The proportion of households living below the official poverty line has declined slowly and unevenly in the past four decades, and poverty reduction has en much slower than in neighboring countries such as the People’s Republic of China, Indonesia, Thailand, and Viet Name. Economic growth has gone through boom and bust cycles, and recent episodes of moderate economic expansion have had limited impact on the poor. Great inequality across income brackets, regions, and sectors, as well as unmanaged population growth, are considered some of the key factors constraining poverty reduction efforts.
Poverty and inequality in the Philippines remains a challenge. In the past four decades, the proportion of households living below the official poverty line has declined slowly and unevenly ND poverty reduction has been much slower than in neighboring countries such as the People’s Republic of China, Indonesia, Thailand, and Viet Name. Economic growth has gone through boom and bust cycles, and recent episodes of moderate economic expansion have had limited impact on the poor.
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Great inequality across income brackets, regions, and sectors, as well as unmanaged population growth, are considered some of the key factors constraining poverty reduction efforts. II. Definition of Terms Poverty- is scarcity, dearth, or the state of one who lacks a certain amount of material possessions or money. Unemployment- occurs when people are without work and actively seeking work. GAP- Gross domestic product (GAP) is the market value of all officially recognized final goods and services produced within a country in a year, or other given period of time.
GAP per capita is often considered an indicator of a country’s standard of living Corruption- in philosophical, theological,or moral discussions, corruption is spiritual or moral imp rutty or deviation from an ideal. Corruption may include many activities including bribery and embezzlement. Government, or ‘political’, corruption occurs hen an office-holder or other governmental employee acts in an official capacity for personal gain Tax- is a financial charge or other levy imposed upon a taxpayer (an individual or legal entity) by a state or the functional equivalent of a state such that failure to pay is punishable by law.
Taxes are also imposed by many administrative divisions. Taxes consist of direct or indirect taxes and may be paid in money or as its labor equivalent. Population growth- is the change in a population over time, and can be quantified as the change in the number of individuals of any species in a population using “per unit time” for measurement Ill.
Outline Poverty in the Philippines: Causes, Constraints, and Opportunities comprehensively analyze the causes of poverty and recommends ways to accelerate poverty reduction and achieve more inclusive growth. The report provides an overview of current government responses, strategies, and achievements in the fight against poverty and identifies and prioritize future needs and interventions. The analysis is based on current literature and the latest available data, including the 2006 Family Income and Expenditure Survey.
The main causes of poverty in the country include the following: low to moderate economic growth for the past 40 years; owe growth elasticity of poverty reduction; weakness in employment generation and the quality of Jobs generated; failure to fully develop the agriculture sector; high inflation during crisis periods; high levels of population growth; high and persistent levels of inequality (incomes and assets), which dampen the positive impacts of economic expansion; and Recurrent shocks and exposure to risks such as economic crisis, conflicts, natural disasters, and “environmental poverty. Key factors that worsen poverty in our country Economic growth did not translate into poverty reduction in recent years; Poverty levels vary greatly by regions;
Poverty remains a mainly rural phenomenon though urban poverty is on the rise; Poverty levels are strongly linked to educational attainment; The poor have large families, with six or more members; Many Filipino households remain vulnerable to shocks and risks; Governance and institutional constraints remain in the poverty response; There is weak local government capacity for implementing poverty reduction programs; Deficient targeting in various poverty programs; There are serious resource gaps for poverty reduction and the attainment of the Megs by 201 5; Multidimensional responses to poverty reduction are needed; and
Further research on chronic poverty is needed. Other cause The incomplete land reform aiming at overthrowing the traditionally unequal agrarian society coupled with lack of support for farmers has been a long-lasting flaw in the governments’ development policies that can still massively reduce poverty in the Philippines. Thus, the role of the state remains central to redistribute more equally the wealth created in the country, in order to avoid leaving the poor behind.
Supporting the extremely poor must be seen as a long-term investment and counterbalanced with future gains. However, mistrust in the government combined tit corruption and/or incompetence makes the overall task much harder, even though it has led to the rise of militant movements that speak in favor of farmers to build fairer trade systems. In a strange way, another problem for the Philippines is that, in spite of having embraced liberalizing and international organizations’ rules, they have now ended up less integrated in the world economy than other Asian countries.
For instance, import tariff on rice makes it one of the rare exceptions in WTFO, although understandable when you see how important rice is to the livelihood f millions of Filipinos. However, recent research on food price increase has shown that tariffs do not help protect farmers and instead increases poverty in both rural and urban areas. That’s because, even if imported rice can compete with domestic rice, the competition results in an overall reduction in consumer prices that is good for everyone.
