Montenegro has achieved impressive economic growth in recent years, which has created opportunities and brought about some progress in the human development of the poor and socially excluded. However, there is still much to be done, as 11% of the population continues to live below the poverty line and many individuals are, or risk being, socially excluded. How can social exclusion be transformed into social inclusion; how can human development be achieved for all, ensuring that the vulnerable groups gain the opportunities and resources necessary to participate fully in economic, social and cultural life and enjoy the standard of living and well-being that is considered normal in Montenegro? This Report attempts to answer these questions, which are crucial for the development of Montenegro and its prospective integration into the European Union.