This chapter is a guide to an area based contextual analysis. It is envisaged that this type of contextual analysis will have to be carried out in the following scenarios: 1) Following on from Country Strategic Planning; a process that has identified geographical areas that the country programme will work in, an area based contextual analysis will have to be carried out for each geographical area at least every five years. 2) Where a programme has come to an end and another programme is planned, it is important that a contextual analysis is carried out or an existing contextual analysis updated. By the end of this section you will: Know what key questions guide the contextual analysis. Be equipped to examine the three dimensions of extreme poverty, which are (1) Lack of and low return on basic assets (2) Inequality, and (3) Risk and Vulnerability, resulting in a more holistic understanding of the context. Know the appropriate information to gather and analyse in order to be able to present ALL programming options in a given context. This will support you to take informed programming decisions; including identifying target groups and options for strategic partnership. Know what to include in a contextual analysis report. Be able to proceed from contextual analysis to the next phase of the PCMS; Objective Setting and development of a PCN (s) (See next chapters) Have learned from key recommendations based on lessons learned to date (July 2012)