Online & Print Resources: Cause & Effect:

POVERTY is both more widespread and more persistent in the Philippines than in neighbouring
ASEAN (Association of South East Asian Nations) countries. Poverty incidence among households
increased from 24.4% in 2003 to 26.9% in 2006 and the number of poor families increased from
4.0 million in 2003 to 4.7 million in 2006. The headcount index increased from 30.0% in 2003 to
32.9% in 2006 and the number of poor people increased from 23.8 million in 2003 to 27.6 million
in 2006.

Causes
Income distribution/ Inequality:
In 1994, the richest 20 percent of the population received 52 percent of the countrys total
income, nearly 11 times the share of the poorest 20 percent. These figures had changed little
since the 1980s and had even become slightly worse: in 1985, the richest 20 percent of the
population received the same share of national income as in 1994 and their average income was
about 10 times that of the poorest 20 percent. The distribution of assets has also shown little
improvement over the last few decades.
Lack of quality education
The 1995 higher education task force showed generally poor performance of college graduates in
the various professional board examinations. The task force only found 20/1000
universities/colleges to be recognized as good teaching institutions by a sample of selected
countries.
Elementary schooling is compulsory, but 24% of Filipinos of the relevant age group do not attend,
usually due to absence of any school in their area, education being offered in foreign languages
only, or financial distress.
In 2005, the Philippines spent only about US$138 per pupil compared to US$1,582 in Singapore,
US$3,728 in Japan, and US$852 in Thailand.
Lack of Jobs
The Social Weather Stations (SWS), a survey group, found that 11 million people or 27.9 percent
of the adult labour force (over 18 years) were unemployed.
The government estimates that 935,700 workers are at risk of losing their jobs both locally and
abroad this year. Over 362,000 jobs in the export sector are under threat90 percent of those
are in the electronics, garments and ignition wiring sub-sectors. More than 500,000 overseas jobs

are under threat. There are 129,000 temporary workers in the recession-wracked US. Also in
recession are South Korea and Taiwan, which between them employ 200,000 Filipino factory
workers. Another 48,000 housemaids are employed in Hong Kong and Singapore, which are both
contracting economically.
In addition, the government estimates that 130,000 seamen on cruise ships are facing layoffs.
Japanese ship owners, according to Agence France Presse, have notified the government that
more than 40,000 crew members on car carriers, bulk carriers and container ships will be laid off
as world trade continues to slow.
Corruption
Corruption in the Philippines is very prevalent. It is considered normal for high government
officials to get very rich during their tenure of office and then their spouse, children or their
relatives will run for an elective position if they can no longer run for office and the process of
taking over and corruption goes on.
An example of a corruption case is the NBN-ZTE deal.
The scandal erupted when a losing bidder for the project went to the media and complained that
the deal by the government with the winning bidder ZTE is full of anomalies and that the
supposed deal was brokered by Comelec Chairman Benjamin Abalos. Comelec is the government
agency in charge of all local and national elections. The whistle blower was the son of the
Speaker of the House of Representatives. He claimed that Abalos was wined and dined in China
and was given women for his pleasure and that Abalos will get a hefty commission from the deal.
Joey de Venecia, the whistleblower also claimed that he was offered a bribe of ten million dollars
for this silence and cooperation. The ZTE deal is worth more than 300 million dollars while
deVenecia's(AHI) losing bid is only 130 million dollars.
Natural Calamities
Natural calamities are very dangerous and cause millions worth of damage to property. An
example of which is typhoon Ondoy. This damaged P108.9 million worth of infrastructure and
affected about 90,000 families. The Department of Agriculture also said that crop losses have
reached P3.2 billion.
Over Population
The Philippines population growth rate is 2.36% per year. A rapidly growing population also
makes it difficult for the Government to keep up with the delivery of what are already deficient
public services in health, education, water supply and sanitation, and so on. The empirical record
shows conclusively that larger families are more likely to be poor. Many poor families have many
children because of poor family planning and religion. This is a big problem because these
families only earn very little and they have to use this to feed so many mouths.
Effects
Malnutrition

