Poverty in the Philippines: Causes, Effects and Solutions

The Philippines is a country in Southeast Asia with over 117 million people. Unfortunately, it has faced poverty and income inequality for years¹. In 2021, about 19.99 million Filipinos were living below the poverty line¹. The number of poor people rose by 2.3 million from 2018 to 2021 because of the COVID-19 economic downturn¹. Despites efforts in recent years, poverty is still a big issue in the Philippines. It hits hard, especially in the countryside. This article will dive into what causes poverty in the Philippines. It will also look at its impact on families and possible solutions to fight it.

Key Takeaways

The Philippines has a high poverty rate, with over 19.99 million Filipinos living in poverty in 2021.
Poverty is exacerbated by the COVID-19 pandemic, which pushed an additional 2.3 million Filipinos into poverty from 2018 to 2021.
Poverty is more prevalent in the Bangsamoro Autonomous Region in Muslim Mindanao, with a rate of 37.2%, compared to just 3.5% in Metro Manila.
Poverty affects over 32 million children in the Philippines, with 5 million in extreme poverty.
The Philippines aims to reduce poverty to 13-15% by 2022, but the COVID-19 pandemic has hindered progress.

Understanding Poverty in the Philippines

Despite economic growth, many still face poverty in the Philippines². The poverty rate fell, yet rural areas and remote places were left behind². There’s a big gap between the rich and the poor, showing inequality².

Poverty Statistics and Trends

The country saw improvements, but the situation remains challenging³. In 2021, the poverty rate was 23.7%, and 22.4% lived under the line³. Due to COVID-19, poverty hit 18.1% and nearly 20 million people struggled².

Causes of Poverty in the Philippines

Many reasons contribute to poverty in the Philippines². Issues like low job creation, slow agriculture growth, and high population growth persist². Plus, not everyone can access quality education and resources equally².

Efforts from groups like Outreach International aim to ease these hardships². The government offers help through programs like 4Ps and SLP³.

The fight against poverty is ongoing, especially in rural areas². To really make a change, it’s key to solve these deep-rooted issues³.

Economic Factors Contributing to Poverty

In the Philippines, there have been both economic ups and downs, with challenges in fighting poverty⁴. Efforts to reduce poverty have worked from 2000 to 2015. This was thanks to government programs and economic strides⁴. But poverty reduction hasn’t been easy. High inflation in tough times and not enough focus on farming hinder the fight against poverty⁴.

Low Economic Growth

The main issue in battling poverty in the Philippines is the difficulty in keeping strong, fair growth⁴. Poverty puts people and families in a cycle where they can’t invest in themselves or find good jobs. This keeps poverty going over many generations⁴. Without enough great, lasting jobs, the Philippines sees a gap in earnings and fewer chances for the poor to do better⁴.

Weakness in Employment Generation

In addition to slow growth, the country has found it hard to create enough jobs⁴. This leaves many in poverty even when they work. Most poor workers do jobs that don’t assure steady income or pay much⁴.

Because of this, families find it tough to land stable, good-paying jobs that would lift them out of poverty⁴.

“Poverty reduction programs aim to alleviate hunger and improve well-being, but further investigation is needed to assess their effectiveness in reducing poverty.”⁴

Low growth and job problems hit hard, especially affecting the most vulnerable and those in the countryside⁴. Long-term and sudden poverty in the Philippines face many hurdles like job cuts, lower wages, and poor services. Tackling these issues is key to the country’s fight against poverty and to build a better, more shared future⁴.

The country has made steps forward since 2011, especially in creating jobs, improving education, and fighting poverty⁵. The Zero Extreme Poverty PH 2030 plan aims to end poverty there by 2030. This initiative works in many areas like education, health, and making sure homes are stable. Though progress is happening, many economic issues still keep poverty a tough problem. This shows the need for more work and fresh ideas in this important area⁴⁵.

Agricultural Challenges and Rural Poverty

The Philippines’ agriculture industry faces a lack of development, leading to ongoing rural poverty⁶. Over one-third of the country’s 50 million people live in rural areas and struggle with poverty⁶. Since 2006, these farmers have been among the poorest in the country⁶. The lack of growth in agriculture keeps rural communities poor and unable to secure enough food.

The agricultural sector struggles to access resources and new technology⁶. The ACDI/VOCA steps in to help. They’ve aided 349 individuals in getting agricultural loans and supported 6,360 farmers in Mindanao through the MinPACT Project⁶. They’ve also started a Cooperative Development Program. It involves over 40 local cooperatives and has a five-year plan to support agriculture and stimulate economic growth.

