Poverty in the Philippines
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File:Poverty in the Philippines.jpg
Despite improvements in recent years, poverty in the Philippines remains high, and the pace of poverty reduction has been slower compared to other East Asian countries. Economic growth in the Philippines was less inclusive and slower than in high-performing neighbors, resulting in a lag in poverty reduction. Between 2006 and 2015, the country's poverty rate, measured by the international poverty line (US$1.90/day), declined by only 0.9 percentage points annually, compared to 2–2.5 percentage points in China, Indonesia, and Vietnam. When measured by the lower-middle-income-class poverty line (US$3.20/day), poverty declined by just 1.3 percentage points annually, while same three countries saw reductions of 3–5 percentage points.{{Cite web|url=http://documents.worldbank.org/curated/en/273631527594735491/Making-growth-work-for-the-poor-a-poverty-assessment-for-the-Philippines|title=Making growth work for the poor : a poverty assessment for the Philippines|date=January 1, 2018|page=26|via=documents.worldbank.org|publisher=World Bank Group}}
In 2023, the Philippine Statistics Authority (PSA) set the national poverty threshold at ₱13,873 per month for a family of five (approximately US$250), or about ₱92.49 per person per day (around US$1.67). Individuals are considered "poor" if their income falls below this threshold, which is intended to cover basic food and non-food needs. However, the PSA acknowledged that the food component of this threshold was not sufficient to meet the minimum daily dietary or nutritional requirements, suggesting that even those not classified as "food poor" may still be undernourished.
{{Cite web |title=Preliminary 2023 Full Year Poverty Statistics |url=https://psa.gov.ph/sites/default/files/infographics/2023%20Full%20Year%20Poverty%20Statistics_signed.pdf |access-date=2025-04-16 |website=psa.gov.ph}}{{Cite web |last=Piatos |first=Tiziana Celine |date=2024-08-16 |title=2.4-M less poor Pinoys in 2023: PSA says food inflation tamed figures |url=https://tribune.net.ph/2024/08/15/24-m-less-poor-pinoys-in-2023-psa-says-food-inflation-tamed-figures |access-date=2025-04-16 |website=Daily Tribune |language=en}}{{Cite web |title=Official Poverty Statistics of the Philippines 2023 Full Year |url=https://psa.gov.ph/sites/default/files/phdsd/2023%20FY%20Official%20Poverty%20Statistics%20Publication_15August2024.pdf |access-date=2025-04-16 |website=psa.gov.ph}} In 2023, official government statistics reported that the Philippines had a poverty rate of 15.5%,{{Cite press release |last=Mapa |first=Claire Dennis S. |title=Percentage of Filipino Families Classified as Poor Declined to 10.9 percent in 2023 |url=https://psa.gov.ph/statistics/poverty |url-status=live |archive-url=https://web.archive.org/web/20240722043532/https://psa.gov.ph/statistics/poverty |archive-date=July 22, 2024 |website=Philippine Statistics Authority}}{{cite news |title=Philippines poverty rate fell to 15.5% in 2023 |url=https://manilastandard.net/business/314474627/philippines-poverty-rate-fell-to-15-5-in-2023.html |access-date=August 2, 2024 |work=Manila Standard |date=July 22, 2024}} (or roughly 17.54 million Filipinos), significantly lower than the 49.2 percent recorded in 1985 through years of government poverty reduction efforts.{{#invoke:Cite|report|title=Overcoming Poverty and Inequality in the Philippines; Past, Present, and Prospects for the Future |url=https://documents1.worldbank.org/curated/en/099325011232224571/pdf/P17486101e29310810abaf0e8e336aed85a.pdf |website=The World Bank |access-date=April 2, 2023 |archive-url=https://web.archive.org/web/20221206083125/https://documents1.worldbank.org/curated/en/099325011232224571/pdf/P17486101e29310810abaf0e8e336aed85a.pdf |archive-date=December 6, 2022 |page=3}} From 2018 to 2021, an estimated 2.3 million Filipinos fell into poverty amid the economic recession caused by the COVID-19 pandemic.