Issues on Counting the Poor

A credible poverty measurement system is essential in order to develop the proper policy instruments for reducing poverty. Hence, the measurement and analysis of poverty statistics should be done with due care. This Notes discusses the steps--and issues--attendant to it.poverty measurement, poverty reduction, poverty statistics

Household Vulnerability to Income Poverty

This Notes calls for the need to regularly come up with household vulnerability measurements and trends in the Philippines, in addition to official poverty measures, for purposes of guiding policy on poverty concerns. It argues that given the results of the vulnerability model that it used in its study, it becomes prudent for the government to incorporate not just alleviation efforts in its poverty reduction strategies but also prevention programs. Read more.vulnerability, poverty

Assessing the Resilience of ASEAN Banking Systems: The Case of the Philippines

Since the global financial crisis in 2008/09 there has been heightened concern about the resilience of banking systems in Southeast Asia. This paper proposes a methodology that uses a macroprudential perspective to assess the resilience of banking systems in member countries of the Association of Southeast Asian Nations. It then proceeds to apply this methodology to examine the resilience of the Philippine banking system. Data on financial soundness in the Philippine banking system are utilized in a vector autoregression model to study the dynamic relationships that exist among financial and macroeconomic indicators. Using impulse response functions, a simulation of financial ratios in the banking system is conducted by assuming unlikely but plausible stress scenarios to determine whether banking system credit and capital could withstand the impact of such circumstances. In the stress scenarios, the estimated impact of macroeconomic shocks on nonperforming loan and capital adequacy ratios is generally minimal. The results, however, do suggest that the Philippine banking system has some vulnerability to interest rate and stock market shocks. The results of such stress testing provide a better understanding of the level of preparedness required for managing risks in the financial system, especially in the wake of continuing global economic uncertainty.Banking System; Macroprudential; Stress Testing; Philippines; Panel VAR

Ensuring a More Evidence-based Policy for Basic Education

Can the Philippines achieve its goal on two key international commitments--the Millennium Development Goals (MDGs) on Education and the Education for All (EFA) Initiative--for the achievement of education for everyone? A closer look at the figures would show that the country may be at risk of not achieving its goal of attaining universal primary education by 2015. Given this scenario, the authors suggest that the government should intensify its efforts in improving basic education by having evidence-based policies and actions. In particular, they note that the Department of Education (DepEd) should be required to have a sound monitoring and evaluation system to regularly assess the conditions of basic education.basic education, millennium development goal (MDG), education indicators, monitoring and evaluation

Examining Recent Trends in Poverty, Inequality, and Vulnerability

Despite the many propoor policies, programs, and projects instituted, the country's gains in the fight against poverty have still been modest. This Note explains why and recommends that a comprehensive roadmap for economic development and poverty reduction based on analysis of historical trends and on a specific identification of goals and targets has to be drawn up.vulnerability, poverty, inequality, poverty reduction, Philippines

A Macroprudential Framework for Monitoring and Examining Financial Soundness

This paper describes concepts and tools behind macroprudential monitoring, and the growing importance of macroprudential tools for assessing the stability of financial systems. This paper also employs a macroprudential approach in examining financial soundness and identifying its determinants. Using data from selected developing economies in Asia, South America, and Europe, as well as selected economies from the developed world, panel regressions are estimated to quantify the impacts of the major influences on key financial soundness indicators, including capital adequacy, asset quality, and earnings and profitability.Macroprudential; banks; banking crises; banking regulation; banking supervision; stress testing; early warning system

Estimation of the Food Poverty Line

To monitor changes in absolute poverty across time, it is crucial to ensure that the established poverty line is a fixed standard of living that represents the minimum standard required by an individual to fulfill his or her basic food and nonfood needs. Typically, the food (component of the) poverty line is set with the cost of basic needs method, which entails determining the price of some nutritional benchmark through an artifice. In the Philippines, the official food poverty line is estimated at urban and rural areas of each province by using a one-day food menu as the artifice. These menus satisfy energy, and other nutrient requirements. We review the issues raised on this methodology, including the nutritional benchmarks, and propose an alternative approach for estimating the food poverty line using a representative food basket (and some spatial price indices to adjust for differences in cost of living). The proposed methodology addresses issues on consistency raised against the current official approach for setting food poverty lines

In Pursuit of Sex Parity: Are Girls Becoming more Educated than Boys?

One of the Millennium Development Goals (MDGs) is the elimination of gender disparity in primary and secondary education. Global initiatives toward this end have mostly been to bring the benefits of education closer to girls so that the gap between them and boys may eventually close. In the Philippines, however, mounting evidence points to a reversed direction of the gender disparity. Are our boys falling behind on education? Why? Read more.education, millennium development goal (MDG), education indicators, Education for All (EFA), sex parity

Assessing the Resilience of ASEAN Banking Systems: the Case of the Philippines

Since the global financial crisis in 2008/09 there has been heightened concern about the resilience of banking systems in Southeast Asia. This paper proposes a methodology that uses a macroprudential perspective to assess the resilience of banking systems in member countries of the Association of Southeast Asian Nations. It then proceeds to apply this methodology to examine the resilience of the Philippine banking system. Data on financial soundness in the Philippine banking system are utilized in a vector autoregression model to study the dynamic relationships that exist among financial and macroeconomic indicators. Using impulse response functions, a simulation of financial ratios in the banking system is conducted by assuming unlikely but plausible stress scenarios to determine whether banking system credit and capital could withstand the impact of such circumstances. In the stress scenarios, the estimated impact of macroeconomic shocks on nonperforming loan and capital adequacy ratios is generally minimal. The results, however, do suggest that the Philippine banking system has some vulnerability to interest rate and stock market shocks. The results of such stress testing provide a better understanding of the level of preparedness required for managing risks in the financial system, especially in the wake of continuing global economic uncertainty