The Philippines' poverty reduction rate of 0.47% per year is slower than those of neighboring Cambodia, Indonesia, the Lao People's Democratic Republic, Thailand, and Viet Nam. Among Southeast Asian nations, only the Philippines has recorded an increase in the absolute number of poor people since 1990.

The ADB-published study, Poverty in the Philippines: Causes, Constraints, and Opportunities, released today, cites the lack of quality employment for many poor people, especially in the agriculture sector, as the main reason for the relatively slow decline in poverty rates. Other reasons include inequality across income brackets, high population growth, natural disasters, and long-standing conflicts in various regions.

A more coordinated response to poverty will help the Philippines attain higher levels of sustained growth and bolster the country's overall development.

'Poverty reduction will not only benefit the poor themselves but society as a whole. It is in everyone's interest to make poverty reduction a priority,' said Camilla Holmemo, a Poverty Reduction Specialist in ADB's Southeast Asia Department.

The government has shown commitment to poverty reduction through a number of projects and programs. However, the transition to a higher and sustained growth has been hampered by low domestic investments, weaknesses in institutions and social infrastructure, and a failure to generate quality jobs for the poor.

The result, according to the latest official available statistics, is an increase in poverty incidence from 30% in 2003 to 32.9% in 2006, with one in five households living in chronic poverty. It is estimated that poverty rates have increased even further in the wake of the global economic crisis, external price shocks, and natural disasters in 2008 and 2009.

While gains have been achieved in meeting several of the Millennium Development Goals, the Philippines is trailing targets on access to primary education, maternal mortality rates, and access to reproductive health care.

'Chronic poverty jeopardizes the Philippines' chances of achieving high levels of economic growth needed to improve the wellbeing of all the country's people,' said Ms. Holmemo.

To improve the Philippines' campaign against poverty, there is a need to enhance current strategies and to involve a full range of partners for a collective and coordinated response.

The study shows that key priorities should include strengthened social protection, improved human development, more efficient population management, job creation, infrastructure investments, and continued economic reforms for sustained and inclusive growth, including fiscal reforms that can increase resources for social services, poverty reduction efforts, infrastructure, and agriculture reform.#