{{cite news |last1=Royandoyan |first1=Ramon |title=Pandemic pulls more Filipinos back to poverty in 2021 |url=https://www.philstar.com/business/2022/08/15/2202777/pandemic-pulls-more-filipinos-back-poverty-2021 |access-date=November 10, 2022 |work=The Philippine Star |date=August 15, 2022 |archive-url=https://web.archive.org/web/20220815022332/https://www.philstar.com/business/2022/08/15/2202777/pandemic-pulls-more-filipinos-back-poverty-2021 |archive-date=August 15, 2022}}{{cite news |title=Proportion of Poor Filipinos was Recorded at 18.1 Percent in 2021 |url=https://psa.gov.ph/poverty-press-releases/nid/167972 |access-date=November 8, 2022 |work=Philippine Statistics Authority |date=August 15, 2022 |archive-url=https://web.archive.org/web/20220816035933/https://psa.gov.ph/poverty-press-releases/nid/167972 |archive-date=August 16, 2022}}
National Economic and Development Authority (NEDA) deputy director general Rosemarie Edillon attributed the overall decline of poverty in the Philippines to a generally low and stable inflation, improved incomes, and higher employment rates during the period.{{cite news|url=http://www.philstar.com/headlines/2016/10/28/1638032/poverty-incidence-drops-21.6|title=Poverty incidence drops to 21.6%|archive-url=https://web.archive.org/web/20180120090803/https://www.philstar.com/headlines/2016/10/28/1638032/poverty-incidence-drops-21.6|archive-date=January 20, 2018|newspaper=Philippine Daily Inquirer|date=October 28, 2016}} In 2022, the poverty situation in the Philippines has seen a steady improvement.{{Cite web |last=Staff |first=Governance |date=2022-10-17 |title=WB: PH poverty level to ease to 17.1% in '22 - |url=https://governance.neda.gov.ph/wb-ph-poverty-level-to-ease-to-17-1-in-22/ |access-date=2023-08-08 |language=en-US}}
Some of the many causes of poverty are bad governance, corruption, a political system dominated by political dynasties, the lack of available jobs, and vulnerability to environmental disasters.
Definition
As of 2022, the Philippine Statistics Authority has set the poverty threshold at PHP12,030 per month for a family of five, or PHP79 per day per person to spend on food and non-food requirements.{{Cite web |date=2022-08-22 |title=Invisible poverty, trivial solutions |url=https://www.ibon.org/invisible-poverty-trivial-solutions/ |access-date=2023-03-02 |website=IBON Foundation |language=en}}
Background
{{See also|Income inequality in the Philippines|List of Philippine provinces and regions by poverty rate|List of Philippine provinces by Human Development Index}}
{{as of|2021}}, about 19.99 million Filipinos lived in poverty. Through various anti-poverty programs, such as the Comprehensive Agrarian Reform, Lingap Para sa Mahirap, and the Social Reform Agenda, the Philippines has been through a long battle to ameliorate that statistic. Despite these governmental efforts, the Millennium Development Goal milestone of poverty reduction has been a slow process.{{Cite web|last1=Bayudan-Dacuycuy|first1=Connie |url=https://www.researchgate.net/publication/257664459|title=Chronic and Transient Poverty and Vulnerability to Poverty in the Philippines: Evidence Using a Simple Spells Approach|work=ResearchGate}}{{Unreliable source?|reason=WP:RSP lists ResearchGate as "generally unreliable"|date=November 2022}}
=Demographics=
People living in poverty in the Philippines are most likely self-employed farmers, fishermen, or agricultural workers. Three-quarters of these people live in severe disaster-risk areas that are highly rural. In 2015, about 58 percent of poor households have more than six members. Education overall has improved over time; from the ages of 15–24, over 75 percent have completed secondary education or above in 2015.{{cite news|title=Philippines' Poverty Rate Declines; More Well-Paying Jobs and Opportunities Needed|work=World Bank|language=en}} Specifically in poor households, however, over 60 percent of families have education only up to elementary school.{{cite journal|journal=The World Bank|date=January 1, 2018|title=Making growth work for the poor : a poverty assessment for the Philippines|url=http://documents.worldbank.org/curated/en/273631527594735491/Making-growth-work-for-the-poor-a-poverty-assessment-for-the-Philippines|language=en}}
