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Analysis:
Poverty Statistics as Instruments of Deception

Government thinks only a few Filipinos are poor, hence its ardent refusal to grant any wage increase. At this point, Bulatlat.com exposes the truth behind the official figures on poverty.

By DANILO ARAÑA ARAO
Bulatlat.com

Are Filipinos living a more comfortable life now? In the eyes of the powers-that-be, the answer is yes and they have statistics to prove it.

The government’s decision not to grant any wage increase at this time rests on an argument that only a few Filipinos are poor.

While the latest government statistics appear to validate this, there is still a need to deeply analyze the standards and methodology used by government in coming up with the following startling figures.

According to the 2000 Family Income and Expenditure Survey of the National Statistics Office (NSO), only 39.4% of the population is considered poor. The National Capital Region (NCR) has the lowest poverty incidence (11.4%) while the Autonomous Region in Muslim Mindanao (ARMM) has the highest (71.3%). (See Table)

Poverty in the Eyes of Government *(in Philippine pesos except poverty incidence)*
	Poverty Incidence (percent of population)	Per Capita Poverty Threshold
	Poverty Incidence (percent of population)	Annual	Daily a/
NCR	11.4%	17,713	48.53
CAR	43.7%	15,528	42.54
Region I (Ilocos)	43.6%	14,749	40.41
Region II (Cagayan Valley)	35.0%	12,350	33.84
Region III (Central Luzon)	22.9%	14,639	40.11
Region IV (Southern Tagalog)	31.0%	15,261	41.81
Region V (Bicol)	61.9%	12,825	35.14
Region VI (Western Visayas)	51.1%	12,600	34.52
Region VII (Central Visayas)	43.7%	11,061	30.30
Region VIII (Eastern Visayas)	51.1%	10,783	29.54
Region IX (Western Mindanao)	53.0%	10,997	30.13
Region X (Northern Mindanao)	52.1%	12,160	33.32
Region XI (Southern Mindanao)	45.0%	12,430	34.05
Region XII (Central Mindanao)	58.0%	12,331	33.78
ARMM	71.3%	13,878	38.02

Philippines	39.4%	13,823	37.87
Source of basic data: 2000 Family Income and Expenditure Survey, National Statistics Office a/ annual per capita poverty threshold divided by 365 days

This means that as of 2000, the poor only constitute a minority of the population. Why is this so?

The government claims that based on its survey, the annual per capita poverty threshold in the Philippines is pegged at P13,823 (or $271.04 based on an exchange rate of P51 per U.S. dollar). In other words, if a person has that amount of money, he or she can fulfill food and nonfood requirements for one year.

Hence, on a daily basis, a person living in the Philippines can survive with only P37.87 ($0.74) in his or her pocket. In Region VIII (Eastern Visayas) where the poverty threshold is lowest, P29.54 ($0.58) is enough to meet food and nonfood requirements for one day. The NCR has the highest daily per capita poverty threshold at P48.53 ($0.95).

However, it may be recalled that two weeks ago, Bulatlat.com presented an alternative computation of daily cost of living for a family of six based on the latest consumer price index (CPI). As of March 2002, families of six living in Metro Manila need P528.75 or $10.37 to survive in one day, while those living outside Metro Manila must have P394.91 or $7.74 (agricultural areas) and P415.49 or $8.15 (non-agricultural areas) daily.

As early as December 1992, the National Statistical Coordination Board (NSCB) adopted a new method in counting the number of poor families which, in effect, statistically eradicated poverty in calamity-stricken areas like Baguio City and lopped off 15.1 percentage points from the poverty incidence of 55.8% in 1991. The new method excludes alcoholic beverages, tobacco, recreation and furniture in computing the required income to meet the basic requirements of a family of six.

The daily minimum wage rates currently range from P140 or $2.74 (CARAGA in southern Philippines) to P280 or $5.49 (NCR). Assuming that a minimum wage earner works from Monday to Friday (i.e., 22 days a month), he or she earns a gross monthly pay of P3,080 ($60.39) to P6,160 ($120.78).

Consequently, the gross annual pay for a minimum wage earner ranges from P36,960 ($724.70) to P73,920 ($1,449.41). These figures are substantially more than the government’s annual per capita threshold that ranges from P10,783 ($211.43) to P17,713 ($347.31).

Based on the government’s data, the current minimum wage rates are more than enough to provide for the basic needs of families (assuming they do not exceed four members).

Government does not see the need therefore to increase wages despite the repeated calls of organized labor for a P125 ($2.45) nationwide, across-the-board daily wage hike. It may be recalled that last year, the government only granted daily wage increases ranging from P4 or $0.08 (Eastern Visayas) and P15 or $0.29 (NCR). Another P15 was given to NCR workers last February.

Indeed, statistics could be used to hide existing realities. At present, official facts and figures are telltale signs not of the current situation but what kind of government the country has. Bulatlat.com

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