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This paper presents the results of the New Zealand Poverty Measurement Project's analysis of the effects of the 1990s social reforms in New Zealand on the incidence and severity of poverty, and assesses the impact of the social and economic policies introduced by the Iabour-led coalition governments since 1999: New Zealand superannuation, income-related rents on state houses, active labour market policies for an employment-rich economy, the Primary Health Care Strategy and the planned income support policy to reduce child poverty. Superannuation is assessed as both adequate and sustainable, rents for state houses are found to he affordable, and CDP growth and employment have increased incrementally as unemployment and benefit numbers have decreased. The Primary Health Care Strategy is an innovative initiative that will increase affordable access to general practitioners, but it and the proposed child assistance initiatives arc too new to be adequately assessed. Of the challenges that remain, policy priorities should centre on housing alternatives, including home ownership for low-income households not in state houses; income support for poor households, particularly those with children; and multi-sector development of education and training aimed at lifting economic and social capacity. [ABSTRACT FROM AUTHOR]