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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?

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%

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

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

8

7 6 5 4
3

## 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%

## 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%

## 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

Self-Rated Hunger

SWS

Indicator

NSCB
% of population

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

## Health Personnel by Location

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

## 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?

## 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

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.

UNDP 2004

Country

Rank
1 6

HPI

Country

Rank
28 35

HPI
15.0 17.8

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

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

Land Distribution

## 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)

## 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