philippine poverty situationer 2010
TRANSCRIPT
Poverty as Income Deprivation
Leland Joseph R. Dela CruzDirector
Development Studies ProgramSchool of Social Sciences
Ateneo de Manila [email protected]
Updated June 13, 2010
When is a person considered poor? NSCB
The poor refers to individuals and families whose income falls below the poverty threshold and/ or those that cannot afford in a sustained manner to provide their basic needs. The poverty threshold refers to the minimum income/ expenditure required for a family/ individual to meet the basic food/ non-food requirements (clothing and footwear; fuel, light, and water; housing maintenance and other minor repairs; rentals or occupied dwelling units; medical care; education; transportation and communications; non-durable furnishing; household operations; and personal care and effects
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. P27 / 66% = P65)
Food Threshold Also referred to as the subsistence
threshold or the food poverty line Refers to the minimum
income/expenditure required for a family/individual to meet the basic food needs, which satisfies the nutritional requirements for economically necessary and socially desirable physical activities (Virola, 2008, NSCB website)
Poverty Threshold/ Line Refers to the cost of minimum
basic needs: food + non-food Refers to the minimum
income/expenditure required for a family/individual to meet the basic food and non-food requirements
What is the NCR poverty line (2008)?
P328.776 Euro, 46 Krone, 649 Yen
Family/ day*
P10,000.00178 Euro, 1,398 Krone, 19,728 YenFamily/ month
P120,000.002,135 Euro, 16,779 Krone, 236,733 Yen
Family/ year*
P65.761. Euro, 9.20 Krone, 129.73 Yen
Individual/ day*
P2,000.0035 Euro, 279 Krone, 3,945 Yen
Individual/ month*
P24,000.00427 Euro, 3,355 Krone, 47,346 Yen
Individual/ year*
*Unofficial, self-computed
What is the Philippine poverty line (2006)?
P206.294 Euro, 29 Krone, 408 Yen
Family/ day*
P6,273.99112 Euro, 877 Krone, 12,377 Yen
Family/ month*
P75,287.851,340 Euro, 10528 Krone, 148526 Yen
Family/ year*
P41.260.73 Euro, 5.77 Krone, 81.40 Yen
Individual/ day*
P1,254.8022 Euro, 175 Krone, 2475 Yen
Individual/ month*
P15,057.57268 Euro, 2106 Krone, 29705 Yen
Individual/ year NSCB
*Unofficial, self-computed
Regional poverty lines 2006,
NSCB
Region Threshold Region Threshold
NCR P20,566 VIII P13,974
I P15,956 IX P13,219
II P13,791 X P14,199
III P17,298 XI P14,942
IV-A P17,761 XII P14,225
IV-B P14,800 CAR P16,810
V P15,015 ARMM P15,533
VI P14,405 CARAGA P15,249
VII P13,390
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, P1,254.80 a month and P41.26 a day.
26.9% or 4.6 million Filipino families are poor. 26.9% of families earn less than
P75,287.85 a year, P6,273.99 a month and P206.29 a day.
Regional poverty incidence (Individual) 2006, NSCB
Region Poverty Incidence Region Poverty
Incidence
NCR 10.40% VIII 48.50%
I 32.70% IX 45.30%
II 25.50% X 43.10%
III 20.70% XI 36.60%
IV-A 20.90% XII 40.80%
IV-B 52.70% CAR 34.50%
V 51.10% ARMM 61.80%
VI 38.60% CARAGA 52.60%
VII 35.40%
Regional poverty incidence (Individual) 2006, NSCB
Region N* % of total Region N* % of total
NCR 0.8M 4% VIII 1.6M 7%
I 1.4M 5% IX 1.2M 5%
II 0.8M 2% X 1.5M 6%
III 1.6M 6% XI 1.2M 5%
IV-A 1.6M 8% XII 1.5M 5%
IV-B 1.0M 5% CAR 0.5M 1%
V 2.5M 9% ARMM 1.6M 6%
VI 2.7M 9% CARAGA 1.0M 4%
VII 2.0M 8%
* Percentages are unofficial, self-computed
Poorest Provinces (2006) NSCB
Poverty Incidence
Tawi-Tawi 78.9%
Zamboanga del Norte 63.0%
Maguindanao 62.0%
Apayao 57.5%
Surigao del Norte 53.2%
Lanao del Sur 52.5%
Northern Samar 52.2%
Masbate 51.0%
Abra 50.1%
Misamis Occidental 48.8%
Least Poor Provinces (2006) NSCB
Poverty Incidence
Batanes 0%
Rizal 6.4%
Bataan 6.8%
Cavite 7.8%
Benguet 8.2%
Pampanga 8.3%
Bulacan 10.0%
Laguna 10.6%
Nueva Vizcaya 12.7%
Quirino 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
%
Income Gap (2006) NSCB
Region Income Gap Region Income Gap
NCR 21.6% VIII 30.9%
I 25.2% IX 35.7%
II 23.5% X 33.4%
III 23.4% XI 30.0%
IV-A 24.5% XII 28.1%
IV-B 32.5% CAR 32.1%
V 30.1% ARMM 29.3%
VI 26.6% CARAGA 34.4%
VII 29.5%
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 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
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
Gini Coefficient
Country Gini ratio Country Gini ratio
Denmark 0.247 U.S.A. 0.408
Japan 0.249 Thailand 0.425
Norway 0.258 Philippines
0.445
France 0.327 Brazil 0.550
Malaysia 0.379 Namibia 0.743UNDP.org, 2007 data
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%
Urban 66% 57% 58%
Rural 73% 83% 82%
Self-Rated Poverty SWS
SummaryOfficial Statistics
Perception-based measure
Poverty Incidence
26.9% 50-70%
Poverty threshold
P6,273 a month
P12,000 a month (NCR)
Data Sources NSCB: www.nscb.gov.ph: poverty
statistics NSO: www.census.gov.ph: income and
poverty statistics (FIES final report, Table 4A)
UNDP: undp.org Pulse-Asia: Public Perceptions on Poverty. CD
obtained directly from Pulse-Asia SWS: www.sws.org.ph
Poverty as Income Deprivation
Leland Joseph R. Dela CruzDirector
Development Studies ProgramSchool of Social Sciences
Ateneo de Manila [email protected]