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Poverty Measurement in the Philippines

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					Poverty Reduction Strategies                    Prof. Sanae ITO, Ph.D




                                                                    1
Rico BURAGA
Department of International Development- GSID
Poverty Reduction Strategies                                  Prof. Sanae ITO, Ph.D




             Poverty Measurement in the Philippines




                                      Submitted by:

                                   Rico Buraga
                      Subject: Poverty Reduction Strategies
                                    DID- GSID




                                      Submitted to:

                              Prof. Sanae ITO, Ph.D
                   Graduate School of International Development
                            Nagoya University, JAPAN




                                                                                  2
Rico BURAGA
Department of International Development- GSID
Poverty Reduction Strategies                                    Prof. Sanae ITO, Ph.D



 What methods of measurement would best capture the dimensions of
   poverty? (Adding an element of participation in the Philippines)



       Before international non-governmental organizations were established to
reduce poverty or the Millennium Development Goals was formulated, and
poverty subjects are taught in universities. Poverty is already a concern of
Mallanaga Vātsyāyana, an Indian philosopher who lived in 4th century AD. He
wrote in his book Kama Sutra that “poverty is not a virture. It is an
obstacle, not only to pleasure but also to ethics and virtue. Morality is a
luxury which very poor people can rarely afford.” This means poverty is a
condition that limits your freedom. Where most people want to escape. And it
has many dimensions.

       Poverty has different meaning to people. UNDP introduced the concept of
human poverty. UNDP’s definition of poverty is not the sum total of well being;
lack of income cannot be the sum of poverty. Human poverty does not focus on
people do or do not have, but on what they can or cannot do (UNDP, 2000).
According to World Bank (2006), poverty is hunger. Poverty is lack of shelter.
Poverty is being sick and not being able to see a doctor. Poverty is not having
access to school and not knowing how to read. Poverty is not having a job, is
fear for the future, living one day at a time. Poverty is losing a child to illness
brought about by unclean water. Poverty is powerlessness, lack of
representation and freedom.

      Extreme poverty was defined by World Bank as living on less than US$
(PPP) 1 per day, and moderate poverty as less than $2 a day. It has been
estimated that in 2001, 1.1 billion people had consumption levels below $1 a day
and 2.7 billion lived on less than $2 a day. The proportion of the developing
world's population living in extreme economic poverty has fallen from 28 percent
in 1990 to 21 percent in 2001 (Wikipedia).

      There is a principle that states that: what you cannot measure, you
cannot manage. Therefore, to reduce poverty it has to be defined and measured
using different indicators to capture its multidimensional facets. The indicators
should include economic, social and political needs. These indicators should
evolve to capture the changing concepts of poverty in changing times.

        The most commonly used poverty measurement is measure of relative
income. Relative poverty views poverty as socially defined and dependent on
social context. It is a set standard which is consistent over time and between
countries. A relative measurement could be used to compare the total wealth of
the poorest one-third of the population with the total wealth of richest 1% of the
population. Gini coefficient is one of the several income inequality metrics. In
many developed countries the official definition of poverty used for statistical
purposes is based on relative income. As such many critics argue that poverty
statistics measure inequality rather than material deprivation or hardship
(Wikipedia).



                                                                                      3
Rico BURAGA
Department of International Development- GSID
Poverty Reduction Strategies                                    Prof. Sanae ITO, Ph.D



       a. Relative income poverty measures vs. Consumption-based
           poverty measures

       A household or individual can be classified poor or not poor based on
income or expenditure. The practice of using relative poverty lines is based on
the notion that poverty has to be assessed vis-à-vis the standard of living of a
specific society (Rio Group, 2006). The choice of a relative standard is based
generally on a belief that poverty is not absolute; rather poverty is largely a
matter of economic and social distance (Haveman, 1999). Income data is
somewhat easier to collect. The total amount of income is the determinant of a
household or a person to obtain specific human needs. In obtaining these needs
the individual will be able to function in the society where she/he belongs.

