2013 05 08 CPP Sess4 3 Poverty Reduction Philippines

Official Poverty Statistics
and Poverty Reduction Programs

of the Philippines
The views expressed in this presentation are the views of the author and do not
necessarily reflect the views or policies of the Asian Development Bank Institute
(ADBI), the Asian Development Bank (ADB), its Board of Directors, or the
governments they represent. ADBI does not guarantee the accuracy of the data
included in this paper and accepts no responsibility for any consequences of their use.
Terminology used may not necessarily be consistent with ADB official terms.
Ms. Bernadette B. Balamban

Chief, Social Sectors Division, National Statistical Coordination Board (NSCB)
Ms. Mildred B. Addawe

Statistical Coordination Officer V, Social Sectors Division, NSCB
Ms. Mary Grace G. Darunday

Budget and Management Specialist II, Department of Budget and Management (DBM)
International Conference Workshop on Poverty and Inequality in Asia

7-9 May 2013, Bali, Indonesia
Outline of Presentation
I.
Overview of the Philippines Official Poverty

Statistics
II.
Official Poverty Estimation Methodology
III.
Latest Poverty and Inequality Statistics
IV.
Efforts on Improving Relevance of Official

Poverty Statistics
V.
Challenges to the Philippine Statistical System
VI.
Poverty Reduction Programs
I. Overview of the Philippines Official Poverty Statistics

Legal Basis
Executive Order 352
Designation of Statistical Activities that will Generate
Critical Data for Decision-making of the Government and the
Private Sector
Issued on July 1, 1996
National Statistics Office (NSO)
- Conduct of Family Income and Expenditure Survey
Technical Committee on Poverty Statistics (TC PovStat)
- in charge of the formulation/development of the official
poverty estimation methodology
National Statistical Coordination Board (NSCB)
- Mandated to generate and release the countrys official
poverty statistics
Philippines Official Poverty Statistics
II. Overview of the Philippines Official Poverty Statistics

Who are the sources of data inputs?
Data needed
Agency responsible
Provincial food bundles
Food and Nutrition Research

Institute (FNRI)
Price data (e.g., actual

provincial prices of food items
and 2006-based regional CPI
for food)
Bureau of Agricultural Statistics

(BAS)
Income (of families/per capita) NSO

from the Family Income and
Expenditure Survey (FIES)

How and when is the FIES collected?
FIES is being conducted every three years
NSO collects data in two visits:
Visit
Reference Period
Conduct of Survey
First
First Semester
July
income/expenditure
(January-June)
Second
Second Semester
(July-December)
January of the
succeeding year
Some information on the FIES

Target sample households: nearly 51,000
Total number of pages of the questionnaire: 70 pages, 24
of which are devoted to income
Processing, extensive data quality checks

Prior to April 23, 2013, latest FIES results are for 2009
made available in January 2011; hence, latest official
provincial poverty statistics (i.e., subsistence/poverty
incidences and other measures of poverty) are also for
2009, which was released in February 2011.
II. Official Poverty Estimation Methodology

How does the NSCB generate official poverty statistics?
(Non Poor)
Poverty Threshold (in pesos)
Poverty
Incidence
income
income
(Poor)
Food Threshold (in pesos)
Subsistence
Incidence income
(Subsistence Poor, Food Poor, Extremely
Poor)

National food bundle
PROVINCIAL food bundle
LEAST cost
Visualizable
100% RENI for energy

100% RENI for protein
80% RENI for vitamins
and minerals
Actual Prices
Farmgate Price
Retail Price
FOOD THRESHOLD
Food eaten
in the area

Sample translation:
National Capital Region
National reference food bundle from

the Test of Revealed
Preference
Meal Time
Breakfast
Lunch
Dinner
Snacks
Viands
Scrambled egg
Meal Time
Breakfast
Viands
Scrambled egg
Coffee with milk
Boiled rice
Boiled rice/rice-corn mix
Coffee with milk
Boiled/ginataang monggo
with malunggay and dried
dilis
Lunch
Boiled monggo with

malunggay and dried
dilis
Banana
Banana, latundan
Boiled rice/corn mix
Boiled rice
Fried fish/boiled pork
Dinner
Fried tulingan
Vegetable dish
Boiled kangkong
Boiled rice
Bread or boiled rootcrop
Snacks
Pandesal
Food threshold
Non-food threshold
Constant FE/TBE ratio
POVERTY THRESHOLD
ACTUAL Non-Food Basic Needs

