Latest Poverty Statistics: Philippines: Indicators and Metadata

Latest Poverty Statistics: Philippines
Indicator 2006 2009

Poverty Threshold and Poverty Incidence
Annual Per Capita Poverty
Threshold (in Pesos)
13,348 16,841
Poverty Incidence of Families (%) 21.1 20.9
Poverty Incidence of Population
(%)
26.4 26.5
Food Threshold and Subsistence Incidence
Annual Per Capita Food Threshold
(in Pesos)
9,257 11,686
Subsistence Incidence of Families
(%)
8.7 7.9
Subsistence Incidence of
Population (%)
11.7 10.8

Source: National Statistical Coordination Board

Indicators and Metadata
(Updated 15 February 2012)
I. MONETARY-BASED (INCOME/EXPENDITURE) INDICATORS
A. Official Statistics
A.1 FAMILY INCOME AND EXPENDITURE SURVEY - National Statistics Office (NSO)
A.2 OFFICIAL POVERTY STATISTICS - National Statistical Coordination Board (NSCB)
B. OTHER SUPPLEMENTARY POVERTY INDICATORS
B1. City and Municipal Level Poverty Estimates - NSCB
B2. National Household Targeting System for Poverty Reduction (NHTSPR) - Department of Social
Welfare and Development (DSWD)
B3. Community-Based Monitoring System (CBMS) - Department of the Interior and Local Government
(DILG)

II. NON-MONETARY-BASED INDICATORS
HEALTH AND NUTRITION
A. Official Statistics
A1. National Demographic and Health Survey - NSO
A2. Field Health Information System - Department of Health (DOH)
A3. National Nutrition Survey (NNS) - Food and Nutrition Research Institute (FNRI)
B1. Community-Based Monitoring System (CBMS)- Department of interior and Local Government
(DILG)
B2. National Household Targeting System for Poverty Reduction (NHTSPR) - Department of Social
Welfare and Development (DSWD)

EDUCATION
A. OFFICIAL STATISTICS
A1. Functional Literacy, Education and Mass Media Survey (FLEMMS) - NSO
A2. Basic Education Information System (BEIS) - DepEd
A3. Higher Education Information System - CHED
A4. Technical Education and Skills Devt. Authority
A5. Annual Poverty Indicator Survey (APIS) - NSO
A6. Census of Population and Housing (CPH) - NSO
B1. National Household Targeting System for Poverty Reduction (NHTSPR)
B2. Community-Based Monitoring System (CBMS)

LABOR AND EMPLOYMENT
A1. Labor Force Survey (LFS) - NSO
A2. Bureau of Labor and Employment Statistics (BLES) - DepEd
A3. Survey on Overseas Filipinos (SOF) - CHED
A4. Census on Population and Housing (CPH)
A5. Occupational Wages Survey (OWS) - NSO
A6. Survey on Children - NSO

SHELTER
A1. Census of Popuplation and Housing (CPH)
A2. Annual Poverty Indicator Survey (APIS)
B1. Housing and Urban Development Coordinating Council (HUDCC)

PEACE AND ORDER
A1. Philippine National Police (PNP)

ENVIRONMENT
A2. Census of Population and Housing (CPH)

GOVERNANCE
B2. Local Governance Performance Management System (LGPMS)

