Presentation Poverty

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P o v e r t y

Poverty is here to stay.



Half the world’s population, about 3 billion,

live on less than $2 per day.

live on less than $2 per d

ay.



Malnutrition, lack of health care, substandard

housing, and illiteracy breed desperation,

disease and daily suffering.



Poverty traps future generations in a vicious

Poverty traps future generations in a

Poverty traps future generations in a vicious

vicious

cycle without hope or opportunity.

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Poverty Statistics



 Almost 30,000 children under the age of five dieAlmost 30,000 children under the age of five dieAlmost 30,000 children under the age of five dieAlmost 30,000 children under the age of five die

every day from malnutrition and preventable every day from malnutrition and preventable every day from malnutrition and preventable

every day from malnutrition and preventable

diseases. That’s one kindergarten class every minute. diseases. That’s one kindergarten class every minute. diseases. That’s one kindergarten class every minute.

diseases. That’s one kindergarten class every minute.



 Approximately 790 million people in the developingApproximately 790 million people in the developingApproximately 790 million people in the Approximately 790 million people in the developingdeveloping

world are chronically undernourished. That’s the world are chronically undernourished. That’s the world are chronically undernourished. That’s the

world are chronically undernourished. That’s the

equivalent of every single person in both

equivalent of every single person in both North andNorth and equivalent of every single person in bo

equivalent of every single person in both North andth North and

South America going hungry every day. South America going hungry every day. South America going hungry every day.

South America going hungry every day.



 Nearly a billion people entered the 21st century Nearly a billion people entered the 21st century Nearly a billion people entered the 21st century Nearly a billion people entered the 21st century

unable to read a book or

unable to read a book or sign their names.sign their names. unable to read a book or

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What is Poverty?

(Conceptualized broadly, taking into account income & its impact in (Conceptualized broadly, taking into account income & its impact in (Conceptualized broadly, taking into account income & its impact in

(Conceptualized broadly, taking into account income & its impact in

terms of human deprivation, development, and quality of life) terms of human deprivation, development, and quality of life) terms of human deprivation, development, and quality of life)

terms of human deprivation, development, and quality of life)



 The term “poorest” or The term “poorest” or The term “poorest” or The term “poorest” or

“very poor” refers to “very poor” refers to “very poor” refers to

“very poor” refers to

people living on less people living on less people living on less

people living on less

than $1 per day or in the than $1 per day or in the than $1 per day or in the

than $1 per day or in the

bottom half of those bottom half of those bottom half of those

bottom half of those

living below their living below their living below their

living below their

nation’s poverty line. nation’s poverty line. nation’s poverty line.

nation’s poverty line.



 The The The The term term term term “poor” “poor” “poor” “poor” meansmeansmeansmeans

those living in poverty those living in poverty those living in poverty

those living in poverty

above $1 per day or in above $1 per day or in above $1 per day or in

above $1 per day or in

the upper half of those the upper half of those the upper half of those

the upper half of those

living below their living below their living below their

living below their

nation’s poverty line. nation’s poverty line. nation’s poverty line.

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Causes of Poverty



 Decline in overallDecline in overallDecline in overallDecline in overall

national growth national growth national growth

national growth



 Political instabilityPolitical instabilityPolitical instabilityPolitical instability



 Natural disasters Natural disastersNatural disastersNatural disasters



 CorruptionCorruptionCorruptionCorruption



 Socio-economicSocio-economicSocio-economicSocio-economic

disparities and disparities and disparities and disparities and prejudices prejudices prejudices prejudices 

 Lack of access toLack of access toLack of access toLack of access to

education education education

education



 Lack of infrastructureLack of infrastructureLack of infrastructureLack of infrastructure



 Lack of relevant laws &Lack of relevant laws &Lack of relevant laws &Lack of relevant laws &

administrative administrative administrative administrative procedures procedures procedures procedures 

 Lack of access toLack of access toLack of access toLack of access to

investment & credit, to investment & credit, to investment & credit, to

investment & credit, to

complete market complete market complete market complete market information, and to information, and to information, and to information, and to opportunities to develop opportunities to develop opportunities to develop opportunities to develop skills skills skills skills

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Effects of Poverty



Without the security of formal jobs, each day

the poor work from dawn to dusk



All or most of the money earned go to basic

survival. There is little or no money left to

improve quality of life



Living in poverty almost always means that

the harsh reality of today w

the harsh reality of today will repeat itself

ill repeat itself

the harsh reality of today will repe

at itself

tomorrow.

