TANJAY HIGH SCHOOL (LEGISLATED)

                          

              

THE EFFECTS OF POVERTY ON PEOPLE

                                                 

                                                   

                                                 ARIANNA J. BAQUERO                            

                                                      MAY 31, 2022

                                                 AILEEN BORROMEO

 
Abstract

  As poverty incidence rates are increasing in the Philippines, it is important to investigate

the reasons, causes, and effects of this. Investigating people's experiences of poverty is one of the
main objectives of this study.

    Like many other social issues, poverty also causes a lot of misfortune to everybody.
Malnutrition is an example of its effects.

   WHO defines malnutrition as "the cellular imbalance between the supply of nutrients and
energy and the body's demand for them to ensure growth, maintenance, and specific functions".

   Malnutrition is the condition that develops when the body does not get the right amount of the
vitamins, minerals, and other nutrients it needs to maintain healthy tissues and organ function. 

   The solutions to solve poverty are to eliminate malnutrition, greater access to education,
provide birth control to the poor, and conduct research and surveys on people’s health and more.

   This study will further discuss and prove certain things about poverty.

                                               

                                            

 
 Introduction

 Background of the Study

Poverty and inequality have been recurrent challenges in the Philippines and have again
come to the fore in the wake of the current global financial crisis and rising food, fuel, and
commodity prices experienced in 2008. The proportion of households living below the official
poverty line has declined very slowly and unevenly in the past four decades, and poverty
reduction has been much slower than in neighbouring countries such as the People’s Republic of
China (PRC), Indonesia, Thailand, and Viet Nam. The growth of the economy has been
characterized by boom and bust cycles, and current episodes of moderate economic expansion
have had limited impact on poverty reduction. Other reasons for the relatively moderate poverty
decline include the high rate of inequality across income brackets, regions, and sectors; high
population growth rates; and perennial occurrences of disasters and longstanding conflicts in
various regions, especially in Mindanao.

After years of recognizing poverty as a key development problem and devising various
strategies and programs for its reduction, the government is still confronting high levels of
poverty and hunger among its citizens. Long and persistent periods of high poverty may harm a
country’s development path as poverty itself becomes a drag to economic growth.

In addition to the slow decrease in poverty incidence, there has been mixed progress in
addressing human development concerns, particularly outcomes in education and health. The
government has committed to achieving the Millennium Development Goals (MDGs) through
pro-poor sustained economic growth as reflected in the Medium-Term Philippine Development
Plan (MTPDP) 2004–2010. However, efforts to meet the MDGs and reduce poverty and
inequality are constrained by weak implementation of reforms, financing gaps and leakages,
coordination failure, and governance concerns.

The current global financial crisis has started to affect the domestic economy as growth
slowed to 4.6% in 2008 from a high of 7.2% in 2007. Exports have continued to decline while
the growth rate of remittances, the economy’s lifeline, wills likely slowdown in 2009. Efforts to
protect the poor from the crisis and further reduce poverty must remain an important priority, as
the number of vulnerable sectors of the economy will increase if the crisis deepens. The
government has laid out the Philippine Economy Resiliency Plan, a P330 billion stimulus
package consisting of increased allocations for national agencies and government, corporate, and
financial institutions for infrastructure spending, corporate and individual tax breaks, and social
protection and safety nets intended to protect the poor from the impact of the crisis.

One of the greatest challenges that the Philippine government is facing right now is
finding a solution that would solve the problem of poverty in the country. That's why the
Philippine government has been implementing various programs to reduce or solve the problem
by targeting education, healthcare, and the economy.
     Poverty is the number one reason why most of the citizens in the country are struggling,
whether it is about health or finances. Poverty is also the main cause of malnutrition,
homelessness, crime and thievery, hunger, poor sanitation, etc.

But what is the reason why there is poverty?

    The main causes of poverty are unemployment, a rapidly rising population, inequalities in
income distribution, and lack of access to productive resources, basic social services, and more.

Researchers Questions:

· How poverty impacts economic growth?

· What are the effects of poverty on education?

· How to solve poverty?

Null Hypothesis

According to jica.go.ip, the poverty rate in the Philippines in the year 2010 was 17%,
down from 34%. While According to mb.com.ph, the Duterte administration aimed to end
poverty by 2022, with a poverty rate of 15.5% to 17.5%. And to back it up, according to
business.inquirer.net, the current poverty rate in the Philippines is 15 to 17%. So this shows that
there is no significant difference between the two years of poverty rates.

