POVERTY

A DARK SPOT IN HUMANITY

DEFINITION
OF
TERMS
5 WAYS TO DEFINE POVERTY:
o ABSOLUTE POVERTY
The World Bank defines extreme poverty as living on less
than U.S$1.25(PPP)/day.
It is also possible to establish an international poverty line
o MODERATE POVERTY
Which PPP/day is less then $2 a day.
oRELATIVE POVERTY
It views poverty as socially defined and dependent on social
context, hence relative poverty is a measure of inequality.
The poorbeing defined asthose who are deprived from the
benefits of a modern economy.
oULTRA POVERTY
A term apparently coined by Michel Lipton, connotes being
amongst poorest of the poor in low income countries.
Lipton defined Ultra poverty as receiving less than 80%
minimum caloric in take whilst spending more than 80% of
income in food.
oVOLUNTARY POVERTY
Among some individuals, such as ascetics, poverty is
considered a necessary or desirable condition, which

DEFINITION OF TERMS

oPOVERTY INCIDENCE
It is the number of
households having an
income below the poverty
threshold , to meet basic
food needs and non-food
needs such as clothing,
housing, transportation,
health, and education
expenses

o SUBSISTENCE INCIDENCE
It is the minimum income
required to meet basic food
needs and satisfy the
nutritional requirements set
by the Food and Nutrition
Research Institute (FNRI) to
ensure that one remains
economically and socially

oUNEMPLOYMENT
Condition of a person who
is able to work, is actively
seeking work, but is
unable to find any.
Statistics on
Unemployment are
collected and analyzed by
government labour offices
in most in countries
considered an important
indicator of economic
health.
oUNDEREMPLOYME-NT
An employment situation
that is insufficient in
some important way for
the worker, relative to a
standard.

CAUSES OF POVERTY
DIRECT CAUSES

Unemployment
Lack of food and
facilities
Excessive breeding
Debts
Lack of financial,
investing and shares
trading knowledge
Overspending
Access to education
and medicine
Catastrophes

PRIMARY CAUSES
Corruption
Labor standards
Lack of Control of Local
Resources
Lack of democracy in a country
Lack of inclusiveness
Insufficient Law and order
Limited property and personal
property rights
Not allowing businesses to keep
most of their profits

HISTORIC
AL
CAUSES

Colonialism
Slavery
War
Conquest

EFFECTS OF POVERTY
SOCIAL
High Infant Mortality and
Annual Death Rate
Increase in hygiene and diet
related diseases
Increased rate of homeless
people
Nation's tourism trade
Impact on the affected
childrens development, both
physically and mentally
Children from poorer
backgrounds lag at all stages
of education.

POLITICAL
Increased Crime
Rate
Increased risk of
war
Mass emigration
of population
Genocide
Terrorism

WORLD POVERTY STATISTICAL

UPDATES
Total Percentage of World Population that lives on less
than $2.50 a day

50%

Total number of people that live on less than $2.50 a day

3 Billion

Total Percentage of People that live on less than $1.25 a day

1 Billion

Total percent of World Populations that live where income

differentials are widening

80%

Total Percentage of World Income the richest 20% account for

75%

Total Number of children that die each day due to Poverty

22,000

Total Number of People in Developing Countries with

Inadequate Access to Water

1.1 billion

Total Number of School Days lost to Water Related Illness

Year
2013

443 million
school days

Ratio of People at Poverty to Wealthy Level

88 to 1

STATISTICAL UPDATES ON POVERTY

o The extreme poverty rate
ASIA
declined from
54.7% in 1990 to
o

20.7% in 2010, benefiting 745

million Asians.
Asias $1.25 poverty rate would
decline to 5.8% in 2020, 2.5% in
2025, and 1.4% in 2030, meaning
that extreme poverty could be
eradicated (below 3% poverty
rate) by 2025.
Adopting the $1.51 poverty line
raises Asias poverty rate in 2010
by 9.8 percentage points from
20.7% to 30.5%. This increases
the number of extreme poor by
343.20 million
The vulnerability-adjusted
poverty line adds about 11.9
percentage points to Asias
poverty rate in 2010, adding
417.99 million to those
considered extremely poor.