Moreover, with the right support, it helps identify which farmers need help and training so that they can either better manage their rice production or diversify their crops. Effects of poverty in the Philippines Rapid Population Growth Given that the population of the Philippines is increasing at a rapid rate of 2. 36% per year, it can be translated as an increase of more than 5,000 people daily in a country, which already has an increase of more than four million poor people since 1985. An 1985, the absolute number of people living in poverty was 26. 5 million.
This increased to 30. 4 million in 2000 and from 2006 to 2009, increased by almost 970,000 Filipinos from 22. 2 million to 23. 1 million. As the Philippines have financially limited resources and a high poverty rate, the rapid increase in population has become a robber because there is an already insufficient resource to support the population, which leaves much fewer resources to improve the economy. From 2003 to 2006, even though the Philippines experienced above-average economic growth, the poverty incidence actually increased as a result of its population growth rate.
Unemployment Poverty reduction has not kept up with GAP growth rates, largely due to the high unemployment rate, high inflation rate and wide income inequality. From 2000 to 2009, the economy of Philippines grew by 3. 2% on average annually, which was on par with the economic performance of its neighbors. However, this recent growth did not translate into more Jobs. Unemployment in the Philippines has been high in comparison to its neighbors, at around 7. 5% to 8. 0% since 2006.
As the world’s second largest archipelago, the Philippines have faced difficulty in Job creation due to its inability to attract more foreign, direct investments. Died Gunrunning, whom is the Central Bank Deputy Governor, mentioned that while capital flows are turning to the emerging markets, foreign, direct investments to the Philippines remain relatively low due to the weak investment climate. The Philippines have hefty business procedures, or tax and customs administration, weak protection against expropriation and high-energy cost. Therefore, the poverty rate remains constant over the years.
There is a lot of poverty in the Philippines. Some people, called “squatters,” live near trash mounds and scavenge through the rubble to find materials that they can re-sell. Many are living in extreme poverty and unsanitary conditions. One of the effects this impoverished lifestyle has on them is an extremely short life expectancy. But there are some rays of hope. For one, slow but steady economic improvements are providing Jobs in places like call centers. Secondly, charitable organizations like the Philippine Aid Society are growing and working hard to fight poverty.
For those who want to do their part to help, consider a financial donation to one of these charities. Some solution for Poverty in Philippines Major Government Reform Removing of corrupt government officials Create more Employment Opportunities Call for help from the foreign countries for assistance in ending poverty ‘V. CONCLUSION Protecting the “pre-poor” Aside from the fact that over 1/3 of the population lives in poverty in the Philippines, experts have also observed that a good 50% of households are in a precarious tuition vulnerable enough to fall into poverty if a minor financial setback happens.
Hence, the government must not Just take care of the poor, but also make sure that millions more don’t fall into poverty. Prevention is a must, if they want to prevent the problem from getting much bigger. Precariousness is usually worse in rural areas, even though many urban Filipinos are often at risk of falling into poverty as well. This shows that if urban poverty in the Philippines is much lower than rural one, there is a constant risk that it gets much bigger since many households are too vulnerable to economic shocks. Also, a characteristic of these precarious families is that they tend to have more kids than the non-precarious ones.
Therefore, guaranteeing access to education and contraception are things that the government must focus on for its poverty prevention plan End import tariff, reduce poverty in the Philippines The other main problem slowing down efforts to tackle poverty are tariff (I. E. Taxes) on imports. Although they were created to protect local production, they ended up having the opposite effect. Tariff has made it more expensive for local producers (both in agriculture and industry) to import much-needed input for production. Therefore local production has stalled and resulted in more expensive prices for everyone.
And in the end, many Filipinos were eventually buying foreign goods anyway as they’re (sometimes) cheaper and more diverse. In the sass, the government has started reducing tariff which decreased the price of energy (e. G. Oil and coal) and eventually reduced poverty as other prices fell as well. The government made up for the loss in revenue by implementing a carbon tax that also helped protecting the environment. Indeed, for a while cheaper oil also meant more pollution as the population used more machines. In the end, revenue from the carbon tax proved even higher than that from tariff.
As a result, the excess of money led to lower taxes on the population and thus less poverty in the Philippines too. V. RECOMMENDATION Corruption is Just one of the factors in these problem but we must work together in order to end it. There are many ways to help the poor and end the poverty in our country. But it is not Just the problem of the government it is also the problem of all Filipino people. We as a the citizen of this country must work our way to establish ourselves by educating our minds in developing our personal lives and by this we an as a country rise to the challenge of ending poverty.