ABSTRACT

The research study entitled A RESEARCH ON THE TREND OF PHILIPPINE

POVERTY INCIDENCE: 2000-2012 aimed to determine the trend of poverty incidence in the
year 2000-2013 according to the data from PSA and SWS, determine the differences of the data
obtained from PSA and SWS and determine the important events or critical junctures, programs
and projects could have affected the trend of poverty incidence.
To be able to achieve the objective of the study, the researchers gathered data from the
NSCB and SWS surveys, and the books, scholarly works, and practical sources in which some
background data may already be available in documents and websites. The data were used to
present the trend of Poverty Incidence among families in the Philippines. The NSCB and SWS
data were compared and the factors that might have caused the trend were determined.
The results revealed that the poverty incidence, based on the PSA data, in the Philippines
had a) decreased from 2000-2012, b) in 2006, the poverty incidence increased by 1.1% and c)
from 2000 to 2012, and the poverty incidence decreased from 28.3% to 19.7%. From the SWS
data showed that the poverty incidence in the Philippines had a) decreased from 2000-2012 b) in
2006, the poverty incidence decreased by 11% and c) from 2000 to 2012, the poverty incidence
decreased from 61% to 48%. The findings presented the differences of the PSA and the SWS
data; SWS used self-rated surveys while PSA used Family Income and Expenditure Survey
(FIES), there is a huge difference in the percentage of poverty incidence between SWS and PSA
and according to SWS, the poverty incidence between 2003 and 2006 decreased while in PSA, it
increased by 1.1%. It was also inferred by the researchers that the three administrations Estrada,
Arroyo and Aquino, did economic policies that address poverty reduction and there are other
factors that affect the poverty incidence in the Philippines such as calamities and political events.

LYCEUM OF THE PHLIPPINES UNIVERSITY MANILA

COLLEGE OF INTERNATIONAL RELATIONS

A RESEARCH ON
THE TREND OF PHILIPPINE POVERTY INCIDENCE: 2000-2012

In partial fulfillment of the requirements for

Philippine Economic Development Goals and Issues under
Mr. Glenn Nio M. Sartillo

Alpay, Mary Ann

Atienza, Mikka
Bolivar, Clarissa
Castelo, Golda Mier
Fetalvero, Karren Joy
Inoue, Aira
Ruiz, Mary Jevilyn

13 March 2015
Friday

CHAPTER I
INTRODUCTION
I.

Background/ Rationale

Makati City has a total land area of 21.57 square kilometers composed two legislative
districts and thirty three barangays. It has a total population of 529, 039 as of May 1, 2010, and
belongs to 1st class income classification (nscb.gov.ph, 2015). It has growth rate of _______.
Makati City is the countrys financial district which is considered as the Wall Street of the
Philippines (touristcenter.com.ph). Major businesses, banks, leisure establishments and
governmental institutions are headquartered in the area making Makati_____. The city continues
to aspire to be the model for world-class local governance and leading the creation of a new
responsible and sustainable economy.

The development of the city, just like any other metropolitan areas, is challenged by
different factors, one of which and considered as one of the major contributors is problems on
transportation. Transport is a key sector in the Philippine economy, linking population
and economic centers across the islands (Asian Development Bank, 2012).

Thus, the reason why this research is conducted. The researchers seek to analyze the
factors affecting heavy traffic congestion in Makati city and providing a significant idea on
solving it.

II.

Research Problem

The study aimed to answer the following questions:

1. What are the existing laws that governs traffic management in Makati City?
2. What are the factors affecting traffic congestion in Makati City?
3. What law/s can provide solution regarding the traffic congestion in Makati City?
III.

Significance of the Study

The study assessed the current traffic management rules and challenges in the area of Makati and
sought solution for the said problem. This will benefit the following:
Philippines. The government officials of the Philippines can evaluate the implementation of
programs and performance towards poverty reduction of the administration from 2001-2013, and
to enhance their development plan to achieve a more stable economic growth to alleviate the
living standards of the Filipinos.
Makati City The youth will know how they could engage themselves in the growing problems
of the society and how to be a worthwhile citizen. They will also understand how the previous
and present government implements programs to reduce poverty that can guide them in choosing
the next leader for their future endeavor.
Filipinos. This will give knowledge to Filipinos on how the government spends and allocate the
national treasury to reduce poverty. They can also assess the performance of the elected
government officials in implementing programs to uplift living standards of the poor.
Businesses.
Future Researchers. This study will serve as a springboard to future researchers that will
conduct a further or comparative study to 2011-2014 administration and future administration.
IV.

Objectives of the Study

The researchers aimed to analyze the traffic management rules and challenges; and
propose a law that will help reducing it. This research intended to:
a. Determine the existing laws that governs traffic management in Makati City
b. Determine the factors affecting traffic congestion in Makati City
c. Determine law/s can provide solution regarding the traffic congestion in Makati City
V.

