Another missing ingredients are the remittances. These did not slow down even during the recession of 2008-9. This enabled the government to institute countercyclical policies. I am a bit disappointed that the latest poverty assessment report by the bank did not get any attention--not even a blog post after it was published at least by the bank staff. It is frustrating that even sources such as the New York Times and the talking heads still repeat the "prevailing narrative, often grounded in dated perceptions and images."
If I may summarize, the following explains the so-called paradox:
a) the troika of microfinance, garments, and remittances
b) capable macroeconomic management
c) the long tradition of civil society and the role of a progressive elite class
A somewhat mixed story about Bangladesh’s banking
By the way, the link to Niaz's paper is not working. The following link works