Poverty Situationer Sen 2008
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Poverty as Income Deprivation
Leland Joseph R. de la CruzDirector
Development Studies ProgramSchool of Social Sciences
Ateneo de Manila [email protected]
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Test your knowledge!1. Name one region where one out
of every two individuals is considered poor.
2. How much should a family of 5 persons be earning per month to be considered non-poor?
3. What percent of the Philippine population is considered poor?
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When is a person considered poor? The poor refers to individuals and families whose incomes fall below the official poverty threshold as defined by the government and/or cannot afford to provide in a sustained manner for their minimum basic needs for food, health, education, housing, and other social amenities of life. The poverty line measures the income needed to obtain basic and non-basic needs for one year. (Virola, 2008)
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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. P27)
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% = P40)
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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)
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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
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What is the NCR poverty line (2008)?
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
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What is the Philippine poverty line (2006)?
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
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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
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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, 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.
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Regional poverty incidence (Individual) 2006,
NSCB
RegionPoverty
IncidenceRegion
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%
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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
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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%
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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%
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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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Income Gap (2006) NSCB
RegionPoverty
IncidenceRegion
Poverty Incidence
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%
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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
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Income Distribution 2003, 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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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%
Urban 66% 57% 58%
Rural 73% 83% 82%
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Self-Rated Poverty SWS
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Summary
Official Statistics
Perception-based measure
Poverty Incidence
26.9% 50-70%
Poverty threshold
P6,273 a month
P10,000 a month
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Data Sources NSCB: www.nscb.gov.ph: poverty
statistics NSO: www.census.gov.ph: income and
poverty statistics (FIES final report, Table 4A)
Wikipedia: http://en.wikipedia.org/wiki/Gini_coefficient
Pulse-Asia: Public Perceptions on Poverty. CD obtained directly from Pulse-Asia
SWS: www.sws.org.ph/pr050118.htm
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Poverty as Income Deprivation
Leland Joseph R. de la CruzDirector
Development Studies ProgramSchool of Social Sciences
Ateneo de Manila [email protected]