Colombia has used the development of different public policies in order to reduce the social inequality that is in its territory, especially referred to the extreme poor. The strategies used by the National Government for reducing the outstanding levels of Unsatisfied Basic Needs have been focused in bringing conditioned monetary transfers, and also access to health, education, learning services and food aid; so that, the capacities of the extreme poor can improve and close the poverty gaps and increase the opportunities to get out of this social condition. Though, in spite of the enforcement throughout the years, extreme poverty has not been eradicated in the county. This work initiates with a general context of poverty in Latin America, Colombia, Tolima and Ibague, and the latter is our aim. We take as a referent different poverty, social conflict, public policy and local economic development theorists, and also the different Colombian public policies for overcoming poverty and extreme poverty and the Millennium Development Goals. Taking into account that the territories and their contexts, their development plans and strategies are the core to formulate public policies for overcoming the extreme poor social condition. The methodology in this research was built under a mixed approach, combining cuantitative and cualitative aspects, and throughout criticism and empirical processes permits to answer the complex problem we faced: Public policies and their incidence in overcoming the extreme poor social condition in Colombia during 1994 – 2014 through the local economic development framework of Ibague. This work is correlational, and lets get to know that the results have been not enough and have been constrained bye the municipality own dynamics. In other words, there are failures in inter – institucional coordination, lack of governance, and of continuity with the successful initiatives in order to reduce extreme poverty, there is also lack of financial resources and information.