        Haveman (1999) also observed the relative income measure’s
weaknesses. Critics of a relative measure point out its weakness in assessing the
efficacy of antipoverty efforts. The nature of the measure ensures that the
poverty threshold will rise most rapidly in periods of economic growth, during
which time those at the bottom of the distribution also experience real growth in
both earnings and consumption. Hence, even though poor families may perceive
themselves as better off during a prosperous period, the poverty rate may not
fall, thus overstating the poverty problem.

       One the other hand, family consumption is a superior proxy for the
family’s permanent income, or family command over resources (Haveman,
1999). The measure indicates the capacity of households or individuals to
sustain a standard of living using savings or from borrowings even with income
fluctuations.

       b. Objective measures of poverty vs. Subjective measures of
           poverty

        Subjective measures mean indicators of the standard of living people
actually enjoy, while the objective measures focus on people’s access to different
kinds of resources (Penttilä, 1999). Objective measurement measures poverty in
terms of pre-determined set of criteria in which households are ranked. These
criteria should be satisfied or met in order the household is not classified as poor.

      The subjective poverty approach considers that people’s perception of
what constitutes the minimum necessary household budget is the best standard
of comparison for actual incomes or expenditures. In this approach, a survey of
a representative sample of the population is carried out to gauge the opinion of
the population in order to define the poverty line (Rio Group, 2006). It puts
emphasis people’s perception but the measurement is relative or dependent on
people’s perception.

       c. Chronic poverty vs. Transient poverty

       Suitable poverty reduction policies must also consider whether poverty is
chronic or transient. Chronic poverty is extended over a period of time while
transient poverty is temporary. Transient poverty may be due cyclical nature of
jobs available. The transient poor can move out of poverty once the exogenous

                                                                                    4
Rico BURAGA
Department of International Development- GSID
Poverty Reduction Strategies                                    Prof. Sanae ITO, Ph.D



shock has passed. The concepts of chronic and transient poverty recognize that
poverty is dynamic, and that people may move in and out of it over time
(Schelzig, 2005).

       From World Bank perspective based on experience working in different
developing countries, it was found out that there is a need to expand the range
of indicators of poverty. The need to integrate data coming from sample surveys
with information obtained through more participatory method of measurements,
which usually offer rich insights into why programs work or deemed to fail form
the start. Participatory approaches illustrate the nature of risk and vulnerability,
how cultural factors and ethnicity interact and affect poverty, how social
exclusion sets limits to people’s participation in development, and how barriers
to such participation can be removed (World Bank, 2001).

         In the Philippines, the official measure of poverty is based on income. The
national agency that determines the poverty is the National Statistical
Coordination Board and National Statistics Office (NSO). If a person or
household falls short below this line is said to be in poverty. In the establishment
of the poverty line, three basic approaches are used: (1) the absolute poverty
line, (2) the relative poverty line, and (3) the subjective poverty line. In these
approaches (Rio Group, 2006), the poverty line identifies the amount of money
needed to acquire the goods and services that satisfy given absolute minimum
standards for each of the basic needs. The country’s measurements on
multidimensional aspect poverty are lagging compared to income poverty
because of two reasons. First, income poverty whether it seems right or wrong,
is seen to be the more pressing problem. Secondly, due to data constraints.
Many important non-income indicators such as literacy rates, mortality rates, life
expectancy, and nutrition status of children, access to health and education
facilities are obtained either at long intervals of time or irregularly (Balisacan,
date unknown).

      But through the years it was observed that all these standard
measurements are not sufficient enough to capture the multidimensional feature
of poverty. A new set of indicator is needed to include other forms of deprivation.



Poverty monitoring system in the Philippines

      There is various poverty monitoring systems in the country in national and
community level. The National Statistics Office (NSO) and other national
government agencies conduct poverty monitoring at the national level.

