Nowadays poverty reduction is a universal human problem faced by the world community.Poverty reduction signifies the use of productive resources, including land and water reserves, the expansion of educational opportunities, and the provision of legal equality between men and women at all levels by the general population. The reduction of poverty stands as one of the most important challenges for Azerbaijan. In order to establish macro-economic stability and lay the foundation for economic growth the Azerbaijan government started The State Programs on Poverty Reduction and Economic Development (2003-2005).