A. On the Official Poverty Statistics
In 2009, what is the minimum income needed by a 5-member family so as not to be
considered poor?
For 2009
1
, Filipino families consisting of five members should be earning on the
average a combined monthly income of PhP 7,017 in order to meet their most
basic food and non-food needs for this year. On the other hand, a sole
breadwinner in a five-member family residing at the National Capital Region
(NCR) is expected to find a difficult task in bringing the entire family above the
poverty line if he/she earns less than PhP 317 per day.
How many are poor in the country?
Latest statistics released by the NSCB on 8 February 2011 indicate that the
poverty incidence among families in 2009 stood at 20.9%, which was a slight
reduction from 2006 at 21.1%. Annual per capita poverty threshold for the
Philippines in 2009 stood at Php16,841.
In terms of magnitude of poor families, there was an increase of about 185,000
poor families from 3.67 million in 2006 to 3.86 million in 2009.
In terms of population, the poverty incidence had a slight increase from 26.4%
in 2006 to 26.5 in 2009. The magnitude of poor population increased by almost
970,000 Filipinos from 22.2 million in 2006 to 23.1 million in 2009 by 4.4%.
Which are the poorest provinces?
The bottom cluster of provinces or the poorest provinces in 2009 in terms of
poverty incidence among families are the following:
Province
Poverty Incidence among Families
Estimate
(%)
90% Confidence
Interval
Lower
Limit
Upper
Limit
Agusan del Sur 51.2 43.5 58.9
Bohol 41.0 33.6 48.4
Camarines Sur 38.7 33.8 43.6
Davao Oriental 42.5 36.4 48.6
Eastern Samar 45.8 37.6 54.1
Lanao del Norte 39.0 31.9 46.1
Maguindanao 44.6 37.7 51.6
Masbate 42.5 36.6 48.3
Northern Samar 41.7 32.4 51.0
Romblon 43.0 36.3 49.8
Saranggani 40.7 34.0 47.3
Surigao del Norte 47.9 43.1 52.8
Zamboanga del
Norte
52.9 46.0 59.8
Zamboanga
Sibugay
43.2 35.4 50.9
Six of these provinces were included in the bottom cluster of provinces in 2003
and 2009. The bottom cluster refers to provinces with poverty incidences that
are relatively high in comparison with the other provinces.
The complete set of the clustering of provinces based on the poverty incidence
among families is available in the NSCB website through the following
link:http://www.nscb.gov.ph /poverty/2009/table_15.asp.
How do we estimate the countrys poor?
In accordance with NSCB Resolution No. 9, Series of 2011, Approving the
Refinements in the Official Poverty Estimation Methodology, estimation of
poverty starts with the computation of the food threshold, which is determined
by using provincial food bundles costed using provincial prices. The one-day
provincial food bundles were developed based on an indicative nationally
representative food bundle formulated by nutritionists from the Food and
Nutrition Research Institute (FNRI) and were subjected to the Test of Revealed
Preferences such that the food bundle of a province will be the cheapest in
comparison with the bundles of other provinces. It has the following
characteristics:
Nutritionally adequate, that is, it satisfies the 100% Recommended Energy and
Nutrient Intakes (RENI) for energy and protein and 80% RENI for vitamins and
minerals.
Food items in the food bundle are locally available and low cost
Least cost
2