As of 2022, the Bangsamoro Autonomous Region in Muslim Mindanao has the highest incidence of poverty in the country at 37.2%, while Metro Manila has the lowest at 3.5%.{{Cite web |last=Palatino |first=Mong |date=September 7, 2022 |title=Making Sense of the Philippines' Latest Poverty Statistics |url=https://thediplomat.com/2022/09/making-sense-of-the-philippines-latest-poverty-statistics/ |access-date=2023-02-16 |website=The Diplomat |language=en-US}}{{Cite news |last=Mercado |first=Neil Arwin |date=2022-08-15 |title=PH poverty incidence rises to 18.1% in 2021; 19.99 million Filipinos considered poor |url=https://newsinfo.inquirer.net/1646665/fwd-break-ph-poverty-incidence-rises-to-18-1-in-2021-19-99-million-filipinos-considered-poor |access-date=2023-02-16 |newspaper=Philippine Daily Inquirer |language=en}}
Children in the Philippines are particularly vulnerable to the effects of poverty and suffer high rates of mortality for those below 5 years old.{{Cite web |date=2015 |title=Child Poverty in the Philippines |url=https://www.unicef.org/philippines/reports/child-poverty-philippines |access-date=2023-03-02 |website=UNICEF |language=en}} The UNICEF and World Bank reported that as of 2022, more than 32 million children were living in poverty in the Philippines, including 5 million children living in extreme poverty.{{Cite web |last=Banzuelo |first=Neil |date=2023-09-13 |title=5M Filipino kids lived in extreme poverty in 2022 — UN report |url=https://www.bworldonline.com/the-nation/2023/09/13/545432/5m-filipino-kids-lived-in-extreme-poverty-in-2022-un-report/ |access-date=2023-09-16 |website=BusinessWorld Online |language=en-US}}
Over 10 million women live in poverty in the Philippines.{{cite web |title=Gender Equality and Women's Empowerment in the Philippines |url=https://www.undp.org/sites/g/files/zskgke326/files/migration/ph/fastFacts---Gender-Equality-and-Women-Empowerment-in-the-Philippines-rev-1.5.pdf |website=United Nations Development Programme |access-date=May 13, 2023 |date=September 2010}}
A 2024 survey conducted by the Social Weather Stations from September 14 to 23, 2024, estimated 16.3 million Filipino families considered themselves poor compared to 12.9 million in March 2024. Self-rated poverty was highest in Mindanao (67 percent), followed by Visayas (62 percent), and Luzon (55 percent, excluding Metro Manila). Metro Manila was the lowest self-rated poverty at 52 percent.{{Cite web |last=Mateo |first=Janvic |title=SWS: 16.3 million families consider themselves poor |url=https://www.philstar.com/headlines/2024/10/11/2391684/sws-163-million-families-consider-themselves-poor |access-date=2024-10-18 |website=Philstar.com}}
=Hunger=
The Philippines ranked 69th out of 121 countries in the Global Hunger Index of 2022, with the level of hunger described as "moderate".{{Cite web |title=Philippines |url=https://www.globalhungerindex.org/philippines.html |access-date=2023-02-12 |website=Global Hunger Index (GHI) - peer-reviewed annual publication designed to comprehensively measure and track hunger at the global, regional, and country levels |language=en}} According to a 2018 study by the United Nations World Food Programme, while nearly all households in the Philippines can afford a diet that provides enough energy, only one third of the overall population can afford a diet that provides sufficient nutrients.{{Cite web |date=November 2018 |title=Fill the Nutrient Gap - Philippines Summary Report |url=https://www.wfp.org/publications/2018-fill-nutrient-gap-philippines-summary-report |access-date=2023-02-12 |website=World Food Programme |language=en}} Around 2.9 million Filipino families experienced hunger in the third quarter of 2022, according to a survey by the Social Weather Stations.{{Cite web |last=de Leon |first=Dwight |date=2022-10-29 |title=SWS: 2.9 million Filipinos stay hungry in October 2022 |url=https://www.rappler.com/nation/hunger-rate-philippines-october-2022-social-weather-stations/ |access-date=2023-02-16 |website=Rappler |language=en-US}}
=Homelessness=
{{See also|Squatting in the Philippines}}
