The chapter discusses the role of public policy in reducing poverty, emphasizing the importance of fostering conditions for pro-poor growth and providing safety nets for those who cannot benefit from such growth. It highlights that the highest incidence and severity of poverty are often found in rural areas, and migration to towns is a common but uncertain route out of poverty. The authors argue that policies should aim for neutrality rather than bias against either the rural or urban informal sectors. They also emphasize the need for good data and measurement to identify effective public actions and suggest that interventions should improve the distribution of benefits from social services and safety nets. The chapter concludes by discussing the historical evolution of economic thought on poverty and the challenges and successes of various anti-poverty policies.The chapter discusses the role of public policy in reducing poverty, emphasizing the importance of fostering conditions for pro-poor growth and providing safety nets for those who cannot benefit from such growth. It highlights that the highest incidence and severity of poverty are often found in rural areas, and migration to towns is a common but uncertain route out of poverty. The authors argue that policies should aim for neutrality rather than bias against either the rural or urban informal sectors. They also emphasize the need for good data and measurement to identify effective public actions and suggest that interventions should improve the distribution of benefits from social services and safety nets. The chapter concludes by discussing the historical evolution of economic thought on poverty and the challenges and successes of various anti-poverty policies.