Dhaka, Oct. 14 -- Bangladesh finds itself at a watershed moment in its economic life today. Previously regarded with disdain, as a frontier economy beset by inherent problems, Bangladesh has registered tangible gains in its efforts to eliminate obstacles that had discouragingly deterred investment across its borders. Power plants have proliferated, industrial output has increased, and policy efforts have helped alleviate structural bottlenecks. Such gains have turned Bangladesh into a continent of great promise-pounding with one of the world's youngest workforces and a strategic gateway between South and Southeast Asia.

But the promise is only partially kept. The advances, while steady, remain far too short of their potential, held back ...