Education
Clothing & footwear
Medical care
Transportation & communication
Fuel, light & water
Housing
Housing maintenance & other minor repairs

Non-durable furnishings
Household operations
Personal care & effects
Rental of occupied dwelling unit
10
III. Latest Poverty and Inequality Statistics

During the 1st semester of 2012, a Filipino family of five needed
PhP5,458 monthly income to buy their minimum basic food needs;
andPhp7,821 monthly to include other minimum basic nonfood needs
Monthly Food and Poverty Threshold for a Family of Five,
1st semesters of 2006, 2009, and 2012 (in PhP)
7,821
7,040
5,586
4,903
3,894
1st Semester
5,458
Poverty practically unchanged between

1st semester of 2006 and 1st semester of 2012
Subsistence and Poverty Incidence among Families (%),
1st semesters of 2006, 2009, and 2012
22.3
10.0
1st Semester

On the average, 28 out of 100 Filipinos are living in
poverty between the 1st semester of 2006 and 1st semester
of 2012
Subsistence and Poverty Incidence among Population
(%),
st
1 semesters of 2006, 2009, and 2012
27.9
13.4
1st Semester

During the 1st semester of 2012, on the average, a poor family
of five members needed a monthly additional income of PhP 2,292
to move out of poverty or approximately .3%
29.3% of the
poverty threshold.92.
Income gap
Income gap
1st semester
2006
2009
2012
30.1
29.0
29.3
TOTAL COST OF ERADICATING POVERTY (in pesos)

Among all poor families
for the entire 1st semester
For a poor family of five,
per month
50.7 B
63.1 B
79.7 B
1,681
2,042
2,292

Across the bottom 30% of families, incomes rose by an
average of 11.7
11.7 percent, which is practically the same as
inflation, between the 1st semesters of 2009 and 2012 .
Indicator
Poverty Incidence (among families)
Consumer Price Index (CPI) (all

Inflation
(all items)
items)
Annual Per Capita Poverty Threshold
Mean/average per capita income (APCI)
All income groups
First decile class

First decile class
Second decile class
Second decile class
Third decile class
Third
decileclass
class
Fourth decile
1st sem
2009
22.86
1st sem
2012
22.32
% Change
(0.54)
116.1
116.1
8,448
130.1
130.1
9,385
12.06
12.1%
21,565
24,326
4,356
4,356 4,8404,840
11.09
12.8
11.1
11.1
6,883
6,883
8,902
8,902
11,114
7,685
7,685
9,984
9,984
12,549
11.7
11.7%
11.7
12.2
12.2
12.9
Fifth decile class
13,693
15,589
13.8
Sixth decile class
17,060
19,453
14.0
Seventh decile class
21,678
24,786
14.3
Eight decile class
28,736
32,741
13.9
Ninth decile class
41,660
47,551
14.1
Tenth decile class
98,123
107,612
9.7

During the 1st semesters of 2006, 2009, and 2012, the
bottom 20 percent of families have a share of about 6
percent of the total income in the country; whereas the
upper 20% have a share of nearly 50% of total income.
INCOME DECILE
FIRST TO THIRD
FIRST
FIRST
SECOND
SECOND
6%
THIRD
FOURTH TO
SEVENTH
EIGHTH TO TENTH
EIGHTH
NINTH
TENTH
TENTH
1st sem
2009
1st sem
2012
10.3
11.1
10.9
0.8
-0.2
2.5
3.5
2.7
3.8
2.7
3.8
0.2
0.0
4.3
4.6
4.5
0.3
0.3
-0.1
-0.1
28.8
28.9
28.5
FOURTH
FIFTH
SIXTH
SEVENTH
50%
PERCENTAGE POINT
CHANGE
1st sem
2006
1st sem 06-09 1st sem 09-12
0.3
0.1
5.2
6.2
7.6
9.5
5.4
6.3
7.7
9.4
5.4
6.4
7.7
9.4
0.2
0.1
0.1
-0.1
0.0
0.1
0.0
0.0
61.4
60.4
60.0
-1.0
-0.3
12.1
16.1
32.4
11.9
16.0
32.0
12.0
-0.2
-0.4
0.2
-0.1
-0.3
-0.4
16.6
32.7