Despite these efforts, the Philippines’ agriculture faces big hurdles.⁷ In 2014, the agriculture sector only made up 11 percent of the GDP. Around six in ten rural residents rely on agriculture for a living⁷. The country has tried land reform, but insufficient support and investment have slowed agriculture’s progress.

To combat rural poverty, both the government and NGOs must put farming first⁷. They need to boost farmers’ access to resources, technology, and money. They should also roll out policies and programs that help agriculture to grow and update. Tackling these challenges can help the Philippines cut rural poverty and move towards healthier economic growth.

“The key to reducing rural poverty in the Philippines lies in the transformation and development of the agricultural sector. By investing in this vital industry, we can empower farmers, improve food security, and create new economic opportunities for rural communities.”

Inequality and Income Disparity

In the Philippines, the top 1% have 17% of the national income. But the bottom 50% has only 14%. This big gap shows how resources and chances are not equally shared. As a result, poverty keeps going in the country.

While the poverty level went down from 49.2% in 1985 to 16.7% in 2018⁸, there are still big differences. For example, many poor children don’t go to the right grade or even to school⁹. That means they might earn less in the future, keeping poverty in their families.

Uneven Distribution of Resources

The Gini index shows income inequality in the Philippines. It went from 47.7 in 2000 to 40.7 in 2021, suggesting some improvement⁹. But, the richest 1% of the population grew their share to 17%. At the same time, the poorest 50% only got 14%. This difference means that poverty and hard times continue for many.

Educational Attainment and Poverty

More Filipinos now finish high school or go to college than before. Only 25% had basic education in 2020, down from 52% in 1988⁹. However, kids from poorer homes still struggle with school. They often don’t catch up with their learning and remain in poverty.

The COVID-19 crisis made things even harder for these kids. About 68% of poor families think online learning is not good, compared to 50% nationally⁹. This problem could make the income gap even bigger in the future.

The AmBisyon Natin 2040 plan in the Philippines wants to close these gaps. It aims for better jobs, healthcare, and education for everyone⁹. With this plan, the country hopes to give every Filipino a chance to succeed. This effort can lead to a fairer and more stable society for all⁹⁸.

Population Growth and Poverty

The Philippines faces a big problem with poverty, linked to its quick population growth¹⁰. The country’s poverty stood at 18.1% in 2021 with a multidimensional measure of 4.4% in 2018. It shows the tough battle against poverty due to more people and few resources¹⁰.

The high birth rates make life hard for the Philippines. It strains the cities, healthcare, and job chances. The issue is strong in both crowded cities and far rural areas. This puts stress on who gets what, making income differences bigger¹⁰.

Recent data shows poverty increasing, with 19.9 million people poor in 2021. This is a big jump from 2018¹⁰. The COVID-19 hit made things even worse with more job losses and hunger among the weak¹¹.

The problem spreads from the cities to the countryside. Here, 5% live badly, worse than the 1% in the cities. It tells us, both places need help in different ways¹⁰. Targeted help is critical for the rich and the poor areas.

Indicator	Value
Bottom 40% Annualized Income Growth per Capita	2.98% (2015-2021)
GDP per Capita Growth	1.89% (2015-2021)
Annual Median Income/Consumption per Capita Growth	1.90% (2015-2021)
Unemployment Rate Drop (Nov 2021 to Nov 2022)	1.8 percentage points
Female Labor Participation Rate (Nov 2022)	57.8%

Many argue over how growing populations affect the economy¹². While some think more babies slow down the economy, others see young workers as a benefit. This was clear with the Asian Tigers, showing more workers can help¹².

To fight poverty and its links to a bigger population, the country needs many steps. These include better schools, health care, and birth planning. Also, smart money plans can help everyone grow and find jobs. Doing all this together is the best way to turn things around for the Philippines.¹⁰¹¹¹²

Poverty in the Philippines: Effects on Families

In the Philippines, poverty deeply impacts families, touching on all parts of their life. Due to financial strains, many cannot buy good housing. This leads them to live in bad conditions or in places without legal rights¹³. Also, parents in poor families struggle to feed their children well. This causes many kids to be malnourished and to not have enough to eat, which can hurt their growth and health for years¹⁴.

Inability to Afford Housing

In the Philippines, more than a third of families have at least 7 members¹³. And about 20% in cities and a bit more in the countryside have 4 or more members¹³. The chance of being poor goes up with more kids in the family, from 44-50% for a family with one child to 60-78% for those with five kids¹³. Because of these big family sizes and not much money, finding a good home is super hard. So, many end up living in tight, dirty spaces, sometimes without legal say¹⁴.

