Thank you for visiting our new Covid-19 Poverty Monitor. To find out more about the project, visit our blog about the project.
Areas of concern for the poorest and potential impoverishment
Livelihoods remain generally dire, according to most of our respondents. New lockdowns in March 2021 had a big impact, primarily in Metro Manila and adjacent provinces due to a surge of Covid cases that drove hospitals into critical capacity. By April, other regions in Mindanao and the Visayas also had similar localised restrictions, as directed by the national government. These new lockdowns once again restricted travel, which heavily impacted the incomes of both producers and sellers in public markets and resulted in huge financial losses for some respondents and their respective communities.
These findings are consistent with a recent World Bank Study which indicated that as much as 80% of farm households interviewed reported a decrease in farm income since the beginning of the pandemic. Also, based on the enterprise survey conducted by the Asian Development Bank, in collaboration with the Philippine Department of Finance, 39.1% of those surveyed experienced severe bottlenecks due to the lockdown measures; 26.7% reported only minor bottlenecks; and 34.2% did not experience any bottlenecks.
“Our expenditures in producing the crops ran up to PHP40,000 (US$803.47), but the one-week lockdown prevented us from selling our produce. I had to throw away my atsal [bell peppers] produce because I was not able to sell them during the lockdown. Even in Manila, the demand for fresh produce has gone down. This low demand has reduced the prices of our crops significantly.” Male respondent, Soccsksargen region, Mindanao.
According to our small-scale farming respondents, there is a lower demand for agricultural produce. This has brought down the prices of crops and consequently affected the income of farmers. According to one respondent, the price of bananas has gone down from PHP15.00/kilo to PHP 8.00/kilo ($0.30/kilo to $0.16/kilo). According to their middleman, this is because the export of bananas has declined.
Buying ‘local’ creates new market opportunities: In other cases, livelihood opportunities increased as lockdowns were eased to normalise the economy. A number of respondents have expanded or started their own micro-enterprise to help supplement their household incomes. These enterprises are home-based in the villages which greatly helps those hesitant to venture into a town’s crowded central public market for fear of Covid-19 infection. Another reason points to the uptick in transport fares, which discouraged travel and directed people to buy goods from their neighbourhood vendors, even roving around to sell within the village.
“With my husband’s reduced salary, I had to find ways to augment our income since my allowance also from the city government is inadequate. I started selling rice and stewed vegetables which I am able to grow in our backyard. By selling these humble meals, we are able to earn PHP500 ($10.03) a day, good enough for us to buy our medicines, milk and oatmeal.” Female respondent, Soccsksargen region, Mindanao.
“My livelihood of selling fishball expanded to include egg sandwiches and hamburgers. The number of my customers increased because people prefer to buy from nearby stores than go to the market. They would rather use their money to buy food than to pay for transportation.” Female respondent, Bicol region.
“I can now bring out my tricycle four days/week with the lower level of community quarantine. This has improved our family income. We can now include meat in our meals.” Male respondent, Bicol region.
“My son stopped his tricycle service as income from there was doing badly. He is now employed in a small enterprise owned by his cousin, and he was also able to get a loan from an informal credit lender to put up this mini store. I never thought it would be this challenging to pay for our debt every month as most people buy on credit. I often have sleepless nights trying to figure out how to come up with our monthly payments.” Female respondent, Bicol region.
Income decline and expenditure increases still widespread: Most respondents observed that household expenditures have increased while income has decreased during the pandemic, an observation also found in Innovations for Poverty Action’s new study. There is a general perception that utility bills and food expenditures have increased as well as transportation costs, and the amount spent on mobile phones and internet access. Buying clothes, eating out and visiting relatives were on top of reduced discretionary expenses.
The statistics support this view with inflation continuing at 4.5% between March and May 2021. The food index is the largest contributor to inflation, with meat, particularly pork, reaching a record high of 57.7% inflation due to supply chain issues from the lockdowns and the continued outbreak of the African swine flu (ASF) (see table 1). Inflation at 4.5% was way above the government target of 2-4% and this time last year’s inflation rate of 2.1% (May 2020).