The hunger situation is alarming. The National Statistical Coordination Board stated that more
than 11 million Filipinos were considered food-poor or living below subsistence level in 2003.
The Food and Agricultural Organization in 2005 reported that there were more than 17 million
undernourished Filipinos.
Food insecurity is blamed for the fact that many preschool children are underweight and
malnourished. An economist pointed out that "inadequate food can adversely influence workers'
productivity." The World Bank in 1996 estimated that the total annual economic loss due to
malnutrition was about US$8 billion.
The main reason why hunger is worsening is the people's lack of income to buy food. A
government-sponsored survey in 2001 revealed that 8 out of 10 households experienced
financial difficulty in purchasing food. The National Statistics Office also noted that Filipino
families are spending less on food items. In 1994 about 48 percent of household expenditures
were allotted for food. A decade later, the share of food expenditures went down to 42 percent.
Rice used to be the staple food of Filipinos. Now it is quickly being replaced by instant noodles
which are cheaper but less nutritious. Politicians are even giving out instant noodles in urban
poor communities and evacuation centers in calamity-stricken provinces.
Food supplies are stable but they are available mostly in areas where people have enough
income for food expenditures. The unequal distribution of income in the country explains the
seemingly low demand for food in low-income places.
An analyst also noted that the prices of some basic commodities are getting higher. The higher
cost of these basic commodities will force more Filipinos to spend less on food.
Poor Economic growth
The poor remain poor because they cannot borrow against future earnings to invest in education,
skills, new crops, and entrepreneurial activities; they are cut off from economic activity because
many collective goods (such as property rights, public safety, and infrastructure) are underprovided, and they lack information about market opportunities. Investment Capacity Constraints
Investment is critical to economic growth and for the poor to escape from poverty. Very low
income levels are a fundamental reason why the poor cannot save enough money to finance
productive investments.

Child Labor
According to the National Statistics Office, 3.6 million Filipino children, aged 5-17, are child
laborers. When the parents just don't have enough money to make ends meet they usually force
their children out of school and send them to work out on the streets, haciendas or factories.
Earning money for their food and shelter became their sole purpose, no longer the education
that should have served to bring them a better future.

Children from the ages 5 to about 17 are usually the ones found laboring under the hot sun or
behind machines for small companies or syndicates. This figure alone comprises roughly 15.9%
of the total Philippine population or one out of six children. In a breakdown, 216,000 are within 59 years old, 1.6 million for the 10-14 group and 1.8 million are 15-17 years old.
Observations: Effects
Bad living conditions
Because of poverty, many families are forced to occupy public and private lands without the right
to do so. And, because this land is not theirs, it tends to overcrowd. Because of overcrowding, the
environment usually becomes unsanitary and heightens the chances that disease will spread.
Also, their houses are close together/connected to each other, this makes it easy for fire to
spread and giving fire fighters a hard time to extinguish the flames due to the small roads
between these houses.
Crime/ Theft
Due to the hardships in life caused by poverty, many people cant even get enough money to
live. This causes them to do whatever it takes to be able to sustain their and their familys need
even when it involves stealing. The researchers observed that the major reason for theft is
poverty. Because of poverty, the thieves need to steal to be able to live.

Online Resource: Solution

Solution:
Immediate and Short Term: Enhance Poverty Framework and Strategy
There is an urgent need to enhance governments strategy and to involve key sectors of society
for a collective and coordinated response to persistent poverty. This would entail the following:
1. Revisiting the poverty framework to include a strategy to address vulnerability. This should be
formulated in a national social protection strategy which in turn, would be a major component of
the fight against poverty. The framework and strategy should also tackle chronic poverty (and
pathways out of a poverty trap) and give serious attention to population management.

2. Reforming institutions that coordinate poverty policy and implement poverty programs to
enhance coordination, improve efficiency and monitoring, and reduce corruption by

renewing the memorandum of agreement between the NAPC and NEDA to clarify the
coordination roles of each agency; the new poverty strategy and plan of action should
incorporate the specific roles of agencies and key stakeholders at various levels of intervention;


continuing to reform the educational system (through the Basic Education Sector Reform
Agenda), the health system through (FOURmula One), and the social welfare system;

accessing more NGOs and civil society sectors to monitor the delivery of poverty programs
and social services;

mapping key stakeholders and their roles in poverty alleviation at all levels of governance;

examining the political economy of poverty programs before implementation;

