SWS: Self-rated poverty declines

Published by rudy Date posted on December 9, 2008

Fewer Filipino families now consider themselves poor, as self-rated poverty declined by seven percentage points in the latest survey of the Social Weather Stations (SWS).

The Third Quarter 2008 Social Weather Survey showed 52 percent or about 9.4 million families rated themselves as poor, 29 percent put themselves on the “borderline” and 19 percent said they were not poor.

“The new self-rated poverty rate is seven points down from 59 percent or an estimated 10.6 million families in the second quarter, and just six points above the previous low of 46 percent (estimated 8.1 million families) in December 2007,” the SWS said in its survey fielded from Sept. 24 to 27.

“The decline in self-rated poverty and self-rated food poverty, however, occurred in the context of a lowering of families’ living standards, i.e., belt-tightening,” the SWS said.

The survey firm said the one-quarter decline in self-rated poverty was steepest in Mindanao, falling by 16 points from 68 percent last June to 52 percent in September, returning to the level of December 2007.

The non-commissioned survey also found 38 percent or about 6.9 million Filipino families claimed to be “food-poor,” 37 percent said they were on the “food-borderline,” and 25 percent consider themselves not poor in food.

“The latest self-rated food poverty is 11 points down from 49 percent (estimated 8.8 million families) in June 2008, or just four points above the all-time low of 34 percent or about 6.1 million families in December 2007,” the SWS said.

Self-rated poverty also declined by seven points in the Visayas, from 66 percent to 59 percent; by three points in Metro Manila from 51 percent to 48 percent; and by two points in balance Luzon from 53 percent to 51 percent. 

It fell by eight points in rural areas from 64 percent to 56 percent, and by six points in urban areas from 55 percent to 49 percent, the SWS said.

Record low in Mindanao

Self-rated food poverty also declined most sharply in Mindanao, down by 26 points from 57 percent in June to 31 percent in September. The figure is a new record-low for that area, surpassing the previous record of 32 percent in March 2005, the survey firm said.

SWS said that for the first time since it began regular monitoring in 1988, self-rated food poverty is lowest in Mindanao compared to other areas.

It fell by nine points in the Visayas from 53 percent to 44 percent, by six points in balance Luzon from 44 percent to 38 percent, and three points in Metro Manila, from 43 percent to 40 percent.

Belt-tightening

The self-rated poverty threshold, or the monthly budget that poor households need in order not to consider themselves poor in general, has been sluggish for several years despite considerable inflation, SWS said.

For poor households in particular, the median poverty threshold in Metro Manila is only P10,000 in the September 2008 survey, even though it had already reached as much as P15,000 several times in the past.

For those in balance Luzon, the median poverty threshold in September was P6,000, though it had already been at P10,000 before.

SWS said the median poverty thresholds of poor households dwindled to only P5,000 in both the Visayas and Mindanao, but had also already reached P10,000 before for both areas.

The median food-poverty thresholds for poor households in September 2008 are P6,000 in Metro Manila, P4,000 in balance Luzon, P3,250 in the Visayas, and only P2,500 in Mindanao. These levels had already been reached several years ago, the SWS said.

In Metro Manila in particular, the median poverty threshold is still P10,000 as in 2000, even though the Consumer Price Index (CPI) has risen by about 58 percent since, the SWS said.

The NCR median poverty threshold of P10,000 per month for September 2008 is equivalent to only P6,341 in base year 2000 purchasing power, after deflation by the CPI. The deflated poverty threshold for NCR of below P7,000 per month is a throwback to living standards of twenty years ago, the SWS said.

In four SWS surveys in 2000, the base year of the CPI, the median SWS poverty threshold for NCR was already P10,000 per month equivalent to P15,770 per month at the September 2008 cost of living rate, given the CPI of 157.7.

The difference of P5,770 (P15,770 – P10,000) between the thresholds of 2000 and September 2008 measures the extent of belt-tightening that took place, SWS explained.

On the other hand, median food poverty threshold of P6,000 in Metro Manila is equivalent to only P4,043 in base year 2000 purchasing power for food, it said.

The median food poverty threshold in December 2000 was P6,000 for Metro Manila. It is equivalent to P8,904 per month at the September 2008 cost of food, given the latest CPI of 148.4 for food items. The difference of P8,904 – P6,000 = P2,904 between the food thresholds of 2000 and September 2008 is the extent of belt-tightening made by food-poor Metro Manila households, the SWS said.

The third quarter survey used face-to-face interviews of 1,500 adults in Metro Manila, the balance of Luzon, Visayas and Mindanao.

Sampling error margins of ±2.5 percent for national percentages, ±6 percent for Metro Manila, Visayas and Mindanao, and ±4 percent for balance Luzon were applied.

Palace: More to be done

Malacañang welcomed the survey results but admitted a lot still has to be done to address poverty in the country.

Press Secretary Jesus Dureza said that the 52-percent self-rated poverty was noteworthy, considering that it came at a time when the world is reeling from the impacts of the global financial crisis.

“These are welcome developments although we know that there is still work to be done along that line,” Dureza said.-– Helen Flores with Marvin Sy, Philippine Star

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