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This chapter examines the impoverishment process in three South Caucasian states: Armenia, Azerbaijan and Georgia. It uses the concept of ‘order of curtailment’ of consumption expenditures to detect the order of curtailment of expenditures in the Caucasus region. It then suggests computing poverty rates on the basis of a threshold corresponding to the curtailment of a certain number of consumption expenditures categories and compares the poverty rates obtained with those derived from more traditional approaches to the unidimensional measurement of poverty. The empirical illustrations are based on the Caucasus Barometer surveys of 2009 and 2013.