This chapter provides a comprehensive review of Ethiopia’s policy interventions for poverty reduction and inclusion of marginal population groups, and discusses a number of indicators that point at significant improvements that have been achieved in the country. The sector specific policy measures to reduce poverty are assessed, and the measures targeted at vulnerable groups and in marginal areas are analysed. The impacts of economic growth on poverty reduction are traced. Development efforts such as regional development disparity and the persistence of severe poverty despite concerted anti-poverty efforts and a relatively high rate of economic growth are highlighted.