Community Developments
The outreach blog : from the field, the state of poverty in the philippines: what are the causes.
The Philippines and its roughly 117,000,000 people have struggled with income inequality for generations. Even as infrastructure and opportunity has improved in highly populated areas in recent decades, poverty in the Philippines, particularly for people living in remote areas, remains a serious issue.
In this blog post, you’ll learn about the complex issue of chronic poverty in the Philippines, its causes, and its impact on families. Additionally, you’ll see how Outreach International is working to alleviate poverty in this Southeast Asian nation.
Decoding Poverty: A Deep Dive into the Statistics
According to the World Bank , between 1985 and 2018, the poverty rate in the Philippines declined by two-thirds, thanks to economic growth initiatives and investment in infrastructure, including education. However, the improvements were largely focused in the most populated areas, where the most opportunities already existed. According to the Asian Development Bank , the top one percent of earners have benefitted the most, capturing 17 percent of the national income, while only 14 percent of national income is obtained by the lowest-earning 50 percent of the population.
The Philippines’ income inequality stems from several structural factors. Higher education and job skills development remain out of reach for many. Unequal access to college, and social norms that leave women at a disadvantage, also contribute to persistent inequality. And the geography of this archipelago nation makes the issue even more difficult to solve, as opportunities and natural resources are unevenly distributed.
Understanding the Impact of Family Poverty
Family poverty is not just about financial struggle. It affects every aspect of a household’s well-being. Children who live in poverty are less likely to enroll in school and reach age-appropriate grade levels because their time is needed to help the family strive to meet their basic daily subsistence needs. This stifles their access to higher education and the future opportunities it would bring, limiting earning potential, the potential economic growth of families, and the possibility of community development.
Managing Resources: Addressing Poverty in High Population Areas
Population density has a significant impact on poverty in the Philippines. High-population areas often struggle to manage limited natural and government resources, which negatively impacts quality of life. And a lack of job opportunities in densely populated areas contributes to poverty rates. These challenges trickle into remote areas, making it even more difficult for rural communities and marginalized people to break their own unending cycle of poverty .
Living Conditions and Resource Challenges
Living conditions in densely populated areas of the Philippines are affected by resource scarcity and inadequate government support systems. Access to basic necessities like electricity, safe drinking water, and quality education remains uneven. This scarcity not only limits the potential for development across the nation but also perpetuates inequality. As a result, impoverished communities face daily struggles, making it all the more challenging to break free from the cycle of poverty.
The Pandemic’s Impact: A Crisis Amplifying Poverty
The COVID-19 pandemic had a profound impact on poverty in the Philippines. In 2020, the pandemic halted economic growth, leading to even higher unemployment rates. As this trend continued into 2021, poverty rates rose to 18.1 percent (World Bank). This amounts to just under 20 million people. And though the economy continues to recover, this recovery is uneven, with the poorest households benefiting the least. As improvements are bringing many areas back to normal, communities in many remote areas still struggle to bring their economies back to even just the already challenging pre-pandemic levels.
One constant struggle for families living in poverty is food insecurity. And according to sources such as the National Library of Medicine , this became even more significant during the pandemic. Almost two-thirds (61.2%) of households experienced moderate to severe food insecurity during the many months of quarantine. And with rising food prices and limited natural resources, vulnerable households often had to limit their food intake. This caused a lack of proper nutrition, particularly for children. Outreach International has implemented an effective method of combating food insecurity for even the most impoverished families. Our partners in OPI have helped community-led organizations develop rice loans . These are low-interest loans of rice or the funds to buy it. And because the communities manage these loans themselves, borrowers can avoid predatory outside lending institutions and can deal with people they know and trust.
Initiatives That Changed the Reality
In response to the challenges posed by the pandemic, both the Philippine government and organizations like Outreach International have implemented various initiatives to alleviate poverty and its effects. Some organizations have provided health services and relief assistance to affected communities. Such initiatives are essential in mitigating the immediate impact of the crisis and helping vulnerable populations in the short term.
But Outreach International also focuses on more long-term and sustainable initiatives that can forever break the cycle of poverty . Our methodology of community-led development allows people who live in chronic poverty to learn that they have the power within themselves to improve their lives permanently. Our partners in the Philippines, Outreach Philippines Incorporated (OPI), work with leaders in communities to identify their own unique poverty-related issues, and then mobilize to solve them. They learn how to develop networks with government agencies and NGOs that are able to provide resources. And they learn how to set ever-increasing goals of improvement, leading to continuous development that is sustainable for generations.
