The Causes of Poverty in the Philippines.

An Academic Essay by Alexis Zarate

of E1B

Submitted to:

Submitted on:
October 13, 2021
 Philippines, a country full of abundance in nature, people, and its seas, but what makes
Philippines unique? Is it its lifestyle? Culture? People? Or Economy? What makes Philippines
unique is despite its abundance, poverty is still present. Poverty is the state of one who lacks the
basic need to satisfy one needs (Britannica, 2020). This essay will be tackling the main causes of
poverty in the Philippines.

What are the main causes of poverty in the Philippines? The main causes of poverty are (1) Low
to moderate economic growth for the past 40 years, (2) Failure to develop the agricultural sector,
and (3) high levels of population growth.
First, low to moderate economic growth for the past 40 years. According to Asian Development
Bank (2009), the development of the economic growth of the country has been relatively slow
compared to other Asian countries, this issue is due to the lack of opportunities for quality
employment in sectors with the large number of the poor (p.39). Quality employment is a must
for the development of the economy of the country, as well to help the people that are suffering
under the poverty line, and decrease the poverty index.
Second, Failure to develop the agricultural sector. According to Asian Development Bank
(2009), The neglect of the agricultural sector for the past years have created a lack of interest from
investors due to the lack of certain policies, inadequate infrastructures, and institutional weakness
in improving agricultural activity (p. 43). The agricultural sectors has been the core of the
economic growth of the country, but due to negligence its has affected our economy greatly,
putting our farmers and economic sustainability on the edge.
Finally, the high level of population growth. Rapid changes in population have occurred in our
country lately, affecting our economic stability to its core, due to demands and the lack of supply
for the peoples needs. According to Asian Development bank (2009), If the Philippines have
managed its population growth to a lesser percentage than its average increase today, the average
income per capita would have increased greatly, and 3.6 million more people would have been
brought out in the poverty line (p. 45)

Therefore, data have shown that for the past 6 years, starting from 2014 that the country’s
poverty index have been increasing and decreasing constantly every year, with its peak during the
first semester of 2015 at 26.3% (PSA, 2016), and its lowest during 2018 with an average of 16.6%
(PSA, 2019). Data has also shown that most of the people suffering with poverty are farmers,
fisherman, and individuals residing in rural areas, along with the children (PSA, 2020).
References:

Asian Development Bank, A. D. B. (2009). Poverty in the Philippines: Causes, constraints and
opportunities. Asian Development Bank.

The Editors of Encyclopaedia Britannica, T. E. of E. B. (1998). Poverty. Encyclopædia

Britannica. Retrieved October 13, 2021, from https://www.britannica.com/topic/poverty.

Philippine Statistics Authority. (2016, March 18). Poverty incidence among Filipinos registered
at 26.3%, as of first semester of 2015 - PSA. Philippine Poverty Statistics. Retrieved
October 13, 2021, from https://psa.gov.ph/poverty-press-releases/nid/54225.

Philippine Statistics Authority. (2019, December 6). Proportion of Poor Filipinos was Estimated
at 16.6 Percent in 2018. Philippine Poverty Statistics. Retrieved October 13, 2021, from
https://psa.gov.ph/poverty-press-releases/nid/144752.

Philippine Statistics Authority. (2019, December 6). Farmers, Fisherfolks, Individuals Residing
in Rural Areas and Children Posted the Highest Poverty Incidences Among the Basic
Sectors in 2018. Philippine Poverty Statistics. Retrieved October 13, 2021, from
https://psa.gov.ph/poverty-press-releases/nid/162541.