FACULTY OF BUSINESS
Campetic, Palo, Leyte, PH
Email: official@spsps.edu.ph
Website: www.spsps.edu.ph
POVERTY!
KNOWING THE FUNDAMENTALS!
CLASS OF 2024-2025
FACULTY OF BUSINESS
Campetic, Palo, Leyte, PH
Email: official@spsps.edu.ph
Website: www.spsps.edu.ph
Textbook Reference!
Cabudol, E. G. (2021). Economic
development (1st ed.). Rex
Bookstore..
FACULTY OF BUSINESS
Campetic, Palo, Leyte, PH
Email: official@spsps.edu.ph
Website: www.spsps.edu.ph
Learning Objectives!
•Define what poverty means in economic terms
•Identify different types of poverty (absolute, relative, urban,
rural and generational.)
•Recognize common signs and symptoms of poverty
FACULTY OF BUSINESS
Campetic, Palo, Leyte, PH
Email: official@spsps.edu.ph
Website: www.spsps.edu.ph
DEFINING POVERTY AND
TYPES OF POVERTY.
KNOWING THE FUNDAMENTALS!
CLASS OF 2024-2025
Understanding Poverty!
• In economic terms, poverty is a condition where
people lack the minimum amount of income
needed to achieve a basic standard of living. In the
Philippines, the Philippine Statistics Authority
(PSA) defines this through two key measures:
REFERENCES: Cruz, M. T., & Santos, R. B. (2021). Understanding Philippine poverty:
A comprehensive analysis (3rd ed.). University of the Philippines Press.
•
Understanding Poverty!
1. Food Poverty Line: The minimum income
needed to buy basic food needs to meet the
recommended energy requirement of 2,000
calories per person per day. Example: A family of
five needs at least ₱7,500 monthly just for food.
2. Poverty Threshold: The minimum income
required for both food and non-food basic
needs (housing, utilities, clothing, healthcare,
education). Example: A Filipino family of five
needs about ₱12,030 monthly (2023 data) to
meet basic needs.
REFERENCES: Cruz, M. T., & Santos, R. B. (2021). Understanding Philippine poverty:
A comprehensive analysis (3rd ed.). University of the Philippines Press.
•
Types of Poverty!
Income Poverty
Definition: When household earnings fall below the
official poverty line**.
Example:
•A family in Samar earning ₱8,000 monthly for a
family of six
•A tricycle driver in Manila earning ₱350 daily to
support five family members
REFERENCES: Cruz, M. T., & Santos, R. B. (2021). Understanding Philippine poverty:
A comprehensive analysis (3rd ed.). University of the Philippines Press.
•
Types of Poverty!
Poverty line***
Breaking this down further:
•Per person: around ₱2,406 per month
•Per day for the family: about ₱401
•Per person per day: about ₱80
The poverty threshold varies by region due to
different costs of living:
•Highest: National Capital Region (Metro Manila)
•Lower: In most rural areas and provinces
REFERENCES: Cruz, M. T., & Santos, R. B. (2021). Understanding Philippine poverty:
A comprehensive analysis (3rd ed.). University of the Philippines Press.
•
Types of Poverty!
Absolute Poverty
Definition: Severe deprivation of basic human needs
Example:
•Indigenous families in remote areas of Mindanao
without access to electricity, clean water, or
healthcare
•Families in mountain regions surviving solely on
subsistence farming
REFERENCES: Cruz, M. T., & Santos, R. B. (2021). Understanding Philippine poverty:
A comprehensive analysis (3rd ed.). University of the Philippines Press.
•
Types of Poverty!
Situational Poverty
Definition: Temporary poverty caused by specific
events or disasters
Example:
•Fishing families in Tacloban who lost livelihoods after
Typhoon Yolanda
•Farmers who lost crops due to drought or typhoons
•Families who became poor due to COVID-19 job
losses
REFERENCES: Cruz, M. T., & Santos, R. B. (2021). Understanding Philippine poverty:
A comprehensive analysis (3rd ed.). University of the Philippines Press.
•
Types of Poverty!
Chronic Generational Poverty
Definition: Long-term, persistent poverty passed
through generations
Example:
•Families in urban poor communities where multiple
generations have lived in informal settlements
•Rural farming families who have been tenants for
generations
REFERENCES: Cruz, M. T., & Santos, R. B. (2021). Understanding Philippine poverty:
A comprehensive analysis (3rd ed.). University of the Philippines Press.
•
Types of Poverty!
Urban Poverty
Definition: Poverty specific to city environments
Example:
•Families in Tondo, Manila living in informal
settlements
•Street vendors in Cebu City earning below minimum
wage
REFERENCES: Cruz, M. T., & Santos, R. B. (2021). Understanding Philippine poverty:
A comprehensive analysis (3rd ed.). University of the Philippines Press.
