Quality of life in rural Bangladesh is dependent on the ability to pursue a range of livelihood strategies. But how far do institutions empower people to capitalize on available resources? Evidence suggests that although state policies promote diversity, greater intervention is needed. In particular, land degradation poses a severe threat to sustainable agriculture, while privatization is eroding the rights of the poor to natural resources. This Institute for Development Studies report summarizes research into the complex livelihood strategies pursued in two distinct areas of Bangladesh, and asks whether the state is doing all it can to promote greater prosperity.