and strengthening safeguard mechanisms (e.g., civil society watchdogs such as the
textbook watch of the DepEd) against leakages and corruption in large poverty programs.
3. Considering regional and local characteristics more specifically (e.g., prone to disaster or
conflict) in poverty program interventions. Interventions should also take into account factors
affecting intraregional inequality, which would imply equalizing access to quality health,
education, and infrastructure service within regions (Balisacan 2003).
4. Improving coordination and complementary action among government agencies and key
stakeholders such as NGOs and corporations in clearly targeted localities and communities (from
targeting to actual implementation of programs to monitoring and evaluation).
5. Allocating more funds from the budget and raising money from other sources (civil society,
religious, business, bilateral and multilateral agencies) for the fight against poverty, vulnerability,
and inequality. A fund-raising mechanism for a national poverty fund with clear government
counterpart and accountability can be setup for this purpose. The government can also set a
distinct budget line for poverty reduction, especially for LGUs.
6. Improving poverty targeting, monitoring, and evaluation, especially at the local government
level; there should also be increased funds for data collection, processing, and management.
Specific activities may include the following:

The national government should assist in increasing local governments capacity for
targeting and monitoring (e.g., a community-based monitoring system) through funding and
training schemes designed for poor localities already identified by nationwide household surveys.

Various efforts in integrating databases and establishing a sound targeting system at the
local levels (e.g., the DSWD National Household Targeting System for Poverty Reduction and the
community-based monitoring system of NEDA, NAPC, and DILG) should be coordinated.

Funding for the National Statistical Coordination Board and the National Statistics Office
must be sufficiently increased to provide a more regularly updated database for targeting (e.g.,
the small area estimates determining poverty incidence at the municipal levels).
Medium and Long Term: Sustain Efforts for Economic and Institutional Reforms
Governance of poverty reduction must be strengthened through sustained economic and
institutional reforms.

1. Government should continue to pursue the following key economic reforms for sustained and
inclusive growth:

increasing available resources for social services, poverty reduction, and infrastructure
through fiscal reforms;

maintaining price stability to protect the poor from the negative impact of increasing food
prices;

improving the investment environment (through developing major infrastructure, and

decreasing red tape and corruption);

promoting higher growth and productivity of the agriculture sector; continuing to

strengthen tourism, as this is an important sector for rural employment;

closely examining proposed macroeconomic policies and large investment projects terms
of their impact on poverty (NEDA);

and scrutinizing proposed budgets in term of their pro-poor bias (NAPC can lead this
effort).
2. Local government resources and capacity for fighting poverty should be enhanced, including
improvements in national agencylocal government coordination. Such activities may include

establishing an incentive system on allocation to better motivate LGUs in the fight against
poverty;

promoting inter-LGU cooperation in implementing antipoverty programs and projects

including reforms in health, education, and population management;

learning how select local governments successfully implement poverty reduction programs
(e.g., Galing Pook awardees Bohol, Concepcion, Iloilo, and Naga City);

continuing advocacy for more democratic and people-centered processes at the local
levels;

reviewing the 14 core poverty indicators, reviewing available local poverty indicators, and
simplifying local data collection systems; and

making provinces focal points for coordinating poverty-related programs and projects for
local implementation (Panadero 2009).
3. Conducting more multidisciplinary research on the process, factors, and dynamics of moving
in and out of poverty and household poverty traps to inform policies and programs targeting
chronic poverty (similar to Narayan and Petesh 2007) and helping people escape them. This
research may include

In-depth studies of how chronic poverty and persistent poverty negatively impact
economic growth, especially, the deterioration of human and social capital;


And reviving the NAPC database of poverty studies in the country and networking with
academics and experts to share findings of their various studies.

ANALYSIS OF DATA
Interview:
From the data we have gathered by asking some of the people facing poverty right now, we can
say that poverty is a rampant issue that causes many Filipinos to suffer. From the interview the
researchers have done, we can say that education has greatly suffered due to poverty by forcing
people who should be studying to work instead.

Online & Print Resources: Cause & Effect:

From this data we can see that poverty incidence is increasing as time goes by. This means that
the state of the Philippines is just getting worse. This is a big problem because if the poverty
incidence keeps getting worse, the Philippines will have a problem developing its economy.

Causes
Income Distribution/ Inequality

This data further stresses the degree of poverty the Philippines is experiencing. This is also
evidence that the rich get richer and the poor get poorer. Here we see that the upper 20% of the
population received more than half of the total income of the country. Here, we also see that the
rate of inequality at 1994 was even worse than that during the 1980s. This being the case, we
can expect that at present, the inequality is worse and will be in the future. Unequal income
distribution will cause the rich and their families to get richer and the poor to only get poorer to
the point of not being able to acquire basic necessities. This will then result in poverty being
more widespread because the small businesses will no longer have an opportunity of growing
and leaving the rich business tycoons to monopolize the industry.