       1. National poverty monitoring system

       In the country, to measure the different dimensions of poverty at the
national level several methods are employed by the NSO, and the Food and
Nutrition Research Institute (FNRI). The different measures are listed below.

       Surveys conducted by NSO:


                                                                                    5
Rico BURAGA
Department of International Development- GSID
Poverty Reduction Strategies                                     Prof. Sanae ITO, Ph.D



    Name of Survey                     Data Obtained                Frequency of
                                                                     Collection
1. Family Income and           Family income and living          every 3 years
Expenditures Survey            expenditures and related
                               information affecting income
                               and expenditure levels.
2. Annual Poverty              Socio-economic profile of         every period
Indicators Survey              families and other information    wherein FIES is not
                               relating to their living          conducted
                               conditions.
3. Census of Population        Size, composition and             every 10 years
and Housing                    distribution of population
4. Functional Literacy,        Number of functionally literate   every 5 years
Education and Mass             population and their
Media Survey                   socioeconomic characteristics
5. National Demographic        Demographic and maternal          every 5 years
and Health Survey              and child health issues
6. Labor Force Survey          Levels and trends of              every quarter of the
                               employment, unemployment          year
                               and underemployment

      The survey that is conducted by the FNRI is National Nutrition Survey. In
the survey data on nutrition and food availability situation is obtained every five
years. Other national government agencies also collect data on crime incidence
and education relation data. These agencies are the Philippine National Police
(PNP) and Department of Education (DepEd), respectively.

       The data collected by these national agencies provide measures to capture
the different dimensions of poverty but there are problems in aggregation and
frequency of collection because of insufficient government funds. Basically, there
are problems in collecting and updating in this centralized way data collection. In
studies conducted by Reyes (2003), there is a need to decentralized poverty
monitoring systems because the local government units in the country was
already decentralized and the information provided by NSO is not aggregated to
meet the demands of the local government policy makers to respond to poverty
situation in their areas. Longitudinal data are also necessary to track changes
over time. Furthermore, household level data are needed to identify eligible
beneficiaries to the different programs. Therefore, there is a need to address the
demand for micro-level poverty statistics.

      To tackle this issue, there is already several community-based poverty
monitoring system in some areas to complement the national poverty monitoring
system conducted by the NSO.

       2. Poverty monitoring system at community level

       The participation of stakeholders at the community is also essential in the
fight against poverty. Stakeholders’ participation should not only be at the
consultation level but all level of project or program management. Therefore,
community-based poverty monitoring system is also important.


                                                                                      6
Rico BURAGA
Department of International Development- GSID
Poverty Reduction Strategies                                   Prof. Sanae ITO, Ph.D



       a. Minimum Basic Needs (MBN)

        The Minimum Basic Needs approach is under the Local Poverty Alleviation
Program (LPAP) instituted by the Poverty Alleviation Act (Republic Act No. 8425).
The Poverty Alleviation Act is a law to institutionalize the social reform and
poverty alleviation program of the government. Based on LPAP’s (1995)
definition, MBN is strategy of prioritizing primary requirements to ensure that
the basic needs for survival, security from physical harm, and enabling
needs of the individual, family and community are attended to.

       The Minimum Basic Needs – Community-Based Poverty Indicator and
Monitoring System (MBN-CBPIMS) is a village level or barangay-based
information system for gathering, analyzing and utilizing data regarding the
minimum basic needs of local residents or households. As an indicator system,
the MBN-CBPIMS can assist the local government unit (LGU) identify who and
where the poor are, how many are poor and what the poor needs in terms of
their MBN indicators. MBN-CBPIMS is a tool that will establish a basis for
targeting families needing priority action and attention. Moreover, the MBN-
CBPIMS can be adopted by local government units (LGUs) as a tool for planning
and budgeting/programming and therefore significantly improves resource
allocation at the local level (LPAP, 1995).

