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updated: 13 March, 2007
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Rural poverty in the Philippines

About half the population of the Philippines is rural, and agriculture is the primary and often only source of income for rural poor people. Poverty is most severe and most widespread in rural areas, where almost 80 per cent of the country’s poor people live. Most of them depend for a livelihood on subsistence farming and fishing. In general, illiteracy, unemployment and the incidence of poverty are higher among indigenous peoples and people in the upland areas of the Philippines. Overall, more than one out of three people in the Philippines lives in poverty.

Who are the rural poor in the Philippines?

The poorest of the poor are indigenous peoples, small-scale farmers who cultivate land received through agrarian reform, landless workers, fishers, people in upland areas, and women in all categories.

Where are they?

Despite progress in reducing the overall level of poverty in the country, disparity among regions is increasing and the poverty gap between urban and rural areas is widening. Since 1990, urban poverty has dropped by 14 per cent while rural poverty has decreased by only 4 per cent. Among the regions that have seen the largest increases in poverty are those in the southern island group, including the Autonomous Region of Muslim Mindanao and Region XII on Mindanao Island, and Bicol in the Visayas region. Rural people in Western Mindanao are among the poorest in the country.

Why are rural people poor in the Philippines?

The causes of poverty in rural areas in the Philippines vary widely from island to island. They include a decline in overall national growth, political instability and fiscal restrictions that have led to declining public services. Microentrepreneurs face a policy bias that favours large firms and capital-intensive industries, and a lack of relevant laws and administrative procedures. They lack access to investment and credit, to complete market information, and to opportunities to develop skills. In Northern Mindanao, for example, most rural poor people have limited assets. Most are landless, and some depend for their livelihood on work as tenant farmers or paid agricultural workers. For people living in rural areas, the lack of social infrastructure and services makes the effects of poverty even more acute.

Much agriculture in the Philippines is carried out at subsistence level. Because of the highly seasonal nature of agriculture, its vulnerability to price fluctuations and the generally low prices offered for raw products, agriculture cannot by itself make a substantial difference in levels of unemployment, underemployment and poverty.

Source: IFAD

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Philippines
capital: Manila
GNI per capita: US$530 - 1,250
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Geography, agriculture and the economy

Progress on the Millennium Development Goals:

Statistics
Total population (million), 2004:
81.6
Population density (people per km2), 2004:
273.7
Number of rural poor (million), 2004:
31.2
Poor as % of total rural population, 1997:
50.7
GNI per capita (US$), 2004:
1,170.0
Population living below US$1 a day (%), 2000:
15.5
Population living below US$2 a day (%), 2000:
47.5
Population living below the national poverty line (%), 1997:
36.8
Share of poorest 20% in national income or consumption (%), 2000:
5.4
Source: World Bank