Out of the country's population of about 106 million, an estimated 4.5 million were homeless according to the Philippine Statistics Authority; of these, 3 million were in the capital Manila.{{Cite news |last=Chandran |first=Rina |date=March 28, 2018 |title=Manila's homeless set to move into more empty homes if official handover delayed |language=en |work=Reuters |url=https://www.reuters.com/article/us-philippines-landrights-lawmaking-idUSKBN1H41L7 |url-status=live |access-date=June 20, 2021 |archive-url=https://web.archive.org/web/20211019174618/https://www.reuters.com/article/us-philippines-landrights-lawmaking-idUSKBN1H41L7 |archive-date=October 19, 2021}}{{Cite web |last=Fealtman |first=Erica |date=July 24, 2020 |title=The Impact of COVID-19 on Homelessness in the Philippines |url=https://www.borgenmagazine.com/homelessness-in-the-philippines/ |url-status=live |archive-url=https://web.archive.org/web/20210627211138/https://www.borgenmagazine.com/homelessness-in-the-philippines/ |archive-date=June 27, 2021 |access-date=June 20, 2021 |website=Borgen Magazine |language=en-US}}
= Health =
{{See|Health in the Philippines|Health care in the Philippines}}
Out-of-pocket health expenses make up 45% of the average household's health expenses. These expenses, meaning those not covered by government or private insurance, are high for Filipino families and tends to worsen their health and their poverty.{{Cite web |last=Gutoman |first=Dominic |date=2024-07-19 |title=High health expenses, inaccessible health services plague poor Filipinos |url=https://www.bulatlat.com/2024/07/19/high-health-expenses-inaccessible-health-services-plague-poor-filipinos/ |access-date=2025-05-12 |website=Bulatlat |language=en-US}}
Causes of poverty
{{See also|Causes of poverty}}
Poverty in the Philippines has been linked to bad governance, corruption, and a political system dominated by political dynasties.{{Cite web |last=Panti |first=Llanesca |date=January 26, 2023 |title=Experts: 1987 Constitution not the problem, but the solution |url=https://www.gmanetwork.com/news/topstories/nation/858694/experts-1987-constitution-not-the-problem-but-the-solution/story/ |access-date=2023-02-19 |website=GMA News Online |language=en}}{{Cite journal |last1=Mendoza |first1=Ronald |last2=Beja |first2=Edsel |last3=Venida |first3=Victor |last4=Yap |first4=David |date=2013-01-01 |title=Political dynasties and poverty: Evidence from the Philippines |url=https://archium.ateneo.edu/asog-pubs/132 |journal=Ateneo School of Government Publications}} The country's poorest provinces are ruled by political dynasties.{{Cite news |last=Burgos Jr. |first=Nestor P. |date=2011-09-26 |title=Philippines areas under dynasties are poorest– Study |url=https://newsinfo.inquirer.net/65553/philippines-areas-under-dynasties-are-poorest-study |access-date=2023-02-19 |newspaper=Philippine Daily Inquirer |language=en}}{{Cite web |last=Ordinario |first=Cai U. |date=2015-08-20 |title=Pervasive political dynasty worsened poverty in PHL {{!}} Cai U. Ordinario |url=https://businessmirror.com.ph/2015/08/20/pervasive-political-dynasty-worsened-poverty-in-phl/ |access-date=2023-02-19 |website=BusinessMirror |language=en-US}} Additionally, there are the problem of extractive institutions that hinder the country's economic growth.{{Cite web |last=Mourdoukoutas |first=Panos |title=Why Filipinos Remain Poor |url=https://www.forbes.com/sites/panosmourdoukoutas/2017/06/01/why-filipinos-remain-poor/ |access-date=2024-10-20 |website=Forbes |language=en}}
Poverty in the Philippines also had its roots from land inequality resulting from land policies under colonization by Spain and the United States.{{Cite web |last=Goodman |first=Peter S. |date=December 30, 2023 |title='There's No Other Job': The Colonial Roots of Philippine Poverty |url=https://www.nytimes.com/2023/12/30/business/philippine-economy-colonial-legacy.html |access-date=October 18, 2024 |website=The New York Times}}