       Poverty indicators used in the MBN-CBPIMS. The MBN-CBPIMS uses 33
indicators of which 24 are identified as core indicators of poverty. These
indicators are classified, as survival needs, security needs and enabling needs.
The survival needs refer to biophysical requirements of the family and the
individual to assure life sustenance. Security needs, on the other hand, are the
requirements to protect the family from physical harm. Enabling or
empowerment needs refer to the requirements that facilitate the attainment of
survival and protection needs (LPAP, 1995). To summarize the following, basic
needs are listed below.

     (1) Survival needs includes food/nutrition, health, water/sanitation and
          clothing.

     (2) Security needs includes shelter, peace, income and employment

     (3) Enabling needs includes basic education/literacy, people’s participation,
          family care and psychosocial

       The MBN approach utilized a participatory survey of the minimum basic
needs and a community process for ranking the identified minimum basic needs
for decision-making. Accountability in providing input data among stakeholders
is shared. The on-going management and monitoring of the project is under the
local community but assisted by the local government units and national
agencies concerned.

       To show transparency of the poverty-monitoring system, community
bulletin board is posted in conspicuous areas so that the whole community can
see their progress or current poverty situation. In the bulletin board information


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Rico BURAGA
Department of International Development- GSID
Poverty Reduction Strategies                                    Prof. Sanae ITO, Ph.D



on community profile, and a map of the village in which all the households are
indicated with corresponding information on the different indicators.

       Not all the village or barangay in the country are covered by this approach.
Priority is given to village in 4th and 5th class municipalities, selected urban poor
communities and other poverty stricken areas identified by the government that
needed special attention. This poverty measurement and monitoring project was
sustained for only few years because of insufficient government funds and
change of priority of the political leaders at the national government level.

       b. Micro Impacts of Macroeconomic Adjustment Policies-
           Community-Based Monitoring System (MIMAP-CBMS)

       The other community based monitoring system was MIMAP-CBMS in the
country. It was initiated by the Micro Impacts of Macroeconomic Adjustment
Policies (MIMAP) Project-Philippines. The project is funded by the International
Development Research Centre- Ottawa, Canada. This approach of measuring
and monitoring poverty originated in the country and is also being implemented
in twelve other countries.

        The project director of the MIMAP-CBMS is Dr. Celia Reyes and according
to her, the project is a response to the need to monitor the impact of
macroeconomic policies and shocks on the population. It provides an organized
process of gathering and utilizing information for policymaking and program
implementation at all geopolitical levels. In particular, the system attempts to
provide planners at the national and local levels with up to date and reliable
information on a core set of indicators of welfare. It also tries to addresses the
statistical gaps of the existing national and community monitoring system.

      Before the MIMAP-CBMS project was pilot-tested in the country Reyes and
Alba (1994) made a study and found out that:

             Almost all of the monitoring systems have some of the minimum
              basic need (MBN) indicators. However, they favor input indicators
              over output indicators. While many of them include indicators
              relating to the provision of credit and other inputs, few attempt to
              measure the effect of these inputs on the welfare status of the
              beneficiaries.
             Most NGOs do not maintain their presence at the lower
              administrative levels, i.e., barangay and municipal.
             The collection of data is coterminous with the lifetime of a specific
              program/project. Consequently, there are no time series data on
              socioeconomic variables.
             Existing monitoring systems have very limited geographical
              coverage. Only a few provinces are included in most if not all of the
              existing proposed monitoring systems. There is less convergence
              when we get down to the barangay level. Thus, the chances of
              utilizing information from the different systems to provide a
              comprehensive picture of a barangay or even a province are very
              slim.


                                                                                     8
Rico BURAGA
Department of International Development- GSID
Poverty Reduction Strategies                                          Prof. Sanae ITO, Ph.D



               The monitors being tapped to collect the data consist of local
                government unit personnel.
               Monitoring systems of NGOs sometimes focus on specific groups
                that are not necessarily vulnerable. Some NGOs are mandated by
                their sponsors to assist only certain groups.