Lack of Quality Education

This data shows just how poor the quality of education is in the Philippines. Here, we can see
that only about 2% of the universities are actually good when compared with other countries.
This shows that the quality of education here in the Philippines is insufficient. This also shows

that many of the graduates in the Philippines will have a hard time competing with graduates
from other countries in terms of getting a job. From this, we can also know that there are some
places that do not have access to good education because only 20 universities in the whole
Philippines provide this.

Here, we also see that 24% of the children are uneducated. We can expect that these 24% will,
in the future, not have a good job. These 24% will probably only earn minimum wage or be
unemployed. This will be a big problem because unemployment will cause poverty which is
already a big problem in the Philippines.

From this set of data we can also see that the allotted funds per pupil for education in the
Philippines is much less compared to the amount allotted by other countries. This further proves
that the quality of our education is inferior compared to other countries.

Lack of Jobs
This data shows the great number of people among the adult work force who are unemployed.
Unemployed individuals will not be able to earn a living and thus need to depend on others who
are employed for basic needs. These unemployed individuals may also have people depending
on them and because they do not have a source of income, these dependents will also not be
able to purchase basic necessities. Also, unemployment causes the country to be less productive
because it will not be able to fully utilize their labor force.

This data also tells us that many people are losing their jobs both here and abroad. Because of
this, we can expect there to be a drop in the economic growth in the Philippines and if the
economy drops, naturally, poverty will be more rampant and wide spread. Also, if there are less
OFWs, there will be less foreign remittance further affecting our economy.

Corruption
Corruption, as the data states, is very prevalent and robs the people of the money that they paid
to improve the country. This money instead, ends up in the pockets of some unjust politicians
who rob even the poor of the money they have worked very hard for.
The NBN-ZTE deal is a good example of corruption in the Philippines. This deal caused the
Philippines more that 300 million dollars which could have been spent in the development of the
country and on services for the people. Evidenced by this case, there are many government
officials who are willing to rob the poor just to get richer than they already are. If the services of
the government are not delivered, the Philippines will not be able to get rid the problem of

poverty. The tax implemented by the government makes the life of the people, especially the
poor very difficult as it raises the prices of basic needs like food. If these taxes do not go to the
people not get back what they paid for and our country will not be able to progress due to
rampant and widespread poverty. This should encourage the people to make good decisions
when choosing people who run for office to make sure that the people who are in the
government are honest and are truly willing to serve.
Natural Calamities
From this data we see that these natural calamities cost the country a lot of money. The money
that the government could possibly be putting on funds to help relieve poverty is now being
spent on relief operations after these natural calamities. Many families will also lose a lot of their
possessions and maybe even their source of livelihood. Because of this, it will be harder for
others to rise from poverty.
Over Population
This data tells us that the population growth rate of the Philippines is very high. With a rapidly
growing population, it will be hard to accommodate all the people in the labor force. It will be
hard to ensure that each and every Filipino will be able to get a job and earn a living. The more
people that is unemployed, the more people will also suffer from poverty and have trouble
accommodating their basic needs. It will also make it hard for the Government to deliver the
basic services to the people. If the government is not able to properly delver these basic
services, the ones in need of these services, particularly the poor, will have a harder time coping
with their already difficult situation and may just lead to a worsening of their current situation.
This data also shows that most large families are poor. This is a big problem because, as the poor
have low income, they will also not be able to buy as much food and, since there are many of
them, will lead to hunger and malnourishment. They will also have a tendency of making debts
because of their dire need of food and, as they cannot pay back for these, they just get poorer
and poorer.
Effects:
Malnutrition
From this data we can conclude that many people in the Philippines are malnourished. These
people have a hard time buying enough food to feed themselves and their family because they
lack the money to do so. With many people undernourished, it can cause many people getting
sick and even death. This will cause the country to be less productive because the government
will have to allot more money to healthcare and food instead of putting this money on things that
can help the economy. The people in the Philippines will also be less productive because these
people that are malnourished will not be as efficient as healthy people. This hunger problem is
truly becoming worse and will lead to bigger money loss.
From this data, we can see that 80% or majority of the Filipinos experience financial difficulty in
purchasing food. We can see how severe this problem is because food is a basic necessity. From
this we can also see that some people prioritize food less compared to other expenses. This can

