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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!