Visualizable; and
Edible
The cost of each provincial food bundle is estimated using the actual prices
collected by the Bureau of Agricultural Statistics (BAS) for agricultural
commodities and the National Statistics Office (NSO) for non-agricultural food
items. This is then multiplied by 30.4 (the average number of days per month)
and 12 months to come up with the Annual Per Capita Food Threshold.
After the computation of the provincial food threshold (urban-rural), the
estimation of the poverty threshold to include the additional income required for
the sustenance of the minimum non-food basic needs follows. Non-food basic
needs include the following:
food;
clothing and footwear;
fuel; light and water;
housing maintenance and other minor repairs;
rental or occupied dwelling units;
medical care;
education;
transportation and communications;
non-durable furnishing;
household operations; and
personal care and effects.
Hence, to compute for the poverty threshold, the food threshold is divided by
the ratio of the food expenditures (FE) to total basic expenditures (TBE). This
proportion is generated using the average of the nationally determined FE/TBE
ratio of families near the food threshold in the 2000, 2003, 2006 and 2009 FIES.
This shall be used for 12 years starting 2009 to ensure consistency across space
and over time for at least two administrations. The resulting estimate is the
Annual Per Capita Poverty Threshold.
Why are the latest available poverty incidences for 2009?
Official estimates of poverty incidence, which is the proportion of
families/individuals with per capita income less than the per capita poverty
threshold to the total number of families/individuals, are released every three
years. This is due to the triennial conduct of the Family Income and Expenditure
Survey (FIES) by the National Statistics Office (NSO), which is the primary
source of income and expenditure data of households used for poverty
estimation.
Which are the poorest municipalities/cities in the country?
Based on the 2003 City and Municipal Level Poverty Estimates, which is a Project
implemented by the NSCB with funding assistance from the World Bank, the top
10 poorest municipalities/cities in 2003 are: Siayan, Bacungan and Godod in
Zamboanga del Norte, Tanudan in Kalinga, Sominot, Midsalip and Lapuyan in
Zamboanga del Sur, Tangkal in Lanao del Norte, Bagulin in La Union, and Jose
Abad Santos in Davao del Sur.
The complete set of city and municipal level poverty estimates is available at the
NSCB
website:http://www.nscb.gov.ph/poverty/sae/2003%20SAE%20of%20poverty%20
(Full%20Report).pdf.
What are the basic sectors in the country? Why are the poverty statistics available only for
the eight sectors?
Based on Republic Act (RA) 8425, or the Social Reform and Poverty Alleviation
Act, it was declared that the State should adopt an area-based sectoral and
focused intervention to poverty alleviation. Section 3 of RA 8425 defined the
basic sectors as the disadvantaged sectors of the Philippine society, namely:
farmer-peasant;
artisanal fisherfolk;
workers in the formal sector and migrant workers;
workers in the informal sector;
indigenous peoples and cultural communities;
women;
differently-abled persons;
senior citizens;
victims of calamities and disasters;
youth and students;
children;
urban poor;
cooperatives; and
non-government organization.
In 2004, the NSCB, in an attempt to further serve the needs of planners and
policy-makers both at the national and local levels, embarked on a project on
the Development of Poverty Statistics for the Basic Sectors with funding
assistance from the United Nations Development Programme (UNDP) and in
collaboration with the National Anti-Poverty Commission (NAPC). Based on the
findings/recommendations of the Project, poverty statistics can only be obtained
in the following sectors:
farmers;
fishermen;
workers in the formal sector and migrant workers;
women;
senior citizens;
youth;
children; and
population living in urban areas.
Poverty statistics for the remaining six sectors were not generated due to data
constraints from existing censuses and surveys.
What are the poorest sectors in the country?
In 2006, fishermen, farmers and children comprised the poorest three sectors
with poverty incidences among population of 41.4%, 37.2%, and 34.8%,
respectively. All the eight basic sectors posted increases in poverty incidence
between 2003 and 2006.
Sector
Poverty Incidence
among population
(%)
2003 2006
Fishermen 35.0 41.4
Farmers 37.0 37.2
Children 32.7 34.8
Women 24.0 25.1
Youth 19.0 20.8
Senior Citizens 15.1 16.2
Workers in the formal sector and
migrant workers 14.6 15.7
Urban Population 11.1 12.5
These estimates are based on the refined methodology which was approved in
February 2011. The 2009 Official Poverty Statistics for the Basic Sectors will be
released in October 2011.

B. On the National Household Targeting System for Poverty Reduction
(Question Nos. 1-7 were lifted directly from the FAQ of the NHTS-PR from the DSWD website -
http://nhts.dswd.gov.ph/index.php/faqs)
What is the NHTS-PR?
The NHTSPR is a data management system that identifies who and where the
poor are in the country. The system makes available to the public a database of
poor households as reference in identifying beneficiaries of social protection
programs.
Why do we need a targeting system instead of just giving goods or money indiscriminately?
Our resources are limited. Thus, we need a targeting system in order for the
government to equitably distribute its resources and services to the poor. With
the system, the issue of the leakage (of non poor being included) and
deprivation (poor being excluded as beneficiaries) of social services will be
addressed.
A recent study cited by the World Bank revealed that poorly targeted social
services result in the exclusions of the poor from necessary social services and
the waste of resources on those who are not actually poor. Thus, spending P1B-
2B wisely on an objective targeting system is better than wasting P20-30B on a
poorly targeted rice subsidy program for an example.
When do we conduct the targeting?
Assuming that the 2009 budget is approved and money for the targeting system
is released, the database shall be available within one year after release of
funds.
Where do we administer the targeting system (household assessment)?
We will be initially administering the targeting system in the 20 poorest
provinces, municipalities with 60% and above poverty incidence, and in highly
urbanized cities with large pockets of poverty. An estimated 2.6M households
shall be surveyed and assessed in these areas.
Who are involved in the targeting system?
The NHTS-PR is led by the DSWD through a Program Management Office with a
National Technical Advisory Group composed of the National Statistics Office
(NSO), National Statistical Coordination Board (NSCB), National Economic
Development Authority (NEDA), and the academe.
How do we administer the targeting system?
The targeting system uses a paper and a pencil approach for its data gathering.
After data gathering, the data will then be encoded into a computer system. A
statistical formula calculates the households approximate income using proxy
socio-economic variables that would predict household income and allow for
objective ranking and classification of households into non-poor, poor and food
poor.
How much budget is allocated to the National Household Targeting System?
The Department of Budget and Management has already approved a P1B budget
for its nationwide implementation for this year. However, the total budgetary
requirement for a complete nationwide targeting system is P1.7B.
When to use the National Household Targeting System for Poverty Reduction (NHTS-PR) of
the Department of Social Welfare and Development (DSWD)?
The NHTS-PR aims to collect data from all households in the
municipalities/provinces identified as the poorest to determine prospective
beneficiaries of nationwide social protection programs such as the Pantawid
Pamilyang Pilipino Program, Social Pension, and Rice Subsidy for the Poor
Farmers and Fisherfolks.

