The report focuses on the social safetynet, particularly cash and in-kind transfers. The safety netcan play an important role in addressing poverty andvulnerability; however, the process by which the safety netshave been developed in Swaziland has produced a fragmentedsystem that leaves many Swazis unprotected by the safetynet. Improvements in efficiency and effectiveness are bothnecessary and possible. Poverty and extreme poverty inSwaziland are both overwhelmingly rural phenomena. Theincidence of poverty is 73 percent in rural areas but only31 percent in urban areas. Eighty-eight percent of the poorand 95 percent of the extreme poor live in rural areas, andthe average consumption of the urban poor is 33 percentbelow the poverty line while it is 51 percent below thepoverty line among the rural poor. Also, poverty is deeperin rural areas than it is in urban areas. The objective ofthis study is to identify viable ways to make the safety netmore relevant and efficient through an in-depth analysis ofpoverty and vulnerability and of the efficacy of currentsafety net programs. The report focuses on publicly financedsocial transfers in Swaziland, including cash and in-kindtransfers. This includes programs funded by either nationalor official international aid. Chapter two explores therisks faced by the Swazis, including but not limited topoverty. Chapter three reviews current social net programsand expenditures and analyzes the efficiency andeffectiveness of social transfers. Chapter four analyzesways to target safety net programs, and chapter fivediscusses options to increase the relevance and efficiencyof the safety net, particularly in light of the recentfinancial crisis.