The article describes how and why the scale of urban poverty in much o
f Africa, Asia and Latin America seems to have been underestimated, it
s nature misunderstood (or for political reasons, misrepresented) and
the best means for reducing it rarely acted upon. It suggests that the
income level needed to avoid poverty in most urban areas has been und
erestimated, largely because too little consideration is given to the
cost of essential non-food items. It also suggests that most low-incom
e groups in urban areas face a health burden from their housing whose
physical, social and economic costs have been underestimated This is b
ecause the only housing they can afford is of poor qualify, usually to
o small in relation to household size, lacking in basic services and o
ften built on a dangerous site. The article also outlines different me
asures through which urban poverty can be reduced. These measures incl
ude not only increasing incomes and enhancing assets for low-income ho
useholds, but also upholding their right to justice and legal protecti
on and responding to their needs and priorities for adequate housing a
nd basic services. The final section discusses the relative balance be
tween action at national, city and community level, and the most appro
priate form of intervention for any agency that seeks to support pover
ty reduction at a community level.