Between 2004 and 2007, no annualofficial statistics on poverty existed in Peru. This was dueto serious problems with the household survey used toestimate poverty and implemented by the National StatisticalInstitute (INEI). Many of the technical issues arose fromchanges in the survey instrument, data collection practicesand delays in updating poverty measurement methodologies.This put on hold poverty analyses for more than three years,time during which little was known about changes in poverty,inequality and the effectiveness of policies to reducepoverty. Instead of providing direct technical assistance toINEI, the World Bank team proposed the creation of anexternal Advisory Committee (AC) whose role would be to: 1)discuss, advice and reach a consensus on the bestmethodology that could be used to improve and producecomparable poverty estimates in Peru; and 2) oversee thework of an inter-institutional technical team who wouldimplement the AC's recommendations. Thisinter-institutional approach was aimed at helping INEI tocreate an environment of openness and transparency necessaryto improve its credibility and relationship with its clientsand the public.