The Philippines, after its independence in 1946, historically pursued an import substitution industrial policy, penalizing primary and agricultural sectors through tariffs and overvaluing the peso. These policies between the 1950s and 1980s diverted resources from agriculture and favored manufacturing. Price controls, import restrictions, and government interventions in sectors like rice, coconut, and fertilizer further depressed agricultural incomes.{{Cite web |title=Poverty and Economic Policy in the Philippines – Finance and Development |url=https://www.imf.org/external/pubs/ft/fandd/1998/09/gerson.htm |access-date=2024-10-18 |website=International Monetary Fund |language=en-US}}
The overvalued peso, tariffs, and government regulation negatively impacted agricultural investment and productivity. The coconut sector, once the country's most important agricultural industry, experienced stagnant productivity between 1982-85 and 1962-66. Low agricultural productivity continues to hinder overall economic growth, partly due to maintained tariffs and slower growth in the agriculture, fishing, and forestry sectors compared to other sectors.
Natural disasters have exacerbated poverty in the Philippines.{{cite journal |last1=Jha |first1=Shikha |last2=Martinez |first2=Arturo |last3=Quising |first3=Pilipinas |last4=Ardaniel |first4=Zemma |last5=Wang |first5=Limin |date=March 2018 |title=Natural Disasters, Public Spending, and Creative Destruction: A Case Study of the Philippines |url=https://www.adb.org/sites/default/files/publication/408351/adbi-wp817.pdf |journal=ADBI Working Paper Series |series=ADB South Asia Working Paper Series |location=Tokyo |publisher=Asian Development Bank Institute |at=Summary and Concluding Remarks |doi=10.22617/WPS189514-2 |archive-url=https://web.archive.org/web/20190428020604/https://www.adb.org/sites/default/files/publication/408351/adbi-wp817.pdf |archive-date=April 28, 2019 |access-date=November 10, 2022 |s2cid=169632846}} Natural disasters in the Philippines have caused US$23 billion in damages since 1990, which continues to delay the development process. The frequent occurrences of typhoons cost the country lives, illness, malnutrition, and denial of education and health services. Filipino farmers are some of the most vulnerable, because floods and landslides severely affect their crops and income.{{Cite news |date=September 24, 2018 |title=Philippine farmers struggle to rebuild lives after typhoon decimates crops |newspaper=Reuters |url=https://www.reuters.com/article/us-philippines-storm-typhoon-idUSKCN1M411W |via=www.reuters.com}}
The poorest populations work in agriculture and live in areas prone to natural disasters compared to the wealthier population. There is an inadequate number of available good jobs, and a lack of investment in education, which leads to such a high inequality of income. However, the government has plans focused on reducing poverty with the objective of improving the lives of the poorest segments of the population.{{Cite web |title=Philippines' Poverty Rate Declines; More Well-Paying Jobs and Opportunities Needed |url=https://www.worldbank.org/en/news/press-release/2018/05/30/philippines-poverty-rate-declines-more-well-paying-jobs-and-opportunities-needed |access-date=November 22, 2019 |website=World Bank |language=en}}
The pattern of poverty growth is common in rural areas, but there has been a rise in poverty in urban areas. Cities in the Philippines have been faced with an increase in poverty due to a lack of well-paid employment.{{Cite web |title=EXTREME POVERTY IN THE PHILIPPINES |url=https://www.usaid.gov/frontiers/2014/publication/section-1-extreme-poverty-philippines|archive-url=https://web.archive.org/web/20141102100710/http://www.usaid.gov/frontiers/2014/publication/section-1-extreme-poverty-philippines|url-status=dead|archive-date=November 2, 2014}}
= Joblessness and low pay =
{{See also|Labor policy in the Philippines#Labor issues|Endo contractualization}}
According to IBON Foundation, self-rated poverty rises due to the lack of good job opportunities, low wages, and high cost of living, exacerbated by inflation.{{Cite news |date=May 9, 2023 |title=Filipinos feel poor due to low pay, lack of jobs: think tank |url=http://abs-cbn.com/business/05/09/23/filipinos-feel-poor-due-to-low-pay-lack-of-jobs-think-tank |access-date=October 16, 2024 |work=ABS-CBN News}}
