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Measuring Poverty

Leland Joseph R. Dela Cruz Development Studies Program Ateneo de Manila University Alternative 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.

2.

3.

The government constructs a menu per region that satisfies basic nutritional requirements. The government computes for the cost of that menu. (ex. P43) 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)

What is the NCR poverty line (2008)? NSCB


Individual/ year*
Individual/ month* Individual/ day* Family/ year*
P24,000.00
P2,000.00 P65.76 P120,000.00 P10,000.00 P328.77

Family/ month
Family/ day*
*Unofficial, self-computed

What is the Philippine poverty line (2006)? NSCB


Individual/ year
NSCB

P15,057.57
P1,254.80 P41.26 P75,287.85 P6,273.99 P206.29

Individual/ month* Individual/ day* Family/ year*

Family/ month*
Family/ day*
*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)


Poverty Incidence
Tawi-Tawi, Mindanao 78.9%

NSCB

Zamboanga del Norte, Mindanao


Maguindanao, Mindanao Apayao, Northern Luzon Surigao del Norte, Mindanao Lanao del Sur, Mindanao

63.0%
62.0% 57.5% 53.2% 52.5%

Northern Samar, Visayas


Masbate, Southern Luzon Abra, Northern Luzon Misamis Occidental, Mindanao

52.2%
51.0% 50.1% 48.8%

Least Poor Provinces (2006)


NSCB
Poverty Incidence
Batanes, Northern Luzon Rizal, Adjacent to NCR Bataan, Luzon Cavite, Adjacent to NCR Benguet, Luzon Pampanga, Adjacent to NCR 0% 6.4% 6.8% 7.8% 8.2% 8.3%

Bulacan, Adjacent to NCR


Laguna, Adjacent to NCR Nueva Vizcaya, Luzon Quirino, Luzon

10.0%
10.6% 12.7% 15.9%

Poverty trends
35 30 25 20 15 10 5 0 Families

NSCB

2000 2003 2006

Individuals

Philippine Poverty Incidence: Families (Percentage) NSCB


45 40 35 30 25 20 15 10 5 0 1988 1991 1994 1997 2000 2003

Philippine Poverty Incidence: Individuals (Percentage) NSCB


60

50
40 % 30 20 10 0 1988 1991 1994 1997 2000 2003

Philippine GNP Growth Rate (%)


8

7 6 5 4
3

2 1 0 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
40 35

2006, NSO
36

% of Income

30 25 20 15 10 5 0 1.9 1st 3 3.8 4.7 5.8 3rd 5th Decile 11.8 7.1 9 16.8

7th

9th

Average family income, expenditures and savings per decile 2006, NSO
Avg. Annual Income Avg. Expenditures Avg. Savings Avg. Monthly Income

Phil
Poorest 10% 2nd decile 3rd decile 4th decile 5th decile 6th decile 7th decile 8th decile 9th decile Richest 10%

173,000
32,000 51,000 65,000 81,000 100,000 124,000 156,000 205,000 292,000 622,000

147,000
35,000 52,000 66,000 79,000 95,000 116,000 143,000 181,000 244,000 460,000

25,000
-3,000 -2,000
Less than 500

14,416
2,666 4,250 5,417 6,750 8,333 10,333 13,000 17,083 24,333 51,833

2,000 5,000 7,000 13,000 23,000 46,000 156,000

Income Distribution
40 35 30 25 20 15 10 5 0

% of Income

1st to 7th

8th Decile

9th

10th

Income Distribution
60 50 40 30 20 10 0 1st to 8th Decile 9th to 10th

% of Income

Self-Rated Poverty
Do you consider yourself poor?

Self-Rated Poverty

SWS

Self-Rated Poverty
June 2004 70% 37% 68% 84%

Pulse-Asia
March 2005 70% 35% 69% 82%

Philippines Class ABC Class D Class E

October 2004 70% 21% 68% 87%

Self-Rated Poverty
June 2004 52% 69% 71% 80% 73% 66%

Pulse-Asia
March 2005 48% 66% 80% 81% 82% 58%

NCR Luzon Visayas Mindanao Rural Urban

October 2004 41% 69% 82% 79% 83% 57%

Summary
Official Statistics Poverty Incidence Poverty threshold 25% Perceptionbased measure 50-70%

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


Indicator

NSCB
% of population

With access to safe drinking water With sanitary toilet


With access to electricity With own house and lot With children 6-12 years old in elementary With children 13-16 years old in high school

80.2% 86.2%
79.7% 64.9% 91.2% 36.1%

Inadequacies at the Elementary Level


SEATS NEEDED PUPILS PER TEACHER RATIO Antipolo City San Jose del Monte Las Pinas Maguindanao Bayawan City Muntinlupa Talisay City Kalookan Rizal Lapu-Lapu City 61.86 60.00 53.74 52.92 51.31 50.93 50.17 49.30 47.87 47.33 Quezon City 101,317 Kalookan 82,413 Lanao del Sur 1 73,472 Manila 73,180 Maguindanao 69,934 Camarines Sur 64,688 Iloilo 57,128 Davao City 53,885 Cavite 53,101 Bukidnon 48,771 CLASSROOMS NEEDED TO ACHIEVE 40 STUDENTS PER CLASS RATIO Quezon City 3,377 Kalookan 2,244 Rizal 1,533 Cavite 1,434 Manila 1,422 Antipolo City 1,193 Mal/Navotas 1,078 Taguig/Pateros 996 Las Pinas 882 Maguindanao 808