Scope and Limitations

The study focused on the analysis of the trend of Poverty Incidence in the Philippines
from year 2001-2013 based on the data from PSA and SWS. Factors that affect the poverty

incidence in the Philippines were determined and analyzed. And, significant programs aimed to
reduce poverty in the country in each administration was also assessed whether it created an
impact on poverty reduction. The impact was reflected by the trend of the poverty incidence
during the time the programs were implemented.
The study was limited only on the analysis of the data presented by the PSA which is
based on poverty incidence conducted every three years; and the SWS survey which is based on
a self-rated survey. The researchers analyzed the data given by PSA and compared it to the selfrated survey of SWS of the families who are poor. The researchers used the descriptive method
for the analysis of the subject matter and the comparative method in comparing the data from
PSA and SWS.

CHAPTER II
REVIEW OF RELATED LITERATURE
Poverty is commonly defined as the lack of what is necessary for material well-being
especially food but also housing, land, and other assets (World Bank, 1998). It is a state of being
that greatly affects not only economic, but also the social, political and even psychological
dimensions of human life. As of now, too much of the world is getting poorer and although
governments put a lot of their efforts to alleviate poverty, still those are not enough to free the
poorest and even international financial institutions which offered to transform less-fortunate
nations of the world failed to enable those who are poor to join the middle class (Rothkopf,
2005). In Asia alone, many key countries of the region still remain far below the global average
for prosperity. Although countries such as China and India are gaining economic growth, more
than half of their population still suffer from abject poverty.
The Philippines in particular, ranked sixth among other Asian nations that are below the
world average of GDP per capita (2005) and half of the countrys population are still relatively
poor earning at least $2 a day (Rowntree et al, 2012). As a result, many Filipinos must seek work
abroad. Men from the Philippines often work in construction or on ships while women work as
nurses, maids or nannies. Fifty years ago, the Philippines was the most highly developed
Southeast Asian country and was the considered by many to have the brightest prospects in all of
Asia. It had the best-educated populace in Southeast Asia and it seemed to have a sustained
economic development. In 1960, the Philippines had higher per capita GNI than South Korea. By
the late 1960s however, the development of the Philippines started to decline. Through the 1980s
and early 1990s, the countrys economy failed to outpace its population growth which led to the
decline of the peoples living standards. The Filipino people fortunately are still well educated
and reasonably healthy by world standards, but even the countrys educational and health
systems started to decline during the 1980s and 1990s. By the beginning of the new millennium,
the Philippine economy started to show some signs of revival but despite its recent stability, the
economy of the Philippines continues to be undermined by political and social problems.
Studies showed that the Philippines suffer from high degrees of poverty and inequality
(OECD, 2013). According to Chavez and Cruz (n.d.), the poverty incidence in the country has
been unchanging in recent years: poverty in the Philippines remains largely a rural phenomenon
and the bulk of the poorest provinces are in Mindanao whereas income inequality in the
Philippines has increased since 1986 while urban inequality has gradually decreased over
time, rural inequality has gone up in recent years. In 2013, the poverty incidence in the
Philippines practically remains unchanged for six years and Olchondra (2013), a columnist in
one of the Philippines leading publications, argued that because of the unemployment problem in
the country, much of the population in the country find it difficult to support their needs because
of no income. Although the government supports the poor families through its long-term
program which is the conditional cash transfer (CCT) program or the PantawidPamilyang
Pilipino Program (PPPP) to put stability to the situation of the poor, it is not enough to address
and lessen the poverty incidence of the country. According to DSWD Secretary Corazon JulianoSoliman, along with poverty and unemployment, there are other major issues that need to be

handled such as livelihood, shelter, education, health, and agriculture. It was then advised that
there is a need to create quality jobs for the Filipinos through increased infrastructure and
business investments and that the government need to concentrate on policies to create lasting
productive employment in order to reduce poverty, focus on fostering a favourable business and
investment climate, particularly for small and medium-sized enterprises which will contribute in
reducing poverty (OECD, 2013). Since then, monitoring the poverty incidence in the Philippines
had been one of the most important tasks not only of the government but also international
financial institutions in order to create suitable and timely policies that will contribute in
alleviating poverty in the country. For years, several agencies had given their reports based on
conducted researches and surveys.
In monitoring poverty incidence, it is important to look at the conditions of the people
with respect to poverty and its other dimensions. Many international organizations and
institutions such as the United Nations Development Programme (UNDP), the World Bank and
Asian Development Bank (ADB) had delineated their guidelines on monitoring the poverty
incidence of different countries. The World Bank for instance used different variables that can be
used in analyzing poverty such as income standards and inequality measures. The ADB on the
other hand, looks at recent trends of income and non-income inequalities and poverty, examines
the concept of inclusive growth, provides in-depth analysis of key policy pillars of an inclusive
growth strategy, including employment, access to public services, social protection, and
governance and institutions (ADB, 2010).
In the Philippines, monitoring the poverty incidence in country is mainly done by the
Philippine Statistical Agency (PSA), a coordinating agency on statistical matters of the
Philippines. The agency underscored several criteria in estimating the poor in the country.
According to PSA, the estimation of poverty starts with the computation of the food threshold,
which is determined by using provincial food bundles cost using provincial prices. Aside from
PSA and international institutions, there are also local private agencies that also helped in
monitoring the poverty incidence in the Philippines such as the Social Weather Station (SWS)
and Pulse Asia. Both private agencies are regarded in their styles of conducting surveys
regarding poverty incidence in the Philippines. These agencies use the self-rating approach in
order to determine the poverty incidence. By using this approach, monitoring the poverty
incidence became more accurate because families are able to rate themselves if they consider
their lifestyle living in poverty or not.
Through monitoring the poverty incidence in the Philippines, Poverty Reduction
Programs were implemented by the government in order to address the perennial issue of
Poverty. By the start of new millennium (2000-present) two administrations (Arroyo
Administration from 2001-2010 and Aquino Administration 2010-present) in the government are
focusing their development plans in alleviating poverty and sustaining economic growth in the
Philippines.
During the first ten years of the new millennium (2001-2010), the Philippines had a
trickle-down effect wherein the economic growth of the country shifted its poverty incidence
downward making families able to say that they are not living in poverty anymore. Hence,
Chaves and Cruz (n.d) described President Gloria Macapagal-Arroyo as a neoliberal economist,

