Chad's chronically unstable security situation has long undermined broad-based economic growth and sustainable poverty reduction. Since independence in 1960 Chad has suffered from sporadic political violence and ongoing tensions between different factions. The country's fragile security has been further compromised by interference from neighboring states and spillover effects from regional conflicts. However, after rebel attacks in 2008 and 2009, and following the recent conclusion of a peace agreement between Chad and Sudan, the security situation in the country has remained relatively calm, presenting a valuable window of opportunity for development efforts to take root. The objective of this Poverty Note is to examine changes in poverty and inequality in Chad since the emergence of the oil sector. It will focus on the evolution of poverty indicators from the 2003 pre-oil baseline captured in the Chadian Household Consumption and Informal Sector Survey, or ECOSIT2 to the more recent findings of the 2011 ECOSIT3 and compare current monetary and nonmonetary poverty conditions in Chad with those of comparable countries. It will go on to assess the impact of oil production on the non-oil sectors of the Chadian economy. Finally, it will evaluate the extent to which public expenditures in the social sectors benefit the poor by analyzing the progressivity of social spending.