Abstract

The National Statistical Coordination Board (NSCB), through the inter-agency Technical Working Group on Poverty Determination, generates poverty statistics at national and regional levels. Interim estimates of poverty threshold and incidence that are produced for specific provinces are based on food threshold and incidence that are produced for specific provinces are based on food thresholds computed from their respective regional food baskets but costed at provincial prices. This study focused on refinements in the methodology for the province by coming up with food baskets for provinces of Region I. Low-cost and nutritionally-adequate three-day menus for urban and rural areas were prepared for each province by local nutritionists in consultation with the Food and Nutrition Research Institute. This was the basis for separate food thresholds for Ilocos Norte, Ilocos Sur, La Union and Pangasinan. Applying these food threshold, but the same procedure adopted by the NSCB in estimating the non-food component of poverty threshold, the study (NEDA I) came up with poverty thresholds and incidence rates which were higher than NSCB interim estimates. The study also proposed direct approach for the non-food component in poverty estimation, with inputs emanating from the provincial team in the same manner as that of the food component. A basket of non-food items was initially from the NSCB methodology which utilized the results of the National Statistics Office on percentages of food and non-food expenditure from the Family Income and Expenditure Survey. Further, the research team suggested further study on the applicability for various provinces of the 10 percentile food threshold groups of families in deriving income spent on food.