•
Types of Poverty!
Rural Poverty
Definition: Poverty in agricultural and remote areas
Philippine Example:
•Coconut farmers in Quezon earning seasonally
•Fishing families in remote islands of Mindanao with
limited access to markets
REFERENCES: Cruz, M. T., & Santos, R. B. (2021). Understanding Philippine poverty:
A comprehensive analysis (3rd ed.). University of the Philippines Press.
FACULTY OF BUSINESS
Campetic, Palo, Leyte, PH
Email: official@spsps.edu.ph
Website: www.spsps.edu.ph
SYMPTOPMS OF POVERTY.
KNOWING THE FUNDAMENTALS!
CLASS OF 2024-2025
FACULTY OF BUSINESS
Campetic, Palo, Leyte, PH
Email: official@spsps.edu.ph
Website: www.spsps.edu.ph
SYMPTOPMS OF POVERTY.
KNOWING THE FUNDAMENTALS!
CLASS OF 2024-2025
•
Poverty Symptoms!
General Symptoms:
1. Basic Living Conditions
2. Social and Economic Signs
3. Behavioral Indicators
4. Physical Environment
REFERENCES: Cruz, M. T., & Santos, R. B. (2021). Understanding Philippine poverty:
A comprehensive analysis (3rd ed.). University of the Philippines Press.
•
Poverty Symptoms!
1. Basic Living Conditions
Housing and Shelter
•Living in makeshift or dilapidated housing
•Overcrowded living spaces (multiple families sharing
small spaces)
•Lack of basic utilities (electricity, water, sanitation)
•Living in hazardous areas (near rivers, under bridges,
along railroad tracks)
Example: Families in Tondo, Manila living in shanties
made of salvaged materials
REFERENCES: Cruz, M. T., & Santos, R. B. (2021). Understanding Philippine poverty:
A comprehensive analysis (3rd ed.). University of the Philippines Press.
•
Poverty Symptoms!
1. Basic Living Conditions
Health Indicators
•Untreated illnesses due to lack of medical care
•Poor dental health
•Recurring preventable diseases
•Delayed growth and development in children
•Mental health issues from chronic stress
REFERENCES: Cruz, M. T., & Santos, R. B. (2021). Understanding Philippine poverty:
A comprehensive analysis (3rd ed.). University of the Philippines Press.
•
Poverty Symptoms!
2. Social and Economic Signs
Education
•Children missing school or dropping out
•Lack of school supplies
•Inability to participate in school activities
•Poor academic performance due to hunger or lack of
study materials
REFERENCES: Cruz, M. T., & Santos, R. B. (2021). Understanding Philippine poverty:
A comprehensive analysis (3rd ed.). University of the Philippines Press.
•
Poverty Symptoms!
2. Social and Economic Signs
Employment
•Unstable or informal employment
•Multiple low-paying jobs
•Child labor
•Dependency on daily wage earning
•No savings or emergency funds
Example: Parents working as street vendors while
their children sell sampaguita
REFERENCES: Cruz, M. T., & Santos, R. B. (2021). Understanding Philippine poverty:
A comprehensive analysis (3rd ed.). University of the Philippines Press.
•
Poverty Symptoms!
3. Behavioral Indicators
Financial Management
•Chronic debt
•Reliance on high-interest loans
•Pawning of assets
•No bank accounts or formal financial services
•Physical Signs and Stress
REFERENCES: Cruz, M. T., & Santos, R. B. (2021). Understanding Philippine poverty:
A comprehensive analysis (3rd ed.). University of the Philippines Press.
•
Poverty Symptoms!
4. Physical Environment
Community Signs
•Limited access to public services
•Poor road conditions
•Lack of garbage collection
•Absence of proper drainage systems
•Limited public transportation
REFERENCES: Cruz, M. T., & Santos, R. B. (2021). Understanding Philippine
poverty: A comprehensive analysis (3rd ed.). University of the Philippines Press.
•
Poverty Symptoms!
4. Physical Environment
Personal Appearance
•Worn-out clothing
•Limited personal hygiene products
•Lack of appropriate clothing for different weather
•Visible signs of malnutrition
REFERENCES: Cruz, M. T., & Santos, R. B. (2021). Understanding Philippine poverty:
A comprehensive analysis (3rd ed.). University of the Philippines Press.
FACULTY OF BUSINESS
Campetic, Palo, Leyte, PH
Email: official@spsps.edu.ph
Website: www.spsps.edu.ph
Comprehensive Anti-Poverty
Strategies in the Philippines:
Evidence-Based Approaches
KNOWING THE FUNDAMENTALS!
