This Study evaluated the effectiveness of economical policies on poverty from 1999 to 2007 using panel data. For this purpose Sen index has been used. This index includes the information about the number of poor people, how income distributed and incme gap. The findings of this research indicated that poverty has been declined during 1999-2007. During the first and second development programs, poverty was more severe and volatile By launching of the third development program, poverty has been reduced gradually in all areas. Approximatly, during these years, poverty in areas like Charmahal and Bakhtiari, Kohkilouieh and Boyer Ahmad as well as Sistan and Baluchestan was at the highest level, While it was at the lowest level in Tehran, Isfahan and Qom compared to other provinces. The results also showed that protective, trading and budgeting policies had no significan effect on reducing poverty under the studied period, but fisical policies (tax) had significant effect on poverty.
JEL classification: I39