The Political Economy of Change Escaping the Middle-income Trap: Perspectives from Bangladesh Mustafizur Rahman and Estiaque Bari Bangladesh has recently attained the status of lower middle-income economy (LMIE) against a backdrop of fast-paced GDP growth, diversification of production and exports, the growing competitive strength of a number of sectors in the economy, high inflow of remittances, and overall robust economic performance. In the history of development, many countries after graduating to middle­income status fail to sustain their past growth momentums and, as a result, get stuck in the middle-income trap(MIT). A recent entrant to the group of middle-income countries, Bangladesh must pursue a well-articulated strategy to sustain and build upon its past growth momentum to avoid the MIT. For the transformative journey, Bangladesh will be required to take concrete steps towards good governance, strong institutions, rule of law, transparency and accountability, enhanced productivity and efficiency gains, structural transformation of the economy, decentralisation of the economy, efficiency in public expenditure allocation, better public sector management, and distributive justice. A new correlation of drivers will need to emerge to sustain and accelerate Bangladesh’s growth momentum and avoid the MIT. Such drivers will be committed to democratic governance; ensuring a meaningful role and greater voice for workers and trade unions in economics and politics; a devolution of power; distributive justice; greater space for civil society; and strengthened regional and global integration of the economy. Through political processes, this coalition can play the role of change agents in this transformational journey towards higher income status by avoiding the MIT.