From what was historically known as'Arabia Felix', a land of prosperity andhappiness, Yemen has become the most impoverished among theArab countries. The government of the united Yemen, formedin 1990, has launched so far three five-year economic reformplans with the goal of restoring Yemen's prosperity.Have these efforts succeeded? What policies are needed tofurther reduce poverty? The poverty assessment report aimsto answer these questions. This report measures poverty inYemen in 2005-06, and evaluates the change in povertycompared to 1998, the two years for which comparablehousehold budget surveys are available. The period betweenthe two survey years (1998 and 2005-06), more or lessoverlaps the first two five-year economic plans and capturesthe effect of the economic reform programs launched since1995. In addition to measuring poverty, this report hasthree objectives: evaluating the role of growth and pastreforms on poverty, identifying better ways to target thevulnerable poor through public action, and an assessment ofthe poverty monitoring system. By examining the effect ofthe key policies on poverty, such as the petroleum pricereform and the government's social protectionmechanisms between 1998 and 2005-06, the study aims to equippolicy makers and development partners with the knowledgeneeded to improve the effectiveness of their efforts toreduce poverty in Yemen.
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