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Poverty in the Philippines: Causes, Constraints and Opportunities
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Poverty and inequality in the Philippines remains a challenge. In the past 4 decades, the proportion of households living below the official poverty line has declined slowly and unevenly.
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- http://hdl.handle.net/11540/191
Economic growth has gone through boom and bust cycles, and recent episodes of moderate economic expansion have had limited impact on the poor. Great inequality across income brackets, regions, and sectors, as well as unmanaged population growth, are considered some of the key factors constraining poverty reduction efforts.
Note: See the latest available poverty data on the Philippines.
Causes of Poverty
The main causes of poverty in the country include the following:
- low to moderate economic growth for the past 40 years;
- low growth elasticity of poverty reduction;
- weakness in employment generation and the quality of jobs generated;
- failure to fully develop the agriculture sector;
- high inflation during crisis periods;
- high levels of population growth;
- high and persistent levels of inequality (incomes and assets), which dampen the positive impacts of economic expansion; and
- recurrent shocks and exposure to risks such as economic crisis, conflicts, natural disasters,and "environmental poverty."
Key Findings
The report's key findings include the following:
- Economic growth did not translate into poverty reduction in recent years;
- Poverty levels vary greatly by regions;
- Poverty remains a mainly rural phenomenon though urban poverty is on the rise;
- Poverty levels are strongly linked to educational attainment;
- The poor have large families, with six or more members;
- Many Filipino households remain vulnerable to shocks and risks;
- Governance and institutional constraints remain in the poverty response;
- There is weak local government capacity for implementing poverty reduction programs;
- Deficient targeting in various poverty programs;
- There are serious resource gaps for poverty reduction and the attainment of the MDGs by 2015;
- Multidimensional responses to poverty reduction are needed; and
- Further research on chronic poverty is needed.
The report comprehensively analyzes the causes of poverty and recommends ways to accelerate poverty reduction and achieve more inclusive growth. In the immediate and short term there is a need to enhance government's poverty reduction strategy and involve key sectors for a collective and coordinated response to the problem. In the medium and long term the government should continue to pursue key economic reforms for sustained and inclusive growth.
Contents
- List of Tables, Figures, Boxes and Appendixes
- Acknowledgments
- Abbreviations
- Part 1 Executive Summary
- Part 2 Introduction
- Part 3 Poverty Profile
- Part 4 Causes of Poverty
- Part 5 Impacts of Poverty on Economic Growth and Development
- Part 6 Institutions and Governance in the Poverty Response
- Part 7 Summary of Key Findings and Recommendations
Additional Details
- Philippines Key Indicators on ADB's Data Library
- Poverty Data: Philippines
- Economic indicators for the Philippines
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Poverty and inequality in the Philippines remains a challenge. In the past 4 decades, the proportion of households living below the official poverty line has declined slowly and unevenly. Poverty in the Philippines: Causes, Constraints and Opportunities | Asian Development Bank
Philippines Structural Poverty in the Philippines and its Impact in Health, Education, and Trade. Authors: Marcus Fadrigalan De La Salle University-Dasmariñas Abstract Hello, this is our...
Drawing from theories on surplus value, labor exploitation, and economic dependency, this paper will present an updated critique of the official poverty line in the Philippines and how official...
A Snapshot: Poverty in the Philippines The Philippines is a country known for its poverty and inequality. While the country’s Gini coefficient, which measures income distribution, “improved to 0.4580 in 2006 from 0.4605 in 2003 and 0.4872 in 2000”, this change is marginal and still
2. Poverty in the Philippines - An Overview We present two ways of looking at the poverty situation in the country in Table 1. The first one is the estimate of poverty incidence among the population using the national definition of the poverty line. Looking at the national poverty line, we note that the baseline estimate