One Family Per 100 was Lifted Out of Food Poverty in 2009

I. Highlights of the 2009 Official Poverty Statistics

The latest official poverty data indicate that a Filipino needed Php974 in 2009 to meet his/her monthly food needs and Php1,403 to stay out of poverty.  Both food and poverty thresholds increased by 26% from 2006 to 2009, compared to only 22% between 2003 and 2006.

Consequently, a Filipino family of five needed Php4,869 monthly income to meet the basic food needs and Php 7,017 to stay out of poverty.

Subsistence incidence or proportion of food poor families improved from 8.7 percent in 2006 to 7.9 percent in 2009.  This means that one family per 100 was lifted out of food poverty between 2006 and 2009.

In terms of poverty incidence among families, there was a slight reduction from 21.1% in 2006 to 20.9% in 2009 or 2 families per 1,000 were lifted out of poverty between 2006 and 2009.

Moreover, subsistence incidence among population improved from 11.7% in 2006 to 10.8% in 2009. This means that one per 100 Filipino was lifted out of food poverty between 2006 and 2009.

While there was a decrease in the poverty incidence among families from 2006 to 2009, in terms of poverty incidence among population, there was a very slight increase from 26.4% in 2006 to 26.5 in 2009.

In terms of the magnitude of the poor families, there was an increase of about 185,000 from 3.67 million in 2006 to 3.86 million in 2009. On the other hand, the magnitude of poor population increased by almost 970,000 Filipinos from 22.2 million in 2006 to 23.1 in 2009.

Meanwhile, the magnitude of subsistence poor families decreased by about 58,000 from 1.51 million in 2006 to 1.45 million in 2009.

Table 1: Annual Per Capita Thresholds, Poverty Incidence and Magnitude of Poor

Statistics Estimate Inc/Dec Coefficient of Variation
2003 2006 2009 2003 to 2006 2006 to 2009 2003 2006 2009
Annual Per Capita
Poverty Threshold (PhP)
10,976 13,348 16,841 21.6 26.2
Poverty Incidence (%)
Families 20.0 21.1 20.9 1.1 (0.2) 2.3 2.3 2.1
Population 24.9 26.4 26.5 1.4 0.1 2.1 2.1 1.9
Magnitude of poor (in million)
Families 3.29 3.67 3.86 11.5 5.0 2.3 2.3 2.1
Population 19.8 22.17 23.14 12.0 4.4 2.1 2.1 1.9
Subsistence Incidence (%)
Families 8.2 8.7 7.9 0.4 (0.8) 3.4 3.3 3.2
Population 11.1 11.7 10.8 0.6 (0.9) 3.2 3.2 3.1
Magnitude of subsistence poor (in million)
Families 1.36 1.51 1.45 11.3 (3.8) 3.4 3.3 3.2
Population 8.8 9.85 9.44 11.9 (4.2) 3.2 3.2 3.1

Source: National Statistical Coordination Board

Other poverty measures such as the income gap 1, poverty gap 2, and severity of poverty 3 improved from 2006 to 2009. The income gap contracted by 1.5 percentage points from 27.2 percent in 2006 to 25.7 in 2009.  This means that on the average, the income of the poor in 2009 would need to be increased by 25.7 percent of the poverty threshold for them to become non-poor.  This translates to a total amount of Php100.2 billion or Php4,328 per poor individual needed to be distributed for them to become non-poor. The poverty gap also improved by 3.1 percentage points from 2006 to 2009. The severity of poverty, which captures inequality of income among the poor, improved by 0.2 percentage point from 2.2% to 2.0%.