and an author of several market-oriented laws. The Medium Term Philippine Development Plan
(MTPDP) under her administration focuses on the strategy towards winning the war against
poverty by generating macroeconomic stability to nurture global competitiveness. The
MTPDP would give emphasis on microenterprise development as a prime alleviation instrument
for poverty alleviation. Two major anti-poverty programs would eye the desired tripling of
microfinance initiatives, and the massive provision of livelihood projects among the selfemployed poor. Specific action plans were crafted for those groups deemed especially vulnerable
such as children, youth, women, IPs, the elderly and the disabled. Arroyos government,
through the work of DSWD and NAPC, would pursue other changes of its own with the KapitBisig Laban saKahirapan (KALAHI) program. The KALAHI-CIDSS program enhanced the
involvement of local districts in the designing, implementation and management of specific antipoverty interventions and would even go as far as to extending grants to finance projects
conceived, managed and implemented by community stakeholders themselves. Midway through
2008, the conditional cash transfers (CCT) of the PantawidPamilya Pilipino Program (4Ps),
would officially commence, becoming Arroyos second most bejewelled anti-poverty program.
After the Arroyo Administration ended in 2010, the Philippine Development Plan 20112016 of President Benigno S. Aquino III is anchored to 16-point Social Contract with the
Filipino People, that envisions inclusive growth for the country. In the second broad strategy of
the PDP plan, it highlights the provision of equal access to development opportunities across
geographic areas and across different income and social spectrum, which will ensure that
economic growth and opportunities that translate to poverty reduction. Budget ng bayan (2012)
emphasizes that at the heart of the Aquino Social Contract is the commitment to end poverty. At
the same time, fighting poverty also means investing in peoples capacity to participate
meaningfully in the economy, access gainful livelihood and improve the quality of their lives.
Inclusive development requires the equalization of opportunities for the people. The
administration will continue investing in the capacity of the people, especially the poor and the
marginalized, as well as to deliver meaningful social protection services for the vulnerable.
Through the Department of Social Welfare and Development and Department of Health, projects
like, Expansion of the Pantawid Pamilyang Pilipino Program (4Ps), Supplementary Feeding
Program, Sustainable Livelihood, Social Pension for Indigent Filipino Senior Citizens,
KALAHI-CIDSS, Comprehensive Program for Street Children, Recovery and Reintegration
Program for Trafficked Persons, launch of K-12 and universal health care were launched as some
of the programs to contribute to poverty reduction (DSWD, 2012).
Generally, monitoring poverty incidence is often helpful in identifying what are the
necessary actions that should be done by the government and other financial institutions as well.
However, poverty incidence is just the simplest way of summarizing poverty data but it is still
not enough because poverty situation continues to differ every time and across regions.
Furthermore, the government still find it difficult to make the poverty incidence in the
Philippines to move downwards because of many hindrances such as unequal distribution of
wealth and overpopulation. Hence, the government should focus in projects regarding the
deepening of the pool capital available in the country that includes investment in human capital
in the form of education, as well as full utilization of the population (Jopson, n.d.).

CHAPTER III
METHODOLOGY
I.

Subject and Respondent

The researchers did not have any respondent in the research since the researchers will
only analyze and give inferences based on the data that can be obtained from the PSA and the
SWS.
II.

