The main objective of this essay is to point out the missing links between neoliberalism on the one hand and a comprehensive analysis of poverty and effective policies to tackle it, on the other. After identifying the main channels through which neoliberalism affects poverty, the essay draws attention to the inadequacy of the neolibeal approach in coming to grips with the main reasons behind poverty as well as in developing a comprehensive and effective mechanism for its alleviation. It emphasizes the role of international institutions in determining the dominant development discourse and changes in the importance given to the poverty issue over time. The essay links the ineffectiveness of existing poverty alleviation policies in achieving a dent on poverty with the distributional imbalances at both the global and domestic levels. Against the background of the main constraints and opportunities for effective poverty alleviation policies facing individual countries, it emphasizes the need for a poverty alleviation strategy as an integral part of a broader development strategy and identifies its main premises. It calls for action on the academic, domestic and international fronts and emphasizes the central role of the state, a more balanced reliance on domestic and international markets, emphasis on productive employment creation, the development of effective redistribution mechanisms, and the creation of effective domestic and international constituencies as the main components of such a strategy.