measuring poverty 2010
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Measuring Poverty
Leland Joseph R. Dela CruzDevelopment Studies Program
Ateneo de Manila UniversityAlternative Class Program
January 22, 2010
Alternative questions for measuring poverty How much income do you make? How much income do you make
relative to what others make? Do you consider yourself poor? Do you have access to basic
needs? What is the quality of life you are
able to lead?
Poverty as Lack of Income
How much income do you make?
Test your knowledge!1. How much should a family of 5
persons be earning per month to be considered non-poor?
2. What percent of the Philippine population is considered poor?
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)
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)
What is the NCR poverty line (2008)? NSCB
P328.77Family/ day*
P10,000.00Family/ month
P120,000.00Family/ year*
P65.76Individual/ day*
P2,000.00Individual/ month*
P24,000.00Individual/ year*
*Unofficial, self-computed
What is the Philippine poverty line (2006)? NSCB
P206.29Family/ day*
P6,273.99Family/ month*
P75,287.85Family/ year*
P41.26Individual/ day*
P1,254.80Individual/ month*
P15,057.57Individual/ 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
%
Philippine GNP Growth Rate (%)
0
1
2
3
4
5
6
7
8
2001 2002 2003 2004 2005 2006 2007 2008
NEDA Economic Indicators Online
Relative Poverty
How much income do you make relative to what others
make?
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
Average family income, expenditures and savings per decile 2006, NSO
Avg. Annual Income
Avg. Expenditures
Avg. Savings
Avg. Monthly Income
Phil 173,000 147,000 25,000 14,416
Poorest 10%
32,000 35,000 -3,000 2,666
2nd decile 51,000 52,000 -2,000 4,250
3rd decile 65,000 66,000 Less than 500
5,417
4th decile 81,000 79,000 2,000 6,750
5th decile 100,000 95,000 5,000 8,333
6th decile 124,000 116,000 7,000 10,333
7th decile 156,000 143,000 13,000 13,000
8th decile 205,000 181,000 23,000 17,083
9th decile 292,000 244,000 46,000 24,333
Richest 10%
622,000 460,000 156,000 51,833
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
Self-Rated Poverty
Do you consider yourself poor?
Self-Rated Poverty SWS
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%
SummaryOfficial Statistics
Perception-based measure
Poverty Incidence
25% 50-70%
Poverty threshold
P6,273.99 a month
P10,000 a month
Basic Needs Deprivation
Do you have access to basic needs?
Self-Rated Hunger SWS
Access to basic needs NSCB
Indicator % 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%
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
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
Quality of Life Deprivation
What is the quality of life you are able to lead?
National Achievement Test Scores Elementary Average: 59.94% High School Average: 46.64%
Source: Basic Education Information System, DepEd
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)
Female Life Expectancy2000, PSY
50 60 70 80 90
China
Hong Kong
Korea
Singapore
Taiwan
Indonesia
Malaysia
Philippines
Thailand
Vietnam
Bangladesh
Male Life Expectancy2000, PSY
50 55 60 65 70 75 80
China
Hong Kong
Korea
Singapore
Taiwan
Indonesia
Malaysia
Philippines
Thailand
Vietnam
Bangladesh
Life Expectancy2004, PSY
55
57
59
61
63
65
67
69
71
Infant Mortality Rateper 1,000 deliveries; 2000, PSY
0 10 20 30 40 50 60
China
Hong Kong
Korea
Singapore
Taiwan
Indonesia
Malaysia
Philippines
Thailand
Vietnam
Bangladesh
Infant Mortality Rate per 1,000 deliveries; 2000, PSY
05
1015
2025
3035
4045
Philippin
es
NCRCAR I II II
IIV
AIV
B V VIVII
VIII IX X XIXII
CARAGA
ARMM
Infant Mortality Rate per 1,000 deliveries; 2000, PSY
0
5
10
15
20
25
30
35
40
45
Quintile
LowestSecondThirdFourthFifth
Infant Mortality Rate per 1,000 deliveries; 2000, PSY
0
5
10
15
20
25
30
35
40
Location
UrbanRural
Maternal Mortality Rateper 100,000 live births; 1996-2000, PSY
0 100 200 300 400 500
China
Hong Kong
Korea
Singapore
Taiwan
Indonesia
Malaysia
Philippines
Thailand
Vietnam
Bangladesh
Maternal Mortality Rateper 100,000 live births; 1995, PSY
100
150
200
250
300
350
Philippines
NCRCAR I II III IV V VI
VIIVII
IIX X XI
XII
ARMM
Human Development Index Income per capita Health
Life Expectancy Education
Mean Years of Schooling Literacy Rate
Human Development Index UNDP 2004
Country Rank HDI Country Rank HDI
Norway 1 0.956 Philippines 83 0.753
U.S.A. 8 0.939 China 94 0.745
Singapore 25 0.902 Indonesia 111 0.692
Malaysia 59 0.793 Viet Nam 112 0.691
Thailand 76 0.768 Sierra Leone
177 0.273
0.6
0.62
0.64
0.66
0.68
0.7
0.72
0.74
0.76
0.78
1975 1980 1985 1990 1995 2002
Human Development Index UNDP 2004
Human Poverty Index UNDP 2004
Probability at birth of not surviving to age 40.
Adult illiteracy rate. Population without access to an
improved water source. Children underweight for age.
Country Rank HPI Country Rank HPI
Barbados 1 2.5 Philippines 28 15.0
Singapore 6 6.3 Indonesia 35 17.8
Thailand 22 13.1 Viet Nam 41 20.0
China 24 13.2 Burikina Faso
95 65.5
Human Poverty Index UNDP 2004
Alternative questions for measuring poverty How much income do you make? How much income do you have
relative to others? Do you consider yourself poor? Do you have access to basic
needs? What is the quality of life you are
able to lead?
Poverty beyond measurement Poverty as the inability to handle
risks Poverty as powerlessness Poverty as social exclusion
Outline of the Presentation
1. Poverty Measurements2. Causes of Poverty
a. Inequalityb. Inflationc. Weak Human Capitald. Absence of Employment
Opportunitiese. Weak Agricultural Sectorf. Poor Governance
Unequal Asset Distribution: Land Distribution
449 Landowners*
30 Landowners*
50% of land area
50% of land area
*Ratio and proportion, assumes there are only 479 landowners in the country (based on 1991 Census of Agriculture)
Land Distribution
449 Landowners50% of
land area
25% of land area
25% of land area
29 Landowners
1 Landowner*Ratio and proportion, assumes there are only 479 landowners in the country (based on 1991 Census of Agriculture)
Inflation: Rice Prices, 2008
20
25
30
35
40
45
Janu
ary
Febr
uary
Mar
chAp
rilMay
June Ju
ly
Rice Prices perkilo
Measuring Poverty
Leland Joseph R. Dela CruzDevelopment Studies Program
slideshare.net/ldelacruz
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