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Philippine Poverty (Incidence Report)

Poverty incidence in the Philippines increased in the first half of 2014, according to the National Economic and Development Authority (NEDA).

Data from the Philippine Statistics Authority (PSA)’s Annual Poverty Indicators Survey (APIS) showed that poverty incidence among Filipino individuals rose by 1.2 percentage points to 25.8 percent in the first semester of 2014 from the 24.6 percent registered in the first half of 2013.

The rise in poverty incidence was attributed to the rapid rise in food prices, particularly of rice, and the lingering effects of Typhoon Yolanda.

Poverty incidence among Filipino families also increased by 1.1 percentage points in the first half of 2014 to 19.9 percent from 18.8 percent in the same period in 2013.

Economic Planning Secretary Arsenio Balisacan noted that per capita income in the first semester of 2014 was higher by 6.4 percent than in 2013.

Among the bottom 30 percent of income-earners, per capita income increased by about 7.3 percent in the same period in the previous year.

The fastest growth rate was seen among those in the fifth income decile (8.5 percent) and the slowest increase was experienced by the top income decile (4 percent).

“Per capita income data in 2014 show that economic growth has benefitted the lower income groups, including the poor. This means that the twin strategies of encouraging investments and production alongside the implementation of a large-scale income redistribution program have worked,” said Balisacan.

The country’s inflation rate, however, hovered near the higher-end of the inflation target in the first half of 2014.

The consumer price index for food went up to 6.5 percent and 2.7 percent for the non-food items in the same period, which offset the growth in per capita income of Filipinos.

“The very high prices of food wiped out the gains in per capita income. This situation could have been avoided especially in the case of rice, which is a staple food for low-income and vulnerable families, usually accounting for 20 percent of their budget. Just at the time when the world price of rice was declining, the domestic price of rice was skyrocketing,” Balisacan explained. He also stressed the need to revisit government’s quantitative restrictions (QR) policy on rice to achieve rice self-sufficiency goal.

“While we definitely need to support the agriculture sector in general, we should also maximize the gains from trade and globalization. The private sector should be allowed to take the driver’s seat while government simply facilitates the access to both the import and export markets,” he said.

In the first half of 2014, rice prices posted a double-digit growth of 11.9 percent from only 1.7 percent in the same period in 2013 due to a tight supply given lean harvests coupled with less imports.

Philippine Poverty (Incidence Report)

PH poverty incidence unchanged in past 6 yrs

10% of Filipino families rated ‘extremely poor’

Economic growth over the past six years hardly made a dent in poverty incidence in the Philippines, as the percentage of Filipinos living below the poverty line remained practically the same between 2006 and 2012, official statistics showed.

The poverty incidence stood at 27.9 percent in the first semester of 2012—“practically unchanged” from the same period in 2009 (28.6 percent) and in 2006 (28.8 percent), the National Statistical Coordination Board (NSCB) reported Tuesday.

Unlike in previous poverty reports, the NSCB did not indicate the number of families and people who fell below the poverty line.

Although the poverty incidence was practically unchanged in the past six years, the number of poor people was expected to be higher in 2012 because of the country’s growing population. Norio Usui, senior country economist for the Asian Development Bank, said the government must solve the problem of jobless growth if it hoped to reduce poverty.

“I am not surprised at all. The benefits of strong economic growth have not spilled over to the people because they still cannot find a job,” he told Agence France-Presse in a telephone interview. He said the Philippines’ economic model depended on consumption, strong remittances from its large overseas workforce and the business process outsourcing industry, which employs college graduates.

However, the country, with its weak industrial base, has stood out in the region, he  added.

“Why do you need a strong industrial base? To give jobs not only to the highly educated college graduates, but also to high school graduates,” Usui said.

The National Economic and Development Authority (Neda) said it hoped to see improved results given new investments in infrastructure, agriculture and manufacturing.

“Although this first-semester result on poverty incidence is not the dramatic result we wanted, we remain hopeful that, with the timely measures we are now implementing, the next rounds of poverty statistics will give much better results,” Socioeconomic Planning Secretary Arsenio M. Balisacan said at a briefing.

Create quality jobs

Balisacan said increased infrastructure and business investments since the latter part of 2012 should help create quality jobs that would enable the poor to improve their lives.

The country, which has a population of about 97 million, posted 6.6 percent economic growth last year, and this year obtained its first-ever investment-grade rating from Fitch Ratings.

However, the January 2013 jobless rate stood at 7.1 percent, with a further 20.9 percent underemployed, or working fewer than 40 hours a week.

About 41.8 percent of the underemployed are in the farming sector.

Joel Rocamora, head of the National Anti-Poverty Commission, said about three out of every five Filipinos were highly dependent on agriculture. “As such, increasing incomes in agriculture will make a big dent in addressing the poverty problem,” he said.

 

“If the problem of visible underemployment in agriculture is addressed, then incomes of farmers would increase, poverty incidence would decrease, and we would not be compromising food security,” Balisacan said in a statement. He expressed hopes that the next round of data would reflect the government’s massive investment in human development and poverty reduction.

 

Source: INQUIRER.NET