STATISTICAL UPDATES ON POVERTY

PHILIPPINES
o

Poverty incidence among

Filipinos in the first semester
of 2014 was estimated at 25.8
percent based on the 2014
APIS conducted in July 2014.
During the same period in
2013, poverty incidence
among Filipinos was recorded
at 24.6 percent
Subsistence incidence among
Filipinos, or the proportion of
Filipinos whose incomes fall
below the food threshold, was
estimated at 10.5 percent in
the first semester of
2014.This is at the same level
the first half of 2013.

POVERTY AND UNEMPLOYMENT

Unemployment and
poverty are the two
major challenges that
are facing the world
economy at present.
Unemployment leads to
financial crisis and
reduces the overall
purchasing capacity of
a nation.
This in turn results in
poverty followed by
increasing burden of
debt

It is true that
unemployment and
poverty are mostly
common in the less
developed economies.
However, due to the global
economic recessions, the
developed economies are
also facing these
challenges in the recent
times.
Mass migration from rural
to urban regions is adding
to the problems of
unemployment and
poverty.

POVERTY AND UNEMPLOYMENT

Poverty and unemployment
are two such things using by
which the politician dream to
win in vote. It is applicable in
districts as well as in the
countries- everywhere the
situation is the same.
Keeping the two problems as
political weapons, every
politician is busy in
pocketing benefits using it.
For this reason, terrorist,
human-bombers, unsocial
activities are being created.
As a result, the world now is
in target by the terrorists

SOURCES OF UNEMPLOYMENT
o CYCLICAL OR KEYNESIAN UNEMPLOYMENT, ALSO KNOWN
AS DEMAND DEFICIENT UNEMPLOYMENT, OCCURS WHEN
THERE IS NOT ENOUGH AGGREGATE DEMAND IN
THEECONOMY.
o STRUCTURAL UNEMPLOYMENT DUE TO SOME DYNAMIC
CHANGES IN A STRUCTURAL ORGANIZATION
o FRICTIONAL UNEMPLOYMENT DUE TO TEMPORARY
UNEMPLOYMENT OF WORKERS.
o CASES OF HIDDEN UNEMPLOYMENT WHERE WORKERS
RESTRAIN THEMSELVES FROM WORKING DUE TO ABSENCE
OF APPROPRIATE FACILITIES
o LONG-TERM UNEMPLOYMENT (SOCIAL EXCLUSION)
o NATURAL RATE OF UNEMPLOYMENT OR SUMMATION OF
FRICTIONAL AND STRUCTURAL UNEMPLOYMENT

WORLD UNEMPLOYMENT RATES DUE

TO POVERTY

WORLD UNEMPLOYMENT RATES DUE

TO POVERTY

WORLD UNEMPLOYMENT RATES DUE

TO POVERTY
YEAR

TOTAL
UNEM
PLOY
MENT
RATE

MALE
UNEM
PLOY
MENT
RATE

FEMA
LE
UNEM
PLOY
MENT
RATE

YOUT
H
UNEM
PLOY
MENT
RATE

2010

MALE
YOUT
H
UNEM
PLOY
MENT
RATE

FEMA
LE
YOUT
H
UNEM
PLOY
MENT
RATE

ADULT
UNEM
PLOY
MENT
RATE

MALE
ADULT
UNEM
PLOY
MENT
RATE

FEMA
LE
ADULT
UNEM
PLOY
MENT
RATE

6.1

5.8

6.5

12.9

12.6

13.3

4.6

4.3

5.0

2011

6.0

5.7

6.4

12.7

12.4

13.1

4.5

4.2

4.9

2012

6.0

5.7

6.4

12.9

12.6

13.3

4.5

4.2

4.9

2013

6.0

5.8

6.4

13.1

12.8

13.5

4.6

4.3

5.0

2014

6.1

5.8

6.5

13.2

12.9

13.6

4.7

4.4

5.1

ASIAS UNEMPLOYMENT RATES DUE

TO POVERTY (2014)
Area

TOTAL
UNEM
PLOY
MENT
RATE

MALE
UNEM
PLOY
MENT
RATE

FEMA
LE
UNEM
PLOY
MENT
RATE

YOUT
H
UNEM
PLOY
MENT
RATE

MALE
YOUT
H
UNEM
PLOY
MENT
RATE

ADULT
UNEM
PLOY
MENT
RATE

MALE
ADULT
UNEM
PLOY
MENT
RATE

FEMA
LE
ADULT
UNEM
PLOY
MENT
RATE

Sout
h
Asia

FEMA
LE
YOUT
H
UNEM
PLOY
MENT
RATE

4.0

3.7

4.8

10.4

10.1

11.0

2.5

2.3

3.3

East
Asia

4.7

5.3

3.8

10.5

12.1

8.5

3.7

4.3

3.1

Sout
hEast
Asia
and
the
Pacifi
c

4.3

4.1

4.4

13.3

13.1

13.5

2.3

2.2

2.5

PHILIPPINES
UNEMPLOYME
NT RATE

Unemployment Rate in
Philippines decreased to 6
percent in the fourth quarter
of 2014 from 6.70 percent in
the third quarter of 2014.
Unemployment Rate in
Philippines is reported by the
National Statistics Office of
Philippines.

