Poverty dynamics is about flows of persons into and out of poverty and not simply the stock of poverty at one or more given points of time. Accordingly, it allows one to distinguish between four population groups: entrants into poverty; escapees from poverty; the chronically poor, the non-poor. Further, it shifts attention to a finer analysis of the nature of flows as well as an analysis of vulnerability and its sources. The analysis in the Poverty Dynamics Reports exploits the panel component of the IHCLA surveys. The methodological approach is to present descriptive statistics on the four categories of the poverty transition matrix, mentioned above. Following the discussion of the cycle of vulnerability it presents data on shock and stresses, population characteristics and coping and survival strategies.