The total income of the top 20% of families is
times of the total income of the
approximately 8 8times
bottom 20% of families in the first semesters of 2006,
2009, and 2012.
st
INCOME DECILE
Ratio of Top 30%

over
Bottom
30%
Ratio
of Top
Ratio
of Top
20% over
20%
over
Bottom
20%
Bottom
20%
Ratio of Top
10%
over Bottom 10%
st
st
PERCENTAGE POINT
CHANGE
1 sem
2006
1 sem
2009
1 sem
2012
5.97
5.45
5.50
-0.52
0.05
8.21 7.44 7.50

8.21
7.44 7.50
8 times
-0.77
-0.77
0.06
0.06
13.12 12.06 12.07
-1.05
0.01
1st sem 06-09 1st sem 09-12
Gini coefficient based on the full year FIES

barely changed since 2003
Year
Gini coefficient
2003
0.4605
2006
0.4580
2009
0.4484
Source: National Statistics Office
18
IV. Efforts on Improving Relevance of Poverty Statistics

1. Small Area Estimates of Poverty
In response to the need for poverty statistics at lower

levels of disaggregation, the NSCB, with funding
assistance from the World Bank implemented three
projects on small area estimation (SAE) to generate
poverty incidences at the city/municipal levels.
NSCB-WB Project
Reference year of
city/municipal level
poverty estimates
Year Released
1. Poverty Mapping in the

Philippines
2000
2005
2. Intercensal Updating of Small

Area Poverty Estimates
2003
2008
3. Generation of the 2006 and 2009

Small Area Estimate of Poverty
2009
2012
2006
To be
released in
June 2013
19

1. Small Area Estimates of Poverty (cont.)
The Elbers, Lanjouw and Lanjouw (ELL) Methodology was

modified to generate intercensal City and Municipal level
Poverty Statistics
2009 Family Income and

Expenditure Survey
2009 Labor Force Survey

2007 Census of
Population and Housing
2009 City and

Municipal Level
Poverty Statistics
based on SAE
poverty estimates for 1,622 cities and municipalities of the country for
2009 were released in July 2012 by the NSCB.
20

1. Small Area Estimates of Poverty (cont.)
21

2. GIS-based Poverty Mapping based on available
Administrative Records
useful to local government units specially in locating
priority areas and describing their conditions
initially produced poverty maps for the provinces of
Laguna and Albay
started at producing poverty maps for the poorest

provinces for the year 2003 (dependent on the
availability of financial resources and on the data support
from the local government units)
33 provincial poverty maps are currently covered by the
NSCB Regional Divisions (present only in 9 of the 17
regions of the country)

Sample Map for Zamboanga del Norte
Poverty Index (Malnutrition)
Zamboanga del Norte
Provincial index
=100

3. Annual Estimates of Poverty
Need to have more frequent poverty statistics to have
more timely interventions
With National Economic Development Authority
(NEDA), leading the inititative the DBM will fund the
2013 Annual Poverty Indicator Survey (APIS), that will
include an income module of the FIES
2013 APIS to be implemented in July 2013
The NSCB, in turn, shall generate corresponding poverty
estimates (at the national level), within one month after
the provision of the 2013 APIS data file.

4. Communicating Philippine Poverty Statistics
4.1 One of the major areas of concern of the:
- Philippine Statistical Development Program 20112017 (i.e., the Philippines 8th series of the NSDS)
- Technical Committee on Poverty Statistics
- NSCB Executive Board
4.2 Philippine Poverty Statistics Portal
- http://www.nscb.gov.ph/poverty/portal_/
- to serve as a one-stop web portal on information
and statistics on poverty
- to communicate official poverty statistics and other
related poverty indicators to a wider audience
4.3 Users/Producers Forums
- Press Conferences
- National Convention on Statistics
- National Statistics Month
25