Table 2: Income Gap, Poverty Gap and Severity of Poverty

Estimate Inc/Dec
2003 2006 2009 2003 – 2006 2006 – 2009
Income Gap 27.7 27.2 25.7 (0.5) (1.5)
Poverty Gap 5.6 5.7 2.7 0.1 (3.0)
Severity of Poverty 2.2 2.2 2.0 (0.0) (0.2)

Source: National Statistical Coordination Board

In the National Capital Region, a sole breadwinner of a family of five in 2009 needed to earn at least PhP 8,251 per month to keep out of poverty. Consequently, a minimum wage earner 4 in Metro Manila can support a family of at most 6 members in 2009, to be classified as non-poor.

Among the 17 regions in the country, Caraga and ARMM consistently posted the highest poverty incidence among families in 2006 and 2009. Two regions that also posted high poverty incidence for both years were Region IX and V. In terms of the share to total poor families, Regions VII, V and VI continue to have the biggest share for years 2003, 2006 and 2009.

In terms of poverty incidence among families Regions IV-B, VII, I, II, XI, V, CAR and NCR had decreasing poverty incidence between 2006 and 2009 while Regions V, VI, IX, XII and Caraga has decreasing poverty incidence from 2003 to 2006. It is worth noting that Regions V consistently decraesed its poverty incidence in over the six-year period.

Table 3: Annual Per Capita Poverty Threshold and Poverty Incidence among Families

Region Annual Per Capita Poverty Threshold (PhP) Poverty Incidence among Families Share to Total Poor Families
Estimate Coefficient of Variation
2003 2006 2009 2003 2006 2009 2003 2006 2009 2003 2006 2009
PHILIPPINES 10,976 13,348 16,841 20.0 21.1 20.9 2.3 2.3 2.1 100.0 100.0 100.0
NCR 13,997 16,487 19,802 2.1 3.4 2.6 12.0 13.1 12.0 1.5 2.2 1.7
CAR 10,881 12,976 16,122 16.1 18.6 17.1 11.2 12.8 11.8 1.4 1.5 1.4
Region I 11,791 14,350 17,768 17.8 20.4 17.8 7.8 7.6 7.0 4.7 5.3 4.6
Region II 10,350 12,212 15,306 15.2 15.5 14.5 8.4 9.2 8.3 2.7 2.6 2.4
Region III 12,771 15,374 18,981 9.4 12.0 12.0 8.6 8.4 7.6 5.2 6.2 6.3
Region IV-A 12,394 14,284 17,779 9.2 9.4 10.3 8.7 10.6 7.9 6.1 5.7 6.4
Region IV-B 10,398 12,610 15,769 29.8 34.3 27.6 6.6 7.2 6.8 4.5 5.1 4.2
Region V 11,476 13,645 17,146 38.0 36.1 36.0 4.9 5.0 4.2 10.9 9.9 10.0
Region VI 10,548 12,432 16,036 23.5 22.1 23.8 6.7 7.2 6.4 9.1 8.2 9.0
Region VII 11,798 14,468 17,848 32.1 33.5 30.2 6.5 6.4 6.3 11.8 11.8 10.8
Region VIII 9,850 11,885 15,910 30.2 31.1 33.2 5.9 5.8 5.3 6.9 6.9 7.4
Region IX 9,642 11,810 15,160 40.5 34.2 36.6 7.1 9.3 6.7 7.2 6.1 6.3
Region X 10,501 12,987 16,568 32.4 32.7 32.8 7.2 5.7 5.8 7.3 7.0 7.1
Region XI 10,737 13,469 17,040 25.4 26.2 25.6 8.3 8.7 8.4 6.3 6.0 5.9
Region XII 10,277 12,530 15,762 27.2 27.1 28.1 8.1 7.0 6.7 5.8 5.5 5.8
Caraga 10,355 12,935 16,858 37.6 36.9 39.8 6.2 6.4 5.4 4.7 4.5 4.9
ARMM 9,664 12,358 16,334 25.0 36.5 38.1 10.1 7.4 6.1 3.8 5.3 5.7

Source: National Statistical Coordination Board

Among the provinces, Batanes, the four districts of NCR, Benguet, Cavite, Bulacan, Laguna, Rizal, Pampanga, Nueva Vizcaya and Bataan were consistently included in the least poor cluster of provinces in 2003, 2006 and 2009.  Further, new entrants in the least poor cluster in 2009 were Ilocos Sur, Zambales, Guimaras, Tarlac, Cagayan and Isabela.

