Paths to development: is there a Bangladesh surprise?

Using aggregate indices of education, health, demographic, and gender equality outcomes, we empirically investigate the hypothesis that Bangladesh achieved a higher level of social development compared with countries of similar level of per capita income. Stylized facts and cross-country regression results support this hypothesis for a broad range of dimensions. Further tests show that such achievements do not simply reflect income-mediated channels and social expenditure programs. We conclude by speculating on the role of Bangladesh's development to sustain the process of growth and on the role of governance and institutional quality for the nexus between growth and development.