Philippine Poverty

Leland Joseph R. Dela CruzDevelopment Studies Program

School of Social SciencesAteneo de Manila University

Outline of the Presentation

1. Poverty Measurements2. Causes of Poverty3. Poverty Sectors

Outline of the Presentation

1. Poverty Measurementsa. Income Measuresb. Perception-based Measuresc. Basic Needs Measures

2. Causes of Poverty3. 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?1. The government constructs a menu per

region that satisfies basic nutritional requirements. The government computes for the cost of that menu. (ex. P43, Y104)

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. P43 / 66% = P65, Y157)

What is the NCR poverty line (2008)?

P328.77Y798.20

Family/ day*

P10,000.00Y24, 278.75

Family/ month

P120,000.00Y291,345

Family/ year*

P65.76Y159.64

Individual/ day*

P2,000.00Y4,855.75

Individual/ month*

P24,000.00Y58,269.00

Individual/ year*

*Unofficial, self-computed

What is the Philippine poverty line (2006)?

P206.29Y500.78

Family/ day*

P6,273.99Y15,232.08

Family/ month*

P75,287.85Y182,785.00

Family/ year*

P41.26Y100.15

Individual/ day*

P1,254.80Y3,046.41

Individual/ month*

P15,057.57Y36,557.00

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

P15,057.57 a year (Y36,557), P1,254.80 a month (Y3,046) and P41.26 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), P6,273.99 a month (Y15,232.08) and P206.29 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

0

5

10

15

20

25

30

35

Families Individuals

200020032006

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

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 0.743Philippine data: UNDP, 2004 as cited in Wikipedia

Self-Rated Poverty Pulse-Asia

June 2004

October2004

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

October2004

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 needsIndicator % 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 ShelterInappropriate Living Conditions

Outline of the Presentation

1. Poverty Measurementsa. Income Measuresb. Perception-based Measuresc. Basic Needs Measures

2. Causes of Poverty3. Poverty Sectors

Outline of the Presentation1. Poverty Measurements2. Causes of Poverty

a. Inequalityb. Inflationc. Weak Human Capitald. Absence of Employment Opportunitiese. Weak Agricultural Sectorf. Poor Governance

3. Poverty Sectors

Outline of the Presentation1. Poverty Measurements2. Causes of Poverty

a. Inequalityb. Inflationc. Weak Human Capitald. Absence of Employment Opportunitiese. Weak Agricultural Sectorf. Poor Governance

3. Poverty Sectors

The Economy Has Been Growing

-1

0

1

2

3

4

5

6

7

8

91

99

7

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

GD

P/ G

NP

Gro

wth

Ra

tes

GROSSDOMESTICPRODUCT GROSSNATIONALPRODUCT

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

1.9 3 3.8 4.7 5.87.1 9

11.816.8

36

0

5

10

15

20

25

30

35

40

% o

f In

com

e

1st 3rd 5th 7th 9th

Decile

Income Distribution

0

510

1520

25

3035

40

% o

f In

com

e

1st to 7th 8th 9th 10th

Decile

Income Distribution

0

10

20

30

40

50

60

% o

f In

com

e

1st to 8th 9th to 10th

Decile

Unequal Asset Distribution: Land Distribution

449 Landowners

30 Landowners

50% of land area

50% of land area

Land Distribution

449 Landowners50% of

land area

25% of land area

25% of land area

29 Landowners

1 Landowner

Outline of the Presentation1. Poverty Measurements

2. Causes of Povertya. Inequality

b. Inflationc. Weak Human Capital

Education Health

d. Absence of Employment Opportunitiese. Weak Agricultural Sectorf. Poor Governance

3. Poverty Sectors

Inflation: Rice Prices

20

25

30

35

40

45

Janu

ary

Febr

uary

Mar

chAp

rilMay

June Ju

ly

Rice Prices perkilo

Self-Rated Hunger

Outline of the Presentation1. Poverty Measurements

2. Causes of Povertya. Inequalityb. Inflation

c. Weak Human Capital Education Health

d. Absence of Employment Opportunitiese. Weak Agricultural Sectorf. Poor Governance

3. Poverty Sectors

Inadequacies at the Elementary Level

Source: Basic Education Information System, DepEd

SEATS NEEDED PUPILS PER TEACHER RATIO

CLASSROOMS NEEDED TO ACHIEVE 40 STUDENTS

PER CLASS RATIO Quezon City 101,317 Antipolo City 61.86 Quezon City 3,377 Kalookan 82,413 San Jose del Monte 60.00 Kalookan 2,244 Lanao del Sur 1 73,472 Las Pinas 53.74 Rizal 1,533 Manila 73,180 Maguindanao 52.92 Cavite 1,434 Maguindanao 69,934 Bayawan City 51.31 Manila 1,422 Camarines Sur 64,688 Muntinlupa 50.93 Antipolo City 1,193 Iloilo 57,128 Talisay City 50.17 Mal/Navotas 1,078 Davao City 53,885 Kalookan 49.30 Taguig/Pateros 996 Cavite 53,101 Rizal 47.87 Las Pinas 882 Bukidnon 48,771 Lapu-Lapu City 47.33 Maguindanao 808