Table 4: Provinces in the Least Poor Cluster: 2003, 2006 and 2009

Province 2009 2006 2003
Cluster Poverty Incidence 90% Confidence Interval Cluster Poverty Incidence 90% Confidence Interval Cluster Poverty Incidence 90% Confidence Interval
Lower Limit Upper Limit Lower Limit Upper Limit Lower Limit Upper Limit
Batanes 5 0 0 0 5 0 0 0 5 0 0 0
4th District 5 0.7 1.6 2.5 5 2.0 2.9 3.7 5 1.8 1.1 2.4
2nd District 5 1.6 2.4 3.2 5 2.1 3.8 5.5 5 2.6 1.7 3.4
1st District 5 2.0 3.8 5.6 5 1.7 3.1 4.5 5 1.1 0.4 1.7
3rd District 5 2.5 3.8 5.1 5 2.6 3.7 4.8 5 2.6 1.7 3.5
Benguet 5 2.0 4.0 6.1 5 2.1 3.6 5.0 5 4.4 1.7 7.1
Cavite 5 3.1 4.5 5.9 5 2.6 4.2 5.7 5 4.8 3.4 6.2
Bulacan 5 3.7 4.8 5.9 5 3.7 5.1 6.6 5 4.3 2.9 5.7
Laguna 5 4.1 5.9 7.6 5 3.0 4.5 6.0 5 5.2 3.5 6.9
Rizal 5 4.2 6.5 8.7 5 1.6 2.7 3.7 5 2.9 1.9 3.9
Pampanga 5 4.9 6.7 8.4 5 2.4 3.8 5.2 5 4.9 3.5 6.3
Nueva Vizcaya 5 2.9 6.7 10.5 4 1.4 5.8 10.3 5 3.2 1.8 4.6
Bataan 5 4.8 7.4 10.0 4 4.0 7.2 10.5 5 8.1 5.1 11.0
Ilocos Norte 5 6.1 9.2 12.3 4 5.8 11.3 16.9 4 14.3 7.9 20.6

Note: Provinces were clustered using confidence intervals of poverty incidence as the clustering variable, where cluster 5 is comprised of least poor provinces.

Source: National Statistical Coordination Board

On the other hand, Zamboanga del Norte, Agusan del Sur, Surigao del Norte, Maguindanao, Masbate and Bohol were consistently included in the bottom cluster of provinces in 2003, 2006 and 2009.  Ten provinces from the 2006 bottom cluster of provinces dropped out from the list in 2009, namely, Tawi-Tawi, Negros Oriental, Mindoro, Sultan Kudarat, Misamis Occidental, Camiguin, Apayao, Catanduanes, Mt. Province and Isabela City.

