In 2000 Ethiopia had one of the highestpoverty rates in the world, with 56 percent of thepopulation living on less than United States (U.S.) $1.25purchasing power parity (PPP) a day. Ethiopian householdsexperienced a decade of remarkable progress in wellbeingsince then and by the start of this decade less than 30percent of the population was counted as poor. This povertyassessment documents the nature of Ethiopia s success andexamines its drivers. Agricultural growth drove reductionsin poverty, bolstered by pro-poor spending on basicservices, and effective rural safety nets. However, althoughthere is some evidence of manufacturing growth starting toreduce poverty in urban centers at the end of the decade,structural change has been remarkably absent from Ethiopia sstory of progress. The poverty assessment looks forwardasking what will be needed to end extreme poverty inEthiopia. In addition to the current successful recipe ofagricultural growth and pro-poor spending, the role of thenon-farm rural sector, migration, urban poverty reduction,and agricultural productivity gains for women are considered.