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Poverty, Government and Unequal Distribution of Wealth in Philippines Essay

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Poverty Data Gathering Tools

Etiologies of poverty, programs to alleviate poverty.

Filipinos are in grave situations of poverty as of now. According to UNDP statistic last 2004; the numerical rate 36.8% is the poverty level of the entire Filipino population. Crude estimation of this count into raw rate is 70 million Filipinos are below poverty line. However, statistics do not reveal the complex nature of poverty; indeed, it is a mistake to assume that poverty can be measured in monetary definitions (Eadie 35).

The Philippines provides a concrete example of GDP growth that did not reduce poverty, although the economy recorded growth of more than 4% in 3 of the past 4 years. The 2003 FIES illustrates average family incomes to have increased by only 2.5% over the 2000 level, while the CPI shows an inflation rate of 13.9%. Judging all these data obtained, it is therefore almost certain that the poverty level has increased during this period. It most likely has increased by a greater level than from 1997–2000, when average family incomes has grown by 18%, inflation has been 22%, and the poverty incidence of the population has increased by 1% (Poverty in the Philippines 2). The author of the book Poverty And The Critical Security Agenda , Eadie (33), added:

Quantitative analyses of poverty have become more sophisticated over the years to be sure, yet remain problematic and in certain ways rooted in assumptions of rational choice behavior. For instance, poverty can be measured through simple income and expenditures or poverty line however; this does not account the expenditures on those goods and services that are variables for well-being such as food and education. Negative expenditures, such as alcohol or cigarettes, also play part in the considerations.

With this, various instrumentations are being utilized to assess the conditions of poverty. Subjective claims remain to be weak basis if it is not validated. Subjective inferences are those data obtained from the subjects but have no specific proofs or reference in any study done by trained individuals. Objectivity is a must in statistical gathering however, if this is not provided proper validation, still the data remains to be weak basis (Maglaya 176).

Poverty measurement practices for determining the numerical data partly reflect what we know – or think we know – about inequality and poverty profiles in the Philippines. According to Edmonds in his book, Reducing Poverty in Asia: Emerging Issues in Growth, Targeting, and Measurement , the phase of assessment usually involves the set poverty lines and welfare indicators. This is where statistics label an individual poor. Such considerations are dealt first before producing such claims (Eadie 198).

In terms of welfare indicators, determining the magnitude of poverty and inequality the government uses current household incomes and expenditures via national surveys. Using standard arguments in microeconomic theory, it can be concluded that since welfare level are being determined by “life-cycle” or permanent income, and since current consumption is a good approximation of this income, current consumption can be better justified as a measure of current welfare. This, however, does not suggest that income does not vary over time. It does, and sometimes these changes are largely comparable to the former (p.198-199).

Talking about setting poverty lines, this does not depend on subgroup’s conditions or to which standard of living do they belong. Poverty lines constructed for various subgroups must be fixed in terms of given standard of living. These set are said to be consistent and imply the same command over basic necessities of consumptions. It is well known that as household income rises, the consumption of cheap and low quality goods decrease and the families focus more on the quality products that they can still afford. These are some of the scenarios that indicating the dynamic characteristic that affects poverty lines (Eadie 200).

Another sophisticated data-gathering tool in quantitative diagnosis of poverty conditions is by the use of Human Development Index (HDI) that has been introduced by ul Haq in the 1990s. This involves the consideration of life expectancy, literacy rate and GDP per capita. The HDI is now being used by the United Nations Development Programme or UNDP, to rank countries in terms of their economic development status. According to the 2004 Human Development UNDP repot, the Philippines has been ranked 83 rd and considered to be a medium development country. The advantage of this tool is the test of comparison between different countries annually. However, the negative aspect that coincide in this method it its limitation towards other factors such as domestic variations that exists between different regions, rural and urban areas that exist in the household. This primarily occurs because of the generalized perspective of this intervention (Eadie.39-40).

Filipinos are usually known for their extravagant fiestas and their various tourist attractions. The proud natural resources have lured “balikbayans” or Filipinos from abroad and tourists. Adding into that are the OFW or Overseas Filipino Workers that produce additional income for the country through remittances. Aside from the macro-economical income source of Philippine government, such conditions give off pseudo-economic boost for the country’s economy. DFA or Department of Foreign Affairs has estimated that there are 5,488,167 Filipinos working overseas that are scattered to over 193 countries during 2002 (Arya 72). The question left for the public is where does this sum of money go considering that the incomes both internal and external are present? Such question triggers the public minds that usually cause demonstrations and governmental blame.