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Effects of Poverty, continued…



 Poverty breeds poverty. If Poverty breeds poverty. If Poverty breeds poverty. If oPoverty breeds poverty. If one cannot afford proper one cannot afford proper one cannot afford proper ne cannot afford proper

nutrition or health care for one’s

nutrition or health care for one’s family, childrenfamily, children nutrition or health care for one’s

nutrition or health care for one’s family, childrenfamily, children

grow up at greater risk

grow up at greater risk of acquiring a life-threateningof acquiring a life-threatening grow up at greater ris

grow up at greater risk of acquiring a life-threateningk of acquiring a life-threatening

or disabling disease. or disabling disease. or disabling disease.

or disabling disease.



 If one cannot afford to educate one’s children, theyIf one cannot afford to educate one’s children, theyIf one cannot afford to educate one’s children, theyIf one cannot afford to educate one’s children, they

will have few avenues for a life different than that of will have few avenues for a life different than that of will have few avenues for a life different than that of

will have few avenues for a life different than that of

their parents. their parents. their parents.

their parents.



 If one cannot afford to buy one’s If one cannot afford to buy one’s If one cannot afford to buy one’s own If one cannot afford to buy one’s own land or homeown land or homeown land or homeland or home

or livestock, there are few opportunities to build or livestock, there are few opportunities to build or livestock, there are few opportunities to bu

or livestock, there are few opportunities to buildild

assets that will last over time. assets that will last over time. assets that will last over time.

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Can poverty be

Can poverty be rreduced?

educed?

Can poverty be

r

educed?

Can economic

Can economic gr

growth

owth

Can economic

gr

owth

rreduce

educe poverty?

poverty?

reduce poverty?

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Poverty Reduction

Global Level Global Level Global Level Global Level

Millennium Development Goals (MDGs), UN General Millennium Development Goals (MDGs), UN General Millennium Development Goals (MDGs), UN General Millennium Development Goals (MDGs), UN General

Assembly, Sept. 2000 Assembly, Sept. 2000 Assembly, Sept. 2000 Assembly, Sept. 2000 Objectives: Objectives: Objectives: Objectives: 

 eradicating extreme poverty and hunger eradicating extreme poverty and hunger eradicating extreme poverty and hunger eradicating extreme poverty and hunger



 achieve universal primary educationachieve universal primary educationachieve universal primary educationachieve universal primary education



 promote gender equality promote gender equality promote gender equality promote gender equality



 reduce child mortalityreduce child mortalityreduce child mortalityreduce child mortality



 improve women’s reproductive healthimprove women’s reproductive healthimprove women’s reproductive healthimprove women’s reproductive health



 combat HIV/AIDS, malaria, and other diseasescombat HIV/AIDS, malaria, and other diseasescombat HIV/AIDS, malaria, and other diseasescombat HIV/AIDS, malaria, and other diseases



 ensure environment sustainabilityensure environment sustainabilityensure environment sustainabilityensure environment sustainability



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Targets of MDGs with Reference to

Poverty



Target 1:

Halve the proportion of people

living in extreme poverty between 1990-2115



Target 2:

Halve the proportion of

Halve the proportion of population

population

below minimum level of dietary energy

consumption and halve the proportion of

underweight children (under five years)



Target 3:

Halve the proportion of people

without access to safe drinking water

without access to safe drinking water or those

or those

without access to safe drinking water or

those

who cannot afford it by 2115

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Poverty Reduction

Asian Level Asian Level Asian Level Asian Level

ADB’s Poverty Reduction Strategy ADB’s Poverty Reduction Strategy ADB’s Poverty Reduction Strategy ADB’s Poverty Reduction Strategy



