This report finalized in March 2001constitutes a step toward the objective of designing anintegrated strategy for rural poverty reduction in Brazil,The report contains an updated and more detailed profile ofthe rural poor in the northeast (NE) and southeast (SE) ofBrazil; identifies key determinants of rural poverty inthese regions; and proposes a five-pronged strategicframework in which to couch a set of integrated policiesthat could effectively help to reduce rural poverty inBrazil. This tentative set of policy options was identifiedvia an analysis of rural poverty determinants complementedwith an evaluation of relevant current public programs andsix in-depth thematic studies that bear on criticalcomponents of the proposed integrated policy approach aimedat reducing rural poverty in the NE and SE of Brazil: 1) thedynamics of the Brazilian small farm sector, 2) rural labormarkets, 3) rural land markets, 4) rural non-farmemployment, 5) rural education, and 6) rural pensions. Whilethis study emphasizes primarily microeconomic events--suchas the impact of schooling, income transfers, and access toland and credit--poverty reduction requires both economicgrowth (macro-level) and specific anti-poverty policies (micro-level).