A CHALLENGE FOR FILIPINO FAMILIES
By Leo R. Maliksi
Calls to limit population growth in the Philippines are misguided, says a leading economist in an exclusive
MercatorNet interview. Big families are the ultimate resource.
http://www.mercatornet.com/index.php...sk=view&id=171
The poverty data cited in this article could be updated. Here are three tables which shows recent figures.
There are improvements. Poverty incidence in the Philippines is the proportion of families with per capita incomes below the poverty threshold. Poverty fell by about 3 percentage points to 24.7% in 2003 from the revised estimate of 27.5% in 2000. Poverty incidence in Metro Manila also declined by about a percentage point (see table 1).
Table 1.]Incidence of Poverty among Filipino families, in %
Code:
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* * * * * * * *2000(r)* * *2003* Percentage point decline
Philippines* * *27.5* * *24.7* * *-2.7
Metro Manila* ** *5.7* * *5.0* * *-0.7
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r – revised estimate
Source: National Statistical Coordination Board (NSCB).
Poverty threshold is defined as the minimum income required for a family of five members to meet the food requirements and other non-food needs. The nationwide poverty threshold would amount to P1,022 a month or P12,267 a year. Table 2 shows that the 2003 poverty threshold rose by 7% from the revised 2000 threshold. This rate of increase is the same as that of Metro Manila.
Table 2. Annual per capita Poverty threshold, in Pesos
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* * * * * * * *2000(r)* * *2003* * * *Increase (in %)
Philippines* * 11,451* * *12,267* * * * * 7.1
Metro Manila* *15,693* * *16,796* * * * * 7.0
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r – revised estimate
Source: National Statistical Coordination Board (NSCB).
Poverty estimates are released every three years. The 2003 estimate show that, about 4M families, or less than a quarter of the Philippine’s total families are poor.* This is around 172,000 families less compared to the 2000 estimate. The latest estimate is still about 4M more families that need to be helped to ERADICATE (not just alleviate) poverty.* The national poverty line is used as an indicator for the proportion of the population earning below $1 Purchasing Power Parity (or PPP) per day.* Table 3 show improvements. By the $1 a day benchmark, the head count poverty incidence in 2000 of 15.5% dipped to 14.1% in 2003. If this trend continues,* the poverty index could be cut by more than one half (from 1990 levels by the year 2015). A slower downtrend could be observed when a more stringent $2 a day standard of living is applied.
Table 3. Philippine Poverty Index, Head count ratio, in %
Code:
* * * * $1 a day* * $2 a day
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1990* * * 19.7* * * * 54.9
2000* * * 15.5* * * * 47.5
2003* * * 14.1* * * * 44.4
2015 (a)* *6.9* * * * 38.2
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a. Based on the scenario of benchmark growth and less equitable distribution.
Source: Asian Development Bank, Key Indicators 2005
Some technical note on PPP:
The purchasing power parities (PPPs) is a conversion factors used for translating gross domestic product (GDP) and its components from own-currencies to dollars. The alternative measure—exchange rates—obscures the relationship between the quantity aggregates of different countries. The commonly used $1 a day standard was chosen because it is typical of the poverty lines in low-income countries. PPP exchange rates take into account the local prices of goods and services that are not traded internationally. (The World Bank, World Development Indicators 1999)