Join the Cause: How You Can Help
You can choose to play a role in alleviating poverty in the Philippines. And there are so many ways to help , from donating to Outreach International to fundraising to volunteering . By working together, we can collectively make a difference in the lives of those affected by poverty in the Philippines.
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Poverty and inequality in the Philippines
The new World Bank (WB) report “Overcoming Poverty and Inequality in the Philippines: Past, Present, and Prospects for the Future” is a welcome reminder of what is needed for the country, and the government’s urgent agenda on the dual malaise of poverty and inequality. This had been a persistent challenge to the country, not only historically but also comparatively in the context of the Asean, especially its original neighbors in the region.
The WB paper is well-organized, starting with trends in the past 30 years, the present structural causes, future prospects, and policy recommendations. First, poverty rate declined from 49.2 percent in 1985 to 18.1 percent in 2021. Inequality (Gini index) at 42.4 percent in 1985, after climbing to 49.2 percent, trended back down to 42.3 percent in 2018. The shift of workers, including the poorer ones, to more productive sectors with wage income, besides expanded subsidy, largely accounted for the reduction in poverty. As well, better access to services and assets helped the downtrend in inequality to its previous level.
Nonetheless, the Philippines ranks as the 15th most unequal of 63 countries. More than half of laborers with only elementary schooling or less are in agriculture. Household heads who are college graduates have average per capita income fourfold higher than for household heads with no more than elementary education.
Inequality begins early in life and typically is sustained over the life cycle, starting with antenatal care and postnatal care which are disproportionately accessible to poorer families and mothers with lower education. Which leads to markedly higher rates of stunting, underweight, and wasting among poor families. Then children of poor households are greatly disadvantaged as regards schooling that links to future work and income opportunities. All this leads to intergenerational transmission of poverty.
Unequal distribution of hospitals, health centers, and educational institutions across subnational regions/provinces further worsens poverty and inequality. One bright note is that the Philippines is first in gender equality in Asia and 19th in the world. However, while women have generally higher education attainment than men, their labor force participation rate has been lower.
While the WB paper is an edifying read, it has a limited past perspective, thereby ignoring the population factor, which has made a crucial difference in the current state of the country vis-à-vis its Asean neighbors that used to trail it. The Philippines initiated population management-cum-family planning (PM-FP) program in 1970, along with other Asean countries. However, while the others sustained their programs over time without letup, the Philippines was constrained to jettison its own program in the late ’70s on orders of President Marcos Sr., who acceded for political expediency to the demands of the Catholic Church hierarchy.
In 1970, the Philippines’ population was 36.6 million and Thailand’s was 36.9 million. It had a gross national income (GNI) per capita of $220 close to Thailand’s $210, and both countries had identical poverty incidence at 13 percent.
Indonesia, with a very expansive land area (or resource base), had a much larger population of 115 million and also initiated its PM-FP program in 1970, but its GNI per capita was only $80. Malaysia, with a much smaller population of 11 million in 1970, started its program in 1966, and its GNI per capita was $370.
Fast forward to 2020, the foregoing indicators had dramatically diverged. Philippine population ballooned to nearly 110 million, while Thailand’s rose to slightly less than 70 million. GNI per capita was $3,430 in 2020 ($3,850 in 2019) for the Philippines, and $7,050 ($7,407 in 2019) for Thailand. On the other hand, poverty rate was estimated at 18.1 percent in 2021 (16.7 percent in 2018) for the former, and 8.8 percent in 2020 (6.2 percent in 2019) for the latter.
Indonesia’s population increased to 274 million in 2020. Its GNI per capita rose sharply to $3,870 in 2020 ($4,050 in 2019). Its poverty rate at 13 percent in 1970 was brought down to 9.8 percent by 2020. Malaysia’s population was up to 33 million in 2020, and its GNI per capita escalated exponentially to $10,580 ($11,230 in 2019), which enabled Malaysia to drastically cut its poverty rate to 8.4 percent in 2020 from a high of 49.7 percent in 1970.
The foregoing indicators show that the Philippines had the fastest growing population (threefold in 50 years) and also the largest relative to land area in all of Asean. As regards economic indicators, it has considerably lagged behind its original Asean neighbors, being the last to achieve demographic transition, thereby falling to bottom of the pile from the top in the ’60s to mid-’80s. One wonders, therefore, why the WB paper has eschewed the population factor in their analysis of poverty and inequality. It can be recalled that in the mid-1960s through to the mid-1990s, the World Bank had a major population program touted as a success in many developing countries, save the Philippines, unfortunately. So, is the program now regarded as an “elephant in the room” sleeping and not to be disturbed?
