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REPUBLIC OF THE PHILIPPINESHOUSE OF REPRESENTATIVES

Quezon City, Metro Manila

FIFTEENTH CONGRESSFirst Regular Session

House Resolution No. 9GO

Introduced by Kabataan Party-List Rep. Raymond V. Palatino

2 ARESOLUTION3 DIRECTING THE HOUSE COMMITTEE ON POVERTY ALLEVIATON TO4 CONDUCT AN INQUIRY, IN AID OF LEGISLATION, ON THE NEW POVERTY5 MEASUREMENT SCHEME APPROVED BY THE NATIONAL STATISTICAL6 COORDINATION BOARD WHICH SUBSTANTIALLY LOWERS THE7 OFFICIAL AVERAGE POVERTY THRESHOLD8

9 WHEREAS, the State has the responsibility to uplift the standard of living and10 quality of life of the poor and provde them with sustained opportunities for growth and1 1 development12 WHEREAS, Executive Order No. 121 mandates the National Statistical13 Coordination Board (NSCB) to "promote and maintain an efficient statistical system in the14 government" and "develop, prescribe and maintain appropriate framework for the15 improveme nt of statistical coordination";16 WHEREAS, the NSCB recently released official poverty figures based on17 adjustments on the recently-approved poverty estimation methodology. The NSCB18 announced that the 2009 incidence of poor families is 20.9 percent, while the old19 methodology would have put the incidence of poor families at 26 .3 percent;20 WHEREAS, based on the revised methodology in estimating poverty incidence in21 Philippines, the NSCB pegs the official poverty threshold, or the amount supposedly22 necessary for a tolerable standard of living, at just 4 6 pe sos per person per day in 20 0 9. This23 would mean that a Filipino on average needs only 46 pesos a day to meet all of his basic24 needs, which include food education, clothing and footwear, m edical care, transportation and

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25 communication, fuel, light and water, housing, housing maintenance, furnishing, household26 operations, personal care and effects and rental.27 WHEREAS, the new poverty threshold of 46 pesos per person per day is 6 pesos28 lower than the previous poverty threshold of 52 pesos per person per day using the old29 methodology. This places the number of poor Filipinos in 2009 to just 23.1 million. If the old30 methodology is to be used, the number of poor in the same year should have been 28.531 million. As such, the new methodology effectively decreases the number of poor Filipinos32 by 5.3 million without really improving the poverty situation;33 WHEREAS, the old methodology estimate is already a low estimate because3 4 it assumes that a Filipino needs just 52 pesos per day when in fact, prices of basic35 commodities and services continue to soar while wages remain stagnant;36 WHEREAS, the new method supposedly estimates a food bundle since some37 three-fifths of the income of the poorest half of the population is spent just on food.38 However, the estimates are based on a "least cost" food bundle, which, according to39 independent think-tank IBON Foundation, may not be available to most Filipinos.40 This bundle, the group adds, als8 relies on "revealed preference" which seems to41 mean that it reflected actual spending, but may be a pattern of spending not so much42 by choice but rather forced on Filipinos who adjust their spending according to their43 poverty;44 WHEREAS, the government will only be generating poverty estimates45 acording to the old and new methodologies for just three years, making poverty46 estimates over time even more incomparable aside from giving the impression that47 poverty has been markedly decreasing, states IBON. Furthermore, according to48 Social Weather Stations President Mahar Mangahas, the NSCB should develop a49 means of tracking poverty annually, if not more often.50 WHEREAS, while adjustments, refinements and improvements to scientific51 methodologies are indeed in order, the new methodology seem to be detached from52 the everyday realities that confront the vast number of Filipino poor today;53 WHEREAS, the need to develop a poverty measurement methodology that is54 responsive and reflective of the real situation of poor Filipinos is important especially55 since official poverty statistics play a key role in crafting and implementing poverty56 alleviation programs;

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57 WHEREAS, any change or adjustment in such benchmarks in order to58 combat poverty will only be unsubstantial and irrelevant if the structural roots of59 poverty remain unaddressed and relegated to the sidelines.6061 NOW THEREFORE BE IT RESOLVED, AS IT IS HEREBY RESOLVED,62 that the House Committee on Poverty Alleviation conduct an inquiry on the revised poverty63 measurement scheme approved by the National Statistical Coordination Board which64 substantially lowers the official average poverty threshold from 52 pesos per person per day65 to 46 pesos per person per day with a view to devise an official poverty estimation66 method ology that is truly reflective of the situation of the m illions of poor F ilipinos today.6768 Adopted,6970717273 RA . PALATINO74 Reprentative, Kabataan Party-list

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