Research Method
The qualitative research design was adopted by the researchers, and the descriptive
method and comparative method was determined as the most appropriate means for the study.
According to Brower et. al (2000), Qualitative research is aimed at gaining a deep
understanding of particular organizations, events, or people rather than a surface description of a
large sample of a population. Qualitative study is used after a quantitative study to explore areas
of unexplained variance or results from the quantitative study of PSA and SWS survey.
Descriptive research involved gathering data that described events and then the
descriptive method was used to explain the trend of poverty incidence on the graph presented in
the data collected by the researchers, and it was also used to explain the factors that affect the
upward or downward movement of the trend.
A comparative study compares the likeness and difference among phenomena to
determine if certain factors or circumstances tend to accompany certain events, conditions, or
processes (Key, 1997). The comparative study is limited in identifying the similarities and
differences between the numerical data and graphs presented by the PSA and the self-rated
survey conducted by the SWS.
Qualitative research method includes procedures that were used by the researchers in the
study. The researchers gathered data from the books, scholarly works, and practical sources in
which some background data may already be available in documents and websites. There are
three approaches used to analyze the data that was gathered. First, the single case study is
looking for a description of events or circumstances, and possibly a description of the causal
process. This is used to describe the trend of poverty incidence from year 2000-2012. Second,
multiple case study is applied to look for contrasts and comparisons of the movement of the trend
from year 2000-2012, and between the data presented by PSA and SWS survey towards poverty
incidence. Lastly, bins and variations on bins which is similar to content analysis, but chunks of
data that fit together or are of similar meanings are thrown into common sets of bins. The
researcher can then sort and sift the data in the various bins to look for similarities, differences,
and explanations for the similarities and differences. This approach is therefore more inductive
than content analysis. This was applied by the researches to examine the common phenomenon
that causes poverty alleviation in the Philippines and can be used in determining the effective
government program or policy to reduce poverty (Brower, et.al, 2000).

III.

Conceptual Framework

INPUT

PROCESS

OUPUT

Analysis of the Poverty Incidence

Trend in the Philippines (2000-2012)

eP

Poverty
Incidence Data
from PSA and
Poverty
Incidence Data
from SWS

NSCB Data

SWS Data

Similarities

Differences

Result of analysis
which includes the
factors that affect
the trend and
government
programs to reduce
poverty

Figure 1 (Conceptual Framework of Poverty Incidence Data from PSA and SWS on the analysis
of the poverty trend in the Philippines)
Figure 1 shows the blueprint of the study in order to achieve the goal which is the
analysis of the poverty incidence trend in the Philippines from 2000 to 2013. The data from PSA
and SWS on poverty incidence was used as the basis of the analysis. Both data were analyzed
and the factors affecting the data was determined. The data was also compared based on its
similarities and differences.
IV.

Operational Definition of the Variables

a. Poverty incidence the occurrence of poverty from year 2000-2012 based on the
standards set by the government, and based on the self-rated survey of SWS that
considered themselves as poor.
b. Poverty threshold/poverty line the measurement used by the government that sets
the standard of being a poor based on familys income per capita. The measurement is

c.
d.
e.

f.
g.
h.

changing annually based on economic indicators (i.e. inflation rate, wage rate, interest
rate, GDP) that indicate the average income needed by the family for daily living.
Social development programs are the programs or policies implemented by the
government to reduce poverty in the country and alleviate the living standard of the
poor.
Trickledown effect the goal of the government to trickledown the social benefits to
the poorest of the poor in order to reduce poverty.
Poverty reduction the objective of the government to reduce the poverty and to
have the families sufficient income to provide their daily basic needs. And, to lessen
the number of Filipinos considering themselves as poor regardless of the poverty
threshold set by the government.
Poverty the state of being poor. Having insufficient income based on daily basis set
by the government standard and unfortunate to provide the basic needs for daily
living.
PSA- refers to the Philippine Statistical Agency, a government-operated statistical
agency where data based on poverty incidence issued every three years was obtained.
SWS-refers to the Social Weather Station, a private statistical agency from whom
data based on self-rated methodology was obtained.

V.

Research Instrument
The instruments that the researchers will use in this research are the data from PSA and
SWS. Data from PSA is based on poverty incidence which is issued every three years while data
from SWS is based on self-rated method. Through this, the researchers was able to compare the
data and give inferences on government issued data and private issued survey.
a.
b.
c.

In analyzing the data, the researchers answered the following guide questions:
What is the trend of poverty based on each agency?
What programs, events or projects can be attributed that affecter the trend in a particular year or
program?
How did the data from PSA and SWS differ and concur? What can be inferred from this?

CHAPTER IV

RESULTS AND DISCUSSIONS

This chapter presented and provided an analysis and interpretation of data obtained from
the trend of Philippine poverty incidence from 2000 until 2013 which are the result of studies
made by two agencies namely PSA and SWS.
I. The trend of the Philippine Poverty Incidence based on PSA and SWS from 2001-2013
A. Trend of poverty incidence in the Philippines from 2000-2012 based on PSA

Poverty Incidence in the Philippines

28.3
30

% of
the
Poverty
Inciden

25
20

20

21.1

20.9

19.7

2003

2006

2009

2012

15
10
5
0
2000

Figure 2: Poverty Incidence among Families from Year 2001 to 2012

Source: National Statistical Coordination Board (PSA)
Year
2000
2003
2006
2009
2012

Poverty
Incidence
28.3
20
21.1
20.9
19.7

2000-2003

8.3

Increase/Decrease
2003-2006
2006-2009

1.1

0.2

2009-2012

1.2

Table 1: Summary of Poverty Incidence based on the PSA data

Figure 2 showed the poverty incidence trend in the Philippines on 2000-2012 based on
PSA data; 28.3% in 2000, 20% in 2003, 21.1% in 2006, 20.9% in 2009 and 19.7% in 2012. For
the span of 12 years the poverty incidence in the country went through boom and bust; 20002003 decreased by 8.3, 2003-2006 increase by 1.1, 2006-2009 decreased by 0.2 and decreased by
1.2 in 2009-2012. The data of PSA is based on the Family Income Expenditure Survey and is
collected every three years (Garcia, Lucagbo, Mapa, 2012).The PSA counts the poor in three
ways: first, by identifying a welfare indicator (income); second, by setting a poverty line (the

indicator separating the poor from the non-poor); third, by estimating the percentage of poor in a
population using the results of a sample survey conducted by the National Statistics Office
(NSO) (Shahani, 2013).
B.
70
61
60