Despite fast increases on employment opportunities beginning in the 1990s, the unemployment rate remains high in the Philippines due to overpopulation and the increased participation in the labor force.{{Cite web |title=Why is Unemployment High in the Philippines? |url=https://www.imf.org/en/Publications/WP/Issues/2016/12/30/Why-is-Unemployment-High-in-the-Philippines-15591 |access-date=2024-10-20 |website=International Monetary Fund |language=en}}
The majority of the working poor in the Philippines are informal or non-wage workers who are not protected by the Philippine Government's minimum wage policy. Only about half of the working poor are wage workers. In 2015, over 90 percent of low-paid workers were employed informally, making them ineligible for minimum wage protection. Consequently, less than 2 percent of the working poor benefit from the minimum wage policy, highlighting its limited effectiveness in addressing in-work poverty.{{Cite journal |date=December 2015 |title=Employment and Poverty in the Philippines |url=https://openknowledge.worldbank.org/entities/publication/ec891758-c8f9-5c4b-ac50-58b655a3e578 |journal=World Bank |language=en-US}}
=High cost of living=
Amid stagnant wages, food inflation affects poor families more than the rest of the population.{{Cite web |date=2024-08-07 |title=Food inflation worst this year; hits poor Filipinos hardest amid low wages |url=https://www.ibon.org/food-inflation-worst-this-year-hits-poor-filipinos-hardest/ |access-date=2025-02-12 |website=IBON Foundation |language=en}} Inflation levels reported by the Philippine Statistics Authority in 2024 was driven by rising electricity rates, more expensive meat and fruits, and rising oil prices. Policy suggestions to address poverty and the effects of inflation include wage hikes and ensuring the affordability of basic needs, and developing the capacity to produce food locally to lessen dependence on imports.
=Culture of poverty=
{{See also|Culture of poverty}}
According to a 1973 study of Sylvia H. Guerrero in Metro Manila, the "culture of poverty" in the Philippines is characterized by a lack of aspirations, reliance on chance, and disillusionment with the social, economic, and political conditions.{{Cite journal |last=Guerrero |first=Sylvia H. |date=1973 |title=The "Culture of Poverty" in Metro Manila: Some Preliminary Notes |url=https://www.jstor.org/stable/23892128 |journal=Philippine Sociological Review |volume=21 |issue=3/4 |pages=215–221 |jstor=23892128 |issn=0031-7810}}
Another factor that contributes to these bleak situations were corruption, unresolved legal cases, and high crime rates. Filipinos' patience, tolerance for frustration, and religiosity allow a culture of poverty to persist in Philippine society.{{Cite journal |last=Tuason |first=Ma. Teresa |date=2002-08-01 |title=Culture of Poverty: Lessons from Two Case Studies of Poverty in the Philippines; One Became Rich, the Other One Stayed Poor |url=https://scholarworks.gvsu.edu/orpc/vol8/iss1/3/ |journal=Online Readings in Psychology and Culture |volume=8 |issue=1 |doi=10.9707/2307-0919.1069 |issn=2307-0919|doi-access=free }}
= Poverty during the COVID-19 pandemic =
From 2018 to 2021, amid the economic recession caused by the COVID-19 pandemic, an estimated 2.3 million Filipinos fell into poverty; this has been attributed in part to lockdowns enacted to control the spread of the disease{{Cite web |last=Leyco |first=Chino |date=2020-12-08 |title=2.7 million slip into poverty in 2020 |url=https://mb.com.ph/2020/12/08/2-7-million-slip-into-poverty-in-2020/ |access-date=2023-03-02 |website=Manila Bulletin |language=en-US}}{{Cite news |last= |date=2022-08-15 |title=Pandemic pushed millions more into poverty in the Philippines, government says |language=en |work=Reuters |url=https://www.reuters.com/world/asia-pacific/pandemic-pushed-millions-more-into-poverty-philippines-govt-2022-08-15/ |access-date=2023-02-19}} and possibly exacerbated by poor governance.
