Philippine Poverty

1. Philippine Poverty Leland Joseph R. Dela Cruz Development Studies Program School of Social Sciences Ateneo de Manila University

2. Outline of the Presentation • Poverty Measurements • Causes of Poverty • Poverty Sectors

3. Outline of the Presentation • Poverty Measurements • Income Measures • Perception-based Measures • Basic Needs Measures • Causes of Poverty • Poverty Sectors

4. 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.

5. How does the government compute for the poverty line? The government constructs a menu per region that satisfies basic nutritional requirements. The government computes for the cost of that menu. (ex. P43, Y104) The government computes for the proportion of income that is budgeted for food using survey data. (ex. 66%) The figure obtained in #1 is divided by the figure obtained in #2. (ex. P43 / 66% = P65, Y157)

6. What is the NCR poverty line (2008)? Individual/ year* P24,000.00 Y58,269.00 Individual/ month* P2,000.00 Y4,855.75 Individual/ day* P65.76 Y159.64 Family/ year* P120,000.00 Y291,345 Family/ month P10,000.00 Y24, 278.75 Family/ day* P328.77 Y798.20 *Unofficial, self-computed

7. What is the Philippine poverty line (2006)? Individual/ year NSCB P15,057.57 Y36,557.00 Individual/ month* P1,254.80 Y3,046.41 Individual/ day* P41.26 Y100.15 Family/ year* P75,287.85 Y182,785.00 Family/ month* P6,273.99 Y15,232.08 Family/ day* P206.29 Y500.78 *Unofficial, self-computed

8. 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).

9. Poorest Provinces (2006) NSCB

10. Least Poor Provinces (2006) NSCB

11. Poverty trends NSCB

12. Philippine Poverty Incidence: Families (Percentage) NSCB 45 40 35 30 25 % 20 15 10 5 0 1988 1991 1994 1997 2000 2003

13. Philippine Poverty Incidence: Individuals (Percentage) NSCB 60 50 40 % 30 20 10 0 1988 1991 1994 1997 2000 2003

14. Gini Coefficient Philippine data: UNDP, 2004 as cited in Wikipedia

15. Self-Rated Poverty Pulse-Asia

16. Self-Rated Poverty Pulse-Asia

17. Self-Rated Poverty SWS

18. Summary

19. Access to basic needs

20. Informal Settlers Insecure living conditions Insecure land tenure Cramped living conditions

21. Informal Settlers Inadequate Shelter Inappropriate Living Conditions

22. Outline of the Presentation • Poverty Measurements • Income Measures • Perception-based Measures • Basic Needs Measures • Causes of Poverty • Poverty Sectors

23. Outline of the Presentation • Poverty Measurements • Causes of Poverty • Inequality • Inflation • Weak Human Capital • Absence of Employment Opportunities • Weak Agricultural Sector • Poor Governance • Poverty Sectors

24. Outline of the Presentation • Poverty Measurements • Causes of Poverty • Inequality • Inflation • Weak Human Capital • Absence of Employment Opportunities • Weak Agricultural Sector • Poor Governance • Poverty Sectors

25. The Economy Has Been Growing

26. 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

27. Income Distribution 2006,NSO

28. Income Distribution

29. Income Distribution

30. Unequal Asset Distribution: Land Distribution 50% of land area 449 Landowners 30 Landowners 50% of land area

31. Land Distribution 50% of land area 449 Landowners 29 Landowners 25% of land area 1 Landowner 25% of land area

32. Outline of the Presentation • Poverty Measurements • Causes of Poverty • Inequality • Inflation • Weak Human Capital • Education • Health • Absence of Employment Opportunities • Weak Agricultural Sector • Poor Governance • Poverty Sectors

33. Inflation: Rice Prices

34. Self-Rated Hunger

35. Outline of the Presentation • Poverty Measurements • Causes of Poverty • Inequality • Inflation • Weak Human Capital • Education • Health • Absence of Employment Opportunities • Weak Agricultural Sector • Poor Governance • Poverty Sectors

36. Inadequacies at the Elementary Level Source: Basic Education Information System, DepEd

37. Inadequacies at the Secondary Level Source: Basic Education Information System, DepEd

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

39. 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)

40. Outline of the Presentation • Poverty Measurements • Causes of Poverty • Inequality • Inflation • Weak Human Capital • Education • Health • Absence of Employment Opportunities • Weak Agricultural Sector • Poor Governance • Poverty Sectors

41. Health Personnel by Location Source: Dr. Merceditas Santos-Tuano, former Executive Director, Healthdev Institute

42. Child Delivery Attendants (2003,NDHS)

43. Child Delivery Attendants by Income Quintiles (2003,NDHS)

44. Location of Child Delivery (2003,NDHS)

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

46. Outline of the Presentation • Poverty Measurements • Causes of Poverty • Inequality • Inflation • Weak Human Capital • Education • Health • Absence of Employment Opportunities • Weak Agricultural Sector • Poor Governance • Poverty Sectors

47. More than 8 million Filipinos are working in other countries

48. Destination of Overseas Filipino Workers

49. Destination of Overseas Filipino Workers

50. Employment Abroad