Under the first Azerbaijan RuralInvestment Project (AzRIP), considerable attention was paidto assessing the socioeconomic impacts on, and participationof, marginal groups. Significant improvements in householdincomes, access to services, and the participation of womenin decision making were demonstrated. The follow-up AzRIP-2plans to expand the geographic scope and more accuratelycapture improvements in social capital. One of the keychanges in the new project is a number of livelihood pilotsto foster rural employment and offer income supportservices. For the preparation of AzRIP-2, a stand-alonesocial assessment was commissioned to validate and enhanceproject design, and investigate additional indicators totrack improvements in social capital. Findings from a spring2011 social assessment were presented to a stakeholderconsultation workshop in Baku in April 2011, and indicatedthe need to: (i) intensify the mobilization, representation,and participation of internally displaced persons (IDPs);(ii) lower the minimum population requirement for communityprojects; (iii) foster female leadership; and (iv) integratethe identified social capital indicators into theproject's monitoring and evaluation framework.