Philippine poverty situationer 2010

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Philippine poverty situationer 2010

  1. 1. Poverty as Income Deprivation Leland Joseph R. Dela Cruz Director Development Studies Program School of Social Sciences Ateneo de Manila University ldelacruz@ateneo.edu Updated June 13, 2010
  2. 2. When is a person considered poor? NSCB The poor refers to individuals and families whose income falls below the poverty threshold and/ or those that cannot afford in a sustained manner to provide their basic needs. The poverty threshold refers to the minimum income/ expenditure required for a family/ individual to meet the basic food/ non-food requirements (clothing and footwear; fuel, light, and water; housing maintenance and other minor repairs; rentals or occupied dwelling units; medical care; education; transportation and communications; non- durable furnishing; household operations; and personal care and effects
  3. 3. How does the government compute for the poverty line? 1. The government constructs a menu per region that satisfies basic nutritional requirements. The government computes for the cost of that menu. (ex. P43) 2. The government computes for the proportion of income that is budgeted for food using survey data. (ex. 66%) 3. The figure obtained in #1 is divided by the figure obtained in #2. (ex. P27 / 66% = P65)
  4. 4. Food Threshold  Also referred to as the subsistence threshold or the food poverty line  Refers to the minimum income/expenditure required for a family/individual to meet the basic food needs, which satisfies the nutritional requirements for economically necessary and socially desirable physical activities (Virola, 2008, NSCB website)
  5. 5. Poverty Threshold/ Line  Refers to the cost of minimum basic needs: food + non-food  Refers to the minimum income/expenditure required for a family/individual to meet the basic food and non-food requirements
  6. 6. What is the NCR poverty line (2008)? Individual/ year* P24,000.00 427 Euro, 3,355 Krone, 47,346 Yen Individual/ month* P2,000.00 35 Euro, 279 Krone, 3,945 Yen Individual/ day* P65.76 1. Euro, 9.20 Krone, 129.73 Yen Family/ year* P120,000.00 2,135 Euro, 16,779 Krone, 236,733 Yen P10,000.00 Family/ month 178 Euro, 1,398 Krone, 19,728 Yen Family/ day* P328.77 6 Euro, 46 Krone, 649 Yen *Unofficial, self-computed
  7. 7. What is the Philippine poverty line (2006)? Individual/ year P15,057.57 NSCB 268 Euro, 2106 Krone, 29705 Yen Individual/ month* P1,254.80 22 Euro, 175 Krone, 2475 Yen Individual/ day* P41.26 0.73 Euro, 5.77 Krone, 81.40 Yen Family/ year* P75,287.85 1,340 Euro, 10528 Krone, 148526 Yen Family/ month* P6,273.99 112 Euro, 877 Krone, 12,377 Yen Family/ day* P206.29 4 Euro, 29 Krone, 408 Yen *Unofficial, self-computed
  8. 8. Regional poverty lines 2006, NSCB Region Threshold Region Threshold NCR P20,566 VIII P13,974 I P15,956 IX P13,219 II P13,791 X P14,199 III P17,298 XI P14,942 IV-A P17,761 XII P14,225 IV-B P14,800 CAR P16,810 V P15,015 ARMM P15,533 VI P14,405 CARAGA P15,249 VII P13,390
  9. 9. Poverty incidence 2006, NSCB  32.9% or 27.6 million Filipinos are poor.  32.9% of Filipinos earn less than P15,057.57 a year, P1,254.80 a month and P41.26 a day.  26.9% or 4.6 million Filipino families are poor.  26.9% of families earn less than P75,287.85 a year, P6,273.99 a month and P206.29 a day.
  10. 10. Regional poverty incidence (Individual) 2006, NSCB Poverty Poverty Region Region Incidence Incidence NCR 10.40% VIII 48.50% I 32.70% IX 45.30% II 25.50% X 43.10% III 20.70% XI 36.60% IV-A 20.90% XII 40.80% IV-B 52.70% CAR 34.50% V 51.10% ARMM 61.80% VI 38.60% CARAGA 52.60% VII 35.40%
