The poverty problem is severe in the semi-arid tropics, but is not beyond solution. Among the simulated policy interventions, redistribution of land by itself is least effective in reducing poverty The most important policy intervention for poverty alleviation is the complete package of land with a pair of bullocks and a minimum of eight years of schooling. Increasing education levels, providing a pair of bullocks, increasing irrigation by 40 per cent and increasing wage rates are equally effective in reducing poverty in the semi-arid tropics.