Communicating Poverty Statistics (cont.)
4.4 Web articles
- Beyond the Numbers by Dr. Jose Ramon G. Albert
-
(http://www.nscb.gov.ph/beyondthenumbers/2012/10082012_jrg
a_ofw.asp)
Statistically Speaking by Dr. Romulo A. Virola
(http://www.nscb.gov.ph/headlines/StatsSpeak/default.asp_)
Presents viewpoints and perspectives of the members

of the NSCB Technical Staff on statistical concerns
Seeks to assist the users by informing, enlightening, and
guiding
Sexy Statistics
(http://www.nscb.gov.ph/sexystats/default.asp)
One of the efforts of the NSCBTechnical Staff (TS) to

make our statistics sexy
Presents special tabulations and computations done by
the NSCB TS not only in response to various data
requests of our stakeholders but also to present
statistics on current issues
26
V. Challenges to the Philippine Statistical System
Ensure independence and freedom from political

affairs
Regular generation of small area estimates of poverty
a. Geographical (i.e., at the city, municipal,

congressional district levels)
b. Sectoral (PWDs, indigenous peoples)
Harmonization/standardization of existing statistical

frameworks on poverty reduction statistics (e.g.,
official poverty statistics, National Household
Targeting System for Poverty Reduction (NHTS-PR),
community-based monitoring systems (CBMS),
among others) ;
27
Non-income indicators of poverty

Communicating official poverty statistics towards
more actual policy uses;
Well-being/Happiness of the poor;
AND THE LIST GOES ON AND ON BUT (next
slide)
28

TO AID THE PHILIPPINE STATISTICAL SYSTEM IN RESPONDING
TO THESE MANY DEMANDS/CHALLENGES:
1. There is a need for statistical capacity building, specially of

the line agencies and local government units (LGUs)
Many LGUs do not have a statistical unit or statistical personnel;

Low compensation scheme for statistical personnel;
Non-statisticians doing statistical work.
2. Statistics must be demand-driven; policy makers must

translate statistics into actual/working programs and
policies
3. Statistical agencies must be relevant to stakeholders
4. There is a great need for more resources for statistics,

specially manpower.
29
VI. Poverty Reduction Programs

Quality Education: Reduce classroom gap to zero in 2013
to support the K+12 Program
Major Program/Projects
Outputs
Basic Educational Facilities

a. Schoolbuilding Program for Areas
w/ Acute Classrooms Shortage
17,638 classrooms
b. Repair/Rehab of Classrooms
3,850 classrooms
c. Construction of Water &
/Sanitation Facilities
90,461 facilities
d. School Furniture Program
639,185 seats
9,301 classrooms
e. PPP Amortization
446,448 seats
Regular Schoolbuilding Program
1,000 classrooms
Amount (In
Million Pesos)
25,268
14,110
1,155
5,428
575
4,000
1,000

Quality Education: Close teacher and textbook gap by 2013 to
support K+12 and install support mechanisms for basic education
system
Creation of Teaching Positions
Creation of Non-Teaching Positions
Outputs
61,510 teaching
positions
3,500 non-teaching
positions
Procurement of Textbooks & Teachers' 31.1M textbooks &

Manual
teachers manual
GASTPE
Universalization of Kindergarten
Education
Provision for school operations
Amount (In
Million Php)
14,538
730
1,493
1.0 million students
6,974
1,386,683 students
45,971 schools
1,680
196,948

Social Protection: Cover all indigent households in 4Ps b
2016; provide meaningful social protection packages
Outputs
Pantawid Pamilyang Pilipino Program 3.8M Households

1.7M daycare
Supplemental Feeding
children
Social Protection for Indigent Senior
Filipino Citizens
232,868 SC
Self-Employment AssistanceKaunlaran (SEA-K)
128,355 Families
Kapit Bisig Laban sa Kahirapan Comprehensive and Integrated
3,404 barangays to
Delivery of Social Services
be assisted
Emergency Housing Assistance
3,450
Program for Calamity Victims
beneficiaries
Quick Response Fund
Calamity Fund
Amount (In
Million Pesos)
44,256
2,961
1,533
1,797
650
621
3,865
7,500

Universal Health Care : Covers all Q1 and Q2 households
under universal health care by 2016; attain health related MDGs
National Health Insurance Program (NHIP)
Health Facilities Enhancement Program (HFEP)

Attaining the Health-Related MDGs
of which:
a.
b.
c.
d.
e.
Doctors to the Barrios Program