—————-
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Ernesto M. Pernia is professor emeritus of economics, University of the Philippines Diliman, and former secretary of socioeconomic planning, National Economic and Development Authority.
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The Philippines Can Overcome Poverty
Opening Remarks by Mara K. Warwick, Country Director for Brunei, Malaysia, Philippines and Thailand
at the launch of Making Growth Work for the Poor: A Poverty Assessment for the Philippines
As Prepared for Delivery
I am pleased to welcome you to today’s media briefing on the Philippines Poverty Assessment report, entitled “ Making Growth Work for the Poor: A Poverty Assessment for the Philippines .”
The Report has two important stories to tell. The first story is inspiring. And gives everyone hope: The Philippines can overcome poverty!
The reason for this optimism is that from 2006 to 2015, robust economic growth helped the poverty rate in the Philippines to fall by 5 percentage points. Hence, poverty declined from 26.6 percent in 2006 to 21.6 percent in 2015. The contributing factors for this decline in poverty were the expansion of jobs outside agriculture, government transfers, in particular to qualified poor families through the Pantawid Pamilyang Pilipino Program, and remittances.
School enrollment has notably increased in recent years, with universal and mandatory kindergarten as well as two years of senior high school added to the education cycles. Pro-poor policies and changes to health insurance coverage have resulted in increased use of health services. Access to clean water and sanitation and electricity has improved. Social safety nets were expanded to cover most of the poor.
All these developments give us hope that poverty can be overcome. It is not at all insurmountable.
But here is the second story, an equally important one: The Philippines needs to do more to end poverty.
While poverty has declined, there are still about 22 million poor Filipinos, as of 2015. These poor families most often live in rural areas with limited access to quality schools, health centers, and safe drinking water, not to mention, roads and transportation that will help them go to their jobs or bring their produce to market.
Some poor families live in areas scarred by conflict or prone to natural disasters. Conflict can force families to move far away from their homes. Disasters can knock down families that are struggling to climb the economic ladder.
Poor families are most often trapped in a vicious cycle of poverty. They usually have many children, an average of 5 per family. Pregnant mothers face high risk: every day, 5 Filipina women die in childbirth or due to other causes related to pregnancy.
In a poor family of 5 children, 2 will likely be stunted, a visible sign of malnutrition. Children who remain malnourished in the first 1000 days of their lives do not fully develop the neural connections in their brains, making them unable to reach their full potential, even as adults.
Just half the children in the poor households will enroll in lower secondary school. Even those who do enroll may learn little due to malnourishment and poor quality of instruction. As a result, when they grow up, their chances of getting a well-paying job are slim.
So the Philippines has experienced success in reducing poverty. But there are remaining challenges, What can we all do together to end poverty?
How can we unlock this trap and make growth work for the poor? How can one family break from the path of poverty so the future generations have a better life than their parents or grandparents?
I want to highlight a few particular points.
The number one priority is creating more and better jobs, to offer opportunity for the poor to lift themselves out of poverty.
Since two out of five of the country’s poor are in Mindanao, unlocking Mindanao’s potential is critical in bringing down poverty in the entire country.
In addition, tackling the country’s severe stunting crisis will require an all hands-on-deck effort, starting with maternal health and focusing health interventions on the “first 1000 days” of life.
And creating opportunities for children means also ensuring that the poor attend school and that the schools they attend foster learning.
Many of these policy suggestions align well with the Government’s long-term vision -- the AmBisyon 2040 and the Philippine Development Plan 2017–2022 , which aims to transform the country into a prosperous middle-class society.
In closing, I would like to repeat the message: With solid economic fundamentals, the Philippines can overcome poverty. It is important to break the cycle of inequitable investment in human capital, making the pattern of growth more inclusive and creating opportunities for more and better jobs.
The World Bank believes that, together, with various stakeholders, we can take concrete actions to end poverty in the Philippines.
Before I close, let me add one remark. The Poverty Assessment is an analytical report – we have delved into the data and information that’s available on poverty to come up with an up-to-date and sound analytical basis for policy making. It is a foundational piece and more work will be done by us and others to really take the recommendations and to work in more detail on how to do that -- what needs to change in the Philippines in order to address the problems in a more focused way and how to carry these forward. Our team will also explain during the Q and A session that there will also be other follow up work by the World Bank, by government, and others to take these recommendations to the policy realm.