       From these research results became the basis for the rationale of the
MIMAP-CBMS approach. The CBMS has several features: (1) it is local
government unit (LGU) based; (2) utilized existing LGU personnel as monitors
and enumerators; and (3) has a core set of indicators. Being LGU-based, it
adopts the concept of mobilizing and developing the capability of communities
for data generation and utilization (Valencia, 2003).

       Based on MIMAP CBMS Briefing Kit, the monitoring system entails the
participation of people in the community to collect, process and use data. In
particular, the design of the system was intended to monitor the conditions of
the vulnerable groups in the society. It aims to monitor not only changes in
welfare status but the causes of these changes as well.

       The choice of indicators in the MIMAP CBMS was based on the multi-
dimensional characteristic of poverty, and has largely been confined to output
and impact indicators (Reyes, 1998). Among the areas of concern are: (a) health,
(b) nutrition, (c) water and sanitation, (d) income and livelihood, (e) shelter, (f)
basic education, and (g) political participation. Other indicators can be added to
these set of foundation indicators depending on what the community needs or
relevant to them. The following are the MIMAP-CBMS indicators.

    Area of Concern                                      Indicators

A. Survival
   Health                      1.   Infant mortality rate
                               2.   Child mortality rate
    Nutrition                  3.   Prevalence of acute and chronic
                                    malnutrition
    Water &                    4.   Proportion of households with
    Sanitation                      access to sanitary toilet facilities
                               5.   Proportion of households with
                                        access to safe water
B. Security
   Shelter                     6.   Proportion of households in
                                        makeshift housing
    Peace & Order              7.   Crime incidence
                               8.   Incidence of armed encounters


C. Enabling
   Income & Livelihood         9.Proportion of households with income greater
                                 than the poverty threshold
                             10. Employment
                             11. Underemployment


                                                                                          9
Rico BURAGA
Department of International Development- GSID
Poverty Reduction Strategies                                   Prof. Sanae ITO, Ph.D




    Basic Education          12. Elementary enrolment
     and Literacy            13. Secondary enrolment
                             14. Basic literacy


    Political Participation 15. Proportion of households involved in at least one
                                community organization
                            16. Proportion of households who participated in
                                formal electoral processes

Source: MIMAP-CBMS Briefing Kit

        In the monitoring system, the community on a yearly basis conducts the
data collection. The survey covers all the households (complete enumeration) in
the village. The enumerators or household interviewers are the barangay health
workers and barangay nutrition scholars. These people lived in the area and
knowledgeable about the locality. To ensure accuracy and reliability of data
collection, the MIMAP CBMS Project Office trains them. The local village leader
supervises the survey, which is the barangay captain.

       After the data collection, the data will be processed by the municipal
monitors where he/she consolidates it into useful information. There is a
validation aspect in the CBMS. The result of the survey will be presented to the
village or barangay where it was gathered. This way the people in that area will
know their existing condition. Also, in the validation aspect of the monitoring
system the local leader will ask the people what are the probable solutions to
their problems so that these things can be included in the formulation of a
municipal level poverty strategy reduction plan.

       CBMS have a geographical information system (GIS) component so that
the household’s respondents can be easily mapped. Using poverty maps the
result of the survey can be shown clearly. Indicators that are unmet are easily
distinguishable from other indicators. The way of presenting using geographic
maps can be appreciated by both technical people, policy makers and politicians.

      The data generated by the CBMS can be used by national government
agencies for poverty reduction planning for the specific local level. On the other
hand, these data can also be used by the local government units for monitoring
the impact of their local projects.

Concluding Remarks

      In conclusion, to reduce and fight poverty there is a need of a good
poverty monitoring systems and measurements that captures its multi-
dimensions. Poverty monitoring provides government agencies, economic
planners, policy makers and local leaders with data on which to base their social
and economic development plans and programs. It is also used in guiding the
implementation and continuing analysis of policies and programs, so that
appropriate action can be taken to address the weaknesses and problems
detected in such programs.

