The aim of the report is to show from a human perspective both the results and the problems of Kazakhstan’s socio-economic development. The human development issues covered include, the demographic situation, health care, education, standard of living and the environmental impact. The report also contains an in-depth discussion of the problems of poverty in the transition period, including its causes, how to measure it and regional inequalities. A strategy for the alleviation of poverty is presented, at the core of which are programmes for providing income and employment to impoverished segments of the population. In addition, the report defines priorities and directions of sustainable development of human settlements. It is hoped that the wealth of statistical data and analysis presented in the report could form the basis of a constrictive debate on a national strategy for eradicating poverty.