CLASS OF 2024-2025
Educational Interventions
1.Universal Access to Quality Education
•DepEd's K-12 Program implementation reaching 27.2 million
students in 2022
•Last Mile Schools Program serving 7,144 schools in
geographically isolated areas
•Alternative Learning System (ALS) benefiting 2.2 million out-of-
school youth since 2016 (Source: Department of Education
Annual Report, 2023)
Example: The Kariton Klasrum initiative by Dynamic Teen Company,
which brings education to street children in Metro Manila, has served
over 12,000 children since its inception. (Source: Dynamic Teen
Company Impact Report, 2022)
Economic Interventions
1.Employment Generation
•DOLE's TUPAD Program assisting 4.2 million informal sector workers
•DTI's Pondo sa Pagbabago at Pag-asenso (P3) Program supporting 250,000
micro-enterprises (Source: Department of Labor and Employment, 2023)
Example: The Negosyo Centers initiative has established 1,250 centers
nationwide, helping over 1.3 million MSMEs (Source: Department of Trade
and Industry, 2023)
Social Protection Systems
1.Direct Assistance
•4Ps Program covering 4.4 million households
•Social Pension for Indigent Senior Citizens reaching 3.8 million beneficiaries
(Source: DSWD Pantawid Pamilyang Pilipino Program Update, 2023)
Example: The Modified Conditional Cash Transfer (MCCT) program in BARMM
has reduced poverty incidence by 5% in participating communities (Source:
World Bank Philippines Poverty Assessment, 2023)
2.Community Development
•KALAHI-CIDSS benefiting 19,000 barangays
•Bottom-up Budgeting (BuB) implementing 14,000 local projects (Source:
DSWD KALAHI-CIDSS National Program Management Office, 2023)
FACULTY OF BUSINESS
Campetic, Palo, Leyte, PH
Email: official@spsps.edu.ph
Website: www.spsps.edu.ph
GROSS DOMESTIC PRODUCT
KNOWING THE FUNDAMENTALS!
CLASS OF 2024-2025
GDP (Gross Domestic Product)
Think of GDP as the total value of everything produced within the Philippines'
borders in a year, regardless of who produced it. This includes all goods and
services - from the rice grown in Central Luzon, to the services provided by
call centers in Manila, to the products manufactured in Calabarzon factories.
If a Japanese company like Toyota produces cars in their Philippine factory,
that counts toward Philippine GDP.
GNP (Gross National Product)
Now, imagine GNP as what's produced by Filipinos, regardless of where they
are in the world. GNP takes GDP and makes two important adjustments: it
adds money sent home by OFWs (Overseas Filipino Workers) and subtracts
profits that foreign companies operating in the Philippines send back to their
home countries. This is particularly important for the Philippines because
remittances from OFWs make up a significant portion of the economy.
Let's use a simple example to understand the difference:
Suppose a Filipino worker in Dubai sends home ₱100,000 in remittances,
while a Korean-owned factory in Cavite sends ₱50,000 in profits back to
Korea. These transactions would affect GDP and GNP differently:
•The Korean factory's production in Cavite counts in Philippine GDP
•The OFW's remittance adds to Philippine GNP
•The Korean company's profit transfer reduces Philippine GNP
GDP Deflator
The GDP deflator helps us understand the real growth of the economy by
accounting for price changes (inflation). Think of it as a tool that adjusts GDP
numbers to show true economic growth rather than just price increases.
For example, if the value of Philippine GDP increases by 10% in a year, but
prices also increased by 5%, the real growth (using the GDP deflator) would
show that the economy actually grew by about 5%. This helps policymakers
and analysts understand whether the economy is truly expanding or if the
growth is just due to inflation.
The formula is: GDP Deflator = (Nominal GDP ÷ Real GDP) × 100
GDP Deflator
The GDP deflator helps us understand the real growth of the economy by
accounting for price changes (inflation). Think of it as a tool that adjusts GDP
numbers to show true economic growth rather than just price increases.
For example, if the value of Philippine GDP increases by 10% in a year, but
prices also increased by 5%, the real growth (using the GDP deflator) would
show that the economy actually grew by about 5%. This helps policymakers
and analysts understand whether the economy is truly expanding or if the
growth is just due to inflation.
The formula is: GDP Deflator = (Nominal GDP ÷ Real GDP) × 100
Using these measures in our economy would:
•GDP helps track how much economic activity is happening within the
country, which is crucial for understanding economic growth and planning
infrastructure development
•GNP is particularly important for the Philippines because it captures the
significant impact of OFW remittances on the economy
•The GDP deflator helps the government and central bank (Bangko Sentral ng
Pilipinas) make informed decisions about monetary policy and economic
planning
