A severe slow-down in Afghanistan'seconomic growth characterized the period between 2012 and2014, the so called Transition period leading to the 2014election and handover of security responsibility to Afghanforces. Afghanistan's economic malaise during this timecan be attributed to the combined effects of the drawdown ofinternational military forces and a sharp fall in associatedinternational spending, reduction of aid, and increasingconflict and political instability. While aid fueled stronggrowth during the pre-transition period between 2007-2008and 2011-2012, worrisome socio-economic dynamics alreadypresent intensified during the transition. Notably, thetransition crisis magnified once again the manyinequalities-between regions, cities and rural areas, richand poor Afghans, and between men and women and girls andboys-that fracture Afghan society. The poorest and mostvulnerable segments of the population benefited least frompre-transition growth, and the same groups suffered the mostonce the economy and the security condition deteriorated.This new edition of the Poverty Status Update seriesdocuments the evolution of poverty and socio-economicinclusion during the transition. It examines determinants ofpoverty and, with an eye beyond 2014, suggests policies toreduce vulnerability and inequalities.