62
51

50

48
50

40
30
20
10
0
2000

2003

2006

2009

2012

Trend of poverty incidence in the Philippines from 2000-2012 based on SWS

Figure 3: Poverty Incidence among Families from Year 2000 to 2012 based on SWS
% of
the
Poverty
Inciden

Year
2000
2003
2006
2009
2012

Poverty
Incidence
61
62
51
50
48

2000-2003

Increase/Decrease
2003-2006
2006-2009

11

2009-2012

Table 2: Summary of Poverty Incidence based on the SWS data

Figure 3 presented the poverty incidence in the Philippines on 2000-2012 based on SWS
data; 61% in 2000, 62% in 2003, 51% in 2006, 50% in 2009 and 48% in 2012. For the span of 12
years the poverty incidence in the country based on the SWS survey showed an inconsistent
trend. Table 2 presented the summary of poverty incidence based on the SWS survey where the
trend is inconsistent; 2000-2003 increased by 1, 2003-2006 decreased by 11, 2006-2009
decreased by 1 and decreased by 2 in 2009-2012. The data of SWS is based on the responses of
individuals to questions about their experiences about poverty (Social Weather Station, 2013).

II. Difference of the data provided by the PSA and the SWS
70
61
60

62
51

50

48

20

21.1

20.9

19.7

2003

2006

2009

2012

50
40
28.3
30
20
10
0
2000

NSCB

SWS

Figure 4: Poverty Incidence among Families from Year 2000 to 2012 based on SWS and PSA
Figure 4 presented the difference between the data given by the PSA and SWS. The FIES
based data of PSA showed a smaller rate of poverty incidence than that of the SWS survey. The
gap between the two data is amounting to an estimate of 40%. Despite the great gap of the
poverty incidence, the trend of poverty incidence of the PSA and SWS surveys showed similarity
where poverty incidence decreased in 2009 and 2012. The data presented a difference in the
trend in 2000, 2003 and 2006. One of the reasons attributed to the huge gap between the two data
is the different methodology employed to gather the data. The SWS survey relied on the selfassessment of its respondents, rather than on a set of standard criteria, in contrast, the PSA used
standard nutritional requirements, actual prices of food items and existing expenditure patterns
from specific households in order to set the poverty line (,2000). Another difference of the two
data is the population size; SWS quarterly figures for self-rated poverty are based on surveys
involving only 1,200 respondents, while PSA bases its income poverty figures on the FIES,
which consists of a sample size of about 51,000 households. Also, the PSA covers poverty
figures by region while the SWS survey is focused in Metro Manila and parts of Luzon, Visayas
and Mindanao (Shahani, 2013).

III.

Important events or critical junctures, programs and projects that affected the
trend
Table 3: Chronological order of events between 2000 that affected poverty
incidence in the Philippines

PERIOD
EVENTS
2000 - 2003
CPP Conflict
March 15-July 12, 2000 All-out war in Mindanao
May 3, 2000
Abu Sayaf terrorist hostage 21 people including 10
tourists and 11 resort workers of Malaysia
May 17, 2000
Terrorist bomb Glorietta mall in Makati
May 21, 2000
Terrorists bombed SM Megamall in Mandaluyong,
killing 1 person and 17 others injured
June 21, 2000
PB Com Tower, the tallest building in the country
opens
September 19, 2000
Court ruled that nearly $627 million in Swiss bank
deposits belonging to the late dictator Ferdinand
Marcos should go to the government.
November 13, 2000Impeachment of Joseph Estrada
January 17, 2001
December 30, 2000
Rizal day bombing

Effects
Negative
Negative
Negative
Negative

Positive
Positive

Negative
Negative

Table 3 showed that the events in 2000 had a negative impact on the poverty incidence in
the Philippines. The poverty incidence in the year 2000 according to the PSA data is 28.3%. It is
the highest recorded poverty incidence within the span of 12 years. The major event that could
have affected this result was the conflict in Mindanao. In 2000, the all-out war and several
hostage taking took place in Mindanao. The Asian Development Bank (2000) cited that:
Social conflicts prevent people from pursuing their livelihoods and economic activities
as they are displaced from their homes and places of work. The Philippines is home to
two of the longest running armed conflicts in the world: against the communist
insurgency and against the Bangsa Moro rebellion (Moro National Liberation Front and
Moro Islamic Liberation Front).
Table 4: Chronological order of events from 2001 to 2003 that affected poverty incidence in
the Philippines.

