Income is a means to improve living standards, but it is not the only factor contributing to poverty reduction. Raising income levels without achieving parallel improvements in the delivery of social services will not solve the poverty problem. It is also important to monitor such indicators as infant and child mortality, maternal mortality, food security and child nutrition, incidence of communicable diseases, school attendance and enrolment rates, and school learning achievement results. the available data suggest a strategy that accounts for the following:  Ozone depletion, climate change, reduction of biodiversity, natural disasters, and environmental pollution can cause the spreading of various diseases. Respiratory tract infection, parasitic infection, blood circulation diseases and indigestion are widespread in Azerbaijan.  The incidence of communicable diseases that can be easily prevented, such as TB and malaria, is going down, but the situation requires close attention. This requires investment in preventative measures in the public health services, and for children ensuring full coverage with immunization programs.  Under-nutrition and malnutrition problems continue to affect vulnerable groups, particularly but not solely the internally displaced. There is a need to intervene with special programs for these groups.  School enrolment rates are high, but there are concerns about growing differentials in quality of education provided at schools. Increased public investment in education is necessary to ensure that all children are provided with the same opportunities. Housing conditions for vulnerable sections of the population are unsatisfactory, and affect the health status of household members. Overcrowding, heating with non-clean fuels, the lack of regular electricity supply, and the lack of access to piped water are problems faced by a large section of the IDP population and other vulnerable groups. Public investment must prioritize improvements in social infrastructure for these groups. 2.2. Significant Points for Policy Formulation