Expanded Program on Immunization (EPI)
TB Control
National Pharmaceutical Policy Development
Elimination of Disease
f. Other Infectious Disease

g. Family Health and Responsible Parenting
Outputs
5.2M Households
2,722 Facilities (Infrastructure
& Equipment)
270101 Medical Professionals

2,683,380 children
46,694 cases treated
1,377 LGUs & 160 Hospitals
w/ provision of ARV treatment

to 6,056 HIV infected people
Amount (In
Million Pesos)
12,612
13,558
2,799
1,950
1,021
1,038
570
321
2,539

Housing Program: Provide decent affordable housing to
informal settlers
Outputs
Regular Housing Programs

Resettlement Program
Settlements (Slum) Upgrading
Program
Special Housing Programs
Housing Resettlement for ISFs
Living in Danger Areas in Metro
Manila
AFP/PNP/BFP/BJMP/BuCor Housing
Community Mortgage Program
Amount (In
Million Pesos)
5,010
35,652 HHs
4,882
2,975 HHs
128
15,742
20,000 HHs
20,000 HHs
30,000 HHs
10,120
5,622
1,000
Maraming Salamat po!
NSCB
DBM
http://www.ncsb.gov.ph/ http://www.dbm.gov.ph/
35
III. Latest Poverty Statistics

Official Statistics
Indicators
Difference
2003
2006
2009
03-06
06-09
7,577
9,257
11,686
21.6%
26.2%
10,976
13,348
16,841
Subsistence Incidence (%)
8.2
8.7
7.9
Magnitude of Food Poor (in million)
1.4
1.5
1.5
Annual Per Capita Food Threshold

(Php)
Annual Per Capita Poverty Threshold
(Php)
Among families
Poverty Incidence (%)

Magnitude of Poor (in million)
0.50
(0.80)
0.10
0.00
20.0
21.1
20.9
1.10
(0.20)
3.3
3.7
3.9
0.40
0.20
11.1
11.7
10.8
0.60
(0.90)
8.8
9.9
9.4
1.10
(0.50)
1.50
0.10
Among individuals
Magnitude of Food Poor (in million)
24.9
26.4
26.5
19.8
22.2
23.1
Philippines Official Poverty 2.40

Statistics
0.90
36

. Poverty and the MDGs
As of 2009, the Philippines was eight years behind target on poverty
reduction!
Only 4 of the countrys 17 regions are ahead of their targets!
10.0
5.0
3.2
5.0
0.5
0.5
0.0
-2.3
-5.0
-10.0
-3.8
-4.0
-5.6
-8.3
-8.4
-8.3
-9.6
-10.2
-15.0
-12.0
-14.1
Re
gio
n
IV
-A
Re
gio
n
IV
-B
Re
gio
n
V
Re
gio
n
VI
Re
gio
n
VI
I
Re
gio
n
VI
II
Re
gio
n
X
Re
gio
n
XI
Re
gio
n
XI
I
III
II
Re
gio
n
Re
gio
n
Re
gio
n
CA
R
NC
R
Ph
ilip
pin
es
-20.0
Notes: Time-distance (years): positive (+) time lead (progress is ahead the path to target)
Negative ( - ) time lag (Progress is behind the path to target)
The time distance is a new generic statistical measure for analysis and visualization of time series data. This was first
developed by Prof. Pavle Sicherl of the University of Ljubljana, Slovenia.
Region IX, Caraga, and ARMM are 27, 21, and 81 years behind the target in 2009.
37

Indicators
1st Semester Official

Poverty Statistics
2006
2009
2012
Difference
06-09
09-12
Per Capita Food Threshold (Php)
4,673
5,883
6,549
26.0
11.1
Per Capita Poverty Threshold (Php)
6,703
8,448
9,385
10.8
10.0
10.0
-0.8
-0.0
23.4
22.9
22.3
-0.5
-0.5
14.2
13.3
13.4
-0.9
0.1
28.8
28.6
27.9
-0.2
-0.7
Among families
Among individuals
38

Legal Basis
Executive Order 352
Designation of Statistical Activities that will Generate
Critical Data for Decision-making of the Government and the
Private Sector
Issued on July 1, 1996
Technical Committee on Poverty Statistics (TC PovStat)
- in charge of the formulation/development of the official
poverty estimation methodology
National Statistical Coordination Board (NSCB)
- Mandated to generate and release the countrys official
poverty statistics
39