Thank you very much and may we all have a very fruitful discussion today.
Maraming Salamat Po! [Thank you very much!]
In Manila: David Llorito, +63-465-2514, [email protected]
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What Has Really Happened to Poverty in the Philippines?: New Measures Evidence and Policy Implications
July 31, 2013.
Poverty is increasingly recognized as a multidimensional phenomenon, yet its assessment continues to be conducted almost exclusively in terms of income (or expenditure). This practice is prevalent partly because low household incomes are casually associated with other deprivation indicators, such as low levels of literacy and life expectancy.
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Ambitious Vision to End Poverty in the Philippines by 2040
The Philippine Government has adopted a 25-year long-term vision aiming to end poverty by 2040.
Article | 16 November 2016 Read time: 3 mins
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The Philippine Government has adopted a 25-year long-term vision as a guide for development planning. The Asian Development Bank (ADB) supported the visioning exercise, which aims to ensure a prosperous Philippines where no one is poor by 2040.
The Government of the Philippines has adopted a 25-year long term vision to end poverty in the country by 2040. The Ambisyon Natin 2040 (Our Ambition 2040) vision states that by 2040 the Philippines will be a prosperous, predominantly middle-class society where no one is poor. President Rodrigo Duterte signed an executive order on 11 October 2016 adopting the 25-year long-term vision for the country.
All future Philippine development plans to be crafted and implemented until 2040 will be anchored on Ambisyon Natin 2040. This will ensure the sustainability and consistency of government strategies, policies, programs and projects across political administrations.
Supporting an ambitious plan
"All future Philippine development plans to be crafted and implemented until 2040 will be anchored on Ambisyon Natin 2040."
Ambisyon Natin 2040, which reflects the long-term vision and aspirations of the Filipino people for themselves and for the country, was supported by ADB through technical assistance to the National Economic and Development Authority (NEDA). ADB supported the formulation of thematic and technical papers covering topics such as education, health, environment, governance, infrastructure, and energy. These papers helped set the framework, goals and milestones each administration should work for to realize the long-term vision.
Government agencies, representatives of academe and private sector were brought together to brainstorm for Ambisyon Natin. In 2016, ADB supported a technical assembly for NEDA officials across the country, a youth forum, and a high-level roundtable discussion on linking the long-term vision to the country’s development plans.
Comfortable and simple life for all
A national survey conducted by NEDA as part of the visioning exercise showed that 79 percent of Filipinos want a ‘comfortable and simple life’ by 2040. It also revealed that the most important economic goal is the eradication of poverty and hunger, and creating adequate jobs for all. In the survey, Filipinos also defined a comfortable life as owning a car and medium-sized house, enough money and savings to send their children to school, and affording leisure like travel once in a while – basically a middle-class lifestyle. The survey also revealed the strong desire of Filipinos to work in their home country rather than overseas, and the importance of family togetherness in their futures.
At present, a series of communication and advocacy activities are being conducted, involving local governments and sectors like academe, civil society and private institutions to establish ground and gather support and commitment.
- More on ADB's work in the Philippines
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Poverty, Inequality, and Development in the Philippines: Official Statistics and Selected Life Stories
European Journal of Sustainable Development
Related Papers
Michael Sherwin Baluyot
Avril DG Madrid
Christian Mina
International Relations Journal
Joshua Salazar
Much literature continues to highlight how the Philippines has emerged as a critical actor in global trading and how it has witnessed dramatic and positive structural changes. While this is true to a certain extent, such scholars have not only mistakenly overlooked these so-called “successes,” they have even glossed over more important problems. Thus, by adopting a holistic lens of the Philippines’ socioeconomic development, I am able to deduce more qualifiable conclusions for both the domestic and national levels. This has led me to explore the following questions: how has the Philippines succeeded in improving its socioeconomic sectors; who and at what levels are these successes felt; and what does this mean for its future socioeconomic growth? I argue that the Philippines has witnessed paradoxical successes. That is, many lives have been spared, gender disparities have decreased, and national poverty levels have improved; conversely, however, invisible and physical structures such as poor accountability, corruption, poverty, and vested interests continue to hamper growth at both the domestic and national levels—hence, yielding vicious and self-perpetuating cycles of inequality. It is important to remain critical of the Philippines’ socioeconomic development because it will yield more insight on their future and on more important issues, structures or agents, and factors which are—or are not—stymying their overall socioeconomic and aggregate growth.