Objectives of the study

This research aims to find out the following: the number of people experiencing poverty
in the country; the people's experiences; government solutions; and the top places in the country
with high poverty problems. This research also intends to help and inform everybody about
poverty.

Environment

Poverty is a major cause and effect of the country's environmental problems, like air
pollution and water pollution. Also, poverty causes people to put relatively more pressure on the
environment, which results in improper human waste disposal, leading to unhealthy living
conditions, more pressure on fragile land to meet their needs, overexploitation of natural
resources, and deforestation.

Further research on chronic poverty is needed. There are very few micro studies on

chronic poverty and how the poor escape poverty traps.
Scope/Respondents

   As we all know, the poorest city in the Philippines is Metro Manila. A 2014 article states that
Manila has an estimated 4 million people living in slums, out of a total population of 21.3
million. However, Metro Manila is not alone, as the A 2013 article mentions the 15 poorest
provinces, and those are Lanao del Sur, Apayao, Eastern Samar, Negros Oriental, Maguindanao,
Zamboanga del Norte, Davao Oriental, Ifugao, Sarangani, Masbate North Cotabato, Northern
Samar, Bukidnon, Lanao del Norte and Sultan Kudarat.

Definition of Terms

As reported by the Philippine Statistics Authority (PSA). The poverty incidence among
the population in 2015, or the proportion of poor Filipinos, was estimated at 23.3 percent (up
from 21.6 percent in October 2016). This translates to 23.5 million Filipinos (from 21.9 million)
who lived below the poverty threshold estimated at PHP 9,452 (from PHP 9,064), on average,
for a family of five per month in 2015. And in year 2021, the PSA reported that the 2021 first
semester poverty statistics showed that the poverty incidence among the population increased to
23.7 percent during the first half of 2021 from 21.1 percent in the same period of 2018. This
translates to 3.9 million more Filipinos living in poverty.

Methods

    This study provides an investigation of the questions of what, why, and how about
poverty. I used secondary data analysis to gather information and survey results for this study.
Secondary data analysis is a research method that involves analyzing data collected by someone
else. I began my research by gathering data related to my topic and searching for answers to
questions such as: what are the causes and effects of poverty?, why is there poverty?, and how to
solve poverty? These questions allowed me to take and gather information about poverty.
Review of Related Literature

     The following related literature cited on this page is several pieces of information and
ideas that would help us enhance our knowledge about poverty.

Effects of Poverty in the Philippines

· Malnutrition

   The hunger situation is alarming. Every day, 95 children in the Philippines is from
malnutrition. Twenty-seven out of 1,000 Filipino children do not get past their fifth birthday. A
third of Filipino children are stunted or short for their age. Stunting after 2 years of age can be
permanent, irreversible and even fatal (UNICEF Philippines, 2014).  The main reasons why
hunger is worsening, is the people's lack of income to buy food.

· Child Labour

   It is a work that harms children or keeps them from attending school. Working children in 2020
were estimated at 2.8 per cent of the 31.17 million children 5 to 17 years old (Philippine
Statistics Authority, 2021).

      Additionally, as child labour is associated with maternal illiteracy and poverty, children who
work are more susceptible to malnutrition, which predisposes them to various diseases (Ibrahim,
2019).

What are the effects of poverty on education?

   Poverty affects a child's school preparation by causing poor physical health and motor abilities,
reducing a child's capacity to concentrate and remember information, and decreasing
attentiveness, curiosity, and motivation.

How poverty impacts economic growth?

   The difficulties of the Philippines to transition to a higher and sustained level of growth have
been explained to be due to a sustained decline in domestic investments (Bocci 2008),
weaknesses in institutions and social infrastructure (Alba 2007), institutional uncertainty
(Pritchett 2003), and a history and culture that have impeded growth (Nelson 2007). However, it
is also possible that poverty itself is constraining economic expansion.

How to solve poverty?

· Provide clean water

· Ensure basic health care

· Improve childhood nutrition

 · Support environmental programs

The extreme of Poverty in the Philippines

· Inability to afford housing. With poverty plaguing the country and employment
opportunities being scares, many Filipinos are unable to afford housing, which puts them
in danger of turning to the streets for accommodation.

· Malnutrition in the Philippines.

