Self-Rated Poverty stays at 52% : SWS

Fifty-two percent or about 9.4 million of Filipino families consider themselves as Mahirap or Poor, 24% put themselves on the Borderline, and 24% consider themselves as Hindi Mahirap or Not Poor, according to the Fourth Quarter 2008 Social Weather Survey, fielded over November 28-December 1, 2008. The September 2008 figure was also 52%.

The Self-Rated Poverty rate has ranged from 50%-52% for the most part of 2008, spiking up only once to 59% (estimated 10.6 million) in the Second Quarter.

The latest Self-Rated Poverty figure brings the 2008 average to 53%. It is similar to the 54% average of 2006, and slightly above the 50% average of 2007.



The December 2008 survey also found that 42% of Filipino families (estimated 7.7 million) consider themselves as Food-Poor, 30% put themselves on the Food-Borderline, and 28% consider themselves as Not Food-Poor.



The latest Self-Rated Food Poverty is 4 points up from 38% (estimated 6.9 million) in September 2008. This brings the 2008 average to 42%, similar to the 42% average of 2006, and 4 points higher than the 38% average of 2007.

Poverty rates declined in Luzon, but rose in Mindanao and NCR.

After declining by 2 points from 53% in June 2008 to 51% in September, Self-Rated Poverty in Luzon outside of Metro Manila again declined by 7 points to 44% in December 2008, just 2 points above its record-low of 42% in March 2005.



Self-Rated Poverty is at 60% in the Visayas, similar to 59% in the previous quarter after declining from 66% in June 2008.

It rose by 5 points in Metro Manila, from 48% in September to 53% in December, and by 7 points in Mindanao, from 52% to 59%.

Self-Rated Poverty in urban areas fell by 2 points, from 49% to 47%, while it stayed at 56% in rural areas.



Self-Rated Food Poverty also declined anew in Balance Luzon. Its latest figure of 35% is 3 points down from 38% in September, which was 6 points down from 44% in June.



The one-quarter rise in Self-Rated Food Poverty is sharpest in Mindanao. It rose by 20 points, from a record-low 31% in September to 51% in December.

It rose by 2 points in Metro Manila, from 40% to 42%, and by 6 points in Balance Luzon, from 44% to 50%.

Poverty thresholds slightly up in Luzon and Visayas.

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. This indicates that poor families have been lowering their living standards, such as, belt-tightening.

For poor households in particular, the median poverty threshold in Metro Manila stayed at 10,000 pesos, even though it had already reached as much as 15,000 pesos several times in the past. For those in Mindanao, the median poverty threshold stayed at 5,000 pesos, though it had already been at 10,000 pesos before.



The median poverty thresholds of poor households rose slightly to 7,000 pesos in Balance Luzon, and to 6,000 pesos in the Visayas, but had also already reached 10,000 pesos before for both areas.

The median food-poverty thresholds for poor households in December 2008 dwindled to 5,000 pesos in Metro Manila, while it stayed at 4,000 pesos in Balance Luzon. It rose slightly to 4,000 pesos in the Visayas and to 3,000 pesos in Mindanao. These levels had already been reached several years ago.




Measurement of belt-tightening.

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

The NCR median poverty threshold of 10,000 pesos per month for December 2008 is equivalent to only 6,489 pesos in base year 2000 purchasing power, after deflation by the CPI. The deflated poverty threshold for NCR of below 7,000 pesos per month is a throw-back to living standards of twenty years ago.



In four SWS surveys in 2000, the base year of the CPI, the median SWS poverty threshold for NCR was already 10,000 pesos per month, equivalent to 15,410 pesos per month at the December 2008 cost of living, given the CPI of 154.1. The difference of 15,410 pesos - 10,000 pesos = 5,410 pesos between the thresholds of 2000 and December 2008 measures the extent of belt-tightening that took place.

On the other hand, median food poverty threshold of 5,000 pesos in Metro Manila is equivalent to only 3,376 pesos in base year 2000 purchasing power for food.



The median food poverty threshold in December 2000 was 6,000 pesos for Metro Manila. It is equivalent to 8,886 pesos per month at the December 2008 cost of food, given the latest CPI of 148.1 for food items. The difference of 8,886 pesos - 6,000 pesos = 2,886 pesos between the food thresholds of 2000 and December 2008 is the extent of belt-tightening made by food-poor Metro Manila households.