                                                                                  10
Rico BURAGA
Department of International Development- GSID
Poverty Reduction Strategies                                    Prof. Sanae ITO, Ph.D



       Reyes (1998) found out that the existing poverty monitoring systems in
the Philippines do provide essential information needed by both national and
local governments as basis for their poverty reduction plans, strategies, and
policies. There are weaknesses such as frequency of data collection and levels of
disaggregation. This is to strengthen the capacity of local government in
diagnosing poverty at their localities since the national statistical offices cannot
provide for all the data requirements due to resource constraints. The
information has been helpful in identifying unmet needs at the local level and
this has been the basis for action in some of the barangays.

       Therefore, community-based poverty measurements complement the top-
down approach done by the government. In this way we can add an element of
participation in it. Local leaders are important participants in improving the lives
of their communities. In the process of participation, people will be enlightened
on their existing condition. It is a learning process of conscientization for the
people. This conscientization, according to Freiri (1978), is a human process in
which teachers and learners collaborate to achieve a deepening awareness both
of the social cultural reality in which shapes their lives and of their capacity to
transform that reality. Community-based measurements can help end the
"culture of silence" in which the socially dispossessed internalize the negative
images of themselves created and propagated by the oppressor in situations of
extreme poverty.



References

BALISACAN, Arsenio and Geoffrey Ducanes. (date unknown). Multidimensional
    Poverty in the Philippines: Trend, Patterns, and Determinants. A PowerPoint
    presentation. URL:
    http://72.14.235.104/search?q=cache:F0agiS94gnEJ:www.undp-
    povertycentre.org/md-
    poverty/ppt/geoffley.ppt+Multidimensional+Poverty+in+the+Philippines:+T
    rend,+Patterns,+and+Determinants&hl=en&ct=clnk&cd=1

DANIÉLOU, ALAIN. (1993). The Complete Kama Sutra: The First Unabridged
   Modern Translation of the Classic Indian Text, Inner Traditions, ISBN 0-
   89281-525-6.

FOOD AND NUTRITION RESEARCH INSTITUTE. URL:
   http://www.fnri.dost.gov.ph/htm/insti.htm

FREIRE, Paulo. (1971). Pedagogy of the oppressed. New York: Seabury Press.

HAVEMAN, Robert and Melissa Mullikin. 1999. Alternatives to the Official
   Poverty Measure: Perspectives and Assessment, Conference Paper:
   "Poverty: Improving the Definition After Thirty Years", April 15-17, 1999.
   University of Wisconsin–Madison. URL:
   http://www.irp.wisc.edu/research/method/havemanall.pdf



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Rico BURAGA
Department of International Development- GSID
Poverty Reduction Strategies                                Prof. Sanae ITO, Ph.D



LAMBERTE, M.B., et al (1991). Micro Impacts of Macroeconomic Adjustment
   Policies (MIMAP): A Framework Paper and Review of Literature. MIMAP-
   Research Paper Series No. 1 (Published as PIDS Discussion Paper Series No.
   91-02).

MIMAP CBMS Briefing Kit. 1999. MIMAP-Project Management Office. Angelo
   King Institute for Economic and Business Studies, Angelo King International
   Center, De La Salle University. URL: http://www.idrc.ca/uploads/user-
   S/10946721271mimapbk.pdf

PENTTILÄ, Irmeli. 1999. Objective and Subjective Measures of Poverty in the
   European Community Household Panel. Bulletin of the International
   Statistical Institute. 52nd Session, Proceedings Tome LVIII. Finland. URL:
   http://www.stat.fi/isi99/proceedings/arkisto/varasto/nord0702.pdf

