Explanatory Notes on the 2003 Poverty Estimates
(Posted 23 February 2005)

These notes were prepared to address the various questions raised regarding the validity of the 2003 poverty estimates, specifically on: (1) the seeming inconsistency between the trends in the poverty statistics of the NSCB and the results of the Family Income and Expenditures Survey (FIES) of the National Statistics Office (NSO); and (2) the inconsistency between the trends in poverty incidence and the gross regional domestic product (GRDP) also being released by the NSCB.

The proceeding discussions would show that the perceived inconsistencies lie on the following:

1. looking only at the overall average income instead of looking at the income of the lower income groups;

2. use of an inappropriate deflator;

3. use of family income instead of per capita income as indicator for analyzing poverty; and

4. inadequate understanding of what GRDP really is and its coverage.

It is hoped that users of poverty statistics will carefully take note of the points raised to avoid further confusion and misinterpretation of the poverty estimates.

For these notes, inquiries may be made with Ms. Redencion M. Ignacio or
Ms. Glenita V. Amoranto at telefax number (632) 896-7981 or at their
e-mail addresses rm.ignacio@nscb.gov.ph / gv.amoranto@nscb.gov.ph.