NOTES

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1. See the evidence for Thailand, Indonesia, Vietnam and the Philippines in Pernia and

Deolalikar (2003).

2. In this chapter, the incidence, depth and severity dimensions of poverty are characterized

by the headcount index, poverty gap index, and the squared poverty gap, respectively.

The headcount index is simply the proportionate number of the population deemed

poor. The poverty gap index is defi ned by the mean distance below the poverty line as a

proportion of that line (where the non-poor are counted as having a zero poverty gap).

The distribution-sensitive measure is the mean of the squared proportionate poverty

gaps. This index incorporates a society’s ‘moderate’ aversion to poverty (see Foster et

al., 1984). The estimation employs per capita consumption expenditures as indicator of

living standard, and consistency-conforming provincial poverty lines given in Balisacan

(2001). Data sources are mainly the various Family Income and Expenditure Survey

rounds from 1985 to 2000.

3. Rural poverty indicators constructed from the Family Income and Expenditure Survey

for the 1980s are not comparable with those for the 1990s owing to the urban–rural

reclassification problem. The classification into urban or rural areas is based on

population density and the presence and quantity of public infrastructure facilities and

establishments. As the population grows and economic activity expands, an initially rural

area will be classifi ed as urban, sooner or later. While this may not be problematic for

purposes of measuring, say, urbanization trends, it tends to create a systematic upward

(downward) bias to urban (rural) performance indicators. Substantial reclassifi cation of

villages occurred between the 1980 and 1990 population censuses, though not between

the 1990 and 1995 censuses. Thus, when disaggregating by urban area, the only strictly

comparable years are 1985 with 1988, 1991 with 1994, and 1997 with 2000, since, for each

pair, the classifi cation (that is the sampling frame used) is based on the same census.

4. Cororaton (2004) fi nds that the net effect of the rice import quota operated by the NFA

is poverty-reducing; in other words the poor are net rice producers and gain more from

higher producer prices than they lose from higher consumer prices due to the operations

of the quota.

5. The latter set was constituted by fi rst ranking the provinces according to the poverty

incidence in 1997. The lowest poverty incidence observed for the original priority provinces

became the cutoff. This set was later subdivided into ‘treatment’ and ‘control’. Since

there were more provinces in the ‘control’ group, the ‘excess’ provinces were randomly

sampled out.

6. The other infrastructure variable, electricity, was found to be insignifi cant for the bottom

two quintiles and for all quintiles when interacted with schooling. It is possible that this

variable is a poor proxy for access to technology.

7. Another assessment of the social and economic benefi ts of rural electrifi cation in the

Philippines found substantial gains from increased and cheaper electricity (Barnes and

DomDom, 2002).

8. Inclusive of electric posts, wires and cables and distribution transformers. Cost estimate

is courtesy of GENMAR Power and Energy Systems, Inc.

9. REECS and Meganomics (2003) provide estimates of benefi ts from rural roads fi nanced

as part of the First Agrarian Reform Communities Development Project.

10. When the CARP started the target scope was 11 million hectares. Reyes (2002) uses panel

data from 1500 farm households to estimate benefi ts from land reform.

11. David (2003) describes the poor state of irrigation in the Philippines. Edillon and Velarde

(2004) present an analysis of the Agrarian Reform Communities Strategy that highlights

potential gains from irrigation.

12. He recommends that new systems should consist of 28 per cent shallow tube wells, 10

per cent small water impounding projects, 36 per cent national irrigation systems and 26

per cent communal irrigation systems.

13. Edillon and Velarde (2004) demonstrate high returns to education for the poor in the

Philippines.

14. Costs are based on Tan et al. (2000), whose estimated out-of-pocket expenses were infl ated

to refl ect 1997 prices.

15. The preferable approach is to report the benefi ts and costs to the poor, specifi cally,

alongside the overall benefi t–cost ratios. However, the interventions considered are highly

non-excludable, making it diffi cult to extract the cost of providing the good or service to

the poor and to the non-poor.