PERIOD
January 1620, 2001

January 20, 2001

March 5, 2002

2001
May 26, 2003
July 22, 2003
July 27, 2003

EVENTS
EDSA Revolution of 2001. Millions of people
marched in the streets of EDSA for a peaceful
protest against President Estrada for being
accused of plunder.
Vice-President Gloria Macapagal-Arroyo was
sworn as the second female and the 14th
President of the Philippines while Estrada was
stepped down as the 13th President of the
Philippines from his office in Malacaan
Palace.
The sixth most powerful earthquake of the
year, the Mindanao earthquake struck near the
Cotabato Trench and registered a magnitude
of 7.5.
Kapit-Bisig Laban sa Kahirapan (KALAHI)
program was implemented
Anti-Trafficking in Persons Act was passed
into law
Typhoon Imbudo
Oakwood Mutiny

Effects
Positive

Positive

Negative

Positive
Positive
Negative
Negative

Events from 2001 until 2003 in Table 2 shows that the country is moving forward from
the political turbulence of 2000. A law such as the anti-trafficking law was implemented aiming
to help the workers to escape the illegal employment across the world. Economic projects were
also done to address the poverty in the country. The poverty incidence in the country had a
significant decrease of 7% from 2000 to 2003. This reduction could have been caused by the
sustained implementation of the Arroyo administrations banner program for poverty reduction,
the Kapit-Bisig Laban sa Kahirapan (KALAHI) (Reyes and Valencia, 2004), which was launched
in 2001.
Table 5: Chronological order of events from 2004 to 2006 that affected poverty incidence in
the Philippines
PERIOD
November 14 - December 4,
2004
September 2006
October 2006
November 2006
December 2006

EVENTS
Typhoons Unding, Violeta, Winnie and
Yoyong hits the Philippines.
Typhoon Milenyo
Typhoon Paeng
Typhoon Reming
Typhoon Seniang

Effects
Negative
Negative
Negative
Negative
Negative

Table 5 implies that the reason behind the high poverty incidence in 2006 (PSA) was
because of the typhoons crossing in the country from 2004 to 2006. The typhoons destroyed
much of the countrys agricultural lands and many families were evacuated from their homes and
there are also a huge number of casualties in the areas affected by these typhoons. One major
factor that affected the poverty incidence increase in the year 2006 is the continuous natural
disasters that occurred in the Philippines. Past years also provide shocks that can provide insights
to the effects and coping mechanisms of the poor and vulnerable, such as 2006, which was a year
of massive floods and typhoons (Lim, 2010)
Table 6: Chronological order of events from 2007 to 2009 that affected poverty incidence in
the Philippines
PERIOD
2006-2009
January 13, 2007
July 27, 2007

August 30, 2007

2008
2009

February 2009

June 2009
July 2009

July 2009
September 24-27,
2009

EVENTS
Rice price crisis
Asian leaders pledge closer ties at the 12th ASEAN
Summit at Mandaue City.
The Department of Agriculture declares an outbreak of
hog cholera at the provinces of Pampanga and
Bulacan.
The government announced that the economy grew 7.5
percent in the second quarter from a year earlier,
topping market estimates, as private and government
consumption boosted growth to its strongest level in
two decades, President Arroyo announced in a press
conference at Malacaang Palace.
Global financial crisis
Conditional Cash Transfer was implemented in 277
municipalities- 36.5% in Luzon, 22.4% in Visayas, and
41.1% in Mindanao
Start of application for the Project on Nurses Assigned
in Rural Service by the DOLE, DOH,, and the
Professional Regulation Commission, Board of
Nursing (PRC-BON). The Project involved the training
of unemployed registered nurses in the 1,000 poorest
cities/municipalities of the country
Start of El Nino
Increase in the salaries of government employees with
the implementation of the 1st of four parts of the Salary
Standardization Law III
Start of the increase in alert level of Mayon Volcano
Typhoon Pepeng affected NCR, CAR, Regions I, II,
III, IV-A, IV-B, V, IX, with a total Php 27, 195 B cost
of damage

Effects
Negative
Positive
Negative

Positive

Negative
Positive

Positive

Negative
Positive

Negative
Negative

September 24-27,
2009

Typhoon Ondoy affected NCR, CAR, Regions I, II, III,

IV-A, IV-B, V, IX, with a total Php 27, 195 B cost of
damage

Negative

The events from 2007 to 2009 (Table 6) had mixed effect on the poverty incidence in the
Philippines. Economic growth was seen during this period however, external factors such as the
climate change greatly affected the economic output of the country. In 2009, several natural
calamities occurred in the country. But despite these events, the government did projects such as
the Conditional Cash Transfer (CCT) that helped to lessen the poverty incidence in the
Philippines.
Despite the drastic floods and typhoons that ravaged the main island of Luzon (Lim,
2010), the government was able to answer the needs of the poor through the Salary
Standardization Law, Development programs of DOH, DepEd and DOLE, and most importantly
the implementation of the Conditional Cash Transfer of the Arroyo administration in 2008.
According to the Asian Development Bank (2012) the PHL Conditional Cash Transfer program
is cost-efficient. The governments conditional cash transfer program to uproot extreme poverty
costs less than 0.5 percent of the countrys gross domestic product, yet reaches 15 million people
(ADB, 2012).
Table 7: Chronological order of events in 2012 that affected poverty incidence in the
Philippines.
PERIOD
EVENTS
Effects
February 6, 2012
6.9 magnitude earthquake affected Negros Oriental with
Negative
an estimated Php 383.1 M cost of damage
August 7, 2012
Monsoon Rains affected Regions I, III, IV-A, IV-B, VI
Negative
and NCR with an estimated Php 3.055 B cost of damage
December 2-9,
Typhoon Pablo affected Regions IV-B, VI, VII, VIII, IX,
Negative
2012
X, XI, XIII, CARAGA and ARMM with an estimated Php
3.055 B cost of damage
Under the new administration (Aquino was elected president in July 2010), the country faced
strong monsoon rains that affected several regions in Luzon (including NCR) that caused severe
cost of damage. In addition, the regions in southern Philippines were not also spared from the
natural calamities. These events in 2012 (Table 7) shows that natural calamities that cannot be
prevented caused negative effect on the economic growth and at the same time on the poverty
incidence of the Philippines.