Threshold and incidence
Poverty threshold and incidence vary by geographic region. The threshold ranged from PHP 12,241 to PHP15,713, and the incidence rate ranged from 1.1% to 2 4.2% {{as of|lc=on|2023}}.{{cite web|url=https://psa.gov.ph/statistics/poverty|title=11 out of 18 Regions Recorded Significant Decreases in Poverty Incidence in 2023|publisher=Philippine Statistics Authority|date=August 15, 2024}}
= Poverty among farmers =
{{Excerpt|Agriculture in the Philippines|Poverty among farmers}}
Comparison to other Southeast Asian countries
According to data provided by the World Bank, economic growth in the Philippines competes sufficiently with the GDP per capita percent growth of neighboring countries; the Philippine GDP per capita in 2021 was $3,548.8 compared to 3,694.0 in Vietnam, and 4,291.8 in Indonesia.{{cite web |title=GDP per capita (current US$) - Philippines |url=https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=PH |website=The World Bank |access-date=November 10, 2022 |archive-url=https://web.archive.org/web/20220822202928/https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=PH |archive-date=August 22, 2022}} Declination of poverty is slower in the Philippines because urbanization and industrialization is progressing faster elsewhere. This advancement allows people to leave their agricultural-based work to a factory job with a higher paying income. The country has made movement out of the labor-intensive work in populous regions, such as Manila, however the country as a whole has made slower improvements. In addition to slow progress, natural disasters in the Philippines is one of the biggest conductors of poverty. While other countries are able to develop without consistent disturbances, the Philippines is forced to start from the ground up after every single occurrence.
The Economist in 2017 stated that the Philippines' poverty reduction has lagged far behind China, Vietnam, and Thailand. Growth is also concentrated in Manila while other provinces in the country are neglected and hardly progress.{{Cite news|url=https://www.economist.com/asia/2017/11/25/the-philippines-has-the-most-persistent-poverty-in-south-east-asia|title=The Philippines has the most persistent poverty in South-East Asia|date=November 25, 2017|newspaper=The Economist}}
Poverty reduction
=Poverty rate declines=
According to the World Bank, poverty rates declined from 26.6 percent in 2006 to 21.6 percent in 2015.{{cite news|url=https://cebudailynews.inquirer.net/228249/understanding-the-philippine-poverty-report|title=Understanding the Philippine poverty report|date=April 14, 2019|newspaper=The Philippine Daily Inquirer}} The country has attempted to increase income and opportunities and reverse impacts of occurring natural disasters. The Philippine Development Plan of 2017–2022{{cite news |last1=Laforga |first1=Beatrice M. |title=Gov't hopes to achieve key development goals by 2022 |url=https://www.bworldonline.com/top-stories/2021/01/26/340889/govt-hopes-to-achieve-key-development-goals-by-2022/ |access-date=November 10, 2022 |work=BusinessWorld |date=January 25, 2021 |archive-url=https://web.archive.org/web/20221110103133/https://www.bworldonline.com/top-stories/2021/01/26/340889/govt-hopes-to-achieve-key-development-goals-by-2022/ |archive-date=November 10, 2022}} and the AmBisyon Natin 2040 are proposals for the nation to decrease poverty and improve the lives of the poorest population.{{cite news |title=Ambitious Vision to End Poverty in the Philippines by 2040 |url=https://www.adb.org/news/features/ambitious-vision-end-poverty-philippines-2040 |access-date=November 10, 2022 |work=Asian Development Bank |date=November 16, 2016 |archive-url=https://web.archive.org/web/20190804175014/https://www.adb.org/news/features/ambitious-vision-end-poverty-philippines-2040 |archive-date=August 4, 2019 |language=en}} These policies include creating more and better jobs, improving productivity, investing in health and nutrition, managing disaster risks, protecting the vulnerable, and more. These documents help set the overall goal of reducing poverty to 13–15 percent by 2022 and having the nation thrive at similar levels as surrounding countries. The strategic plans that the Philippine government has created are intended to work towards a middle-class society where poverty is reduced and living conditions are improved.