C. On the Community-Based Monitoring System
(Lifted directly from the FAQ of the CBMS - http://cbmsphilippines.webs.com/apps/faq/)
What is CBMS?
The Community-Based Monitoring System (CBMS) is an organized process of
data collection and processing at the local level and of integration of data in local
planning, program implementation and impact-monitoring. It is a system that
promotes evidence-based policymaking and program implementation while
empowering communities to participate in the process. It was developed in the
early 1990s under the Micro Impacts of Macroeconomic Adjustment Policies
(MIMAP) Project-Philippines to provide policymakers and program implementers
with a good information base for tracking the impacts of macroeconomic reforms
and various policy shocks. Currently, coordination on CBMS work is being
handled by the CBMS Network Coordinating Team.
What is the rationale for CBMS?
Standard poverty monitoring systems (PMS) in the Philippines generally rely on
surveys such as Income-Expenditure surveys, Health surveys, Censuses, etc.
However these national censuses and surveys:
Are too costly to be replicated frequently;
Are conducted at different time periods making it impossible to get a comprehensive
profile of the different socio-demographic groups of interest at a specific point in
time; and
Have sampling designs that do not usually correspond to the geographical
disaggregation needed by local governments.
In addition, the implementation of decentralization policy, which devolves the
delivery of basic services to local governments, creates greater demand for data
at thelocal level.
CBMS seeks to address the existing data gaps at the local level for diagnosing
extent of poverty at the local level in determining the causes of poverty,
formulating appropriate policies and program, identifying eligible beneficiaries
and assessing impact of policies and programs. It also supports the
decentralization process by capacitating LGUs to collect, analyze and use data in
local planning and program implementation.
What are the key features of CBMS?
The CBMS has several features that enhance the capacity of local governments
in detecting and reducing poverty: (a) LGU-based while promoting community
participation; (b) taps existing LGU personnel and community volunteers as
monitors; (c) has a core set of indicators; (d) involves complete enumeration of
all households; and (e) establish databanks at all geopolitical levels.
How is CBMS being implemented?
Once a local government unit decides to adopt the CBMS, a number of activities
are needed to be carried out. Technical assistance is being provided for free by
the CBMS Team and its partner agencies. These include provision of technical
support in the conduct of training workshops on data collection, computerized
data processing, data validation and preparation of socioeconomic profiles and
development plans using CBMS data.
Computerized processing system softwares, such as the CBMS Encoding System,
Statistics Simulator and the CBMS-NRDB, are also being provided for free to
partner LGUs.
What kind of statistics/data that the CBMS can generate?
Although the CBMS can generate a wide range of LGU-specific indicators, at the
very minimum there are 14 core indicators that are being measured to
determine the welfare status of the population. These indicators capture the
multidimensional aspects of poverty and have been confined to output and
impact indicators.
Other information that can also be generated from the CBMS are the following:
migration, community/political participation and access to programs, among
others.
All household level data from the CBMS can be disaggregated by purok,
barangay and municipality/city while all individual level data can be
disaggregated by sex.
What are the uses of CBMS data?
CBMS has a number of potential concrete uses particularly in the areas of local
governance and poverty monitoring. Specifically, data gathered from CBMS can:
Build the capacities of LGUs and communities
CBMS can be used to further nourish if not build the capacities of local
government units as well as members of communities in addressing the needs of
their respective localities by maximizing the use of their existing resources.
Facilitate resource allocation
One the most common dilemmas among local chief executives is how to
efficiently and effectively use and manage the meager financial resources of the
local government unit given the many competing projects and programs that
