This edition of Economic Perspectives, originally published in September 2001, has been updated and is being reissued to coincide with the March 2002 Financing for Development conference in Monterrey, Mexico. Revised articles are noted at the end of each piece. The percentage of the world's population living in poverty has declined sharply over the last several decades. Still, as total global population has climbed, the absolute number of poor has remained unchanged at nearly 1,200 million. The issue facing policy-makers is how to provide development assistance in a way that is both cost effective and directly benefits the poor. A common theme to the articles presented in this journal, "Addressing Global Poverty," is that external assistance will help alleviate poverty only in countries that have sound policies -- market-oriented mechanisms that encourage private investment, good governance, liberalized trade, and investment in human capital. Ultimately, the authors argue, poverty reduction must be driven by rising productivity, income gains, and increased economic growth. The countries most successful in reducing poverty, writes U.S. Secretary of the Treasury Paul O'Neill, are those that have adopted sound economic management, encouraged private investment and open trade, and promoted good governance and rule of law. O'Neill urges more focused and increased grants from the international financial institutions -- a theme also addressed by Carnegie Mellon University Professor Adam Lerrick, who contends that a shift to more grants would not deplete World Bank resources, as some critics of the idea have charged. Food security and alleviating hunger hinge, among other things, on defining property rights for small-scale farmers, on technology, and on providing social safety nets to the most vulnerable groups, says U.S. Secretary of Agriculture Ann Veneman. Cato Institute economist Ian V��quez also highlights the property rights issue, as well as the correlation of economic freedom with poverty reduction. Developing country participation in a new global round of trade negotiations that reduces barriers has tremendous potential to reduce living costs, discourage corruption, and lead to a better quality of life for the poor, writes U.S. Under Secretary of State Alan Larson. IMF Managing Director Horst K��ler says poor countries need to develop the institutions and legal structures to borrow and lend safely, and get comprehensive support from the international community. Andrew Natsios, administrator of the U.S. Agency for International Development, says that to achieve United Nations' poverty reduction goals, aid resources should be and are being used more effectively. The journal includes contributions from John Sullivan, executive director of the Center for International Private Enterprise, on the importance of good governance and transparency in promoting development; David Satterthwaite of the International Institute for Environment and Development on why it is important to understand the differences between rural and urban poverty; and Georgetown University Professor Susan Martin on how workers' remittances are having a positive impact on developing country economies. The journal concludes with listings of poverty indicators and workers' remittances, additional readings, and key contacts and Internet sites, and a chart showing where and in which sectors development aid is spent. We hope the expert viewpoints represented in this issue of Economic Perspectives will help stimulate further discussion on global poverty reduction strategies.