SOME IDEAS ABOUT POVERTY REDUCTION

SOME IDEAS ABOUT POVERTY REDUCTION

For years, the government has relied on the Poverty Threshold Basket (PTB) method to measure poverty in the Philippines. This so-called "imaginary basket of goods" is a list of basic food and non-food items that a typical Filipino family would need to survive. However, it’s becoming increasingly clear that many items in this basket are outdated and no longer reflect the reality of how Filipinos live today.

Take landline telephone costs, for example. How many households still use landlines? Most Filipinos rely on mobile phones, yet cellphone load and internet access are not part of the imaginary basket. Instead, the basket still includes postage costs — a relic from a time when letters were the primary form of communication. These days, people communicate through email, Viber, Facebook Messenger, and other online platforms.

If the government wants to truly understand poverty, it should revise the basket to reflect modern necessities, including mobile data. Internet access is no longer a luxury; it's a lifeline. It connects people to job opportunities, educational resources, health information, and government services. It’s time to add cellphone load and internet costs to the PTB.

Another outdated assumption is that tap water is always safe to drink. The basket includes water costs, but does it account for the reality that many families are forced to buy expensive bottled water because they don’t trust the safety of what comes out of their taps? Likewise, while fuel and electricity are part of the basket, are the government’s calculations keeping pace with the relentless rise in energy prices? How often is the basket adjusted to reflect these price changes?

Beyond the basket, I believe it’s time to rethink how we measure poverty altogether. Many countries have already shifted to using the Multidimensional Poverty Index (MPI). Why not try it here? I’m not suggesting we abandon the PTB method entirely — but rather that we use both methods side by side.

The MPI approach goes beyond income and spending. It focuses on access — whether families have access to education, health services, clean water, decent housing, and stable employment opportunities. A family that gets free school supplies, free health check-ups, or discounted electricity through local government programs could be lifted out of poverty, even if their income remains low. This approach recognizes that poverty isn’t just about money — it’s about deprivation.

That’s why I keep repeating: Poverty reduction is not the same as poverty alleviation. The two are often confused, but they are fundamentally different.

  • Poverty alleviation means making poverty more bearable — by handing out financial aid (Ayuda), providing food packs, or subsidizing services. These measures are important, but they don’t lift people out of poverty.
  • Poverty reduction, on the other hand, means lifting people above the poverty line permanently by creating real opportunities for better income, stable jobs, and access to essential services.

Providing services and distributing cash assistance can ease suffering, but they don’t lower the poverty rate. They only make it slightly less painful.

In fact, it’s possible for a local government unit (LGU) to achieve zero poverty within its area. Curious how? Ask me how! It starts with understanding the difference between alleviation and reduction — and then building sustainable solutions that empower people to escape poverty, not just survive it.

If we’re serious about poverty reduction, it’s time for the government to update costs of the goods inside the imaginary basket, adopt the MPI as a parallel method, and most importantly, focus on real, long-term solutions that help families rise above the poverty line once and for all.

The road to zero poverty starts with a clear vision, modern tools, and the political will to move beyond short-term aid. Are we ready to take that first step?

Ramon Ike V. Seneres, www.facebook.com/ike.seneres
iseneres@yahoo.com, 09088877282, senseneres.blogspot.com

03-31-2025Top of Form

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