Official Poverty Statistics

Outline of the Presentation Overview Official Poverty Estimation Methodology Latest Official Poverty Statistics Full Year First Semester IV. Other Efforts on Poverty Estimation

I. Overview

RA 8425 of 1997 (Social Reform & Poverty Alleviation Act ) I. Overview RA 8425 of 1997 (Social Reform & Poverty Alleviation Act ) Defines “Poor as individuals and families whose income fall below the poverty threshold as defined by the NEDA and/or cannot afford in a sustained manner to provide their minimum basic needs of food, health, education, housing and other essential amenities of life.”(Section 3 of the RA 8425) 4 4

Statistical activity/product Agency/Group Responsible I. Overview 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 (with regular updates from time to time) Statistical activity/product Agency/Group Responsible Development of the official poverty estimation METHODOLOGY Technical Committee on Poverty Statistics (TC PovStat) Compilation and estimation of the official poverty STATISTICS PSA Technical Staff 5

Technical Committee on Poverty Statistics I. Overview Technical Committee on Poverty Statistics Chair - Dr. Celia Reyes Philippine Institute for Development Studies (PIDS) Ms. Jessamyn Encarnacion PSA Vice Chair - Dr. Lisa Grace Bersales Philippine Statistics Authority (PSA) Dr. Arturo Pacificador, Jr. De La Salle University (DLSU) Dr. Zita Albacea Philippine Statistics Research and Training Institute (PSRTI) Usec. Florita Villar Department of Social Welfare and Development (DSWD) Dr. Jose Ramon Albert PIDS Dr. Romulo Virola Former Secretary General of the National Statistical Coordination Board (NSCB) Dr. Rosemarie Edillon National Economic Development Authority 6 6

II. Official Poverty Estimation Methodology

II. Official Poverty Estimation Methodology Who are the sources of data inputs? Data needed Source 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) Philippine Statistics Authority (PSA) Income (of families/per capita) Family Income and Expenditure Survey of PSA Annual Poverty Indicator Survey (APIS) of PSA 8

(Subsistence Poor, Food Poor, Extremely Poor) II. Official Poverty Estimation Methodology How does the PSA generate official poverty statistics? income (Non Poor) Poverty Threshold (in pesos) Poverty Incidence income Food Threshold (in pesos) (Poor) Subsistence Incidence income (Subsistence Poor, Food Poor, Extremely Poor) 9

II. Official Poverty Estimation Methodology Some Definitions What is the Food Threshold? Refers to the minimum income required for a family/ individual to meet the basic food needs, which satisfies the nutritional requirements for economically necessary and socially desirable physical activities Also referred to as the subsistence threshold or the food poverty line 10

II. Official Poverty Estimation Methodology Some Definitions What is the Poverty Threshold? Refers to the minimum income required for a family/individual to meet the basic food and non-food requirements Basic Non-Food Requirement includes: 1) clothing and footwear; 2) fuel, light and water; 3) housing maintenance and other minor repairs; 4) rental of occupied dwelling units; 5) medical care; 6) education; 7) transportation & communication; 8) non-durable furnishing; 9) household operations and 10) personal care and effects Is equal to the cost of minimum basic needs: food + non-food 11

II. Official Poverty Estimation Methodology Some Definitions What is subsistence incidence? Refers to the proportion of families/individuals with per capita income less than the per capita food threshold to the total number of families/ individuals Is Equal to the proportion of the food poor What is poverty incidence? Refers to the proportion of families/individuals with per capita income less than the per capita poverty threshold to the total number of families/individuals Is Equal to the proportion of the poor Both subsistence incidence and poverty incidence can be expressed as proportion of families or proportion of individuals 12

II. Official Poverty Estimation Methodology Some Definitions What is the Magnitude of the Food Poor/Core Poor? Refers to the number of families/individuals who are food poor/core poor What is the Magnitude of the Poor? Refers to the number of families/individuals who are poor 13

PROVINCIAL food bundle II. Official Poverty Estimation Methodology Food Threshold 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

II. Official Poverty Estimation Methodology Food Threshold Sample translation: Iloilo National reference food bundle Meal Time Viands Breakfast Scrambled egg Coffee with milk Boiled rice/rice-corn mix Lunch Boiled/ginataang monggo with malunggay and dried dilis Banana Boiled rice/corn mix Dinner Fried fish/boiled pork Vegetable dish Snacks Bread or boiled rootcrop Meal Time Viands Breakfast Scrambled egg Coffee with milk Boiled rice Lunch Boiled monggo with malunggay and dried dilis Banana, latundan Dinner Fried tulingan Boiled saluyot Snacks Boiled cassava

II. Official Poverty Estimation Methodology Food Threshold To estimate the food threshold, each of the ingredients in the food bundle are priced using data collected by PSA. The per capita per day food cost are then computed based on this, which is then multiplied by 30.4 (approximate number of days per month) to get the monthly food threshold or by 365 days (30.4 days/month x 12 months) to get the annual per capita food threshold.