PHILIPPINES
UNEMPLOYME
NT RATE

Among unemployed people,

65.2 percent were males. The
age group 15 to 24 years old
accounted for 49.4 percent of
total unemployed, while the
age group 25 to 34 accounted
for 30.2 percent.
By educational attainment,
21.6 percent were college
graduates, 13.5 percent were
college undergraduates, and
33.3 percent were high school
graduates.
Among regions, the National
Capital Region (9.8 percent),
Central Luzon (7.4 percent),
and Calabarzon (7.1 percent)
showed unemployment rates
higher than the national figure
(6.0 percent).

TOP 20 COUNTRIES WITH HIGHEST

UNEMPLOYMENT RATES DUE TO POVERTY

TOP 20 COUNTRIES WITH HIGHEST

UNEMPLOYMENT RATES DUE TO POVERTY

EMPLOYMENT INSTABILITY INREGIONS OF

THE PHILIPPINES
Philippine regions that boast relatively low levels of unemployment may
also suffer from relatively high incidences of poverty. And vice versa
regions with relatively high rates of unemployment may enjoy relatively
low levels of poverty.

REGIONAL STATISTICS ON UNEMPLOYMENT:

2013
TOP 5 REGIONS
1. NCR

10.3

2. CALABARZ
ON

9.2

3. Central
Luzon

8.7

4. Davao
Region

6.9

5. Western
Visayas

6.9

BOTTOM 5 REGIONS
1. Cagayan
Valley

3.2

2. Zamboang
a
Peninsula

3.5

3.
MIMAROPA

4.1

- Largely a problem of the

youth (48.5% of
unemployed in
2013)
- Rate more than twice the
national rate
- Educated workforce
(college graduates
at around one-fifth
of the
unemployed)

REGIONAL STATISTICS ON UNDEREMPLOYMENT:

2013
TOP 5 REGIONS

- More serious than

unemployment
problem (1 out of
5 employed is
underemployed;
its magnitude is 2x
the unemployed)
- Highly correlated with
poverty
- Variation most
pronounced across
regions (spatial)

1. Bicol
Region

37.3

2. Caraga

27.1

3. Northern
Mindanao

25.7

4. Eastern
Visayas

25.1

5.
MIMAROPA

23.4

BOTTOM 5 REGIONS
1. NCR

12.1

2. ARMM

12.4

3. Cagayan
Valley

12.9

4. Ilocos
Region

20.0

GLOBAL YOUTH UNEMPLOYMENT

RATE RISING
One of the reports major
findings is the worldwide
unemployment rate among 15 to
24-year-olds of 13 percent, or 74
million youths, is set to rise.
William Reese, CEO of the
International Youth Foundation,
thinks that figure is significantly
underestimated.
Im not surprised by that
number, because it is probably
much higher than they state.
Weve seen reports of over 70
million young people
unemployed, but the real
number is probably six or seven
times that, Reese

Rising unemployment and

sluggish economic growth
is predicted to further
widen income and wealth
inequality worldwide; the
richest 10 percent of the
world will hold 30 to 40
percent of total income,
while the poorest 10
percent will earn as little
as two percent.

 People must be united across, both

issue groups join hands in its
understanding on how this economic
system destroys and impoverishes.
The globalization of this struggle is
fundamental, requiring degree
solidarity and internationalism
unprecedented in world history.
This global economic system feeds on
social divisiveness between and
within countries.

A major thrust is
required which
brings together
social movements in
all major regions of
the world in this
issue and
commitment to the
elimination of
poverty &
unemployment and a
lasting world peace.

FIN
Submitted by :
o Bacabac, Catherine
o Buhayan, Carolyn
o Pabelico, Princess
Erica
o Reyes, Sarha
o Salarda, Jessa
o Serna, Cristina
MLS 2-D