SUMMARY OF KEY FINDINGS

1. Economic growth did not translate into poverty reduction in recent years. While the country
experienced moderate economic growth in recent years, poverty reduction has been slow. The
quality of growth matters and persistent inequality mitigates the positive impact of growth on
poverty reduction. Chronic poverty is a concern, and poverty has become a major constraint on
the attainment of high levels of sustained growth and the overall development of the country.
The solution to poverty is thus of public interest. Benefits will not only accrue to those who get
out of poverty but also to society as at large.

2. Poverty levels vary greatly by regions. There are regions where poverty incidence has been
persistently high (Autonomous Region in Muslim Mindanao, Caraga, Region IV-B, Region V, and
Region IX). Regions with the most poor people include Regions V, VI, VII and IV-A. The rates of
poverty reduction also vary widely across regions.

3. Poverty remains a mainly rural phenomenon though urban poverty is on the rise. The
majority of the poor are still found in rural areas and in the agriculture sector. They are mostly
farmers and fishers. However, there is an increasing number of poor households in urban areas,
typically found in the informal sector.
4. Poverty levels are strongly linked to educational attainment. The heads of two of three poor
households have only reached elementary education and below.

5. The poor have large families, with six or more members. Population management will be
critical for an effective poverty reduction strategy.

6. Many Filipino households remain vulnerable to shocks and risks. This is highlighted by the
escalating conflict in Mindanao and the current global financial crisis. An effective poverty
strategy must incorporate social protection.

7. Governance and institutional constraints remain in the poverty response. Measures to

improve this must be an important focus of attention in formulating a revised government
strategy.

8. There is weak local government capacity for implementing poverty reduction programs.
Effective delivery of basic social services and poverty-related programs at the local levels will
hasten poverty eradication.

9. Deficient targeting in various poverty programs. This is often related to unreliable, inaccurate,
and untimely poverty information, especially at the local level, and partly due to poor governance
in terms of program design and implementation.
10. There are serious resource gaps for poverty reduction and the attainment of the MDGs by
2015. A collective approach to resource mobilization should be undertaken.

11. Multidimensional responses to poverty reduction are needed. The poverty problem is
multidimensional, and thus the response should be multiagency and multisector and involve
multiple stakeholders. Convergence has been the right approach and this must continue to be
practiced more effectively.

Key Findings, Recommendations, and Possible ADB Support 1

12. Further research on chronic poverty is needed. There are very few micro studies that examine
chronic poverty and how the poor escape poverty traps. These studies are important in the
formulation of more effective policies and programs.

Key Findings, Recommendations, and Possible ADB Support 2