need to be delivered in their localities. CBMS tries to address this issue by
providing the necessary information that would reveal to decision makers an up-
to-date development situation of communities in terms of core areas of welfare.
Enrich existing databases
CBMS can complement existing databases by providing a regular source of
information on socioeconomic attributes of communities to further enrich the
contents and usefulness of existing databases. A number of local government
units were able to get funding support from international organizations in the
past for setting up databanks containing information on children, environment
and the like. CBMS can help enrich these databases by providing a complete set
of household, barangay, municipal/city and provincial level information.
Serve as inputs for preparation of development profiles
CBMS data also provide vital baseline information for the preparation of
barangay, municipal/city, and provincial socioeconomic profiles, annual
investment plans, land use plans, infrastructure project proposals, and other
related development reports.
Aid the design, targeting and impact monitoring of social services and development
programs
CBMS provides disaggregated information that reveal the communitys needs
based on the CBMS household survey and corresponding explanations for such
deficiencies as gathered during the validation forum and supplemented by
information gathered from the barangay profile questionnaire.
Serve as inputs in poverty mapping
CBMS, through poverty mapping, aids in identifying the location of
municipalities, cities, barangays and even households which are in dire need of
basic services. It has also been found that the local policymakers and the
communities understanding of the poverty situation in their localities was
greatly facilitated by the use of maps.
Can be used as a tool in localizingthe MDGs
CBMS can be used as a tool in monitoring the Millennium Development Goals
(MDGs) at the local level. Through CBMS, indicators of the MDGs can be
generated providing LGUs with critical information needed in the attainment of
the MDGs.
How many LGUs in the country are currently implementing CBMS?
As of August 31, 2010, 60 provinces, 32 of which is province wide, 698
municipalities and 45 cities, covering a total of 18,269 barangays have already
joined the CBMS bandwagon and are at varying stages in implementing the
CBMS. The costs of implementation have been borne largely by the local
government units, indicating that they see the usefulness of the system. This
bodes well for the sustainability of the system. In some cases, NGOs, donor
agencies and other stakeholders have contributed to the implementation.
What is the level of government support for CBMS?
Memorandum circulars and policy issuances have been prepared by key national
government agencies supporting the use of CBMS:
DILG Memorandum Circular 2001-105
Issued in August 2001, the circular enjoins all local chief executives to undertake
local programs on poverty reduction and economic transformation and
emphasized the need to designate Local Poverty Reduction Action Officers
(LPRAOs) and to formulate a Local Poverty Reduction Action Plan (LPRAP).
NAPC En Banc Resolution No. 7
Issued in March 2003, the resolution directs LGUs to adopt the 13 core local
poverty indicators as the minimum set of community-based information for
poverty diagnosis and planning at the local levels and integrate such information
in their local poverty monitoring system and local level action plans and
program.
Issued in April 2003, it provides policy guidelines for the adoption of the 13 core
local poverty indicators for planning. The guidelines shall aid the LGUs in
assessing and understanding poverty and its dimensions at the barangays,
municipalities, cities and provinces with the end view of formulating an LPRAP
and implementing the plans and programs to reduce poverty.
Issued in November 2004, the circular encourages LGUs to intensify efforts in
implementing programs, projects and activities towards the achievement of the
millennium development goals (MDGs).
NSCB Resolution No. 6, Series of 2005
Issued in January 24, 2005, the resolution recognizes and enjoins support to the
community-based monitoring system as a tool to strengthen the statistical
system at the local level. It resolved further that the NSCB Technical Staff
should initiate and coordinate an advocacy program for the adoption of the
CBMS by the LGUs, through the RSCCs, the technical arm of the NSCB Executive
Board in the regions.