“Fares of tricycle service has gone up from PHP15 ($0.30) to PHP30 ($0.60) because fewer passengers can ride per trip in order to observe health protocol.” Male respondent, Soccsksargen region, Mindanao.
“All of [the supermarkets] have increased their prices since the pandemic.” Female respondent, Soccsksargen region, Mindanao.
In households living at subsistence level, a decrease in livelihood opportunities resulted in lower frequency and quality of meals served at home. Based on the Pinggang Pinoy (Filipino Plate) concept developed by the Food and Nutrition Research Institute, the recommended daily food intake includes 200g of rice, 200g of vegetables, 103g fruit, and 103g meat. Among the participants in this study with a household size of five, this daily food proportion adds up to a kilo of rice, a kilo of vegetables, half a kilo of fruit and half a kilo of meat that households living on subsistence level cannot afford.
“I am doing laundry services for just one household now. This has affected our daily food intake. Sometimes, we just eat twice a day and we can only afford to have fish two days a week. At other times, when our household budget is really tight, my children eat at relatives’ homes.” Female respondent, Bicol region.
“My wife works under a Job Order (JO) from a local government agency. A JO is a no work, no pay arrangement. When my wife experienced flu symptoms and had to be absent from work, our food budget was affected because of the number of days she did not get paid.” Male respondent, Bicol region.
Remittances: Two respondents reported that they have their lost income support from remittances provided by members of their family who are working overseas. The reasons for the current lack of job security among those working overseas include: (i) floating work status due to Covid-19 surge in foreign country destinations (e.g., Italy) until the health situation in these countries improves, and (ii) lower job opportunities. The report, Impacts of COVID-19 on Households in the Philippines (based on results of Round 1 of the Philippines COVID-19 Household Survey conducted last August 2020 by The World Bank Group, Philippine Department of Finance, Kagawaran ng., and Australian Aid.), about half of the households that usually receive remittances saw a decline in their receipts in August [2020] and 11% did not receive any remittances.
“My son who works as a seaman was sent home due to the high incidence of Covid-19 cases in Italy. Currently, he has no work. He is helping out on our farm while waiting for a call from the agency.” Male respondent, Soccsksargen region, Mindanao.
Unclear rules on claims for government assistance: The selection criteria for government support are unclear and questionable, according to some of the respondents. With the proposed third round of nationwide relief aid packages (Bayanihan 3), many respondents are hoping to be included as they attest that their conditions have continued to worsen with the pandemic. The Bayanihan 3 is the third stimulus package that would provide PHP401 billion ($8.5 billion) worth of relief aid packages and livelihood intervention programmes to help the populace recover from the pandemic.
Shame in claim-making was expressed by some respondents as a reason for failure to take up previous rounds of government assistance. This is mainly due to unclear information and direction. The targeting of beneficiaries and overall implementation of the Covid-related government assistance packages has been a perennial problem marred by capacity and information dissemination issues that were all observed even in the delivery of the first programme (Bayanahin 1) implemented in April 2020.
“I do not know if I can claim government benefits for my 21-year-old son who has special needs. I am ashamed to ask because I do not know who to approach.” Female respondent, Soccsksargen region, Mindanao
Another financial support mechanism mentioned by respondents is the PHP500 ($10.04) monthly pension given by the LGU to its senior constituents (60 years old and above) which is appreciated by the respondents across the participating sites.
Most respondents reported no changes in the frequency of meals per day since the last interview. Protein intake is still limited, often from the cheapest fish available or canned sardines. Some respondents reported buying on credit from neighbourhood stores while others borrowed from neighbours to maintain food intake. Rice remains an important food expense for all respondents. One respondent who now has additional income from cooking for a household still maintains the same lessened food expenditure or meal size since the start of the pandemic as she fears that “the worst has yet to come”. Similar observations were also found in a new study by Innovations for Poverty Action and the report Impacts of COVID-19 on Households in the Philippines (August 2020) found that about 70% of households reporting lower or no income ate less than usual; about 30% of these households experienced hunger, and about 15% have experienced not eating the whole day.
