of motivation to get the country back on its feet. Thus, if the construction companies can produce enough positive outcomes in this hardship, maybe the rest of the country will follow.
ReplyDeleteAwesome topic Eric! I haven't read much about this disaster, I've just heard bits and pieces on the news but your statistics really helped me to understand! I hadn't thought of how much construction companies could actually help the economy. It is evident not ever displaced Filipino can work for the construction company but it is a place to start. People would have to go into rebuilding other parts of the economy such as healthcare and food service so while the major cities are being rebuilt the health of the workers is maintained and people are being fed and watered. In Model UN we discussed how much of the aid (in the form of clothing, shoes and other donations) just get piled up on the side of the road. What they really need is money, to recirculate through their economy and to pay construction workers and to run machinery. Cool article!
ReplyDeleteI believe that the Philippines will take a very long time to recover from this natural disaster. 15 billion dollars worth of damage is a lot, especially for an already economically deprived country like the Philippines. This disaster however does give way too opportunity in the Philippines, especially in the construction. But, it must also be taken into notice that there is most likely going to be a lot of volunteer aid and donations to the Philippines, which would set things back and deny the country itself from creating economic growth.
ReplyDeleteI like your topic. It sheds light on something we aren't too familiar with, living in the Midwest. We don't experience the risks of earthquakes, tsunamis, hurricanes, tropical storms, or really even tornadoes. It makes you realize how lucky we are to live in such a stable environment where we haven't really faced any environmental setbacks to our economy.
ReplyDeleteI think your opinions were really accurate in regards to just how completely devastated both the economy, and the people are right now/ Yet in response to the devastation, the people who rebuild the country will be at the same time, rebuilding the economy. I hope that this is the case and that it will bring the country back up to its' feet.
ReplyDeleteIt is very sad in the destruction the typhoon has caused in the Philippines. I agree, however, that the economy should start to boom again while the reconstruction of the country is underway. This will provide many jobs, and have a great start to the rebuilding of the country.
ReplyDeleteObviously natural disasters are terrible tragedies—to the physical, emotional, and economical aspects of a country. Instead of further growing in their striving economy, the country must put all things and hold and contribute all their efforts towards rebuilding their country, thus negatively affecting their economy. And once the physical rebuild is complete, they will still need to rebuild their economy. It’s scary to think that something you have no control over can essentially send your country in a downward spiral. I think other countries can help rebuild the town and buildings, but the country itself will have to work to rebuild its economy.
ReplyDeleteThis topic was crazy to read about. It's amazing how much damage can happen so quickly. I can't even wrap my head around 15 billion dollars worth of damage. That is absolutely insane. This isn't something that you hear about everyday so it is really cool to read about. The economic damage that this will do to the area is so hard to believe.
ReplyDeleteI knew that this typhoon happened, but I didn't quite know the extent of it's devastating disasters. It is crazy how something can destroy an area so easily and we don't even have the ability to control it. I like how instead of just mentioning the terror of the typhoon for the Philippines, you also mentioned the positive outcomes of it all. You are right, though many were out of jobs for quite awhile and the they entire area was destroyed, there is hope. Certain jobs are going to be essential for rebuilding the Philippines and hopefully this will put many back to work. This may be a tragic event especially since their economy was grow prior to the typhoon, this gives us all an opportunity to come together and work together to help those in need. I just fear for their economic stability now
ReplyDeleteThis topic is interesting but horrific to the Filipinos. Before the typhoon the economy was increasing by 6%. Since the economy was doing better it will definitely be a set back for the economy in the Philippines. More unemployment because of the firms and businesses being destroyed. Lack of food because of agriculture being destroyed. Hopefully, the Philippines will improve the economy and be restored.
ReplyDelete15 billion dollars is a crazy amount of damage. I didn't know that the storm caused that much damage, I knew it happened and heard bits and pieces about it, but this is the most I've heard about the damage. It is a really good thing that they didn't lose all of their farming land because even though it isn't a lot of income coming in, it is something for them to try to re-build the economy and country.