 Social Development (human capital development, populationSocial Development (human capital development, populationSocial Development (human capital development, populationSocial Development (human capital development, population

policy, social capital development, gender, equality, social policy, social capital development, gender, equality, social policy, social capital development, gender, equality, social policy, social capital development, gender, equality, social

protection) protection) protection) protection)



 Good Governance (government accountability, publicGood Governance (government accountability, publicGood Governance (government accountability, publicGood Governance (government accountability, public

participation, predictable legal framework, transparency, participation, predictable legal framework, transparency, participation, predictable legal

participation, predictable legal framework, transparency,framework, transparency, anticorruption initiatives)

anticorruption initiatives) anticorruption initiatives) anticorruption initiatives)



 Pro-poor Growth (labor-intensive Pro-poor Growth (labor-intensive employment and incomePro-poor Growth (labor-intensive employment and incomePro-poor Growth (labor-intensive employment and incomeemployment and income

creation, public/private sector provision of basic services, poor creation, public/private sector provision of basic services, poor creation, public/private sector provision of basic services, poor creation, public/private sector provision of basic services, poor area public investment, regional and sub regional cooperation, area public investment, regional and sub regional cooperation, area public investment, regional and sub regional cooperation, area public investment, regional and sub regional cooperation, environmental sustainability)

environmental sustainability) environmental sustainability) environmental sustainability)

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Poverty Reduction

Philippine Level

P

hilippine Level

The Medium-Term Philippines Development

Plan, 2001-2004

Four primary strategies:



Macroeconomic stability and equitable

growth, using sound fiscal and monetary

policies to keep inflation low and avoid surges

in unemployment; modernize all sectors

through HR development and technology

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MTPDP, (continued..)



 Comprehensive HR development, basic education,Comprehensive HR development, basic education,Comprehensive HR development, basic education,Comprehensive HR development, basic education,

health, shelter, water, electricity; safety nets for most health, shelter, water, electricity; safety nets for most health, shelter, water, electricity; safety nets for most

health, shelter, water, electricity; safety nets for most

vulnerable sectors; encouraging poor to participate in vulnerable sectors; encouraging poor to participate in vulnerable sectors; encouraging poor to participate in

vulnerable sectors; encouraging poor to participate in

governance governance governance

governance



 Modernization of agricultural sector with socialModernization of agricultural sector with socialModernization of agricultural sector with socialModernization of agricultural sector with social

equity; agrarian reform, improving rural equity; agrarian reform, improving rural equity; agrarian reform, improving rural

equity; agrarian reform, improving rural

infrastructure, implementing land reform infrastructure, implementing land reform infrastructure, implementing land reform

infrastructure, implementing land reform



 Effective governance through transparency, reducingEffective governance through transparency, reducingEffective governance through transparency, reducingEffective governance through transparency, reducing

graft and corruption, strengthening partnerships with graft and corruption, strengthening partnerships with graft and corruption, strengthening partnerships with

graft and corruption, strengthening partnerships with

civil society and the private sector civil society and the private sector civil society and the private sector

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Poverty in the

Poverty in the Philippines

Philippines

Poverty in the

Philippines



 Tends to be associated with low education levels for Tends to be associated with low education levels for Tends to be associated with low education levels for Tends to be associated with low education levels for

heads of households and large family size (5.2 million heads of households and large family size (5.2 million heads of households and large family size (5.2 million heads of households and large family size (5.2 million families below poverty line)

families below poverty line) families below poverty line) families below poverty line)



 Poverty line = P14,000 (urban = Poverty line = P14,000 (urban = P16,000, rural =Poverty line = P14,000 (urban = Poverty line = P14,000 (urban = P16,000, rural =P16,000, rural =P16,000, rural =

P12,000) P12,000) P12,000) P12,000)



 41% (about 31 million) of the total population are poor 41% (about 31 million) of the total population are poor 41% (about 31 million) of the total population are poor 41% (about 31 million) of the total population are poor



