As many as 420 million people live in chronic poverty worldwide, with limited prospects of escape, and at risk of passing their poverty on to younger generations. As the main focus of poverty reduction activity in poor countries, the PRSP approach has the potential to make a major difference to chronic poverty. This background paper for "The Chronic Poverty Report 2008-09: Escaping Poverty Traps" examines the ways in which PRSPs treat chronic poverty and their potential to make significant impacts on it. It is an initial input to a larger piece of work and is intended to inform the Chronic Poverty Research Centre’s (CPRC) primary research on chronic poverty and PRSPs to be carried out in 2006.