Bangladesh has made outstanding progress in reducing poverty. In twenty years, the proportion of rural households below the poverty line has fallen from over 80 percent to 37 percent in 1996. What is the key to this success? Research by the Institute of Development Studies (IDS) suggests that it has been achieved through a combination of agriculturally-led growth, provision of cheap food, strengthening of domestic demand and keeping labour in the countryside. Good management and reform at a government level has also contributed to the success story. Is it a total success story? Not entirely. The study finds significant differences between regions which will affect future policies aimed at reducing poverty evenly nationwide.