SEATS NEEDED PUPILS PER TEACHER RATIO

CLASSROOMS NEEDED TO ACHIEVE 40 STUDENDS

PER CLASS RATIO Quezon City 62,749 Bayawan City 79.60 Quezon City 1,660 Iloilo 46,812 Antipolo City 77.58 Cavite 1,570 Rizal 43,305 Talisay City 77.05 Bulacan 1,107 Davao City 41,018 Danao City 76.07 Kalookan 1,093 Cavite 40,064 Lanao del Sur 1 72.34 Rizal 1,071 Cebu 39,877 Marawi 65.08 Laguna 1,043 Quezon 37,973 Lanao del Sur 2 61.56 Cebu 1,003 Manila 34,488 Sn Jose del Monte 59.32 Davao 997 Bulacan 34,160 Tanjay City 59.32 Pampanga 706 Camarines Sur 33,405 Cagayan de Oro 55.13 Quezon 697

Inadequacies at theSecondary Level

Source: Basic Education Information System, DepEd

National Achievement Test Scores Elementary Average: 59.94% High School Average: 46.64%

Third International Math and Science Survey Grade 4 Test: Philippines ranked 3rd

lowest among 25 countries (Japan ranked 3rd highest behind Singapore and Hong Kong)

Grade 8 Test: Philippines ranked 6th lowest among 45 countries (Japan ranked 5th highest behind Singapore, Korea, Hong Kong and Taiwan)

Outline of the Presentation1. Poverty Measurements

2. Causes of Povertya. Inequalityb. Inflation

c. Weak Human Capital Education Health

d. Absence of Employment Opportunitiese. Weak Agricultural Sectorf. Poor Governance

3. Poverty Sectors

Health Personnel by Location

Rural Urban

Midwives ~30% ~60%

Nurses ~20% ~80%

Dentists ~10% ~90%

Doctors62% migrate to other countries

~10% ~90%

Source: Dr. Merceditas Santos-Tuano, former Executive Director, Healthdev Institute

Child Delivery Attendants (2003, NDHS)

0

10

20

30

40

50

60

Doctor Nurse Midwife Hilot Others

UrbanRuralPhil.

Child Delivery Attendants by Income Quintiles (2003,

NDHS)

0

10

20

30

40

50

60

70

80

Doctor Nurse Midwife Hilot Others

LowestSecondThirdFourthFifth

Location of Child Delivery (2003, NDHS)

0

10

20

30

40

50

60

70

80

Govt Hospital Private Hospital Home

UrbanRuralPhil.

Location of Child Delivery by Income Quintile (2003, NDHS)

0

10

20

30

40

50

60

70

80

90

Govt Hospital Private Hospital Home

LowestSecondThirdFourthFifth

Outline of the Presentation1. Poverty Measurements

2. Causes of Povertya. Inequalityb. Inflationc. Weak Human Capital

Education Health

d. Absence of Employment Opportunities

e. Weak Agricultural Sectorf. Poor Governance

3. Poverty Sectors

More than 8 million Filipinos are working in other countries

Destination of Overseas Filipino Workers

Destination of Overseas Filipino Workers

Employment Abroad

Outline of the Presentation1. Poverty Measurements

2. Causes of Povertya. Inequalityb. Inflationc. Weak Human Capital

Education Health

d. Absence of Employment Opportunities

e. Weak Agricultural Sectorf. Poor Governance

3. Poverty Sectors

Outline of the Presentation1. Poverty Measurements2. Causes of Poverty

a. Inequalityb. Weak Human Capital

Education Health

c. Absence of Employment Opportunitiesd. Weak Agricultural Sectore. Poor Governance

3. Poverty Sectorsa) Landless Rural Workersb) Indigenous Peoplec) Fisherfolkd) Small Farmerse) Microentrepreneursf) Laborers

Landless Rural Farmers

No productive assets of their ownForced to sell their labor to work on other people’s farmsLand reform has not really helped

Indigenous Peoples Official estimates

at 12 million Filipinos

A large proportion are in Mindanao, Cordillera Autonomous Region

Indigenous People Threats to

Land Tenure Lack of

access to basic services

Internal Displacement

Fisherfolk Environment

al Degradation

Competition from Commercial Fishermen

Fisherfolk Access to Credit Access to Markets

Microentrepreneurs Access to

Credit Access to

Markets Harassment

Laborers Contractualizati

on Violations of

Labor Standards Working

conditions Payment

Small owner cultivators Access to credit Access to markets

Outline of the Presentation

1. Poverty Measurements2. Causes of Poverty3. Poverty Sectors

Philippine Poverty

Leland Joseph R. Dela CruzDirector, Development Studies

ProgramAteneo de Manila University