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Much vaunted economic growth fails to ease poverty


The Arroyo government’s blueprint, the Medium Term Philippine Development Plan, says its basic task “is to fight poverty by building prosperity for the greatest number of the Filipino people."

SONA 2009
The government had set out to reduce poverty by half: “Bring down the incidence of poverty from 34 percent to 17 percent [among population] by 2010 (at least 20 percent.)" In the President Arroyo’s last SONA, she said “the average GDP growth from 2001 to the first quarter of 2009 is the highest in 43 years." And in the next breath, Arroyo said poverty incidence has gone down. “Bumaba ang bilang ng mga nagsasabing mahirap sila sa 47% mula 59%. Maski lumaki ang ating populasyon, nabawasan ng dalawang milyon ang bilang ng mahihirap," she said. Hearing this, economist Prof. Solita Monsod in an interview with GMA News said, “I almost fell off my chair. The latest objective data we have is based on 2006, and official figures show that the number or poor people increase by almost 3 million people… Where she got her data, I have absolutely no clue." Poverty incidence shows the number families with income less than the poverty threshold, or with income less than the cost of minimum basic food & non-food needs. The 2006 poverty data of the National Statistical Coordination Board, the latest so far, show poverty incidence among population, or among individuals, at 32.9 percent – still a far cry from the targeted 17 percent by next year. In fact, poverty incidence even worsened from 2003 to 2006: Poverty incidence among population increased by 2.9 percent, and poverty incidence among families increased by 2.5 percent. This translates to an estimated number of poor individuals increasing by 3.78 million while the estimated number of poor families rose by more than 650,000 from 2003 to 2006. The population growth rate during this time was at 2 percent.
Poverty incidence among population
2000
2003
2006
Poverty incidence (among population)
*33.0
30.0
32.9
Estimated number (among population)
25,472,782
23,836,104
27,616,888
Source: NSCB
** 34 percent was the latest available poverty incidence data when the National Development Agenda goal was set; the NSCB later finalized poverty incidence in 2000 at 33 percent. Poverty incidence among families
2000
2003
2006
Poverty incidence (among families)
27.5
24.4
26.9
Estimated number (among families)
4,146,663
4,022,695
4,677,305
Source: NSCB
In an email interview, Joel Saracho of Global Call to Action Against Poverty, calls the President to task, saying, “Not only is (President)GMA not meeting the goals, we are in fact a lot poorer now." “We need not even cite statistics to see that poverty is more rampant… we need only look around and see how childen vending sampaguita and rags are multiplying fast in the streets, walk at night and see the homeless occupying sidewalks," Saracho said. Self-rated poverty If the self-rated poverty surveys of private organizations were any indication, the poverty situation was indeed not getting better. The Social Weather Station’s self-rated poverty figure was at 59% when PGMA took office during the first quarter of 2001. This meant 59 percent of families—more than half-- saw themselves as poor. Self-rated poverty figures of the SWS hit its highest or worst during the early years of President Arroyo’s term, reaching 66 percent in 2001 and 2002. It dropped to its lowest or best figure of 46 percent during the 2nd quarter of 2004 and the 4th quarter of 2007. Self-rated poverty last reached to 40 percent-level based on the SWS surveys during the early part of Cory’s presidency.
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
2000
59
54
57
56
2001
59
66
63
60
2002
58
66
66
61
2003
59
53
62
64
2004
58
46
53
48
2005
48
57
49
57
2006
55
59
51
52
2007
53
47
52
46
2008
50
59
52
52
2009
47
Source: Social Weather Station
In Pulse Asia’s self-rated poverty surveys from 2000 to 2009, the percentage of families rating themselves as poor or very poor has been consistently more than half – the lowest, or best figure, at 57 percent and the highest, or worst, at 75 percent. In the most recent self-rated poverty survey in February this year, 70% of families considered themselves poor or very poor. This is six percentage points higher than when Arroyo took office in early 2001. This means more families considered themselves poor now, nearing the end of Arroyo’s term, than when she started.
Survey Dates
Very Poor/ Poor
On the Line
Well-off/ Wealthy
Mar 2000
62
30
8
Jul 2000
64
26
10
Oct 2000
67
24
9
Dec 2000
67
24
9
Mar 2001
64
25
11
Jun 2001
57
37
6
Oct 2001
73
18
9
Dec 2001
66
26
8
Apr 2002
65
25
10
Jul 2002
69
24
7
Nov 2002
70
22
8
Apr 2003
74
17
8
Aug 2003
69
21
10
Nov 2003
64
22
14
Jan 2004
68
18
14
Feb 2004
69
18
14
Jun 2004
70
17
13
Oct 2004
70
16
14
Nov 2004
74
15
10
Mar 2005
70
17
13
Jun 2005
71
18
11
Jul 2005
73
17
10
Oct 2005
75
15
10
Mar 2006
74
10
16
Jun 2006
67
20
12
Nov 2006
67
20
13
Mar 2007
69
15
16
Jun 2007
75
13
12
Oct 2007
68
18
14
Mar 2008
71
14
15
Jun 2008
73
21
6
Oct 2008
69
16
15
Feb 2009
70
14
16
Source: Pulse Asia
Hunger surveys Since 2001 to present, the number of people saying that they went hungry has been varied with the trend mostly favoring the increase in numbers. In 2000, Estrada's last full year in office, the highest report of hunger based on the SWS hunger survey was at 12.7 percent. This means 12.7 percent of families-- or 13 in 100 families -- said they experienced involuntary hunger. When Arroyo took office in 2001, the SWS hunger figures showed 16.1 percent or 16 in 100 families. During Arroyo’s term, SWS hunger figures reached its best in 2003 with only 5.1 percent of families reporting hunger. But since the second quarter of 2004, the hunger figures have been consistently double-digit. The worst hunger figures in almost nine years is reflected in 2008, with 23.7 percent of families reporting involuntary hunger. The SWS hunger survey in 2008 was the only year during Arroyo’s term when there was a steady rise in the number of families reporting hunger from first to the last quarter. 2008 was the year when the country experienced a drastic increase in the prices of rice and petroleum products.
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
2000
10.5
11.2
8.8
12.7
2001
16.1
9.8
9.3
10.4
2002
11.1
11.5
8.8
9
2003
6.7
6.6
5.1
9.4
2004
7.4
13
15.1
11.5
2005
13
12
15.5
16.7
2006
16.9
13.9
16.9
19
2007
19
14.7
21.5
16.2
2008
15.7
16.3
18.4
23.7
2009
15.5

Source: Social Weather Station

Tags: sona2009, poverty