be a big mistake on the consumers part because they may end up needing to spend even more
money on medical care if they get sick due to malnourishment.
This data also shows that that Filipinos are now settling for cheaper but less nutritious food. Even
relief centers give out these cheap but unhealthy alternatives. This is a cause of malnutrition
because even is these people are able to eat, these foods will not be able to give them enough
nourishment.
This data also shows that the distribution of food around the Philippines is very uneven. Food is
available in area where people have enough money to buy and not where the people dont have
money and desperately need food. As the prices of goods get higher it will surely make poverty
worse and further make malnourishment more widespread.
Poor Economic Growth
From this data we can see how poverty contributes to poor economic growth. This shows that the
poor will have a difficult time earning money and contributing to the economy because they
cannot afford to invest in anything that will help them raise from poverty. If this continues it will
take a big toll on our economy because there will be less people who will be able to help the
economy grow. More poor people will also mean that the government will have to spend more
money to help aid these people.
Child Labor
From this data we can see how severe child labor has become in the Philippines. There are 3.6
million Filipino children who are child labourers. These children also do not go to school because
instead they must work in order to survive. This is a big problem because these out of school
children will not be able to have the opportunity of finding a good job since they were not able to
study. If these children grow up, they would probably still be doing the same low-paying job and
this will cause them to be poor.
Working is the job of the parents and children are supposed to go to school and study. But, there
are times that the money the Parents get is not enough so even the children must work. This
shows how intense the poverty here in the Philippines is because even children must work. And,
in the Philippines, we are not just talking about thousands of children but millions. In fact, one
out of every six children are out of school and in the streets working.

Observation: Effects
Bad living conditions
This data gives us a picture of the living conditions of the poor Filipinos now. Overcrowding is one
major problem because it can lead t the spread of disease. Due to overcrowding, the area usually
becomes unsanitary and thus disease will grow, and since it is very crowded, there will be a big
chance that it will spread. The people living in these areas are also in the risk of having
uncontrollable fire because the fire will easily spread from the houses that are right beside each

other and the fire fighters will have a hard time extinguishing these flames because of the small
roads.
Crime/Theft
From this, we can see that poverty disrupts the peace and order in our country. Poverty causes
people who are desperate for money to rob and do crimes for easy cash. This is a big problem
because it victimizes many people and many innocent lives are lost due to crimes.

Internet Resource: Solutions

Solution: Immediate and Short Term
1. The data shows that in order to solve poverty, we have to recheck the poverty framework and
include strategies to fight poverty. The strategies should tackle chronic poverty and
overpopulation. By rechecking the poverty framework, we may be able to know what we have
been doing wrong and make strategies to fix those problems.
2. This data tells us to reform institutions to enhance coordination, improve efficiency and lessen
corruption. To maximize the money we use. By enhancing coordination we may minimize the
amount of effort and money we put into these projects through an organized effort.
3. It is said that we should address poverty specifically per area. So that each place receives the
care it needs. Each place is different and treating each place special may allow us to get rid of
poverty more easily by going to the cause of poverty in those places.
4. We should improve coordination between the involved agencies and key stakeholders as this
will improve efficiency between them. Improving efficiency between agencies and key
stakeholders will allow them to work together and help each other.
5. The data tells us that we should allocate and raise more money to fight against poverty. The
government may also set a budget line. This will give us more help to fight against poverty. More
money to help the poor will give better help of course.
6. We should improve poverty targeting, monitoring and evaluation. There should also be
increased funds for data collection, processing and management. This will help us learn more
about poverty and help us prepare more for it. Studying poverty will give us a better chance of
avoiding it.
Solution: Medium and Long Term
1. The government should increase available resources for social services, poverty reduction, and
infrastructure. They should also maintain price stability to shield the poor from high food prices
and they should lessen corruption and develop infrastructure in order to boost investor
confidence. This will enable more money to go into the country while the poor are being shielded
from high prices. Giving more money and allowing more money into the country will allow the
poor to get more help, and the boost in the economy will give them jobs as well.

2. The resources of the local government should be enhanced and their coordination with the
national government should be improved. This will allow them to be able to work better and help
more in poverty. Again, more coordination will allow less effort and money to be wasted.
3. We should conduct more research regarding poverty. This will enable us to learn more about it
and help people escape poverty.