Table 5: Provinces in the Bottom Cluster: 2003, 2006 and 2009

Province 2009 2006 2003
Cluster Poverty Incidence 90% Confidence Interval Cluster Poverty Incidence 90% Confidence Interval Cluster Poverty Incidence 90% Confidence Interval
Lower Limit Upper Limit Lower Limit Upper Limit Lower Limit Upper Limit
Zamboanga del Norte 1 46.0 52.9 59.8 1 46.4 54.1 61.7 1 59.5 51.4 67.5
Agusan del Sur 1 43.5 51.2 58.9 1 38.2 45.5 52.9 1 48.5 41.3 55.6
Surigao Del Norte 1 43.1 47.9 52.8 1 34.9 41.6 48.3 1 42.3 35.2 49.4
Eastern Samar 1 37.6 45.8 54.1 1 31.8 37.6 43.5 2 29.8 20.5 39.0
Maguindanao 1 37.7 44.6 51.6 1 39.0 44.9 50.9 1 41.9 34.4 49.5
Zamboanga Sibugay 1 35.4 43.2 50.9 2 25.7 34.1 42.5 1 43.3 33.3 53.2
Romblon 1 36.3 43.0 49.8 1 34.7 40.6 46.6 2 35.8 27.9 43.7
Masbate 1 36.6 42.5 48.3 1 33.9 42.9 51.8 1 50.2 42.3 58.0
Davao Oriental 1 36.4 42.5 48.6 1 28.0 39.0 50.1 2 35.6 26.7 44.4
Northern Samar 1 32.4 41.7 51.0 1 32.9 43.3 53.8 2 37.4 27.9 47.0
Bohol 1 33.6 41.0 48.4 1 35.8 43.7 51.6 1 40.2 33.8 46.7
Saranggani 1 34.0 40.7 47.3 2 29.2 34.0 38.8 1 36.7 28.4 45.1
Sulu 1 33.0 39.3 45.5 1 29.1 36.7 44.2 3 20.3 13.4 27.1
Lanao del Norte 1 31.9 39.0 46.1 2 28.1 34.3 40.6 2 35.6 27.0 44.1
Camarines Sur 1 33.8 38.7 43.6 1 31.0 36.6 42.3 2 38.3 32.5 44.1

Note: Provinces were clustered using confidence intervals of poverty incidence as the clustering variable, where cluster 1 is comprised of bottom poor provinces.

Source: National Statistical Coordination Board

Among the provinces, Cebu and Negros Occidental continue to have the biggest share in the total number of poor families, followed by Camarines Sur and Pangasinan, accounting for close to 16% in 2006 and 2009.  Other provinces with the highest share in the total number of poor families for both years are Nueva Ecija, Leyte, Zamboanga del Norte, Bohol, Quezon and Davao del Sur.

Table 6: Provinces with the Highest Share toTotal Poor

Magnitude of Poor Families Share to the Total Poor Families
2003 2006 2009 2003 2006 2009
Cebu 185,624 211,406 213,162 5.6 5.8 5.5
Negros Occidental 112,512 130,077 144,828 3.4 3.5 3.8
Camarines Sur 116,460 119,747 126,280 3.5 3.3 3.3
Pangasinan 92,191 128,396 114,400 2.8 3.5 3.0
Nueva Ecija 64,808 94,026 112,367 2.0 2.6 2.9
Leyte 99,082 104,260 110,214 3.0 2.8 2.9
Zamboanga del Norte 102,074 101,511 109,745 3.1 2.8 2.8
Bohol 90,735 104,032 102,522 2.8 2.8 2.7
Quezon 84,031 101,394 98,426 2.6 2.8 2.6
Negros Oriental 105,334 112,585 91,387 3.2 3.1 2.4
Davao del Sur 88,165 89,452 94,049 2.7 2.4 2.4

II. Refinements in the Methodology

It must be noted that these estimates were generated based on the refinements in the official poverty estimation methodology approved by the NSCB Executive Board on 1 February 2011.  Main features of the refinements are: 1) Use of a provincial food bundle developed based on an indicative national food bundle that passed the Test of Revealed Preference 5, and 2) Use of a standard/benchmark for non-food basic needs that is comparable across space and over time.  These enhancements were to ensure that province-specific characteristics are captured in the estimation of provincial poverty statistics, the food bundle chosen for the province is “superior” over another bundle based on preferences, that is, the former will provide the least cost but with same level of utility and the poverty measures are comparable across space and over time.

In general, the trends of the poverty estimates from 2003-2006 and 2006-2009 using the refined methodology are consistent with the trends in the estimates generated using the old methodology.  In terms of levels, estimates based on the old methodology were higher than those of the refined methodology as the latter better reflected the actual situation and unique condition in the provinces.

ROMULO A. VIROLA

Secretary General

Source: NCSB

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