1. Official Poverty Statistics

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

3. I. Overview

4. 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

5. 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

6. 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

7. II. Official Poverty Estimation Methodology

8. 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

9. (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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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.

17. II. Official Poverty Estimation Methodology
Poverty Threshold

18. 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

19. III. Latest Official Poverty Statistics

20. 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

21. 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%

22. 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

23. 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

24. 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

25. 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

26. 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

27. 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

28. 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)*

29. 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*

30. 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

31. 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

32. 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

33. 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

34. 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

35. 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

36. 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: st Semester poverty estimates were revised from the previous release on 29 April 2014 for consistency with the st semester poverty estimates generated from the 2014 Annual Poverty Indicator Survey (APIS) which does not include Batanes and Leyte

37. 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: st Semester poverty estimates were revised from the previous release on 29 April 2014 for consistency with the st semester poverty estimates generated from the 2014 Annual Poverty Indicator Survey (APIS) which does not include Batanes and Leyte

38. 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: st Semester poverty estimates were revised from the previous release on 29 April 2014 for consistency with the st semester poverty estimates generated from the 2014 Annual Poverty Indicator Survey (APIS) which does not include Batanes and Leyte

39. 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: st Semester poverty estimates were revised from the previous release on 29 April 2014 for consistency with the st semester poverty estimates generated from the 2014 Annual Poverty Indicator Survey (APIS) which does not include Batanes and Leyte

40. IV. Other Efforts on Poverty Estimation

41. 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

42. 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

43. Maraming Salamat po!