The main objective of this essay is to point out the missing links between neoliberalism on the one hand, and a comprehensive analysis of poverty and effective policies to tackle it, on the other. After identifying the main channels through which neoliberalism affects poverty, I will draw attention to the inadequacy of the neoliberal approach in coming to terms with the main reasons behind poverty, as well as in developing a comprehensive and effective mechanism for its alleviation. I emphasize the role of international institutions in determining the dominant development discourse and changes in the importance given to the issue of poverty over time. The essay links the ineffectiveness of existing poverty alleviation policies to distributional imbalances at both the global and domestic levels. Against the background of the main constraints and opportunities for effective poverty alleviation policies in individual countries, it emphasizes the need for a poverty alleviation strategy as an integral part of a broader development strategy and identifies its main premises. It calls for action on the academic, domestic and international fronts and stresses the central role of the state, a more balanced reliance on domestic and international markets, emphasis on productive employment creation, the development of effective redistribution mechanisms, and the creation of effective domestic and international constituencies as the main components of such a strategy.