= Drivers of poverty reduction =
The main drivers between 2006 and 2015 were an increase in wage income and movement of employment out of agriculture, government transfers, and remittances from domestic and foreign sources, according to the World Bank publication, Making Growth Work for the Poor. Movement from agricultural jobs to lower-end industry jobs led to an increase in wages and accounted for 50 percent of the reduction in poverty. The majority of farm workers and fishers have remained poor, according to the Philippine Statistics Authority.{{Cite web |date=July 4, 2014 |title=Fishermen, Farmers and Children remain the poorest basic sectors |url=https://psa.gov.ph/content/fishermen-farmers-and-children-remain-poorest-basic-sectors-0 |access-date=February 12, 2023 |website=Philippine Statistics Authority}}
Due to the Pantawid Pamilya, the government was able to use the social assistance, which resulted in the contribution of 25 percent reduction of poverty as well as influencing behavior change. Remittances from domestic and foreign sources accounted for 12 percent of the reduction in poverty.
In addition, a factor in the decline of poverty is the growth of population. A 1.7 percent increase in population a year has resulted in a 3.8 percent increase in per capita GDP growth. An additional factor is an increase of school enrollment and a decrease in dropout rates. Despite a lack of distribution, the water, sanitation, and electricity of the Philippines have also improved. Other socioeconomic indicators, such as social safety nets and health insurance, have also been beneficial factors. In addition, drivers of reduction also include the influx of economic expansion that has grown the economy.{{cite web |title=Philippines Overview |url=https://www.worldbank.org/en/country/philippines/overview |website=World Bank |access-date=November 10, 2022 |archive-url=https://web.archive.org/web/20221026173439/https://www.worldbank.org/en/country/philippines/overview |archive-date=October 26, 2022 |language=en}}
Programs for the economic welfare of children and women will be subject to significant budget cuts under the Philippines government's proposed budget for 2024.
See also
References
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Further reading
- {{cite book |last1=Kwiatkowski |first1=Lynn |title=Struggling With Development: The Politics Of Hunger And Gender In The Philippines |date=May 20, 2019 |publisher=Routledge |isbn=9780429965623 |url=https://books.google.com/books?id=I__EDwAAQBAJ}}
- {{cite book |author=Wataru Kusaka |title=Moral Politics in the Philippines: Inequality, Democracy and the Urban Poor |date=2017 |publisher=National University of Singapore Press |isbn=9789814722384 |url=https://books.google.com/books?id=hb7WDgAAQBAJ}}
- {{cite book |url=https://pdf.usaid.gov/pdf_docs/PBAAB124.pdf |archive-url=https://web.archive.org/web/20170429082453/http://pdf.usaid.gov/pdf_docs/pbaab124.pdf |url-status=dead |archive-date=April 29, 2017 |title=In Turbulent Seas: The Status of Philippine Marine Fisheries |publisher=Bureau of Fisheries and Aquatic Resources |isbn=971-92753-4-0 |date=2004 |chapter=Poverty Profile in Philippine Fisheries |author=Ronet Santos |pages=138–143}}
External links
- [https://web.archive.org/web/20221108110740/https://psa.gov.ph/sites/default/files/2021%20Full%20Year%20Official%20Poverty%20Statistics%20Tables_f.xlsx 2021 Full Year Official Poverty Statistics Tables] – Philippine Statistics Authority
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