POVERTY AND ECONOMIC POLICY (PEP) RESEARCH NETWORK. URL:
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PHILIPPINE LOCAL POVERTY ALLEVIATION PROGRAM. URL:
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PHILIPPINE NATIONAL STATISTICAL COORDINATION BOARD. URL:
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PHILIPPINE NATIONAL STATISTICS OFFICE. URL:
    http://www.census.gov.ph

RESEARCH ON MACROECONOMIC POLICY AND POVERTY. URL:
   http://www.idrc.ca/mimap/

REYES, Celia M. (1998). Institutionalizing a Poverty Monitoring System in the
   Philippines. MIMAP-Research Paper No. 40. MIMAP Project. Policy and
   Development Foundation Inc. URL: http://www.idrc.ca/uploads/user-
   S/10950417481mrp40.pdf

REYES, Celia M. 2003. Poverty Reduction, Decentralization and Community-
   Based Monitoring Systems. Community-Based Monitoring System (CBMS)
   Network Research paper presented in the ADB-IDRC Seminar on Poverty,
   Trade, and Growth: Issues in Sustainable Development at ADB
   Headquarters in Manila.

REYES, Celia and Isabelita Z. Alba. 1994. Assessment of Community-Based
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RIO GROUP. (September 2006). Compendium of best practices in poverty
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SCHELZIG, Karin. 2005. Poverty in the Philippines: Income, Assets, and Access.
   Asian Development Bank. URL:


                                                                                12
Rico BURAGA
Department of International Development- GSID
Poverty Reduction Strategies                               Prof. Sanae ITO, Ph.D



     http://www.adb.org/Documents/Books/Poverty-in-the-Philippines/Poverty-
     in-the-Philippines.pdf

SHORE, Keane. In Conversation: Celia Reyes on the Importance of Timely
   Economic Information. International Research Development Center. URL:
   http://www.idrc.ca/en/ev-26052-201-1-DO_TOPIC.html

VALENCIA, Lani E. and Celia M. Reyes. 2003. Poverty-monitoring systems in
   the Philippines. Poverty and Economic Policy Working paper. International
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UNITED NATIONS DEVELOPMENT PROGRAM. 2000. Overcoming Poverty:
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   http://www.undp.org/povertyreport/chapters/chap1.html

WIKIPEDIA. URL: http://www.wikipedia.org

WORLD BANK. URL: http://www.worldbank.org




                                                                               13
Rico BURAGA
Department of International Development- GSID

				
DOCUMENT INFO
Description: Before international non-governmental organizations were established to reduce poverty or the Millennium Development Goals was formulated, and poverty subjects are taught in universities. Poverty is already a concern of Mallanaga Vātsyāyana, an Indian philosopher who lived in 4th century AD. He wrote in his book Kama Sutra that “poverty is not a virture. It is an obstacle, not only to pleasure but also to ethics and virtue. Morality is a luxury which very poor people can rarely afford.” This means poverty is a condition that limits your freedom. Where most people want to escape. And it has many dimensions. Poverty has different meaning to people. UNDP introduced the concept of human poverty. UNDP’s definition of poverty is not the sum total of well being; lack of income cannot be the sum of poverty. Human poverty does not focus on people do or do not have, but on what they can or cannot do (UNDP, 2000). According to World Bank (2006), poverty is hunger. Poverty is lack of shelter. Poverty is being sick and not being able to see a doctor. Poverty is not having access to school and not knowing how to read. Poverty is not having a job, is fear for the future, living one day at a time. Poverty is losing a child to illness brought about by unclean water. Poverty is powerlessness, lack of representation and freedom. Extreme poverty was defined by World Bank as living on less than US$ (PPP) 1 per day, and moderate poverty as less than $2 a day. It has been estimated that in 2001, 1.1 billion people had consumption levels below $1 a day and 2.7 billion lived on less than $2 a day. The proportion of the developing world's population living in extreme economic poverty has fallen from 28 percent in 1990 to 21 percent in 2001.... - Rico Buraga,