This report projects that the recent Cusiana and Cupiagua oil discoveries will give Colombia an excellent opportunity to move onto a higher growth path. The report goes on to state that Colombia has the resources to pursue a coordinated poverty reduction strategy, with the effective and efficient human resource policies and targeted poverty programs it needs. Identifying the greatest extremes of Colombian poverty in the rural areas the strategy calls for a rural development priority which would provide incentives to both education and health professionals to strengthen those respective systems in rural areas. The strategy defined also calls for improvement in the housing and water supply and sanitation sectors for both the urban and rural poor. Lastly the poverty alleviation strategy outlines the need for decentralization, capacity building and institutional strengthening, stressing the importance of improving the monitoring and evaluation systems for all poverty reduction programs.