 69% of the poor lives in the rural areas, consisting of 69% of the poor lives in the rural areas, consisting of 69% of the poor lives in the rural areas, consisting of 69% of the poor lives in the rural areas, consisting of

indigenous people, small-scale farmers, landless workers, indigenous people, small-scale farmers, landless workers, indigenous people, small-scale farmers, landless workers, indigenous people, small-scale farmers, landless workers, fishers, people in upland areas, and women in

fishers, people in upland areas, and women in allall fishers, people in upland areas, and women in all fishers, people in upland areas, and women in all categories

categories categories categories



 31% lives in the urban areas, consisting mostly of the31% lives in the urban areas, consisting mostly of the31% lives in the urban areas, consisting mostly of the31% lives in the urban areas, consisting mostly of the

informal settlers informal settlers informal settlers informal settlers

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A Glimpse on the Economic Policy and

Poverty Reduction of the Past

Policies that hindered growth and perpetuated

income inequality, and hampered the reduction of

poverty—



On

On exchange

On

exchange

exchange and

and

and trade

trade

trade policy.

policy.

policy. Industrial

Industrial

policy encouraged import substitution rather

than promoting exports. Trade policies heavily

benefited the manufacturing sector rather than

the agricultural sectors.

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Economic Policy, continued..



On tax policy. Consumption-based taxes

(indirect taxes) are somewhat regressive

because the poor consume a larger percentage

of their income than do the wealthy. Indirect

taxes account for about 70 percent of the tax

taxes account for about 70 percent

of the tax

revenues of the Philippines.



On capital and labor policy. Economic policy

On capital and labor policy. Ec

On capital and labor policy. Economic policy

onomic policy

favored large firms and capital-intensive

favored large firms and ca

pital-intensive

industries over micro entrepreneurs, and

capital over labor.

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Measures for Poverty Reduction



 Adherence to policy on equitable growth, ruralAdherence to policy on equitable growth, ruralAdherence to policy on equitable growth, ruralAdherence to policy on equitable growth, rural

development, and social sector investment (thrust of development, and social sector investment (thrust of development, and social sector investment (thrust of

development, and social sector investment (thrust of

MTPDP) MTPDP) MTPDP)

MTPDP)



 Tariff reformsTariff reformsTariff reformsTariff reforms



 Livelihood trainingLivelihood trainingLivelihood trainingLivelihood training



 Strengthening the state education policy whichStrengthening the state education policy whichStrengthening the state education policy whichStrengthening the state education policy which

includes the creation of the TESDA to oversee includes the creation of the TESDA to oversee includes the creation of the TESDA to oversee

includes the creation of the TESDA to oversee

technical and vocational education; adoption of the technical and vocational education; adoption of the technical and vocational education; adoption of the

technical and vocational education; adoption of the

Dual Training System in accredited vocational and Dual Training System in accredited vocational and Dual Training System in

Dual Training System in accredited vocational andaccredited vocational and

technical schools under DECS. technical schools under DECS. technical schools under DECS.

technical schools under DECS.



 Enactment of laws promoting the welfare, protection,Enactment of laws promoting the welfare, protection,Enactment of laws promoting the welfare, protection,Enactment of laws promoting the welfare, protection,

and development of working youth. and development of working youth. and development of working youth.

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Measures

, continued..

_{, continued..}



 The poor should have greater access to The poor should have greater access to The poor should have greater The poor should have greater access to the financialaccess to the financialthe financialthe financial

products and services that help the

products and services that help the gap when timesgap when times products and services that help the g

products and services that help the gap when timesap when times

are tough. are tough. are tough.

are tough.

Without life or health insurance, diseases and

Without life or health insurance, diseases and illnessillness Without life or health insurance, diseases and

Without life or health insurance, diseases and illnessillness

go untreated and the death of an income earner is go untreated and the death of an income earner is aa go untreated and the death of an income earner is a

go untreated and the death of an income earner is a

dramatic hardship for a

dramatic hardship for a family.family. dramatic hardship for a

dramatic hardship for a family.family.