Another factor to be considered is the Philippine international debts that primarily occurred during the time of Marcos and has progressed in the current regime. Sad to mention but as of today, Filipinos are part of the 100 most heavily indebted poor and middle-income countries that must service over 2.3 trillion American dollars in combined debt-stock yearly (Debt for Equity Eadie). According to an online data, Poverty in the Philippines , economic growth has become insufficient in order to support the population growth of the country: GNP per capita has lingered at around $1,000 for the past 20 years and has not even increased. Disasters that have occurred are one of the main reasons that tarnished the economy of the Philippines. Importantly, the crisis came at the same time as the devastating El Niño drought during mid-1990s. This evidently caused domino effect in the economy of the Philippines in which decline has been the particular evident strata. Here is the list of the chronic macroeconomic problems in the Philippines that have long been occurring:

  • Gradually diminishing revenue collection inducing fiscal deficit and heavy public sector debt
  • Low investment environment that results in particularly low foreign direct investment
  • Inactive loans in the banking firms
  • Chronic loss of international competitiveness
  • Corrupt structural governance and inefficient economic management

In the article found in the official website of the Philippine government (27) entitled, Poverty alleviation tops PGMA’s main goals in the next 3 years, proclaims the president’s own statement regarding her programs and future programs for the alleviation of poverty.

She said increased government earnings or revenues either through raising the effective collection of taxes or sale of government assets is necessary component of poverty alleviation. With the raised revenues, she said the next important thing to do in the next three years is to invest more in human resources and physical infrastructures to create jobs and upgrade the country’s competitiveness. She said social services, like making cheap medicines available, improved healthcare and anti-hunger campaign, which are already being addressed by her administration, are also important components of the poverty reduction program of her administration.

The president’s statement has been questionable to most of the public and the tarnished trust of the people’s body has greatly affected the initiations of this plan. People’s cooperation has become difficult to initiate due to the governmental corruptions that have occurred. The effectiveness of such programs being implemented by the Philippine government has seen to be effective however, only for a short time (Glatzer 124). Most of the programs regarding poverty alleviation are still ongoing as per current administration. Target outcomes of these projects are 2010. However, according to some critics, the results so far of these projects are not yet being that evident (Debt for Equity…27).

The poverty status of the Philippines has not yet been alleviated. The condition of poverty still affects more almost half of the Filipino population. The inequalities of resources partitions are not specific hence; the divisions of such are also affected. The question about the condition of poverty and inequalities in the Philippines is now answerable by the summary of the crude poverty rate 40% and 70 million poor families living in this country. These poverty claims are being validated by the use of Human Development Index (HDI) that are also being utilized by the (UNDP) United Nation development Programme in order to obtain their data. Various notes are important upon the obtaining of these data such as welfare indicators and setting of poverty lines. The probable etiologies of this poverty in terms of macro-economical scope, as addressed in the body of study, are the following gradually diminishing revenue collection inducing fiscal deficit and heavy public sector debt, low investment environment that results in particularly low foreign direct investment, inactive loans in the banking firms, chronic loss of international competitiveness and the corrupt structural governance and inefficient economic management. There are programs being initiated to combat poverty situations however, as according to the study the results seem to be not evident especially for the public’s perspective. Poverty still lingers and unequal distribution of resources are still present in the Philippine society.

Arya, Sally. Living Home: Filipino Women Surviving Migration. In M. C. Pagaduan (Ed.), Poverty, Gender and Migration (pp. 72). Sage Publications Inc, 2006.

Arya, Sally. Poverty, Gender and Migration . Sage Publications Inc, 2006.

Barcelon, Ed. Fight Philippine poverty.(Voice from the South). Manila Bulletin . 2007. Web.

Debt for Equity in MDG Projects; A Philippine Proposal for Converting 50 percent of the Debt Owed by the 100 highly indebted countries to equity investments in the Millennium Development Goals of the United Nations.(Opinion & Editorial) [Letter to The Editor]. Manila Bulletin .2011. Web.

