NATIONAL STATISTICAL COORDINATION BOARD 1 Guidelines in the Construction of Provincial Menus 4 th Meeting of the TC on Poverty Statistics August 11, 2004

NATIONAL STATISTICAL COORDINATION BOARD 2 I.Background II.Guidelines in the Construction of Provincial Menus III.Sample Results IV.Possible Sources of Overestimation/Underestimation Outline of the Presentation

NATIONAL STATISTICAL COORDINATION BOARD 3 I. Background Presentation of the initial provincial poverty statistics using the initially approved methodology The NSCB Technical Staff to review methodology due to some findings NSCB Executive Board meeting held on June 5, 2002

NATIONAL STATISTICAL COORDINATION BOARD 4 I. Background Findings based on the results of the initial validation of provincial menus 1. Large variability of thresholds within regions (Region 3) 2. Some of the provincial thresholds are higher than NCR 3. Some of the commodities identified in the provincial menu are not “low-cost” but more of “commonly-eaten” 4. Use of “low-cost” menu is possible without sacrificing nutritional requirements

NATIONAL STATISTICAL COORDINATION BOARD 5 I. Background Phase I 1)Study the validity of the proposed provincial menus; 2)Recommendations made to improve the proposed provincial menus will be consulted with the Project Consultant to check the validity of the changes made/proposed by the Project Staff; 3)Conduct of tests of revealed preferences using the revised provincial menus Improvement of the Provincial Poverty Estimation Methodology (Area 2) – WB ASEM Grant

NATIONAL STATISTICAL COORDINATION BOARD 6 Come up with the least-cost possible and nutritionally adequate menu comprised of low-cost food items that are eaten and available in the province Main Objective II. Guidelines in the Construction of Provincial Menus

NATIONAL STATISTICAL COORDINATION BOARD 7 II. Guidelines in the Construction of Provincial Menus 1)To address the issue of comparability across space, start with a nationally-representative reference menu that is simple, nutritious and potentially low-cost and one that reflects the meal pattern of a poor household;; 2)All menus should meet the nutritional requirements based on the approved methodology: General Guidelines Energy and protein: 100% Other Vitamins and minerals: 80% (calcium, iron, vitamin A, thiamin, riboflavin, niacin, and vitamin C)..

NATIONAL STATISTICAL COORDINATION BOARD 8 Reference Menu II. Guidelines in the Construction of Provincial Menus <

NATIONAL STATISTICAL COORDINATION BOARD 9 1)Determine alternative food items Specific Guidelines II. Guidelines in the Construction of Provincial Menus

NATIONAL STATISTICAL COORDINATION BOARD 10 2)Standard measurements for selected food items Specific Guidelines... II. Guidelines in the Construction of Provincial Menus Food ItemStandard Measurements Rice Average Minimum Maximum 342 grams 320 grams 360 grams Coffee, instant1 gram Coffee, roasted7 grams Milk, filled, instant5 grams Sugar, brown10 grams

NATIONAL STATISTICAL COORDINATION BOARD 11 3)Weight of other food items - should be within the range of acceptable/reasonable weights - observe proper proportions ( e.g. for sauteed mongo, ratio of malunggay/ampalaya leaves to mongo is at most 1:1 ) 4)Assumptions 4.1 Among the snack items, camote is the most nutritious, followed by cassava, then saba. Although cassava is not superior to saba in all nutrient types, cassava is richer in nutrients that are oftentimes difficult to satisfy, e.g., energy, iron, niacin. Specific Guidelines... II. Guidelines in the Construction of Provincial Menus

NATIONAL STATISTICAL COORDINATION BOARD 12 Specific Guidelines... II. Guidelines in the Construction of Provincial Menus

NATIONAL STATISTICAL COORDINATION BOARD 13 Specific Guidelines... II. Guidelines in the Construction of Provincial Menus 4.2Seven (7) grams of roasted coffee is more nutritious than one (1) gram of instant coffee 4)Assumptions (cont’d):

