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The World Bank, 1995
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More than one third of Philippine households still have incomebelow the poverty line
Slow progress primarily reflects Inadequate and unsteady overall economic growth
the inheritance of an historic policy bias in favor of capital-intensive
inward-oriented development
continued uneven distribution of income and assets
insufficient investment in human capital development
limited success of 'safety net" programs
And during that time Poverty is overwhelmingly a rural problem.Over half the rural population is poor, accounting for nearlytwo thirds of the countrys total
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more than 1/3 of Philippine households are poor
2/3 of the poor are engaged in the agricultural, fishery, and forestrysector and have an elementary school education or less.
In rural areas, 68% of the population live in poverty Lowland landless agricultural workers, tenants, and leaseholders
Lowland small farmers cultivators
Upland farmers on heavily sloped land
Artisan fisher folk
While, only 34% of the urban citizens are poor
Laborers with insecure job and low pay hawkers, peddlers, micro entrepreneurs, and scavengers
Since 1971, the urban poor have become a rising share of the totalpoor population. But still, 2/3 of the poor live in rural areas.
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Region
Head Count Ratio Poverty Gap
Poverty Gap
Squared
Rural Urban Total Rural Urban Total Rural Urban TotalNational Capital Region 15.4 15.4 3.2 3.2 1 1
Ilocos 63.6 57.2 61 21.4 20.8 21.2 9.3 9.3 9.3
Cagayan Valley 62.7 44.7 58.2 21.9 14.3 20 10.1 6.2 9.1
Central Luzon 51.1 29.2 38.4 14.7 7.6 10.6 5.6 2.8 4
Southern. Tagalog 66.3 32.4 48.8 24.2 9.2 16.5 11.2 3.7 7.3Bicol 73.1 55.8 67.9 27 19.9 24.9 12.5 9.2 11.5
Western Visayas 62.2 37.8 52.7 20.2 10.6 16.5 8.6 4.1 6.9
Central Visayas 74.1 37.5 57.7 28.8 13 21.7 13.9 6.1 10.4
Eastern Visayas 64.2 45.8 58.6 22.3 15.1 20.1 10 6.7 9
Western Mindanao 71.3 42.2 61.3 28.2 14.3 23.4 14 6.2 11.3
Nor thern Mindanao 75.6 50.8 64.4 32.1 18.3 25.8 16.2 8.7 12.8
Southern Mindanao 70.6 47.3 59.7 27.7 15.8 22.1 13.5 7 10.5
Central Mindanao 70.3 53.1 63.9 26 18.4 23.1 11.8 8 10.4
Cordillera Administrative
Region 60.8 23.1 49.1 22.5 5.7 17.3 10.6 1.9 7.9
Philippines 67.8 34.2 49.7 24.1 10.2 17 11.1 4.3 7.7Source: Staff calculations from FIES 1991 data tapes.
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The depth of poverty is nearly 2
times larger in rural areas as in urban areas.
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Rural poverty varies greatlyacross the country. Its incidence ishighest in IFUGAO, MISAMISOCCIDENTAL, MASBATE, andROMBLON, in which over half of
rural families survived on lessthan P20,000 in 1991.
But the greatest numbers of thepoorest rural families areconcentrated in NEGROSOCCIDENTAL, ILOILO, LEYTE,
and CEBU, each of which hashome to 3.5 percent of more ofthe nations poorest ruralfamilies.
IFUGAO
MISAMISOCCIDENTAL
MASBATEROMBLON
NEGROS
OCCIDENTAL
ILOILO LEYTE
CEBU
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The proportion of the urban
population living with incomes
less than the official poverty
line is highest in MINDANAO.
However, extreme poverty is
more prevalent in BICOL and
the VISAYAS, which are also
the areas where there are the
greatest numbers or poorurban dwellers.
MINDANAO
BICOL
VISAYAS
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The Rural Poor
Due to land shortages and dearth of off-farm rural
opportunities, it cause incidence of poverty among landless
agricultural workers and farmers cultivating small plots The incidence of poverty has also been high for families whose
income depend mainly on fishing
Overall rural poverty is more prevalent in those geographic
areas where droughts and typhoons are more frequent
The rural poor also suffer from inadequate access to land,
modern technology, non-agricultural sources of income, and
social services, including health care and family planning
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The Urban Poor
Inadequate housing and transport
Unsafe and inadequate water supply
Inadequate disposal of human and solid waste
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Continuing the strong focus on economic growth, driven by opennessand competitiveness and accompanied by macroeconomics stability
Improving access to the means of production by the rural poor byfocusing rural land reform, promoting tenancy reforms and market
assisted land reforms, and ensuring the essential investments in ruralinfrastructure and improvements of agricultural extension servicesnecessary to raise productivity and thus, incomes.
Addressing the scarcity of affordable urban housing and threats toenvironmental health in urban areas by considering a program ofurban reform and extending water and sanitation services to poorurban areas, while slashing public spending on housing (which doesnot reach the truly poor)
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Thank You!