Book excerpt: This report finds that Bangladesh has reduced poverty levels from 57 per cent at the beginning of the 1990s to 40 per cent in 2005 but much more needs to be done to help the country's poorest people. Despite a steadily growing economy, Bangladesh's potential to achieve more widespread poverty reduction is held back by its poor record on governance and high levels of corruption. Successive governments have failed to respond to the needs of poor and marginalised communities and instead state power has too often been used for personal and partisan ends. Bangladesh is the fourth highest recipient of UK bilateral assistance. DFID's programme there in the current financial year is worth £125 million and will rise to £150 million in 2010-11. The report praises the innovative non-governmental organisations (NGO) community in Bangladesh which plays an important role in delivering basic services in areas where state provision is limited. Gender inequality continues to be a significant problem in Bangladesh: an increase in the number of girls attending primary school contrasts with insufficient progress in tackling maternal mortality and women remain marginalised and excluded from key decision-making processes. Bangladesh is likely to be adversely affected by climate change and the poorest people will be hardest hit. The report adds large parts of the country are low-lying and susceptible to more frequent and intense floods and cyclones. Bangladesh will need assistance to cope with the effects of rises in sea levels and increased salinisation.