Malnutrition and Food Insecurity

Many families in the Philippines can’t give their kids enough healthy food. This means lots of kids don’t eat well and some don’t have enough to eat. In the early 2000s, over 11 million Filipinos were very poor or lived under bad conditions¹⁴. A few years later, in 2005, more than 17 million were not getting enough to eat, according to the Food and Agriculture Organization¹⁴. The World Bank said in 1996 that not feeding kids right causes the Philippines to lose about US$8 billion every year¹⁴. This can damage children’s bodies and brains, making it tougher for them to escape poverty.

The poorest heads of families in the Philippines often work in labor (60%) or in agriculture (73%)¹³. This shows how difficult it is for these families to meet their basic needs like a good place to live and food¹³¹⁴¹⁵.

Poverty and Child Labor

Poverty in the Philippines leads many kids to work. A shocking 2.1 million children, aged 5 to 17, work to help their families survive¹⁶. This issue takes away their chance for school and fun childhoods. It also locks them into a life of poverty, with few chances to make more money or grow professionally.

Most child workers are 15 to 17 years old. And, nearly all do dangerous jobs¹⁶. The farming sector hires most of them. Poverty plays a big role, with almost all these families struggling to meet basic needs. The worst child labor comes from homes that make only PHP 1,000 to PHP 3,000 a month¹⁷.

The Philippines takes action on child labor through international agreements and national programs like the PPACL¹⁶. But, life for these working kids is hard. They face tough work, danger, and little reward. Programs run with support from groups like the ILO help make their lives better¹⁶.

The number of working kids dropped from 2019 to 2020. Yet, more kids were in dangerous jobs during this time¹⁸. This shows that we need to keep fighting child labor. Tackling poverty and improving education are key. This will help all children lead better lives and help their communities grow.

“Poverty is the greatest enemy of children. It deprives them of their rights, their dignity, and their future.”
– UNICEF

Crime and Thievery as a Result of Poverty

Many Filipinos, facing hard times and big needs, turn to crime¹⁹. They often steal or rob to live. Poverty, especially in crowded places with few jobs, pushes them to these actions.

In 2012, nearly 18.4 million Filipinos, or 19.2% of the country, were extremely poor¹⁹. Many children, almost 3.6 million, worked instead of going to school. Their jobs as child laborers made up 15.9% of the young population¹⁹. This tough reality forces people to choose crime to support themselves and their loved ones.

The link between being poor and committing crimes is clear²⁰. Nobel Prize winner Gary Becker explained how criminals think. They weigh the benefits against the risks, which include getting caught and shamed²⁰. When jobs are scarce and life is hard, crime might seem like the only option.

Unfortunately, the crime-poverty cycle in the Philippines keeps going¹⁹. By 2015, 21.6% of the population was still living in poverty¹⁹. This shows that things haven’t improved much. It’s crucial to find real, lasting solutions that tackle poverty at its core and offer different ways for people to earn a living.

“The overwhelming reason for these crimes is the difficulties caused by poverty, particularly in areas with high population density and limited employment opportunities.”

Dealing with poverty-related crime in the Philippines needs a wide plan. More jobs, better education and health care, plus social support are key. This mix can help stop the poverty cycle and the crimes it brings. Both the government and groups outside it must work together to make a real difference.

Poverty in Urban and Rural Areas

In the Philippines, poverty looks different in cities and the countryside. Urban places with lots of people find it hard to use what’s available well. This cuts into how folks live there, making things tough for many²¹. Urban areas have about 12.8 percent of people living in poverty. But this is less than the country’s average, which is 26.5 percent²¹. Even with this, not everyone can easily get things like electricity, clean water, and good schooling. So, the problem stays, and many in cities stay poor²¹.

Living Conditions in High Population Areas

The Philippines is quickly urbanizing. So, more and more people live in big cities like Metro Manila, CALABARZON, and Central Luzon²¹. Over 62 percent of the country’s growth is in these cities. This uses up resources quickly and strains the cities’ ability to give enough services²¹. Those at the bottom often have bad homes, not enough places to use the bathroom, and can’t easily get the services they need. This makes the gap between rich and poor very clear in cities.

Resource Challenges in Remote Areas

Rural parts of the Philippines deal with poverty that just won’t go away. Here, a lot more people live in poor conditions than the national average²¹. Even with some economic growth, the rate of poverty in rural areas stays at 39.4 percent. This is much higher than the country’s average poverty rate of 26.5 percent²¹. Living far from the city, people face a lot of problems. They lack good roads, schools, and even basics like enough water and toilets²².

Dealing with poverty, whether in cities or the countryside, is a big job. It needs a plan that looks at the main issues and works on these together²¹. With focused help, the Philippines can move towards a better, fairer future for all its people²².