Source: Basic Education Information System, DepEd

Inadequacies at the Secondary Level

Source: Basic Education Information System, DepEd

Health Personnel by Location


Rural Midwives Nurses Dentists Doctors 62% migrate to other countries ~30% ~20% ~10% ~10% Urban ~60% ~80% ~90% ~90%

Source: Dr. Merceditas Santos-Tuano, former Executive Director, Healthdev Institute

Child Delivery Attendants


(2003, NDHS)
60 50 40 30 20 10 0 Doctor Nurse Midwife Hilot Others Urban Rural Phil.

Child Delivery Attendants by Income Quintiles (2003, NDHS)


80 70 60 50 40 30 20 10 0 Doctor Nurse Midwife Hilot Others Lowest Second Third Fourth Fifth

Location of Child Delivery


(2003, NDHS)
80 70 60 50 40 30 20 10 0 Govt Hospital Private Hospital Home Urban Rural Phil.

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


90 80 70 60 50 40 30 20 10 0 Govt Hospital Private Hospital Home Lowest Second Third Fourth Fifth

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 Expectancy


2000, PSY
Bangladesh Vietnam Thailand Philippines Malaysia Indonesia Taiwan Singapore Korea Hong Kong China

50

60

70

80

90

Male Life Expectancy


2000, PSY
Bangladesh Vietnam Thailand Philippines Malaysia Indonesia Taiwan Singapore Korea Hong Kong China

50

55

60

65

70

75

80

Ph ili

55

57

59

61

63

65

67

69

71

2004, PSY

pp i N C R C A R I II II I IV V V I V II V II I IX X ne s

Life Expectancy

X I A XII R M M

Infant Mortality Rate


per 1,000 deliveries; 2000, PSY
Bangladesh Vietnam Thailand Philippines Malaysia Indonesia Taiwan Singapore Korea Hong Kong China

10

20

30

40

50

60

Infant Mortality Rate


per 1,000 deliveries; 2000, PSY
45 40 35 30 25 20 15 10 5 0
pi ne s N CR C AR Ph C AR II AG A A RM M II I II I II II I A I IX B V V X IV IV V X I ili p V X

Infant Mortality Rate


per 1,000 deliveries; 2000, PSY
45 40 35 30 25 20 15 10 5 0 Quintile Lowest Second Third Fourth Fifth

Infant Mortality Rate


per 1,000 deliveries; 2000, PSY
40 35 30 25 20 15 10 5 0 Location Urban Rural

Maternal Mortality Rate


per 100,000 live births; 1996-2000, PSY
Bangladesh Vietnam Thailand Philippines Malaysia Indonesia Taiwan Singapore Korea Hong Kong China

100

200

300

400

500

Maternal Mortality Rate


per 100,000 live births; 1995, PSY
350 300

250

200

150

100
i Ph s R R ne NC CA i p lip I II I II IV V VI I II VI VI IX X XI I XI MM AR

Human Development Index


Income per capita Health

Life Expectancy Mean Years of Schooling Literacy Rate

Education

Human Development Index


UNDP 2004

Country
Norway U.S.A.

Rank
1 8

HDI Country
0.956 Philippines 0.939 China

Rank
83 94

HDI
0.753 0.745

Singapore Malaysia
Thailand

25 59
76

0.902 Indonesia 0.793 Viet Nam


0.768 Sierra Leone

111 112
177

0.692 0.691
0.273

Human Development Index


UNDP 2004
0.78 0.76 0.74 0.72 0.7 0.68 0.66 0.64 0.62 0.6 1975 1980 1985 1990 1995 2002

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.

Human Poverty Index


UNDP 2004

Country
Barbados Singapore

Rank
1 6

HPI

Country

Rank
28 35

HPI
15.0 17.8

2.5 Philippines 6.3 Indonesia

Thailand
China

22
24

13.1 Viet Nam


13.2 Burikina Faso

41
95

20.0
65.5

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. 2.

Poverty Measurements Causes of Poverty


a. b. c. d.

e.
f.

Inequality Inflation Weak Human Capital Absence of Employment Opportunities Weak Agricultural Sector Poor Governance

Unequal Asset Distribution: Land Distribution


449 Landowners* 30 Landowners*
*Ratio and proportion, assumes there are only 479 landowners in the country (based on 1991 Census of Agriculture)

50% of land area

50% of land area

Land Distribution

449 Landowners 29 Landowners

50% of land area 25% of land area

1 Landowner
*Ratio and proportion, assumes there are only 479 landowners in the country (based on 1991 Census of Agriculture)

25% of land area

Inflation: Rice Prices, 2008


45 40 35 30 25 20 Rice Prices per kilo

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Measuring Poverty
Leland Joseph R. Dela Cruz Development Studies Program slideshare.net/ldelacruz