“We continue to buy on credit from our neighbor [store]…” Male respondent, Soccsksargen region, Mindanao.
Moreover, many respondents reported increased food prices on staple food. Four respondents supplemented their food expenses through kitchen gardening, which usually consists of root crops and vegetables.
“We budget our food expenses just so we can buy rice… We don’t feel full when we eat a dish with no rice.” Female respondent, Soccsksargen region, Mindanao General Santos.
“We eat fish. Pork meat is expensive.” Female respondent, Soccsksargen region, Mindanao
Access to health and health-seeking behaviours: Four respondents and/or other family members reportedly experienced flu symptoms in the last two to four months. These symptoms included cough, high temperature, temporary loss of sense of taste and loss of appetite. In most cases, the flu symptoms were treated with traditional homoeopathic remedies (such as herbal infusions of ginger and banaba), hilot (traditional healing massage) and self-medication. The reasons for not seeking medical advice included a fear of getting Covid-19 in clinics and hospitals and lack of money for medical consultations.
In another case of suspected Covid-19 symptoms, a respondent and her husband decided not to go to the hospital or report their condition for fear that they will be placed in the city’s quarantine facilities. As seniors, they reasoned that their conditions would get worse if placed in an unfamiliar environment. On the whole, many respondents reported avoiding consultations and routine check-ups for fear that their condition would be diagnosed as Covid-19.
“We suspected it was Covid-19 and so self-quarantined, took paracetamol and prayed. We thank God that we survived it... We didn’t report our condition to the authorities - we will get stressed if they will bring us to the quarantine facilities.” Female respondent, Soccsksargen region, Mindanao.
A respondent who reported flu symptoms during the first round of interviews was experiencing the same flu symptoms during the second interview. He continued going to work for as long as the flu symptoms were not noticed in the workplace, but he had already been absent from work for three days by the time of the second interview. His wife and two children caught the virus too and were unable to report for work or to accomplish their school worksheets. His eldest daughter, at 16 years old, was the one who went to the market and drugstore to buy their food and medicines. When his daughter was asked about her age by the guard at the entrance to the marketplace, she said she was 19 years old. This is because minors are still not allowed in public and commercial places (key informant, Daraga).
Lockdown prevented some respondents from taking trips to the health centre.
“The health centre was a sikad [tricycle] ride away, but there was no transportation available and my mother cannot walk anymore due to arthritis.” Female respondent, Soccsksargen region, Mindanao.
The case of four respondents shows the interrelatedness of health and income. An elderly couple with health problems have been unable to work and are reliant on financial help from their children, who are likewise hard-up on covering their basic needs, including food. One respondent with a lump in her neck, said the growth of the lump led her to give up her laundry services due to the discomfort and attention her condition drew from others.
“When my wife fell ill with flu symptoms, I was not able to offer tricycle services because I had to care for her. She was ill for around 10 days. This affected our family income.” Male respondent, Bicol region.
Vaccine uptake: One respondent expressed hesitancy in getting the Covid-19 vaccination. Among married couples, the wife is usually the one who is unwilling to get the vaccination while the husband is willing.
“I was never ill ever since I can remember; the vaccination might even make me ill.” Female respondent.
One older male respondent from the Soccsksargen region, Mindanao was not willing to have the vaccination because of news going around about the vaccine’s side effects. He was also unwilling to take the trip and join the long queue for a vaccination.
Among those who are willing to get the vaccination, their decision is based on the following: (i) information from a health worker on the health benefits of getting vaccinated, (ii) the vaccination will be a requirement for travel, and (iii) the vaccination will be part of work regulations. One respondent also suggested that the local government should hold meetings in the barangay [villages] so that people will be educated on the importance of the Covid-19 vaccines.