· Crime and thievery

    After gathering information about poverty, the results of this related literature show that
poverty is not just a simple crisis that we could face, but a complex one.

Direct Quotations

    According to Nelson Mandela (Mandela,n.d.) "Overcoming poverty is not a task of

charity; it is an act of justice. Like Slavery and Apartheid, poverty is not natural. It is man-made
and it can be overcome and eradicated by the actions of human beings. Sometimes it falls on a
generation to be great. YOU can be that great generation. Let your greatness blossom."

    "We think sometimes that poverty is only being hungry, naked and homeless. The
poverty of being unwanted, unloved and uncared for is the greatest poverty. We must start in our
own homes to remedy this kind of poverty.” — Mother Teresa, Missionary and Saint (Teresa,
2007).

      But nevertheless the government is seeking to revitalize the economy by encouraging
both foreign and domestic investment and by restoring free-market forces. The Philippines faces
severe economic challenges: stability when approximately 52% of the population suffers from
debilitating poverty, and job creation for a rapidly expanding work force. Unemployment and
underemployment exceeds 30%. The nation must try to reverse the ecological deterioration of its
heavily populated rural sector while paying of its foreign debt (Todaro, n.d.).
Results on Discussions

Figure 1: Poverty rate in the country (comparison)

            Year         Percentage           Decrease

            2009      61.10%

            2011             49%               12.1

            2013             24.9%               24.1

            2015             21.6%                3.3

            2017             23.7%               none

            2019             20.8%               2.9

            2021             23.7%               none

Figure 1 shows that the poverty rate in the country from 2009-2021 is decreasing and
therefore shows that the country is improving in terms poverty.

Figure 2: Malnutrition rate in the Philippines (comparison)

         Year    Percentage       Decrease

2008 32%

2019 28.8% 3.2

2021 37.8% none

  Figure 2 shows that malnutrition in the Philippines from 2008-2021is increasing and that
it should be given attention.

 Figure 3: Child Labour in the Philippines

         Year    Percentage       Decrease

2019 3.4%

2020 2.8% 0.6

  Figure 3 shows that Child Labour in the Philippines is decreasing which is a good sign
that Filipinos are trying to change the history on Child Labour.
Conclusion

   

  Economic growth is the most powerful instrument for reducing poverty and improving
the quality of life in developing countries. Both cross-country research and country case studies
provide overwhelming evidence that rapid and sustained growth is critical to making faster
progress towards the Millennium Development Goals – and not just the first goal of halving the
global proportion of people living on less than $1 a day.

Growth can generate virtuous circles of prosperity and opportunity. Strong growth and
employment opportunities improve incentives for parents to invest in their children’s education
by sending them to school. This may lead to the emergence of a strong and growing group of
entrepreneurs, which should generate pressure for improved governance. Strong economic
growth therefore advances human development, which, in turn, promotes economic growth.

But under different conditions, similar rates of growth can have very different effects on
poverty, the employment prospects of the poor and broader indicators of human development.
The extent to which growth reduces poverty depends on the degree to which the poor participate
in the growth process and share in its proceeds. Thus, both the pace and pattern of growth matter
for reducing poverty.

A successful strategy of poverty reduction must have at its core measures to promote
rapid and sustained economic growth. The challenge for policy is to combine growth promoting
policies with policies that allow the poor to participate fully in the opportunities unleashed and
so contribute to that growth. This includes policies to make labour markets work better, remove
gender inequalities and increase financial inclusion.

Asian countries are increasingly tackling this agenda of ‘inclusive growth’. India’s most
recent development plan has two main objectives: raising economic growth and making growth
more inclusive, policy mirrored elsewhere in South Asia and Africa.

Future growth will need to be based on an increasingly globalised world that offers new
opportunities but also new challenges. New technologies offer not only ‘catch-up’ potential but
also ‘leapfrogging’ possibilities. New science offers better prospects across both productive and
service sectors. Future growth will also need to be environmentally sustainable. Improved
management of water and other natural resources is required, together with movement towards
low carbon technologies by both developed and developing countries. With the proper
institutions, growth and environmental sustainability may be seen as complements, not
substitutes. DFID will work for inclusive growth through a number of programmes and continues
to spend heavily on health and education, which have a major impact on poor people’s ability to
take part in growth opportunities.