Institutional Arrangements in the Computation of
Poverty Statistics
Food and Nutrition Research Institute (FNRI) of the

Ministry of Science and Technology
-
low-cost and nutritionally adequate provincial food

bundles
Bureau of Agricultural Statistics (BAS) of the Ministry of

Agriculture
-
prices of agricultural commodities

-
prices of agricultural and non-agricultural

commodities
income and expenditures data (FIES)

40

OFFICIAL POVERTY STATISTICS/INDICATORS
Food thresholds and subsistence incidence
(families/population)
Poverty thresholds and incidence (families/population)
Magnitude of poor and subsistence poor
Income and poverty gap, severity of poverty
Level of disaggregation
National, regional and provincial

Frequency
Thresholds: Annual
FGT measures of poverty: Every three years (due to the
triennial conduct of the FIES)
41
II. Philippines Official Poverty Estimation

Methodology
The 1st official poverty estimation methodology was adopted
in 1987.
Between 1987-2011 (24 years), there were three refinements
on the methodology since its adoption.
History of the official poverty estimation methodology
Year
Refinements
Considerations
1987
1992
1st
Refinements were made so as not to

overestimate poverty
2003
2nd
Refinements were made to generate

provincial poverty statistics by using
regional menus priced using
provincial prices.
2010/2011
3rd
Refinenements were undertaken to

enhance comparability of estimates
across space and over time.
42

Methodology
National food bundle
PROVINCIAL food bundle
Visualizable
LEAST cost
100% RENI for energy

100% RENI for protein
80% RENI for vitamins
and minerals
Food eaten
in the area
Actual Prices
Farmgate Price
Retail Price
FOOD THRESHOLD
If income/expenditure of family/individual
is less than food threshold
Provincial SUBSISTENCE INCIDENCE
and MAGNITUDE OF SUBSISTENCE POOR
43

Methodology
Sample translation:
National Capital Region
National reference food bundle from

the Test of Revealed
Meal Time Preference Viands
Breakfast
Scrambled egg
Coffee with milk
Lunch
Meal Time
Breakfast
Boiled rice
Boiled/ginataang monggo with

malunggay and dried dilis
Coffee with milk
Lunch
Boiled rice/corn mix
Boiled monggo with

malunggay and dried dilis
Banana, latundan
Fried fish/boiled pork

Vegetable dish
Boiled rice
Dinner

Snacks
Scrambled egg
Banana
Dinner
Viands
Fried tulingan
Boiled kangkong
Bread or boiled rootcrop
Boiled rice
Snacks
Pandesal
44

Methodology
Food threshold
Non-food threshold
Constant FE/TBE ratio
POVERTY THRESHOLD
If income/expenditure of family/individual
is less than poverty threshold
ACTUAL Non-Food Basic

Needs
Education
Clothing & footwear
Medical care
Transportation &
communication
Fuel, light & water
Housing
Housing maintenance &
other minor repairs
Non-durable furnishings
Household operations
Personal care & effects
Rental of occupied
dwelling unit
Provincial POVERTY INCIDENCE

and MAGNITUDE OF POOR
45

Methodology
Food threshold:
In 2009, a family of five needed PhP 160 daily income to stay
out of food poverty! (or approximately 3.36USD)
Required income (in PhP)
Family size
1
2
3
4
5
6
7
8
Daily
Monthly
Annual
32
974
11,688
64
1,948
23,376
96
2,922
35,064
128
3,896
46,752
160
4,870
58,440
192
5,844
70,128
224
6,818
81,816
256
7,792
93,504
46

Methodology
NATIONAL:
In 2009, a family of five needed PhP 231 daily income to stay
out of poverty! (or approximately 4.85USD)
Family size
Required income (in PhP)

Daily
Monthly
Annual
46
1,403
16,841
92
2,807
33,682
138
4,210
50,523
185
5,614
67,364
231
7,017
84,205
277
8,421
101,046
323
9,824
117,887
369
11,227
134,729
47