II. Official Poverty Estimation Methodology Poverty Threshold  

II. Official Poverty Estimation Methodology Poverty Threshold Food threshold Non-food threshold Constant FE/TBE ratio 0.6983 POVERTY THRESHOLD If income of family/individual is less than poverty threshold Provincial POVERTY INCIDENCE and MAGNITUDE OF POOR

III. Latest Official Poverty Statistics

Level of Disaggregation Latest Official Poverty Statistics available to date: Poverty Statistics Level of Disaggregation Years Available Full Year Poverty Statistics National, regional, provincial (based on Family Income and Expenditure Survey (FIES)) 1991, 2006, 2009 and 2012 First Semester Poverty Statistics National, regional, provincial (based on FIES) 2006, 2009 and 2012 National (based on Annual Poverty Indicator Survey (APIS)) 2013 and 2014 Poverty Statistics for the Basic Sectors National, regional (based on merged FIES-Labor Force Survey) 20 20

A. Full Year Official Poverty Statistics For the full year 2012, a Filipino family of five needed Php5,513 average monthly income to buy their minimum basic food needs; and Php7,890 monthly to include other minimum basic nonfood needs Monthly Food and Poverty Threshold for a Family of Five, 1991, 2006, 2009, and 2012 (in PhP) 7,890 7,030 5,565 4,908 3,878 5,513 12.2%

Poverty Incidence among Families (%), 2006, 2009, and 2012 A. Full Year Official Poverty Statistics Poverty incidence among families registered at 19.7% in 2012 Poverty Incidence among Families (%), 2006, 2009, and 2012 21.7 21.2 20.4 20.3 19.8 18.9

Subsistence Incidence among Families (%), 2006, 2009, and 2012 A. Full Year Official Poverty Statistics Subsistence incidence among families registered at 7.5% in 2012 Subsistence Incidence among Families (%), 2006, 2009, and 2012 9.2 8.3 7.9 8.4 7.4 7.1

Poverty Incidence among Population (%), 2006, 2009, and 2012 A. Full Year Official Poverty Statistics Poverty incidence among population registered at 25.2% in 2012 Poverty Incidence among Population (%), 2006, 2009, and 2012 27.4 27.1 26.1 25.7 25.4 24.4

Subsistence Incidence among Population (%), 2006, 2009, and 2012 A. Full Year Official Poverty Statistics Subsistence incidence among population registered at 10.4% in 2012 Subsistence Incidence among Population (%), 2006, 2009, and 2012 12.6 11.5 11.0 11.4 10.4 9.8

The magnitude of poor families was estimated at 4.2 million. A. Full Year Official Poverty Statistics The magnitude of poor families was estimated at 4.2 million. Magnitude of Subsistence Poor and Poor Families (in millions), 2006, 2009, and 2012 MDG Baseline Data 4.21 3.55 MDG Baseline Data 1.61

A. Full Year Official Poverty Statistics ARMM, Regions VIII and XII are the poorest regions in 2012. Region Poverty Incidence among Families (%) 2006 2009 2012 PHILIPPINES 21.0 20.5 19.7 Region IX 40.0 39.5 33.7 Region X 32.1 33.3 32.8 Region V 35.4 35.3 32.3 Caraga 41.7 46.0 31.9 Region VII 30.7 26.0 25.7 Region XI 25.4 25.5 25.0 Region IV-B 32.4 27.2 23.6 Region VI 22.7 22.8 CAR 21.1 19.2 17.5 Region II 21.7 20.2 17.0 Region I 19.9 16.8 14.0 ARMM 40.5 39.9 48.7 Region VIII 33.7 34.5 37.4 Region XII 31.2 30.8 37.1 Region III 10.3 10.7 10.1 Region IV-A 7.8 8.8 8.3 NCR 2.9 2.4 2.6

