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Philippine Poverty
Leland Joseph R. Dela CruzDevelopment Studies Program
School of Social SciencesAteneo de Manila University
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Outline of the Presentation
1. Poverty Measurements2. Causes of Poverty3. Poverty Sectors
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Outline of the Presentation
1. Poverty Measurementsa. Income Measuresb. Perception-based Measuresc. Basic Needs Measures
2. Causes of Poverty3. Poverty Sectors
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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.
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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)
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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
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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
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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).
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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%
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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%
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Poverty trends NSCB
0
5
10
15
20
25
30
35
Families Individuals
200020032006
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Philippine Poverty Incidence: Families (Percentage) NSCB
0
5
10
15
20
25
30
35
40
45
1988 1991 1994 1997 2000 2003
%
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Philippine Poverty Incidence: Individuals (Percentage) NSCB
0
10
20
30
40
50
60
1988 1991 1994 1997 2000 2003
%
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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
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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%
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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%
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Self-Rated Poverty SWS
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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
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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%
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Informal Settlers
Insecure living conditions• Insecure land tenure• Cramped living conditions
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Informal Settlers
Inadequate ShelterInappropriate Living Conditions
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Outline of the Presentation
1. Poverty Measurementsa. Income Measuresb. Perception-based Measuresc. Basic Needs Measures
2. Causes of Poverty3. Poverty Sectors
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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
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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
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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
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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
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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
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Income Distribution
0
510
1520
25
3035
40
% o
f In
com
e
1st to 7th 8th 9th 10th
Decile
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Income Distribution
0
10
20
30
40
50
60
% o
f In
com
e
1st to 8th 9th to 10th
Decile
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Unequal Asset Distribution: Land Distribution
449 Landowners
30 Landowners
50% of land area
50% of land area
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Land Distribution
449 Landowners50% of
land area
25% of land area
25% of land area
29 Landowners
1 Landowner
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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
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Inflation: Rice Prices
20
25
30
35
40
45
Janu
ary
Febr
uary
Mar
chAp
rilMay
June Ju
ly
Rice Prices perkilo
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Self-Rated Hunger
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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
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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
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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
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National Achievement Test Scores Elementary Average: 59.94% High School Average: 46.64%
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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)
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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
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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
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Child Delivery Attendants (2003, NDHS)
0
10
20
30
40
50
60
Doctor Nurse Midwife Hilot Others
UrbanRuralPhil.
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Child Delivery Attendants by Income Quintiles (2003,
NDHS)
0
10
20
30
40
50
60
70
80
Doctor Nurse Midwife Hilot Others
LowestSecondThirdFourthFifth
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Location of Child Delivery (2003, NDHS)
0
10
20
30
40
50
60
70
80
Govt Hospital Private Hospital Home
UrbanRuralPhil.
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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
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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
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More than 8 million Filipinos are working in other countries
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Destination of Overseas Filipino Workers
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Destination of Overseas Filipino Workers
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Employment Abroad
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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
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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
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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
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Indigenous Peoples Official estimates
at 12 million Filipinos
A large proportion are in Mindanao, Cordillera Autonomous Region
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Indigenous People Threats to
Land Tenure Lack of
access to basic services
Internal Displacement
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Fisherfolk Environment
al Degradation
Competition from Commercial Fishermen
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Fisherfolk Access to Credit Access to Markets
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Microentrepreneurs Access to
Credit Access to
Markets Harassment
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Laborers Contractualizati
on Violations of
Labor Standards Working
conditions Payment
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Small owner cultivators Access to credit Access to markets
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Outline of the Presentation
1. Poverty Measurements2. Causes of Poverty3. Poverty Sectors
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Philippine Poverty
Leland Joseph R. Dela CruzDirector, Development Studies
ProgramAteneo de Manila University