For decades poverty reduction in developing countries has been one of the most challenging tasks for the national policy maker. Recent trends show the income distribution in most countries has become more biased toward the rich. This paper reports on efforts to develop a dynamic model to evaluate the impact of alternative policies focused on the poor, including such common ideas as providing them free health care and reducing their income tax obligation. The model measures the impact of a particular policy on the Gini coefficient or on the number of households below an arbitrary poverty line. The purpose for creating the model is to possibly develop a poverty reduction sector to include in the T21 (Threshold 21) National Development Model.