Despite increasing acceptance that poverty is multidimensional, most policy work adopts a monetary definition. Using data for India and Peru, the authors compare four different approaches to poverty analysis at a theoretical and empirical level. "Defining Poverty in the Developing World" compares and contrasts monetary, capabilities, social exclusion and participatory approaches in a highly informative manner. The research elucidates the implications for measuring poverty and for policy, concluding that the approach chosen does make a marked difference to conclusions drawn.