Poverty Incidence Among Families A. Full Year Official Poverty Statistics Among the 17 regions in the country, only Caraga posted significant decrease* in poverty incidence between 2009 and 2012, respectively.   Poverty Incidence Among Families Increase/Decrease 2006 2009 2012 06-09 09-12 PHILIPPINES 21.0 20.5 19.7 (0.5) (0.8) Region IX 40.0 39.5 33.7 (5.8) Region IV-B 32.4 27.2 23.6 (5.2) (3.6) Region II 21.7 20.2 17.0 (1.5) (3.2) Region V 35.4 35.3 32.3 (0.1) (3.0) Region I 19.9 16.8 14.0 (3.1) (2.8) CAR 21.1 19.2 17.5 (1.9) (1.7) Region VI 22.7 22.8 0.9 Region III 10.3 10.7 10.1 0.3 (0.6) Region XI 25.4 25.5 25.0 0.1 Region X 32.1 33.3 32.8 1.2 Region IV-A 7.8 8.8 8.3 1.0 Region VII 30.7 26.0 25.7 (4.7) (0.3) NCR 2.9 2.4 2.6 Region VIII 34.5 37.4 0.8 Region XII 31.2 30.8 37.1 (0.4) 6.3 ARMM 40.5 39.9 48.7 Caraga 41.7 46.0 31.9 4.3 (14.2)*

Poverty Incidence Among Families A. Full Year Official Poverty Statistics On the other hand, and posted significant increases* in poverty incidence between 2009 and 2012, respectively. ARMM Region XII   Poverty Incidence Among Families Increase/Decrease 2006 2009 2012 06-09 09-12 PHILIPPINES 21.0 20.5 19.7 (0.5) (0.8) Region VIII 33.7 34.5 37.4 0.8 2.9 NCR 2.4 2.6 (0.6) 0.3 Region VII 30.7 26.0 25.7 (4.7) (0.3) Region IV-A 7.8 8.8 8.3 1.0 ARMM 40.5 39.9 48.7 (0.6) 8.8* Region XII 31.2 30.8 37.1 (0.4) 6.3*

A. Full Year Official Poverty Statistics Eastern Samar, Lanao del Sur, Maguindanao, Masbate, Northern Samar, Sarangani and Zamboanga del Norte are consistently included in the poorest cluster of provinces in 2006, 2009 and 2012. Province 2006 2009 2012 Cluster Poverty Incidence Apayao 1 42.1 2 39.9 54.7 Bukidnon 35.4 37.0 41.5 Camiguin 3 31.4 4 20.4 41.0 Eastern Samar 41.3 49.2 55.4 Lanao del Norte 33.1 39.7 41.4 Lanao del Sur 38.6 48.7 67.3 Maguindanao 46.4 43.3 54.5 Masbate 44.6 44.4 40.6 Negros Oriental 38.2 28.0 43.9 North Cotabato 25.6 23.4 44.8 Northern Samar 42.8 43.5 Sarangani 41.7 47.5 46.0 Sultan Kudarat 44.3 41.6 40.4 Sulu 35.2 35.5 40.2 Western Samar 32.3 34.9 Zamboanga del Norte 60.3 48.0

A. Full Year Official Poverty Statistics On the other hand, Bataan, Benguet, Bulacan, Cavite, Laguna, Pampanga, Rizal, 1st, 2nd, 3rd and 4th districts of NCR, are consistently included in the least poor cluster of provinces in 2006, 2009 and 2012. Province 2006 2009 2012 Cluster Poverty Incidence Bataan 5 6.2 5.9 4.5 Benguet 4.0 4.2 2.8 Bulacan 4.9 4.6 5.4 Cavite 1.2 2.2 2.6 1st District NCR 2.7 3.2 3.6 4th District NCR 2.4 1.5 3.0 Ilocos Norte 4 13.7 11.1 8.4 Laguna 4.3 Pampanga 2.0 Rizal 2.5 5.8 5.0 2nd District NCR 1.9 3rd District NCR 3.3

A. Full Year Official Poverty Statistics Region VI Province 2006 2009 2012 Cluster Poverty Incidence Region VI 22.7 23.6 22.8 Aklan 3 32.2 2 36.7 20.4* Antique 1 42.5 34.5 23.6* Capiz 23.5 22.9* 22.3* Guimaras 4 19.7* 13.4* 16.9* Iloilo 16.7 19.7 20.8 Negros Occidental 21.6 22.9 24.9

