Now a day here in Ethiopia there becomes quite a common experience to hear abou the rapid economic advance that the country has been enjoying during the last seven and eight years. Throughout these years, it is said that the Ethiopian economy has been growing in a double digit figures, rating more than ten percent a year. This is a firm stand that is frequently claimed and predominantly propagated by the Ethiopian government. In return, the government in Ethiopia receives varied feedbacks that rang between two extreme edges: full recognition and total disapproval. Including both edges, other feedbacks in the middle involve several controversial issues. These among others include reliability of the ' information of economic growth, credibility of its double digit rate and its actual advantage in improving the living standards of the poor and the under privilege. The motive behind each issue, in one way or another, originates form the reality in Ethiopia as well as in the city of Bahir Dar where poverty and vulnerability are undeniable facts. Now a day therefore poverty in Ethiopia is motivating a serious of controversies while its government is continuing claiming rapid economic achievement. This equally motivates to undertake a systematic analysis as to how the current poor standard of living has been reconstructed from the past, specifically since the middle of the 1970s when economic growth was never herd in Ethiopia as well as in Bahir Dar. In doing so, the systematic analysis will provide a historical survey that dictates both the common and unique aspects within the reconstruction of poverty and vulnerability from the.past in to their present shape in the city of Bahir Dar.