Philippine Poverty Situationer 2008

Philippine Poverty Leland Joseph R. Dela Cruz Development Studies Program School of Social Sciences Ateneo de Manila University

Outline of the Presentation
Poverty Measurements
Causes of Poverty
Poverty Sectors

Income Measures
Perception-based Measures
Basic Needs Measures
Causes of Poverty
Poverty Sectors

When is a person considered poor?
A poor person is someone who earns income below the official poverty line or poverty threshold.
The poverty line measures the income needed to obtain basic and non-basic needs for one year.

How does the government compute for the poverty line?
The government constructs a menu per region that satisfies basic nutritional requirements. The government computes for the cost of that menu. (ex. P43, Y104)
The government computes for the proportion of income that is budgeted for food using survey data. (ex. 66%)
The figure obtained in #1 is divided by the figure obtained in #2. (ex. P43 / 66% = P65, Y157)

What is the NCR poverty line (2008)? P328.77 Y798.20 Family/ day* P10,000.00 Y24, 278.75 Family/ month P120,000.00 Y291,345 Family/ year* P65.76 Y159.64 Individual/ day* P2,000.00 Y4,855.75 Individual/ month* P24,000.00 Y58,269.00 Individual/ year* *Unofficial, self-computed

What is the Philippine poverty line (2006)? P206.29 Y500.78 Family/ day* P6,273.99 Y15,232.08 Family/ month* P75,287.85 Y182,785.00 Family/ year* P41.26 Y100.15 Individual/ day* P1,254.80 Y3,046.41 Individual/ month* P15,057.57 Y36,557.00 Individual/ year NSCB *Unofficial, self-computed

Poverty incidence 2006, NSCB
32.9% or 27.6 million Filipinos are poor.
32.9% of Filipinos earn less than P 15,057.57 a year (Y36,557), P 1,254.80 a month (Y3,046) and P 41.26 a day (Y100.15).
26.9% or 4.6 million Filipino families are poor.
26.9% of families earn less than P75,287.85 a year (Y182,705), P 6,273.99 a month (Y15,232.08) and P 206.29 a day (Y500.78).

Poorest Provinces (2006) NSCB Poverty Incidence Tawi-Tawi, Mindanao 78.9% Zamboanga del Norte, Mindanao 63.0% Maguindanao, Mindanao 62.0% Apayao, Northern Luzon 57.5% Surigao del Norte, Mindanao 53.2% Lanao del Sur, Mindanao 52.5% Northern Samar, Visayas 52.2% Masbate, Southern Luzon 51.0% Abra, Northern Luzon 50.1% Misamis Occidental, Mindanao 48.8%

Least Poor Provinces (2006) NSCB Poverty Incidence Batanes, Northern Luzon 0% Rizal, Adjacent to NCR 6.4% Bataan, Luzon 6.8% Cavite, Adjacent to NCR 7.8% Benguet, Luzon 8.2% Pampanga, Adjacent to NCR 8.3% Bulacan, Adjacent to NCR 10.0% Laguna, Adjacent to NCR 10.6% Nueva Vizcaya, Luzon 12.7% Quirino, Luzon 15.9%

Poverty trends NSCB

Philippine Poverty Incidence: Families (Percentage) NSCB 0 5 10 15 20 25 30 35 40 45 1988 1991 1994 1997 2000 2003 %

Philippine Poverty Incidence: Individuals (Percentage) NSCB 0 10 20 30 40 50 60 1988 1991 1994 1997 2000 2003 %

Gini Coefficient Philippine data: UNDP, 2004 as cited in Wikipedia Country Gini ratio Country Gini ratio Denmark 0.247 Hong Kong 0.434 Japan 0.249 Philippines 0.445 Italy 0.360 Mexico 0.461 India 0.368 Guatemala 0.551 U.S.A. 0.408 Namibia 0.743

Self-Rated Poverty Pulse-Asia June 2004 October 2004 March 2005 Philippines 70% 70% 70% Class ABC 37% 21% 35% Class D 68% 68% 69% Class E 84% 87% 82%

Self-Rated Poverty Pulse-Asia June 2004 October 2004 March 2005 NCR 52% 41% 48% Luzon 69% 69% 66% Visayas 71% 82% 80% Mindanao 80% 79% 81% Rural 73% 83% 82% Urban 66% 57% 58%

Self-Rated Poverty SWS

Summary Official Statistics Perception-based measure Poverty Incidence 25% 50-70% Poverty threshold P6,273.99 (Y15,232) a month P10,000 (Y26,623) a month

Access to basic needs Indicator % of population With access to safe drinking water 80.2% With sanitary toilet 86.2% With access to electricity 79.7% With own house and lot 64.9% With children 6-12 years old in elementary 91.2% With children 13-16 years old in high school 36.1%

Informal Settlers
Insecure living conditions
Insecure land tenure
Cramped living conditions

Informal Settlers
Inadequate Shelter
Inappropriate Living Conditions

Income Measures
Perception-based Measures
Basic Needs Measures
Causes of Poverty
Poverty Sectors

Causes of Poverty
Inequality
Inflation
Weak Human Capital
Absence of Employment Opportunities
Weak Agricultural Sector
Poor Governance
Poverty Sectors

The Economy Has Been Growing

The Economy Has Been Growing
But poverty has not substantially decreased
This may be due to unequal benefits from economic growth
Unequal incomes
Unequal assets

Income Distribution 2006, NSO

Income Distribution

Unequal Asset Distribution: Land Distribution 449 Landowners 30 Landowners 50% of land area 50% of land area

Land Distribution 449 Landowners 50% of land area 25% of land area 25% of land area 29 Landowners 1 Landowner