ReplyDeleteI think your opinion was right on in regards to just how devastated the economy and people are in the Philippines.When people have to rebuild the cities that were destroyed it will be really good for the economy. Hopefully this increase in jobs will help the economy out a lot.
ReplyDeleteThis is an excellent topic to write about. Not only is it prevalent but it shows the horrific outcomes that such a travesty can have on the economy. What do you do when all businesses and homes have been destroyed? When people are left with nothing. It really is a matter of starting from scratch and building up from there. I do like the way you talked about a positive right at the end, because with this kind of devastation it is hard to see the light at the end of the tunnel - whether generally or economically speaking.
ReplyDeleteVery good choice of topic, and very well written. It's devastating that countless people are now left without a home. The Typhoon affected a wide area, it did miss the country's main commercial and industrial centers. The regions affected is only responsible for 18% of the countries GDP. And i believe all the construction work that is now needed will provide a economic boost in 2014.
ReplyDeleteBefore this typhoon hit the Philippine's their economy was already just barely making it by. Now that this has happened they are found in a really tough situation. Although I think there will be a boost in the economy next year with all of the jobs that are going to be created to reconstruct the country. It will take them awhile to comeback from 15 billion dollars of damage!
ReplyDeleteAfter reading this blog post I feel fortunate to live in a place where weather is not generally an issue. I had no idea that the Philippines are now facing 15 billion dollars in debt...The biggest problem that this country will now face is how to recover land for agriculture. Agriculture is a major part of their economic system and now seems virtually impossible to rebuilt due to the damage of the typhoon. Although the Philippines may experience a demand in need for builders and construction, their economy will not be fixed instantly. It's going to take a really long time to recover from their current debt, especially with the agriculture out of the picture for now.
ReplyDeleteIt's so sad these kind of horrific experiences happen to such innocent people. One of the worse things about this storm hitting the Philippines is that the economy was doing so well and increasing by 6%. It's going to take a long time for the Philippines to recover and hopefully it happens sooner than later. I can't imagine how overwhelmed these people are right now and what they are going through with their families. I believe it’s everyone’s job to help the Philippines out. If this happened to the United States, we would want help from other countries. 15 million will be hard to come up with but with the volunteer work and organizations that is already helping, hopefully it won't be too long!
ReplyDeleteIt is hard to believe that so much destruction could happen in one little area and ultimately cost so much. This typhoon occurred in just a little time yet the economy will suffer as a whole. Other countries who relied on them for imports will also be negatively affected through this whole mess. It will be hard to come out of this economic downfall when they were doing so well in the past. Hopefully this new construction will in fact cause a boom but it is hard when essentially “starting from scratch.”
ReplyDeleteWhile I agree that construction projects will help the Filipino economy, I don't think it could possibly result in there being a boom in the economy. We're talking about 1/3rd of all arable land in the Philippines being destroyed, as you mentioned before, this land was used to grow the country's cash crops and so I don't believe that the revenue created by the construction boom would create enough money to not only offset the damage done, but also generate extra revenue. All in all, this part was well written though.
ReplyDeleteThis is so interesting because someone I work with had just came back from the Philippians and was in complete shock that this had happened. Like many people have already said their economy wasn't to great to start with in the beginning it still is causing a big impact on the economy now. And like you had stated that the land destroyed was used to grow the countries main crops that will definitely effect the economy majorly.
ReplyDeleteJust like with other countries and their natural disasters, helping out in this situation was the right thing to do. A country who has been devastated by such a terrible occurrence has almost no way to rebuild due to their resources being destroyed and their economy crumbling. It's hard enough to recover from something like this, but recovering from something when one's economy is already struggling in near impossible.
ReplyDeleteAs you ended your blog, it was interesting to see that there may be a positive thing that will happen to the economy during such a dreadful time. They are suffering, and there is almost nothing that seems good about the situation. My friend has family in the Philippines, and it was really hard for her and the rest of her family to not even know if they were alive there or not because there was so much chaos and unknown happening. Entire areas were knocked out, and there is so much decimation, it is hard to see the goodness in it all. Perhaps you are right though Eric, and there will be good, and economic good that will prevail. There is hope.
ReplyDelete