Poverty in the Philippines: Effects of the COVID-19 Pandemic

The COVID-19 pandemic hit the Philippines hard. It stopped economic growth and caused massive job losses. This led to a huge increase in poverty and worsened hunger. Almost two-thirds of families struggled to find enough food during the lockdowns²³.

Recovery has been tough for the poorest families. They are finding it hard to get back on their feet. This has made the poverty cycle stronger²³.

Economic Impact and Rising Unemployment

COVID-19’s economic impact was severe. Many lost their jobs, especially in construction and public transport. Informal workers, farmers, and small business owners were hit the worst²³. Losses in these key sectors hurt the economy badly.

The unemployment rate rose sharply. This, along with the economic impact, also led to more crime. In 74% of communities, people reported more safety concerns²³.

Food Insecurity During the Pandemic

The pandemic made it harder for people to get food. Most families experienced food shortages during the lockdowns²³. Poorest families found it extremely tough. They couldn’t buy enough food or get access to fresh, nutritious meals²³.

Vaccine hesitancy made things even more complicated. Many were unsure about the vaccines’ safety and effectiveness. Despite this, people knew vaccines were important for stopping the virus²³.

“The COVID-19 pandemic not only pushed more Filipinos into poverty but also exacerbated existing food insecurity, with nearly two-thirds of households experiencing moderate to severe food insecurity during the extended lockdowns and quarantine periods.”

To combat poverty and hunger in the Philippines, actions are needed. Both government and groups focusing on development must step in. This includes better social protection, help for farmers, and easier access to money²⁴.

Moreover, investing in technology and people’s skills can lessen COVID-19’s long-term damage. These steps are crucial to help the most vulnerable recover²⁴.

Government Initiatives and Programs

The Philippine government knows how big the issue of poverty is. So, they’ve started many plans and projects to help²⁵. Their work goes from short-term help to long-term solutions. But sometimes, these ideas face problems like not having enough resources.

A big plan they have is the Pantawid Pamilyang Pilipino Program (4Ps). It helps the poorest families, giving support for school and healthcare to over 20 million people²⁶. Then, there’s the Food Stamp Program (FSP). It helps a million families get more food, in places like Tondo, Manila, and some regions in the country²⁶.

This work against poverty has shown good results²⁵. The number of very poor people has gone down a lot. Back in 1985, almost half the country was very poor. Now, it’s just over 16%. The middle-class has grown too, helping about 12 million people²⁵. The government’s help has reached many Filipinos, supporting jobs and building new things.

But, the COVID-19 crisis made things hard again, pushing more people into poverty. By 2021, nearly 20 million Filipinos were very poor²⁵. The new government aims to change this. They want to cut the poverty rate by a big amount over the next few years. Their plan is to open up the economy, improve education and health, and create better jobs²⁵²⁷.

Still, the government is determined to overcome these obstacles and say no one is poor by 2040²⁷. They have a grand plan, called Ambisyon Natin 2040. This project wants to see a middle-class country without poverty, and with the ADB’s help, they are making steps towards this dream²⁷.

“The government’s poverty alleviation programs have made significant progress, but the pandemic has reversed some of those gains. The new administration’s focus on economic recovery, social protection, and job creation is crucial to renewing the fight against poverty in the Philippines.” – Economist, Manila

Role of Non-Governmental Organizations

Non-profit organizations are vital in fighting poverty in the Philippines beside the government. Outreach International, a leading NGO, uses a community-led approach to fight poverty²⁸. They help communities identify and solve their poverty issues themselves. By empowering local leaders and connecting them with needed resources, they create lasting solutions to end the poverty cycle.

Outreach International’s Approach

Outreach International empowers local communities to lead their own improvement. They listen to the community’s needs and challenges and then work together to find and implement fitting solutions²⁸. This strategy has greatly helped Outreach International face poverty in the Philippines.

Community-Led Development Initiatives

Outreach International’s projects have made a big difference in the Philippines. They let local people help decide and use their unique insights to fight poverty effectively²⁸. They’ve worked on improving education, healthcare, jobs, fixing infrastructure, and protecting the environment.

“Outreach International’s community-led approach has been instrumental in empowering local communities to take charge of their own development and find sustainable solutions to poverty.”

The positive outcomes of Outreach International’s work highlight the crucial role of non-profit organizations in fighting poverty²⁸. By supporting local leaders and addressing each community’s needs uniquely, their approach can be used as a model for combatting poverty in other parts of the country.

Solutions and Strategies for Poverty Reduction

The fight against poverty in the Philippines needs different plans. This includes making the economy better for everyone. We need to spend more on schools and hospitals. Also, we should help those who are most at risk²⁹. Leaders, local groups, and others should join forces. They must put in place plans that really help. These should fight the main problems that keep people poor.