Eadie, Peter. Poverty And The Critical Security Agenda . Ashgate Publishing, Ltd., 2005.

Edmonds, Cedric. M. Reducing Poverty in Asia: Emerging Issues in Growth, Targeting, and Measurement . Edward Elgar Publishing, 2003.

Glatzer, Walter. Rich and Poor: Disparities, Perceptions, Concomitants . Springer, 2002.

Maglaya, Allan. S. Nursing Practice in the Community . Marikina City: Argonauta Corporation, 2005.

Orbeta Jose., H. C. Family, Vulnerability and Family Size: Evidence from the Philippines. In H. Khan (Ed.), Poverty Strategies in Asia: A Growth Plus Approach (pp. 72). Edward Elgar Publishing, 2006.

Poverty-in-the-Philippines: Causes of Poverty in the Philippines . 2011. Web.

Poverty Strategies in Asia: A Growth Plus Approach . 2010. Web.

Son, John.Philippines: For Growth to Continue, Poverty Rate Must Come Down. Inter Press Service English News Wire , 1997, pp. F3.

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IvyPanda. (2022, January 9). Poverty, Government and Unequal Distribution of Wealth in Philippines. https://ivypanda.com/essays/poverty-government-and-unequal-distribution-of-wealth-in-philippines/

"Poverty, Government and Unequal Distribution of Wealth in Philippines." IvyPanda , 9 Jan. 2022, ivypanda.com/essays/poverty-government-and-unequal-distribution-of-wealth-in-philippines/.

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IvyPanda . 2022. "Poverty, Government and Unequal Distribution of Wealth in Philippines." January 9, 2022. https://ivypanda.com/essays/poverty-government-and-unequal-distribution-of-wealth-in-philippines/.

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argumentative essay about poverty in the philippines

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Poverty in the Philippines: Causes, Constraints and Opportunities

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Poverty in the Philippines: Causes, Constraints and Opportunities

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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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.

  • 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

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Fixing Poverty in the Philippines: Mission Impossible An argumentative essay presented to

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MOHAMMAD-YUSOPH P. MAPIA, International Journal of Multidisciplinary Research & Reviews, Vol 03, No. 03, pp. 34-48, Autumn 2024

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Poverty has been a problem in the Philippines. Corruption, unemployment, and low access to education are considered contributors to this undesirable phenomenon. Utilizing a systematic review approach, this paper aimed to describe the challenges of poverty in the Philippines, the poverty trends, and the initiatives and frameworks of the country for this problem. The review shows that the Philippines is on the right track considering the poverty trends of the country. Numerous policies and programs have been administered by the different departments and agencies to meet the "no poverty" goal of the country. Various frameworks have been formulated and updated as well. Hence, it is highly recommended that the country should remain steadfast and strengthen its monitoring and evaluation mechanisms to ensure that the country remains on the right track towards the goal. INTERNATIONAL JOURNAL OF MULTIDISCIPLINARY RESEARCH & REVIEWS j o u r n a l h o m e p a g e : w w w. i j m r r. o n li n e / in d e x. p h p / h o m e

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Policy Brief: AKI Research Grants on Poverty Issues

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International Journal of Research and Innovation in Social Science

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Poverty in the Philippines remains a challenge. In a recent nationwide self-rated survey of the Social Weather Station, more Filipino households consider themselves poor despite the positive feedback on one of the government’s poverty alleviation programs, the Pantawid Pamilyang Pilipino Program (4PS). This qualitative study utilized a phenomenological approach to explore the reasons behind this claim. It explored the experiences of poverty from the lower class status, particularly the Pantawid Pamilyang Pilipino Program (4Ps) beneficiaries. The study revealed that norms and practices in the family might contribute to their claim of poverty, such as poor lifestyle choices, difficulty prioritizing needs, lack of parenting style, and extended family. Parents’ low education and lack of financial literacy are seen as another factor of poverty. Likewise, religion plays a part in responding to poverty. Participants assert that there is psychological comfort in experiencing poverty because...

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Home / Essay Samples / Social Issues / Homelessness / The Root Causes of Poverty in the Philippines

The Root Causes of Poverty in the Philippines

  • Category: Social Issues , Economics , Government
  • Topic: Homelessness , Income Inequality , Unemployment

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