Dennis S Mapa , Arsenio Balisacan , Donna Odra
Asian Social Work and Policy Review
Amaryllis Torres
MOHAMMAD-YUSOPH P. MAPIA, International Journal of Multidisciplinary Research & Reviews, Vol 03, No. 03, pp. 34-48, Autumn 2024
IJMRR (Multidisciplinary, Multilingual, Peer Reviewed, Impact Factor Journal)
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
Xander Djin Torralba
Decades have passed since the Philippines achieved independence against the evident tyrannical rule of foreign invaders. Thanks to the collective effort of countless Filipino revolutionists and activists since the reign of the Spaniards, the Philippines could once again emerge as one of the most prosperous country in Southeast Asia due to its rich number of natural resources– or so we thought. Despite all of our sacrifices, the Philippines that was introduced into the 21st century was filled with discontent and crises which then resulted into the nation we have today where poverty and corruption persists. What happened to the country that showed great promise to which its people so believed in?
Arrabella De Mesa
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Essay on Poverty In Philippines
Students are often asked to write an essay on Poverty In Philippines in their schools and colleges. And if you’re also looking for the same, we have created 100-word, 250-word, and 500-word essays on the topic.
Let’s take a look…
100 Words Essay on Poverty In Philippines
What is poverty.
Poverty means not having enough money for basic needs like food, water, and a house. Many people in the Philippines live in poverty. They struggle every day to eat and have a safe place to sleep.
Why is Poverty a Problem?
When people are poor, children might not go to school, and sick people can’t get medicine. This makes it hard for the country to grow stronger because its people are not healthy or educated.
Causes of Poverty in the Philippines
In the Philippines, poverty comes from not enough jobs, natural disasters like typhoons, and sometimes, government leaders not helping enough.
Fighting Poverty
To fight poverty, the Philippines needs more jobs, better schools, and help from the government. Everyone must work together to make sure no one is too poor to live a good life.
250 Words Essay on Poverty In Philippines
Why are people poor in the philippines.
There are many reasons why people are poor. In the Philippines, jobs that pay well are hard to find. Farmers might not have enough land to grow food. Natural disasters like typhoons and earthquakes destroy homes and farms, making things worse.
Life of Poor People
Poor people in the Philippines often live in small houses with many family members. They might not have clean water or enough food. Children might not go to school because they have to work to help their families.
What is Being Done?
The government and other groups are trying to help. They give food, help people learn skills for jobs, and build houses. They also work on making sure everyone can go to school.
How Can We Help?
Even if we are young, we can help by understanding and sharing what we know about poverty. We can also join in activities that raise money or collect things to give to those in need.
In conclusion, poverty in the Philippines is a big problem that affects many people’s lives. By learning about it and taking action, we can help make things better for those who are struggling.
500 Words Essay on Poverty In Philippines
Understanding poverty in the philippines, why are people poor.
There are many reasons why people in the Philippines are poor. A big reason is that there are not enough jobs that pay well. Many people work in farming or fishing, but these jobs don’t always make enough money to support a family. Also, natural disasters like typhoons and earthquakes happen often and can destroy homes and crops, making it hard for people to earn money.
Life for the Poor
Life can be very hard for poor people in the Philippines. They might live in homes that are not safe or clean. It’s also hard for them to get good food, which means kids may not grow as they should. Going to the doctor can be too expensive, so many stay sick longer than they need to. Education is another problem. Even though school is supposed to be free, there are still costs like uniforms and books, which can be too much for poor families.
What Can Others Do?
People from other countries can help too. They can give money or things that poor families need, like clothes or school supplies. They can also teach skills to adults so they can get better jobs. Even kids can help by learning about poverty and sharing what they know with friends and family.
Hope for the Future
Even with poverty, many Filipinos are hopeful. They work hard and believe that life can get better. With help from their own country and people around the world, there is a chance that poverty in the Philippines can be reduced. This means more Filipino kids could grow up healthy, get a good education, and have a better chance at a bright future.
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Home Essay Samples World Philippines
The Causes and Effects of Poverty in Philippines
Table of contents, some major causes of poverty in the philippines, lack of education, effects of poverty in the philippines, the lack of education in the philippines quality of education, malnutrition, poor economic growth, child labor, bad living conditions, crime/ theft.
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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
Pages: 4 (1661 words)
Views: 1787
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