Poverty monitoring involves tracking progress over time in achieving results in terms of reduction in poverty and is an essential component of any poverty reduction strategy. It includes the following activities:

• Selecting Indicators to measure progress toward poverty reduction goals.

• Setting Targets to provide benchmarks against which performance can be judged

• Setting up Poverty Monitoring Systems to track progress towards achieving specific targets and inform policy-making for improved intervention.

• Running Statistical Systems to collect, analyze and deliver the data required to monitor poverty reduction.