LMP Memorandum Circular 027-2006
Issued in June2006, enjoining all CBMS-implementing municipalities to
adopt/sustain the adoption of the CBMS as a tool for local poverty diagnosis and
ensure the incorporation of the MDG targets and utilization of CBMS data in the
formulation of local development plans.
SDC Resolution No. 3, Series of 2006
Issued on July 19, 2006, the resolution adopts the CBMS as the prescribed
monitoring tool for the generation of the Core Local Poverty Indicator Database.
It further enjoined the NAPC, DILG, other government agencies and LGUs to
coordinate with the CBMS Network Coordinating Team towards the fast-tracking
and full implementation of the CBMS.
Partnerships
The CBMS Network Coordinating Team have partnered with a number of
agencies to scale up the implementation of the CBMS.
Department of the Interior and Local Government lead agency in providing
capacity building to local government units and other government agencies.
Trainings on the CBMS Modules have been provided to selected staff of Bureau of
Local Government Development and to some of their regional offices.
National Anti-Poverty Commission have been active in advocating CBMS especially
in Mindanao. Selected staff have also been trained on the CBMS Modules.
League of Municipalities of the Philippines lead advocates of the CBMS in the
municipalities.
National Economic and Development Authority in particular Region IVA has
collaborated with the CBMS Team for the implementation of CBMS in sites in the
CALABARZON area, specifically in selected sites in Quezon.
NGOs such as the Social Watch. The Dawn Foundation and Kagabay are also
actively advocating for the implementation of CBMS in their sites. On the other
hand, Peace and Equity Foundation (PEF) has been providing resources to finance
poverty interventions identified through the CBMS.
Donor agencies Development partners, e.g., UNDP, World Bank, UNFPA and
UNIFEM, have also been actively supporting the implementation of CBMS. The
Spanish Agency for International Development Cooperation also supports the CBMS
implementation in specific sites in Region V.
Other Relevant Information
What are the sources of differences between the 5.2 million poor families identified by the
NHTS-PR and the 3.9 million poor families from the Official Poverty Statistics?
On the reference year of the income data
The income data used by the NSCB in generating the Official Poverty Statistics
for 2009 is based on the 2009 FIES, while the income data in the NHTS-PR was
indirectly estimated based on modeling technique using non-income variables
collected by the DSWD in 2009-2010.
On the poverty thresholds used
As the Official Poverty Statistics being estimated is for 2009, the methodology
used the 2009 official poverty thresholds based on the refined poverty
estimation methodology approved in February 2011. On the other hand, NHTS-
PR used the 2006 official poverty thresholds, which was the latest data available
when the NHTS-PR started in 2008, based on the old poverty estimation
methodology approved in January 2003.
On the methodology used
The Official Poverty Statistics directly estimated the annual per capita income
collected from the Family Income and Expenditure Survey (FIES), which is
compared with the official provincial poverty thresholds.
On the other hand, NHTS-PR employed the proxy means test (PMT), a statistical
tool wherein a model is developed to determine the poverty status of households
without using reported income as reference. The PMT was developed based on
the 2003 FIES and Labor Force Survey (LFS).
Income of the household is first estimated using non-income variables found to
be significantly correlated to income. This is then compared with the official
provincial poverty thresholds released by NSCB.
On the income data used
The Official Poverty Statistics used income data collected from a battery of
questions on actual income in the 2009 FIES. The questions include:
Primary Income
Salaries and wages from employment
Commissions, tips, bonuses, family and clothing allowance, transportation and
representation allowance and honoraria
Other forms of compensation and net receipts derived from the operation of family
operated enterprises/activities and the practice of a profession or trade
Income from other sources
Imputed rental values of owner-occupied dwelling units
Interest
Rentals including landowners share of agricultural products
Pensions, royalties and dividends from investments
Gifts, support in any form (physical, material and financial) and the value of food
and non-food items received as gifts by the family (as well as the imputed value
of services rendered free of charge to the family)
Cash received out of salaries/wages and other sources of income of a family
member who is a contract worker abroad and also cash receipts sent by a family
member/relative of the household with a status of residency abroad other than that
of a contract worker
Receipts from family sustenance activities, which are not considered as family
operated enterprise
The NHTS-PR estimates income based on non-income variables using the Proxy
Means Test (PMT), which was developed based on the 2003 FIES-LFS. Non-
income variables collected in NHTS-PR include:
Household composition;
Education of the household member;
Occupation;
Housing conditions;
Access to basic services;
Ownership of assets;
Tenure status of housing; and
Regional dummy variables pertaining to poverty thresholds per region based on
2003 FIES.
________________
1
Why the latest poverty statistics is for 2009 will be discussed in Question #5.
2
Provincial food bundle passed the Test of Revealed Preference

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