Methodology
NATIONAL: Summary
While food poverty and poverty deteriorated between 2003 and 2006, these improved between
2006 and 2009 except for the increases in the poverty incidence among population, magnitude
of poor families and magnitude of poor population.
The increases, however, were not as much as between 2003 and 2006!
Official Statistics
Indicators
2003
2006
Difference
2009
03-06
06-09
Among families
8.2
8.7
7.9
Magnitude of Food Poor (in

million)
1.4
1.5
1.5
0.50
(0.80)
0.10
0.00
20.0
21.1
20.9
1.10
(0.20)
3.3
3.7
3.9
0.40
0.20
11.1
11.7
10.8
0.60
(0.90)
Magnitude of Food Poor (in

million)
8.8
9.9
9.4
1.10
(0.50)
1.50
0.10

Among individuals
24.9
26.4
26.5
19.8
22.2
23.1
Philippines Official Poverty2.40

Statistics
0.90
48

Methodology
. Poverty and the MDGs
As of 2009, the Philippines was eight years behind target on poverty
reduction!
Only 4 of the countrys 17 regions are ahead of their targets!
10.0
5.0
3.2
5.0
0.5
0.5
0.0
-2.3
-5.0
-10.0
-3.8
-4.0
-5.6
-8.3
-8.4
-8.3
-9.6
-10.2
-15.0
-12.0
-14.1
Re
gio
n
IV
-A
Re
gio
n
IV
-B
Re
gio
n
V
Re
gio
n
VI
Re
gio
n
VI
I
Re
gio
n
VI
II
Re
gio
n
X
Re
gio
n
XI
Re
gio
n
XI
I
III
II
Re
gio
n
Re
gio
n
Re
gio
n
CA
R
NC
R
Ph
ilip
pin
es
-20.0
Notes: Time-distance (years): positive (+) time lead (progress is ahead the path to target)
Negative ( - ) time lag (Progress is behind the path to target)
The time distance is a new generic statistical measure for analysis and visualization of time series data. This was first
developed by Prof. Pavle Sicherl of the University of Ljubljana, Slovenia.
Region IX, Caraga, and ARMM are 27, 21, and 81 years behind the target in 2009.
49
III. Efforts on Improving Relevance of Philippine Poverty

Statistics
1. Official Poverty Statistics for the Basic Sectors
NSCB Resolution No. 11, Series of 2007 provides for the

official methodology for the estimation of poverty statistics
for the basic sectors.
The NSCB computes official poverty statistics for 9 of the 14
disadvantaged sectors of the Philippine Society:
1.
2.
3.
4.
5.
6.
7.
8.
9.
Women;
Youth;
Children;
Senior citizens;
Individuals residing in urban areas;
Migrant and formal sector workers;
Self-employed and unpaid family workers;
Farmers; and
Fishermen.
Statistics available for 2003, 2006, and 2009.
50

Statistics
1. Official Poverty Statistics for the Basic Sectors (cont.)

Variable
Data source
1. Income
Family Income and Expenditure Survey (FIES)

was used for classifying households as poor
or non-poor
2. Sectoral
characteristic of
the population
Labor Force Survey (LFS) was used to assign

household members into sectors
3. Total
population
Estimated total population of the sector

based on the FIES and LFS.
However, for years when the conduct of the
CPH and FIES coincide, data from the CPH will
be used (e.g., 2000) to estimate the total
population for four sectors, namely, women,
youth, children, and senior citizen.
Otherwise, data from LFS will be used.
51

Statistics
Fishermen, farmers, and children comprise the poorest

three sectors in 2009 with poverty incidences of 41.4%,
36.7%, and 35.1%, respectively.
Poverty Incidence by Basic Sector: 2003, 2006, and 2009
45
41.4
40
36.7
35.1
2003
35
2006
30
25.1
25
2009
21.8
20
16.7
15.8
15
12.8
10
5
0
Fishermen
Farmers
Children
Women
Youth
Migrant and Senior Citizens

