Poverty in the Philippines
[4][5] In 2018, the rate of decline of poverty has been slower compared with other East and Southeast Asian countries,[6] such as People's Republic of China (PRC), Thailand, Indonesia, or Vietnam.
As of 2022, the Philippine Statistics Authority has set the poverty threshold at PHP12,030 per month for a family of five, or PHP79 per day per person to spend on food and non-food requirements.
[29] The Philippines, after its independence in 1946, historically pursued an import substitution industrial policy, penalizing primary and agricultural sectors through tariffs and overvaluing the peso.
Price controls, import restrictions, and government interventions in sectors like rice, coconut, and fertilizer further depressed agricultural incomes.
[34] According to IBON Foundation, self-rated poverty rises due to the lack of good job opportunities, low wages, and high cost of living exacerbated by inflation.
Consequently, less than 2 percent of the working poor benefit from the minimum wage policy, highlighting its limited effectiveness in addressing in-work poverty.
[38] Policy suggestions to address the poverty and the effects of inflation include wage hikes and ensuring the affordability of basic needs, and by developing the capacity to produce food locally to lessen dependence on imports.
[38] According to a 1973 study of Sylvia H. Guerrero in Metro Manila, the "culture of poverty" in the Philippines is characterized by a lack of aspirations, reliance on chance, and disillusionment with the social, economic, and political conditions.
[40] From 2018 to 2021, amid the economic recession caused by the COVID-19 pandemic, an estimated 2.3 million Filipinos fell into poverty;[41] this has been attributed in part to lockdowns enacted to control the spread of the disease[42][41][4] and possibly exacerbated by poor governance.
[13] Poverty in the Philippines is a complex issue influenced by various factors, including economic inequality, corruption, and inadequate access to education.
Additionally, the lack of effective government support systems exacerbates the situation, as many impoverished communities struggle to access basic necessities such as healthcare, clean water, and quality education.
The rapid population growth further complicates these challenges, putting additional strain on already limited resources and hindering efforts to improve living conditions.
Structural issues, such as unequal access to education and job opportunities, particularly for women and marginalized groups, continue to perpetuate the cycle of poverty, making it essential for comprehensive and inclusive strategies to address these root causes effectively.
The Philippine Development Plan of 2017–2022[49] and the AmBisyon Natin 2040 are proposals for the nation to decrease poverty and improve the lives of the poorest population.
[50] These policies include creating more and better jobs, improving productivity, investing in health and nutrition, managing disaster risks, protecting the vulnerable, and more.
These documents help set the overall goal of reducing poverty to 13–15 percent by 2022 and having the nation thrive at similar levels as surrounding countries.
The strategic plans that the Philippine government has created are intended to work towards a middle-class society where poverty is reduced and living conditions are improved.
[12] The main drivers between 2006 and 2015 were an increase in wage income and movement of employment out of agriculture, government transfers, and remittance from domestic and foreign sources according to the World Bank publication, Making Growth Work for the Poor.
[51] Due to the Pantawid Pamilya, the government was able to use the social assistance which resulted in the contribution of 25 percent reduction of poverty as well as influence behavior change.
