Philippines Poverty headcount ratio at $1.25 a day (PPP) (% of population)

Data:	Poverty headcount ratio at $1.25 a day (PPP) (% of population)
Year:	1960 - 2013
Country:	Philippines
Source:	World Bank (the information in this section is direct quotation from World Bank development data)
Series Code:	SI.POV.DDAY
Topic:	Poverty: Poverty rates
Short Definition:	0
Long Definition:	Population below $1.25 a day is the percentage of the population living on less than $1.25 a day at 2005 international prices. As a result of revisions in PPP exchange rates, poverty rates for individual countries cannot be compared with poverty rates reported in earlier editions.
Unit of Measurement:	0
Periodicity:	Annual
Base Period:	0
Reference Period:	0
Aggregation method:	0
Limitations and exceptions:	The World Bank's internationally comparable poverty monitoring database now draws on income or detailed consumption data collected from interviews with 1.23 million randomly sampled households through more than 850 household surveys collected by national statistical offices in nearly 130 countries. Despite progress in the last decade, the challenges of measuring poverty remain. The timeliness, frequency, quality, and comparability of household surveys need to increase substantially, particularly in the poorest countries. The availability and quality of poverty monitoring data remains low in small states, countries with fragile situations, and low-income countries and even some middle-income countries. The low frequency and lack of comparability of the data available in some countries create uncertainty over the magnitude of poverty reduction. The need to improve household survey programs for monitoring poverty is clearly urgent. But institutional, political, and financial obstacles continue to limit data collection, analysis, and public access. Besides the frequency and timeliness of survey data, other data quality issues arise in measuring household living standards. The surveys ask detailed questions on sources of income and how it was spent, which must be carefully recorded by trained personnel. Income is generally more difficult to measure accurately, and consumption comes closer to the notion of living standards. And income can vary over time even if living standards do not. But consumption data are not always available: the latest estimates reported here use consumption data for about two-thirds of countries. However, even similar surveys may not be strictly comparable because of differences in timing or in the quality and training of enumerators. Comparisons of countries at different levels of development also pose a potential problem because of differences in the relative importance of the consumption of nonmarket goods. The local market value of all consumption in kind (including own production, particularly important in underdeveloped rural economies) should be included in total consumption expenditure but may not be. Most survey data now include valuations for consumption or income from own production, but valuation methods vary.
Notes from original source:	0
General Comments:	0
Original Source:	World Bank, Development Research Group. Data are based on primary household survey data obtained from government statistical agencies and World Bank country departments. Data for high-income economies are from the Luxembourg Income Study database. For more information and methodology, please see PovcalNet (http://iresearch.worldbank.org/PovcalNet/index.htm).
Statistical concept and methodology:	International comparisons of poverty estimates entail both conceptual and practical problems. Countries have different definitions of poverty, and consistent comparisons across countries can be difficult. Local poverty lines tend to have higher purchasing power in rich countries, where more generous standards are used, than in poor countries. International poverty line in local currency is the international poverty lines of $1.25 and $2 a day in 2005 prices, converted to local currency using the purchasing power parity (PPP) conversion factors estimated by the International Comparison Program. Poverty measures based on international poverty lines attempt to hold the real value of the poverty line constant across countries, as is done when making comparisons over time. Since World Development Report 1990 the World Bank has aimed to apply a common standard in measuring extreme poverty, anchored to what poverty means in the world's poorest countries. The welfare of people living in different countries can be measured on a common scale by adjusting for differences in the purchasing power of currencies. The commonly used $1 a day standard, measured in 1985 international prices and adjusted to local currency using purchasing power parities (PPPs), was chosen for World Development Report 1990 because it was typical of the poverty lines in low-income countries at the time. Early editions of World Development Indicators used PPPs from the Penn World Tables to convert values in local currency to equivalent purchasing power measured in U.S dollars. Later editions used 1993 consumption PPP estimates produced by the World Bank. International poverty lines were recently revised using the new data on PPPs compiled in the 2005 round of the International Comparison Program, along with data from an expanded set of household income and expenditure surveys. The new extreme poverty line is set at $1.25 a day in 2005 PPP terms, which represents the mean of the poverty lines found in the poorest 15 countries ranked by per capita consumption. The new poverty line maintains the same standard for extreme poverty - the poverty line typical of the poorest countries in the world - but updates it using the latest information on the cost of living in developing countries. As a result of revisions in PPP exchange rates, poverty rates for individual countries cannot be compared with poverty rates reported in earlier editions. The statistics reported here are based on consumption data or, when unavailable, on income surveys. Analysis of some 20 countries for which income and consumption expenditure data were both available from the same surveys found income to yield a higher mean than consumption but also higher inequality. When poverty measures based on consumption and income were compared, the two effects roughly cancelled each other out: there was no significant statistical difference.
Development relevance:	Reducing extreme poverty is the first Millennium Development Goal. Monitoring poverty is important on the global development agenda as well as on the national development agenda of many countries. The World Bank produced its first global poverty estimates for developing countries for World Development Report 1990: Poverty (World Bank 1990) using household survey data for 22 countries (Ravallion, Datt, and van de Walle 1991). Since then there has been considerable expansion in the number of countries that field household income and expenditure surveys. The World Bank's Development Research Group maintains a database that is updated annually as new survey data become available (and thus may contain more recent data or revisions) and conducts a major reassessment of progress against poverty about every three years. PovcalNet is an interactive computational tool that allows users to replicate these internationally comparable $1.25 and $2 a day global, regional and country-level poverty estimates and to compute poverty measures for custom country groupings and for different poverty lines. The Poverty and Equity Data portal provides access to the database and user-friendly dashboards with graphs and interactive maps that visualize trends in key poverty and inequality indicators for different regions and countries. The country dashboards display trends in poverty measures based on the national poverty lines alongside the internationally comparable estimates, produced from and consistent with PovcalNet.

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