CHAPTER V
CONCLUSIONS AND RECOMMENDATIONS
Summary of Findings:
I.

II.

III.

Trend of Poverty Incidence in the Philippines

A. PSA
1. The poverty incidence in the Philippines had decreased from 2000-2012.
2. In 2006, the poverty incidence increased by 1.1%.
3. From 2000 to 2012, the poverty incidence decreased from 28.3% to 19.7%
B. SWS
1. The poverty incidence in the Philippines had decreased from 2000-2012.
2. In 2006, the poverty incidence decreased by 11%.
3. From 2000 to 2012, the poverty incidence decreased from 61% to 48%.
Difference of SWS and PSA data
A. SWS and PSA used different basis for their research.
B. SWS used self-rated surveys while PSA used Family Income and Expenditure
Survey (FIES).
C. There is a huge difference in the percentage of poverty incidence between SWS
and PSA.
D. According to SWS, the poverty incidence between 2003 and 2006 decreased
while in PSA, it increased by 1.1%.
Factors that affected the Philippine Poverty Trend (2000-2012)
A. The three administrations Estrada, Arroyo and Aquino, did economic policies
that address poverty reduction.
B. There are other factors that affect the poverty incidence in the Philippines such as
calamities and political events.

Conclusions:
From 2000 until 2012, the poverty incidence in the Philippines has undergone several
changes and there are underlying factors that caused these significant changes. Both studies of

Social Weather Station (SWS) and Philippine Statistics Authority (PSA) showed that the poverty
incidence in the country had decreased from year 2000 to 2012. However, there are significant
differences between the methods of research and results of both agencies. The SWS based their
research on self-rated surveys while PSA used the Family Income and Expenditure Survey
(FIES). The results of both studies showed a huge difference in the percentage of the poverty
incidence in the country. In 2000, the result of poverty incidence of SWS is 61% while there is
only 28.3% poverty incidence according to PSA. Furthermore, the poverty incidence between
2003 and 2006 is also different.
Generally, the data derived from SWS and PSA can be seen to follow the same trend but
there are big differences in terms of the date. This is attributed to the different methods employed
by both agencies. SWS use self-rated method while PSA use the Family Income and Expenditure
Survey (FIES).
Although there were differences in the data results, the government implemented policies
that reduced the poverty incidence in the country; housing projects were made under the Estrada
Administration in 2000-2003 and were continued by the following administrations. This project
was able to address the need of the poor people to have their shelter. In addition, under the
Arroyo Administration in 2003-2010, the Conditional Cash Transfer was implemented in which
poor families were given money in order to buy their basic necessities on a monthly basis. This
transfer payment project of the Arroyo Administration was continued as Pantawid Pamilyang
Pilipino Program under the Aquino Administration (2010-present). Furthermore, the government
implemented free basic education policies among public schools and introduced the new
educational program of the government K+12, this aims to give the students better quality of
education and be more competitive with other countries. Moreover, the Philippines has not been
affected by the global recession in 2008 and it helped the country to sustain a low poverty
incidence until 2012. The policies and projects of the government as well as global events had
helped in reducing the poverty incidence in the Philippines.
Recommendations:
In light of the findings of this study and on the conclusions drawn, the researcher recommended
the following:
1. Consider other external factors affecting the poverty incidence such as natural calamities,
corruption and unemployment.
2. Continue the study of the trend of the poverty incidence in the Philippines in the years to come.
3. Consider other non-government agencies that conducts surveys towards poverty incidence in the
Philippines
4. Consider the policies and activities of other countries regarding poverty reduction.
5. The government must formulate job creation and effective revenue collection through legislative
and regulatory reforms on tax system, business incentives and trade regulations.

6. The government should create a special committee to examine and evaluate the effectiveness of
the transfer payments.
7. There must be consistent and clear criteria of families that are recipients of transfer payments to
regulate the effectiveness.
8. Consider the quality of the guidelines in assessing poverty rate such as review if the current basic
expenses for food and non-food expenditures set as the basis for measuring FIES is applicable
to the current situation.

REFERENCES
Balita.ph, (2010). Palace lauds ADB study showing 5% drop in poverty : balita.ph. [online]
Available at: http://balita.ph/2010/04/29/palace-lauds-adb-study-showing-5-drop-in-poverty/
[Accessed 8 Jan. 2015].