A. Full Year Official Poverty Statistics Region VII Province 2006 2009 2012 Cluster Poverty Incidence Region VII 30.7 26.0 25.7 Bohol 1 40.3 2 36.6 30.6 Cebu 3 25.6 22.3 4 18.9 Negros Oriental 38.2 28.0 43.9 Siquijor 27.2 24.0

A. Full Year Official Poverty Statistics Region VIII Province 2006 2009 2012 Cluster Poverty Incidence Region VIII 33.7 34.5 37.4 Biliran 3 22.6 2 31.8 4 20.9 Eastern Samar 1 41.3 49.2 55.4 Leyte 32.2 29.8 31.4 Northern Samar 44.6 42.8 43.5 Southern Leyte 25.3 30.1 34.0 Western Samar 32.3 34.9

B. First Semester Official Poverty Statistics During the 1st semester of 2014, a family of five needed at least PhP6,125 on the average per month to meet the family’s basic food needs and at least PhP8,778 on the average every month to meet both basic food and non-food needs. Monthly Food and Poverty Threshold for a Family of Five, 1st semesters of 2013 and 2014 (in PhP) 1st Semester

B. First Semester Official Poverty Statistics One out of five families is poor in first semester 2014 Poverty Incidence among Families (%), 1st semesters of 2013 and 2014 21.3 20.2 18.6 17.5 Note: 2013 1st Semester poverty estimates were revised from the previous release on 29 April 2014 for consistency with the 2014 1st semester poverty estimates generated from the 2014 Annual Poverty Indicator Survey (APIS) which does not include Batanes and Leyte

B. First Semester Official Poverty Statistics Subsistence incidence among families stood at 7.6% in first semester of 2014 Subsistence Incidence among Families (%), 1st semesters of 2013 and 2014 8.3 8.4 6.7 6.7 Note: 2013 1st Semester poverty estimates were revised from the previous release on 29 April 2014 for consistency with the 2014 1st semester poverty estimates generated from the 2014 Annual Poverty Indicator Survey (APIS) which does not include Batanes and Leyte

Poverty Incidence among Population (%), 1st semesters of 2013 and 2014 B. First Semester Official Poverty Statistics Poverty incidence among population registered at 25.8% in first semester of 2014 Poverty Incidence among Population (%), 1st semesters of 2013 and 2014 1st Semester Note: 2013 1st Semester poverty estimates were revised from the previous release on 29 April 2014 for consistency with the 2014 1st semester poverty estimates generated from the 2014 Annual Poverty Indicator Survey (APIS) which does not include Batanes and Leyte

B. First Semester Official Poverty Statistics Subsistence incidence among population stood at 10.5% in first semester of 2014 Subsistence Incidence among Population (%), 1st semesters of 2013 and 2014 11.6 11.5 9.4 9.4 1st Semester Note: 2013 1st Semester poverty estimates were revised from the previous release on 29 April 2014 for consistency with the 2014 1st semester poverty estimates generated from the 2014 Annual Poverty Indicator Survey (APIS) which does not include Batanes and Leyte

IV. Other Efforts on Poverty Estimation

IV. Other Efforts on Poverty Estimation 1. Generation of Poverty Statistics for the Basic Sectors Farmers and landless workers Fisherfolk Children Women Youth and Students Senior Citizens Formal labor and Migrant Workers Urban Poor In September 2007, per recommendation of the Technical Committee on Poverty Statistics (TC PovStat) the NSCB Executive Board approved the Methodology for the Generation of Poverty Statistics for the Basic Sectors, through NSCB Resolution No. 11, Series of 2007 Latest estimates are for 2012 at the national and regional levels

IV. Other Efforts on Poverty Estimation 2. Generation of City/Municipal Level Poverty Estimates Due to the design of existing surveys on income of households (i.e., FIES), direct estimates of poverty at the city/municipal level cannot be generated. With assistance from the World Bank, AusAid and Phil. Government, using data from the Census of Population and Housing, FIES, and Labor Force Surveys, the former NSCB (now part of PSA) produced city and municipal level estimates of poverty using small area estimation technique for the following years: 2000, 2003, 2006, 2009 and 2012 Latest city and municipal level poverty statistics are available for 2012

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