NATIONAL STATISTICAL COORDINATION BOARD 14 Specific Guidelines... II. Guidelines in the Construction of Provincial Menus 4.3)The use of dried dilis usually results in a cheaper overall menu cost since it is richer than smoked fish in nutrients that are more often difficult to satisfy (energy, iron, niacin) 4)Assumptions (cont’d):

NATIONAL STATISTICAL COORDINATION BOARD 15 Specific Guidelines... II. Guidelines in the Construction of Provincial Menus 4.3)cont’d… 4)Assumptions (cont’d):

NATIONAL STATISTICAL COORDINATION BOARD 16 Specific Guidelines... II. Guidelines in the Construction of Provincial Menus 4.4)For equal weights of lakatan and latundan, the latter is richer only in niacin but is inferior/equal to lakatan in other nutrients. 4)Assumptions (cont’d):

NATIONAL STATISTICAL COORDINATION BOARD 17 Specific Guidelines... II. Guidelines in the Construction of Provincial Menus 5.1) For every food item in the reference menu, identify the cheapest variety/type in the province. 5.2)Select the case that applies depending on the price situation in the province.. 5)Step by step procedure

NATIONAL STATISTICAL COORDINATION BOARD 18 Specific Guidelines... II. Guidelines in the Construction of Provincial Menus 5)Step by step procedure 5.3)Cont’d::

NATIONAL STATISTICAL COORDINATION BOARD 19 Specific Guidelines... II. Guidelines in the Construction of Provincial Menus 5)Step by step procedure 5.3)Cont’d::

NATIONAL STATISTICAL COORDINATION BOARD 20 Specific Guidelines... II. Guidelines in the Construction of Provincial Menus 5)Step by step procedure 5.3)Cont’d::

NATIONAL STATISTICAL COORDINATION BOARD 21 Specific Guidelines... II. Guidelines in the Construction of Provincial Menus 5)Step by step procedure 5.3)Cont’d::

NATIONAL STATISTICAL COORDINATION BOARD 22 Specific Guidelines... II. Guidelines in the Construction of Provincial Menus 5)Step by step procedure 5.3)Cont’d::

NATIONAL STATISTICAL COORDINATION BOARD 23 Specific Guidelines... II. Guidelines in the Construction of Provincial Menus 5)Step by step procedure 5.3)Cont’d::

NATIONAL STATISTICAL COORDINATION BOARD 24 Specific Guidelines... II. Guidelines in the Construction of Provincial Menus 5)Step by step procedure 5.3)Cont’d::

NATIONAL STATISTICAL COORDINATION BOARD 25 Specific Guidelines... II. Guidelines in the Construction of Provincial Menus 5)Step by step procedure (cont’d): 5.4)Using the cheapest menu arrived at in the previous step, replace latundan with lakatan and compute the resulting menu cost 5.5)If roasted is the cheaper coffee, then the cheaper menu in Step 5.4 is considered the final menu. Otherwise, using the cheaper menu in Step 5.4, replace instant coffee with roasted coffee and compute the resulting menu cost. Whichever menu is cheaper is considered the final menu.

NATIONAL STATISTICAL COORDINATION BOARD 26 III. Sample Results Cavite, proposed provincial menu

NATIONAL STATISTICAL COORDINATION BOARD 27 III. Sample Results Marinduque, proposed provincial menu

NATIONAL STATISTICAL COORDINATION BOARD 28 III. Sample Results Southern Leyte, proposed provincial menu

NATIONAL STATISTICAL COORDINATION BOARD 29 Does not include cost of fuel (underestimation) Use of one-day menu to represent consumption for the whole year (underestimation) Does not consider the fact that the seven (7) grams of roasted coffee can be used many times (overestimation) Use of uniform standard conversion from farmgate/wholesale price to retail price and vice versa (under/overestimation) IV. Possible Sources of Overestimation/ Underestimation

NATIONAL STATISTICAL COORDINATION BOARD 30 Thank You!