  11. 11. Regional poverty incidence (Individual) 2006, NSCB Region N* % of total Region N* % of total NCR 0.8M 4% VIII 1.6M 7% I 1.4M 5% IX 1.2M 5% II 0.8M 2% X 1.5M 6% III 1.6M 6% XI 1.2M 5% IV-A 1.6M 8% XII 1.5M 5% IV-B 1.0M 5% CAR 0.5M 1% V 2.5M 9% ARMM 1.6M 6% VI 2.7M 9% CARAGA 1.0M 4% VII 2.0M 8% * Percentages are unofficial, self-computed
  12. 12. Poorest Provinces (2006) NSCB Poverty Incidence Tawi-Tawi 78.9% Zamboanga del Norte 63.0% Maguindanao 62.0% Apayao 57.5% Surigao del Norte 53.2% Lanao del Sur 52.5% Northern Samar 52.2% Masbate 51.0% Abra 50.1% Misamis Occidental 48.8%
  13. 13. Least Poor Provinces (2006) NSCB Poverty Incidence Batanes 0% Rizal 6.4% Bataan 6.8% Cavite 7.8% Benguet 8.2% Pampanga 8.3% Bulacan 10.0% Laguna 10.6% Nueva Vizcaya 12.7% Quirino 15.9%
  14. 14. Poverty trends NSCB 35 30 25 20 2000 15 2003 2006 10 5 0 Families Individuals
  15. 15. Philippine Poverty Incidence: Families (Percentage) NSCB 45 40 35 30 25 20 15 10 5 0 1988 1991 1994 1997 2000 2003
  16. 16. Philippine Poverty Incidence: Individuals (Percentage) NSCB 60 50 40 % 30 20 10 0 1988 1991 1994 1997 2000 2003
  17. 17. Income Gap (2006) NSCB Region Income Gap Region Income Gap NCR 21.6% VIII 30.9% I 25.2% IX 35.7% II 23.5% X 33.4% III 23.4% XI 30.0% IV-A 24.5% XII 28.1% IV-B 32.5% CAR 32.1% V 30.1% ARMM 29.3% VI 26.6% CARAGA 34.4% VII 29.5%
  18. 18. Average family income, expenditures and savings per decile 2006, NSO Avg. Annual Avg. Avg. Savings Avg. Monthly Income Expenditures Income Phil 173,000 147,000 25,000 14,416 Poorest 10% 32,000 35,000 -3,000 2,666 2nd decile 51,000 52,000 -2,000 4,250 3rd decile 65,000 66,000 Less than 500 5,417 4th decile 81,000 79,000 2,000 6,750 5th decile 100,000 95,000 5,000 8,333 6th decile 124,000 116,000 7,000 10,333 7th decile 156,000 143,000 13,000 13,000 8th decile 205,000 181,000 23,000 17,083 9th decile 292,000 244,000 46,000 24,333 Richest 10% 622,000 460,000 156,000 51,833
  19. 19. Income Distribution 2006, NSO 40 36 35 30 % of Income 25 16.8 20 11.8 15 9 7.1 10 1.9 3 3.8 4.7 5.8 5 0 1st 3rd 5th 7th 9th Decile
  20. 20. Income Distribution 40 35 30 % of Income 25 20 15 10 5 0 1st to 7th 8th 9th 10th Decile
  21. 21. Income Distribution 60 50 % of Income 40 30 20 10 0 1st to 8th 9th to 10th Decile
  22. 22. Gini Coefficient Country Gini ratio Country Gini ratio Denmark 0.247 U.S.A. 0.408 Japan 0.249 Thailand 0.425 Norway 0.258 Philippines 0.445 France 0.327 Brazil 0.550 Malaysia 0.379 Namibia 0.743 UNDP.org, 2007 data
  23. 23. Self-Rated Poverty Pulse-Asia June October March 2004 2004 2005 Philippines 70% 70% 70% Class ABC 37% 21% 35% Class D 68% 68% 69% Class E 84% 87% 82%
  24. 24. Self-Rated Poverty Pulse-Asia June October March 2004 2004 2005 NCR 52% 41% 48% Luzon 69% 69% 66% Visayas 71% 82% 80% Mindanao 80% 79% 81% Urban 66% 57% 58% Rural 73% 83% 82%
  25. 25. Self-Rated Poverty SWS
  26. 26. Summary Official Perception- Statistics based measure Poverty 26.9% 50-70% Incidence Poverty P6,273 a P12,000 a threshold month month (NCR)
  27. 27. Data Sources  NSCB: www.nscb.gov.ph: poverty statistics  NSO: www.census.gov.ph: income and poverty statistics (FIES final report, Table 4A)  UNDP: undp.org  Pulse-Asia: Public Perceptions on Poverty. CD obtained directly from Pulse-Asia  SWS: www.sws.org.ph
  28. 28. Poverty as Income Deprivation Leland Joseph R. Dela Cruz Director Development Studies Program School of Social Sciences Ateneo de Manila University ldelacruz@ateneo.edu

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