More and better research on the drivers of growth will be needed to improve policy. But
ultimately the biggest determinants of growth in a country will be its leadership, policies and
institutions.
  Children from families with lower incomes score significantly lower on vocabulary,
communication skills, and assessments, as well as on their knowledge of numbers and
ability to concentrate. Furthermore, their counterparts in higher-income households
outperform them in studies, sports, and cooperative play. Students from low-income
families are more likely to leave school without graduating.

Poverty and lack of education is a big challenge being faced by the world, the
problem is low-income families don’t put their children in schools. Even if they want to
there are no proper schools available. Government schools do not provide quality education
and children who attend these schools end up doing menial jobs. Low-income families are
less likely to be able to afford proper nutrition and sometimes lack day-to-day necessities at
home. With little financial education and low-earnings, these families might have to send
their children to school without breakfast or lunch. A study shows that not eating enough
reduces the brain's capacity to learn, and students who lack nutrition cannot perform as good
as their other classmates.

Students from impoverished family units tend to have lower levels of verbal and
thinking aptitude than their friends because their parents are less likely to read to them.
With longer working hours, lower levels of education, and fewer literary resources, such
parents are unable to give their kids the same level of attention and thus these children have
a limited vocabulary. Moreover, children from low-income families are not asked to find
solutions to problems or have ever received advice on how to handle difficult situations
before entering school.

There are scholarships and child education allowance for the poor and most of them
receive it. But scholarships are not available to everyone. Poverty affects their learning
process, and most students born into poverty live in a bad environment. The environment is
one of the factors that shape attitude, and a bad attitude would burden the learning process.
People born into more fortunate families would have better access to education; they don’t
need to worry about expenses, and are able to get more education by hiring tutors or buying
books to learn by themselves.

Most parents in slums don’t understand the importance of education and are reluctant
to send their children to school. Some parents don’t have sufficient finances to educate their
children, even if they do they send their kids to government schools, and the quality of
education is not as good, and sometimes they have a single classroom and one teacher for
separate standards to teach both of them at the same time.

Poverty in India has increased to such an extent that these children are stuck in a
vicious cycle, even if they do finish their primary education, they later drop out of school
and start doing menial jobs which again leads to poverty.

A factor of systemic poverty is a lack of access to education in impoverished areas.

People gain basic skills and increased job opportunities through education, which can help to
combat poverty in the Philippines. Therefore, the Philippines signed the Universal Access to
Quality Tertiary Education Act in 2017 to encourage more people to enrol in higher education
and to address the issue of education inequality. The government subsidizes the cost of tuition
for State Universities and Colleges (SUCs) students as well as other expenses such as school
supplies. Private institutions also have access to a tuition subsidy. The Act aims to decrease the
number of dropouts in higher education and promote the idea that higher education is available
to all.

In an effort to improve the healthcare system, President Duterte signed the Universal

Healthcare Act in February 2019. The UHC Act provides access to the full spectrum of
healthcare by enrolling citizens in the National Insurance Program and granting health coverage
to all. While healthcare is not completely free, those in poverty will have more access to health
services. To ensure the effectiveness of healthcare, the Act will form the Health Technology and
Assessment Council (HTAC). The Council will consist of health experts who will assess health
developments, such as technology, vaccines and other advancements. Additionally, the
Philippines will allocate more funds to Phil Health, which will improve the quality of service and
lower the cost of medicine.
 With the goal of reducing poverty by strengthening economics, President Duterte signed
the Rice Tariffication Law in February 2019, amending the Agricultural Tariffication Act of
1996. The Law places a 35% tariff on imported rice with the goal of prioritizing local rice
production for the population by stabilizing the supply. The tariff also aims to benefit local
farmers by creating a more efficient and competitive agricultural system.

 
References

Adams, R (2002) Economic Growth, Inequality and Poverty: Findings from a New Data Set,
Policy Research Working Paper 2972, World Bank

https://www.oecd.org/derec/unitedkingdom/40700982.pdf

Kudroli Foundation (2019) Effects of Poverty in Education, Saleh Centre, Cunningham Road
Bangalore

https://www.kudroli.org/blogs/how-does-poverty-affect-education#:~:text=Children%20from
%20families%20with%20lower,%2C%20sports%2C%20and%20cooperative%20play.

Zoë Nichols (2020) Combating Poverty in the Philippines

https://borgenproject.org/poverty-in-the-philippines-3/#:~:text=Greater%20Access%20to
%20Education%3A%20A,combat%20poverty%20in%20the%20Philippines.