Economic Reforms for Inclusive Growth

Making the economy more welcoming to all is key. To do this, we can welcome investments from overseas. It’s also about helping small businesses grow. We should not just depend on money sent back home or jobs in services²⁹. Creating better jobs and chances for those who have the least helps close the gap between the rich and the poor.

Improving Access to Education and Healthcare

It’s crucial to put more money into schools and hospitals. The CCT program, for instance, gives cash to poorer families. It has helped kids go to school more and see a doctor when they need to³⁰. We need more programs like this. Quality education and healthcare that don’t cost too much can change lives. This helps people move up in life and not stay poor.

COVID-19 has made things harder. Many kids didn’t learn much from online classes. Fixing this and making sure kids don’t fall behind is very important. It keeps their chances to make a living later on Greatly contributing to youth.

Indicator	Impact
Enrollment in school	Increased by 5% (Elementary) and 7% (Secondary) due to the Conditional Cash Transfers program³⁰
Prenatal and Postnatal care	Increased by 10% among families benefiting from CCT³⁰
Delivery of babies in health facilities by skilled health professionals	Increased by 20%³⁰
Enrollment in Philhealth coverage	Reached about 92% of the total population, covering 93M Filipinos³⁰
Benefit payment under Philhealth	Tripled from P31 Billion in 2010 to P97 Billion in 2015³⁰

By giving more to education and healthcare, we make our nation stronger. It allows our people to get ahead and makes our society fairer.

“Ending poverty in all its forms everywhere” is one of the Sustainable Development Goals set by the United Nations. The Philippines must continue to pursue ambitious strategies to achieve this goal and ensure a brighter future for all its people.

²⁹³⁰

Conclusion

Poverty is a big issue in the Philippines. It needs everyone’s help to solve it – the government, people, and other countries. The economy is getting better, but many still can’t afford the basics like food, clothes, and a home³¹.

In the countryside, farming is the main way to make a living. This is because there aren’t many chances to get an education. This lack of education causes more poverty and unemployment³¹. When people can’t make enough money, they and their families get sick and kids can’t go to school. This keeps the poverty cycle going³¹. Moreover, corruption is also a big problem in the Philippines. It hurts the country’s growth and keeps many people poor³¹.

Figuring out why poverty happens is crucial. We have to understand its effects on families and communities. Then, we can put in place real solutions for everyone’s benefit. The Philippines can do better by making economic changes for everyone to benefit from, making schools and hospitals easier to reach, and helping both city and countryside folks equally³¹. Poverty is not just the Philippines’ problem. The world can learn from the Philippines’ efforts to beat poverty. This way, everyone can have a chance at a better life³¹.

FAQ

What is the current poverty rate in the Philippines?

The poverty rate in the Philippines fell a lot between 1985 and 2018. It dropped by two-thirds. This was because of growth in the economy and building more things. But these changes helped most in big cities, not in smaller towns or remote places.

What are the key factors contributing to persistent poverty in the Philippines?

Persistent poverty comes from not much growth in the economy, jobs that are hard to find, and not enough development in farming. There’s also too many people and not everyone has the same chance to get a good education or resources.

How does the income inequality in the Philippines affect poverty?

The top 1% in the Philippines earn a lot more compared to the rest. They get 17% of all the money made in the country. Meanwhile, 50% of the people who earn the least only get 14%. This big gap in how much people earn is a main reason for poverty. It means not everyone has the same things to help them do well, like enough money or chances to succeed.

What are the effects of poverty on families and children in the Philippines?

Poverty really hurts families in the Philippines in many ways. They often can’t get good homes, food, or a proper education because they don’t have enough money. This leads to many children not eating well and working when they should be studying.

How has the COVID-19 pandemic impacted poverty in the Philippines?

COVID-19 made poverty much worse in the Philippines. It made the economy stop growing and made many people lose their jobs. This put more Filipinos under the poverty line. It also made it harder for many families to get enough food when the lockdowns happened.

What are the government and non-governmental initiatives to address poverty in the Philippines?

The Philippine government is doing things to fight poverty. They have programs and plans to help. NGOs, like Outreach International, are also important. They use methods that help people in poor areas help themselves, making communities stronger.

What are the key strategies for reducing poverty in the Philippines?

Lessening poverty in the Philippines needs many actions. This includes changing the economy to help everyone, putting money into education and health, and helping those who need it most. Everyone from leaders to NGOs to regular people must work as a team. This is how long-term solutions are made that really work and give everyone a fair chance.