Formal Sector
Individuals
residing in
urban areas
52

Statistics
Children, women, and individuals residing in urban areas

accounted for the largest number of poor population at 12.4,
11.2, and 5.7 million, respectively in 2009.
Magnitude of poor population for all sectors increased between
the period 2006 and 2009 except for farmers and fishermen
sectors, which had a decrease.
Magnitude of Poor Among the Basic Sectors: 2003, 2006, and 2009
14,000,000
12,400,000
11,200,000
12,000,000
10,000,000
2003
8,000,000
2006
5,709,170 5,367,308
6,000,000
2009
4,000,000
3,118,701
1,685,148
2,000,000
1,181,121
346,345
0
Children
Women
Urban
Youth
Migrant and
Formal
Sector
Farmers
Senior
Citizens
Fishermen
53
IV. Challenges to the Philippine Statistical System

Annual poverty incidences and other measures of poverty;
More timely official poverty statistics (i.e., regular generation of
advance thresholds);
Regular generation of small area estimates of poverty
Geographical (i.e., at the city, municipal, congressional district
levels)
Sectoral (PWDs, indigenous peoples)
Harmonization/standardization of existing statistical frameworks

on poverty reduction statistics (e.g., official poverty statistics,
National Household Targeting System for Poverty Reduction
(NHTS-PR), community-based monitoring systems (CBMS), among
others) ;
Non-income indicators of poverty
Communicating official poverty statistics towards more actual
policy uses;
Well-being/Happiness of the poor;

AND THE LIST GOES ON AND ON BUT (next slide)
54
IV. Challenges to the Philippine Statistical System

TO AID THE PHILIPPINE STATISTICAL SYSTEM IN RESPONDING
TO THESE MANY DEMANDS/CHALLENGES:
1. There is a need for statistical capacity building, specially of

the line agencies and local government units (LGUs)
Many LGUs do not have a statistical unit or statistical personnel;

Low compensation scheme for statistical personnel;
Non-statisticians doing statistical work.
2. Statistics must be demand-driven; policy makers must

translate statistics into actual/working programs and
policies
3. Statistical agencies must be relevant to stakeholders
4. There is a great need for more resources for statistics,

specially manpower.
55

2013 05 08 CPP Sess4 3 Poverty Reduction Philippines

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2013 05 08 CPP Sess4 3 Poverty Reduction Philippines

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Official Poverty Statistics

and Poverty Reduction Programs

Ms. Bernadette B. Balamban

Ms. Mildred B. Addawe

Ms. Mary Grace G. Darunday

International Conference Workshop on Poverty and Inequality in Asia

Overview of the Philippines Official Poverty

Official Poverty Estimation Methodology

Latest Poverty and Inequality Statistics

Efforts on Improving Relevance of Official

Challenges to the Philippine Statistical System

Poverty Reduction Programs

I. Overview of the Philippines Official Poverty Statistics

II. Overview of the Philippines Official Poverty Statistics

Provincial food bundles

Food and Nutrition Research

Price data (e.g., actual

Bureau of Agricultural Statistics

Income (of families/per capita) NSO

II. Overview of the Philippines Official Poverty Statistics

II. Overview of the Philippines Official Poverty Statistics

Some information on the FIES

Processing, extensive data quality checks

II. Official Poverty Estimation Methodology

Poverty Threshold (in pesos)

Food Threshold (in pesos)

II. Official Poverty Estimation Methodology

100% RENI for energy

II. Official Poverty Estimation Methodology

National reference food bundle from

Coffee with milk

Boiled rice/rice-corn mix

Coffee with milk

Boiled monggo with

Boiled rice/corn mix

Fried fish/boiled pork

Boiled rice/rice-corn mix

Bread or boiled rootcrop

II. Official Poverty Estimation Methodology

ACTUAL Non-Food Basic Needs

Housing maintenance & other minor repairs

Philippines Official Poverty Statistics

III. Latest Poverty and Inequality Statistics

III. Latest Poverty and Inequality Statistics

Poverty practically unchanged between

III. Latest Poverty and Inequality Statistics

III. Latest Poverty and Inequality Statistics

TOTAL COST OF ERADICATING POVERTY (in pesos)

III. Latest Poverty and Inequality Statistics

Consumer Price Index (CPI) (all

All income groups

First decile class

Fifth decile class

Sixth decile class

Seventh decile class

Eight decile class

Ninth decile class

Tenth decile class

III. Latest Poverty and Inequality Statistics

1st sem 06-09 1st sem 09-12

III. Latest Poverty and Inequality Statistics

Ratio of Top 30%

8.21 7.44 7.50