 Greater reliance on entrepreneurial skill of the peopleGreater reliance on entrepreneurial skill of the peopleGreater reliance on entrepreneurial skill of the peopleGreater reliance on entrepreneurial skill of the people

in nation-building in nation-building in nation-building

in nation-building



 Access to loans or credit; shop-owners cannot buyAccess to loans or credit; shop-owners cannot buyAccess to loans or credit; shop-owners cannot buyAccess to loans or credit; shop-owners cannot buy

products in bulk and farmers cannot buy

products in bulk and farmers cannot buy machinerymachinery products in bulk and farmers cannot buy

products in bulk and farmers cannot buy machinerymachinery

or even seeds after a natural disaster or a poor or even seeds after a natural disaster or a poor or even seeds after a natural disaster or a poor

or even seeds after a natural disaster or a poor

harvest. harvest. harvest.

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Conclusion

At a greater perspective, poverty crushes the spirit—of the At a greater perspective, poverty crushes the spirit—of the At a greater perspective, poverty crushes the spirit—of the At a greater perspective, poverty crushes the spirit—of the poor as well as the nation as a whole. With the past

poor as well as the nation as a whole. With the past poor as well as the nation as a whole. With the past poor as well as the nation as a whole. With the past

administrations, there was lack of progress in reducing poverty administrations, there was lack of progress in reducing poverty administrations, there was lack of progress in reducing poverty administrations, there was lack of progress in reducing poverty attributed to the country’s

attributed to the country’s poor performance. Economicpoor performance. Economic attributed to the country’s poo

attributed to the country’s poor performance. Economicr performance. Economic growth— annual average of about 0.6 per cent

growth— annual average of about 0.6 per cent GDP for aGDP for a growth— annual average of about 0.6 per cent GDP for a growth— annual average of about 0.6 per cent GDP for a

period of 20 years ,1975-1995, (UNDP 1999)—was dampened period of 20 years ,1975-1995, (UNDP 1999)—was dampened period of 20 years ,1975-1995, (UNDP 1999)—was dampened period of 20 years ,1975-1995, (UNDP 1999)—was dampened

by economic policies that favored capital over labor, and by economic policies that favored capital over labor, and by economic policies that favored capital over labor, and by economic policies that favored capital over labor, and

import-substituting industries over agriculture, that led to the import-substituting industries over agriculture, that led to the import-substituting industries over agriculture, that led to the import-substituting industries over agriculture, that led to the underinvestment in the human capital of the poor and the

underinvestment in the human capital of the poor and the underinvestment in the human capital of the poor and the underinvestment in the human capital of the poor and the devastating effect, particularly on the agricultural sector. devastating effect, particularly on the agricultural sector. devastating effect, particularly on the agricultural sector. devastating effect, particularly on the agricultural sector.

These policies owe much to the important role played by the These policies owe much to the important role played by the These policies owe much to the important role played by the These policies owe much to the important role played by the elites in the Philippine politics and society.

elites in the Philippine politics and society. elites in the Philippine politics and society. elites in the Philippine politics and society.

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Conclusion, continued..

Economic growth reduces poverty as the different Economic growth reduces poverty as the different Economic growth reduces poverty as the different

Economic growth reduces poverty as the different

sectors of the economy are stimulated to increase sectors of the economy are stimulated to increase sectors of the economy are stimulated to increase

sectors of the economy are stimulated to increase

productivity. The agricultural sector comprising of productivity. The agricultural sector comprising of productivity. The agricultural sector comprising of

productivity. The agricultural sector comprising of

the greater number of the poor contributes

the greater number of the poor contributes a meager a meager the greater number of the poor contributes a

the greater number of the poor contributes a meager meager

19% to GDP. This sector needs

19% to GDP. This sector needs reforms that wouldreforms that would 19% to GDP. This sector needs r

19% to GDP. This sector needs reforms that wouldeforms that would

stimulate growth and should in turn

stimulate growth and should in turn alleviate poverty.alleviate poverty. stimulate growth and should in turn alleviate poverty.

stimulate growth and should in turn alleviate poverty.

The government can achieve even more by The government can achieve even more by The government can achieve even more by

The government can achieve even more by

eliminating remaining biases against agriculture and eliminating remaining biases against agriculture and eliminating remaining biases against agriculture and

eliminating remaining biases against agriculture and

investing more in health and education, especially in investing more in health and education, especially in investing more in health and education, especially in

investing more in health and education, especially in

rural areas. rural areas. rural areas.