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Factsheet RV-FS#04, Series of 2006 Did you know that . . . 23,551 families in Bicol were out of poverty in 2003? The poverty situation in the Bicol Region improved in 2003 with a 40.6 percent poverty incidence of families (comprising 383,625 families) compared to 45.3 percent (or 407,176 families) in 2000. While the 4.7 percentage points decline is higher than the 3.1 percentage point decline in poverty incidence at the national level, the Bicol Region however remains as the fourth poorest region after Caraga, Autonomous Region of Muslim Mindanao (ARMM) and Zamboanga Peninsula (Region IX). Poverty estimates are based on the Family Income and Expenditures Survey (FIES) conducted by the National Statistics Office (NSO) every three years.
The 40.6 percent poverty incidence of families in Bicol means that 40.6 percent of the total families in the region are considered poor while the remaining 59.4 percent of the families in the region are non-poor. Correspondingly, the proportion of poor persons to the total population is referred to as the poverty incidence of population. The latest estimates reveal that poverty incidence of population likewise improved from 52.6 percent in 2000 (based on 2000 revised estimates) to 48.5 percent in 2003. This means that in 2003, about 51.5 percent of the total population was considered non-poor compared to 47.4 percent in 2000. The 40.6 percent poverty incidence of families translates to 383,625 families in the Bicol Region comprising 9.5 percent of all the poor families throughout the country. On the other hand, the 48.5 percent poverty incidence of population translates to 2,332,719 individuals in the region and comprised 9.8 percent of all the poor individuals in the country. In both cases, the Bicol Region comes second to Region VI in terms of the highest percentage share of total poor individuals and families throughout the country. |
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In 2003, the food threshold in the Bicol Region was P8,379. During the same year, only about 73.4 percent of individuals and 79.7 percent of families in Bicol Region have incomes above this subsistence level. The rest were living below subsistence level or had incomes that cannot provide the basic food requirements called the food threshold. The food threshold is multiplied by a raising factor to provide for the
basic non-food components in order to determine the poverty threshold.
Non-food basic needs consist of fuel light and water, transportation and
communication, household operations, personal care and effects, clothing,
footwear and other wear, education, medical care, purchase of non-durable
furnishings, rent/rental value of occupied dwelling unit and house
maintenance and minor repairs. The raising factor is estimated from the
expenditure pattern of all FIES sample families whose incomes fall within
the upper and lower 10 percentile of the food threshold. |
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Annual Per Capita Poverty
Threshold, Poverty Incidence of Families and
Among provinces, Catanduanes is the most improved in terms poverty incidence. It had a 12.1 percentage points decline between 2000 and 2003. Catanduanes is also the province with the lowest poverty incidence at 31.8 percent in 2003 and the highest decline at 26.6 percent in the number of poor families between 2000 and 2003. Albay had the lowest poverty incidence among the region’s six provinces in 2000. Camarines Sur is the only province in the region that did not register a decline in the number of poor families in 2003. It posted, however, a 0.7 percentage point decrease in poverty incidence, the lowest among the Bicol provinces. This is because Camarines Sur is the province that exhibited the lowest increase in the number of non-poor families at 3.9 percent from 2000 to 2003. The other five provinces posted double digit increases in the number of non-poor families. The 6.5 percentage points decline in the poverty incidence of Camarines Norte (from 52.7 percent in 2000 to 46.1 percent in 2003) was enough to move the province out of the 10 poorest provinces in the country and settle at the 11th spot. Masbate likewise improved from being the poorest province in the country in 2000 to the third poorest province in 2003. It is however, the only province that has not moved out of the ten poorest provinces of the country since 1997. Source: National Statistical Coordination Board Date posted: August 16, 2006 |
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To better
understand the poverty situation, there is a need to know the various
concepts in estimating poverty. The inter-agency Technical Working Group (TWG)
on Poverty Determination of the National Statistical Coordination Board
(NSCB) determines the poverty threshold. The poverty threshold is the annual
per capita income required or the amount to be spent to satisfy basic food
requirements and other non-food basic needs. Most people refer to this as
the poverty line. In 2003, the annual per capita poverty threshold was
estimated at P12,379. This means that the average person in Bicol would need
at least P12,379 annually to satisfy basic food requirements and other
non-food basic needs. Thus, an individual whose per capita annual income is
below P12,379 is considered poor. This further means that a family of five
would need at least P61,895 annually in order not to be considered poor. The
proportion of these poor families/individuals to the total
families/individuals is referred to as the poverty incidence.
The food threshold is the annual per capita income required or the
amount to be spent to satisfy an individual’s basic food requirement. To
determine the food threshold, low-cost menus of food that are commonly eaten
and are generally available in each province are prepared. The food menus
meet 100% adequacy of the Recommended Dietary Allowance (RDA) for energy
(2,000 kilocalories) and 80% adequacy of vitamins, minerals and other
nutrients. The Food and Nutrition Research Institute (FNRI) prepared the
menus. The costs of these menus were determined using the prices obtained
from surveys of NSO and Bureau of Agricultural Statistics (BAS).