Baroy, P. J. E., 2012. Development Research News. [Online]

Available at: http://dirp4.pids.gov.ph/ris/drn/pidsdrn12-3.pdf
[Accessed 9 January 2015].
Bersales, L., 2014. Poverty Statistics- Press Release. [Online]
Available at: http://www.nscb.gov.ph/pressreleases/2014/PSA-NSCB-PR-201404-SS209_povertyincidence.asp#f1

Chavez, J. and Cruz, J.(n.d.) POVERTY AND MARGINALIZATION IN THE PHILIPPINES:A

PRIMER. [ebook] Available at: http://www.focusonpoverty.org/download/reports/Poverty
%20and%20Marginalization%20in%20the%20Philippines%20-%20A%20Primer.pdf [Accessed
8 Jan. 2015]
OECD (2013), Economic Outlook for Southeast Asia, China and India 2014: Beyond the
Middle-Income Trap, OECD Publishing.

Chua, K. (2014). Philippine Economic Update 2014: Pursuing economic growth through
sustainable reconstruction and job generation. [online] Worldbank.org. Available at:
http://www.worldbank.org/en/country/philippines/publication/philippine-economic-update-2014pursuing-economic-growth-through-sustainable-reconstruction-and-job-generation [Accessed 10
Jan. 2015].
Coudouel, A., Hentschel, J. and Wodon, Q. (2013). Poverty Measurement and Analysis. 1st ed.
[ebook] India: Ministry of Rural Development. Available at:

http://aajeevika.gov.in/studies/poverty-measurement/e-Poverty-measurement-and-analysis.pdf
[Accessed 4 Jan. 2015].

Foster, J., Seth, S., Lokshin, M. and Sajaia, Z. (2015). A Unified Approach to Measuring Poverty
and Inequality. 1st ed. [ebook] Washington, D.C.: The World Bank. Available at:
https://openknowledge.worldbank.org/bitstream/handle/10986/13731/9780821384619.pdf?
sequence=1 [Accessed 7 Jan. 2015].

Gov.ph, (2013). Statement: DSWD on the 2012 Poverty Incidence Statistics, April 24, 2013.
Official Gazette of the Republic of the Philippines. [online] Available at:
http://www.gov.ph/2013/04/24/statement-dswd-on-the-2012-poverty-incidence-statistics-april24-2013/ [Accessed 10 Jan. 2015].
lbert, J. R. G., 2013. NSCB. [Online]
Available at: http://www.nscb.gov.ph/poverty/presentation/Presentation%20on%20the
%202012%20Full%20Year%20Official%20Poverty%20Statistics.pdf
[Accessed 9 January 2014].
Jopson, E. (n.d.). Poverty Incidence, Infrastructure Development and Human Capital: an
Empirical Study of Provinces in the Philippines. De La Salle University Manila.
ADB. (2011).Country Partnership Strategy: Philippines, 20112016.[online] Available at:
http://www.adb.org/sites/default/files/institutional-document/33024/files/cps-phi-2011-2016.pdf
[Accessed 8 Jan. 2015].

Mangahas, M. (2015). Monitoring Philippine Poverty by Operational Indicators. [online]

Sws.org.ph. Available at: http://www.sws.org.ph/prem.htm [Accessed 8 Jan. 2015].

Olchondra, R. (2013). PH poverty incidence unchanged in past 6 yrs. Philippine Daily Inquirer.
[online] Available at: http://newsinfo.inquirer.net/396237/ph-poverty-unchanged [Accessed 10
Jan. 2015].
Pernia, E., et al., (2012). Population, poverty, politics and the Reproductive Health bill. Per Se.
[online] Econ.upd.edu.ph. Available at: http://www.econ.upd.edu.ph/perse/?p=1282 [Accessed
10 Jan. 2015].

Rappler, (2015). PH poverty incidence on downward trend NEDA. [online] Available at:
http://www.rappler.com/business/economy-watch/56708-ph-poverty-incidence-downward-neda
[Accessed 10 Jan. 2015].
Ravallion, M. (1992). Poverty Comparisons A Guide to Concepts and Methods. 1st ed. [ebook]
Washington, D.C: The World Bank. Available at:
http://info.worldbank.org/etools/docs/library/93518/Hung_0603/Hu_0603/RavallionEnglish.pdf
[Accessed 3 Jan. 2015].

Reyes, C. and Valencia, L. (n.d.). Poverty Reduction Strategy and Poverty Monitoring:
Philippine Case Study. 1st ed. [ebook] Manila: World Bank. Available at:
http://siteresources.worldbank.org/INTPAME/Resources/Countrystudies/philippines_povmonitoring_casestudy.pdf [Accessed 7 Jan. 2015].

Virola, R. A., 2011. NSCB. [Online]

Available at: http://www.focusonpoverty.org/download/data/2009%20Poverty%20Statistics
%20(NSCB).pdf
Virola, D. R. A., 2008. NSCB. [Online]
Available at: http://www.focusonpoverty.org/download/data/2009%20Poverty%20Statistics
%20(NSCB).pdf
[Accessed 9 January 2015].