Despite reasonable rates of economic growth and poverty reduction during the 1990s and early 2000s, Nicaragua faces clear challenges in reaching the various targets set out in its Poverty Reduction Strategy Paper. Poverty in rural areas remains high, and significant numbers of households have no access to safe or potable water, receive no prenatal care or family planning, and do not send their children to school. The Red de Protección Social (RPS) is one part of the country’s overall anti-poverty strategy. It represents a significant departure from previous anti-poverty programmes, in terms of being targeted explicitly at households in extreme poverty, and being subject to rigorous monitoring and evaluation.