“We are encouraged to get a vaccination once it becomes available so that we can continue to join the queue of tricycle drivers at the terminal.” Male respondent, Bicol region
Problematic access to secondary education: In all households living at subsistence level, children were never asked to stop their schooling in order to work and supplement the family income. There is a general consensus that education is important as it could provide their children with better opportunities in life.
According to one respondent, the distribution of learning materials every week to elementary students is consistently provided because of the presence of schools in every barangay [village]. Even during periods of lockdown, the school is accessible to teachers and parents for pick-up and return of the weekly modules and activity sheets. However, because secondary schools cater to a bigger community and can be far from teachers’ and students’ homes, the materials cannot be provided during periods of strict lockdown and necessitate shifting to the online mode of learning delivery. However, the need for internet connectivity and for online gadgets disrupts the secondary education of those who do not have access to these requirements. According to the respondent, these requirements are not provided by the education department. Hence, consistency in the delivery of online education from secondary schools is mainly dependent on internet access and the ability to pay for the service; and the ability of households to secure online gadgets such as smartphones, laptops or tablets.
Restrictions in Soccsksargen and Bicol regions where informants were interviewed. See full outline of measures.
Coping strategies
Community support: Three respondents expressed that support from relatives has helped them cope with the negative impacts of the pandemic. Access to credit from CARD, a microfinance and lending organisation, is mentioned by many respondents as invaluable institutional support for coping with financial difficulties due to the pandemic.
Some respondents have also developed kitchen gardens mainly for daily household consumption purposes. One respondent shared that she and her household have an informal arrangement with their neighbour’s kitchen garden. She provides them with vegetable stems and seeds and helps them take care of the garden. In turn, the neighbours give them a portion of the harvested vegetables.
“Help from relatives is the only assured form of help in difficult times.” Female respondent, Soccsksargen region, Mindanao
“I am now unable to offer laundry services because the lump in my neck has grown from the size of an egg to the size of a child’s fist and I do not have the money for an ultrasound. So, one of my siblings with a good job as a saleslady provides us with food every day even though she has her own family.” Female respondent, Soccsksargen region, Mindanao
Green spaces: According to one respondent, the clean and green program of their province in the Bicol region diverted their attention away from unfavourable circumstances brought by the pandemic. The cleanliness and beauty in their surroundings brought renewed hope for the future especially in their community for having won the province’s barangay-level beautification program.
Casual work: The demand for day labour has also been mixed, with some respondents able to find new employment opportunities while some are still not able to find work. But overall, the labour shock experienced by unskilled manual workers is still prevalent, particularly in construction and service sector workers.
“Government gave a warning to our area on cutting trees for charcoal. So, I had to look for work somewhere else or I and my family would starve. I got this job in the city as a helper in a grocery store. I can’t say that our lives have improved since I left our village two months ago. I could have made more in farming, but the rat pestilence will not be over until after a year.” Male respondent Soccsksargen region, Mindanao.
“Since April this year, a family has asked me to cook for them 2-3 times a week. I get paid PHP200 ($4) every time I do this. And just last week (June 21), I was asked by a household to do their laundry every weekend which pays PHP200 ($4) per day. I’m happy for this turn of events, which helps me a lot for our expenses at home.” Female respondent, Bicol region.
Key external sources
To find out more about the impacts of Covid-19 on poverty in Nepal, please explore the following sources that were reviewed for this bulletin:
This project was made possible with support from Covid Collective.
Supported by the UK Foreign Commonwealth and Development Office (FCDO), the Covid Collective is based at the Institute of Development Studies (IDS). The Collective brings together the expertise of, UK and Southern-based research partner organisations and offers a rapid social science research response to inform decision-making on some of the most pressing Covid-19 related development challenges.
World Bank