Promoting good governance and accountability is critical to advancing economic growth, health, education, and the ability to provide high-quality public services. Although Bangladesh has made significant progress, the equitable distribution of developmental benefits, especially among vulnerable population, continues to be elusive. A strong local government with well-defined responsibilities and accountability system can galvanize equitable delivery of public services. The government of Bangladesh passed several legislations providing for the functions and operations of Union Parishads, Pourashavas and Upazila Parishads, but these continue to be ill-enforced hindering the emergence of strong local government institutions in Bangladesh; local government institutions still have limited direct access to financial and human resources. Among the key factors restraining the emergence of strong LGIs are: lack of need aligned and sustained capacity building of LGIs which so far is largely based on “one size fits all” training strategy; lack of adequate funds and functionaries which is a result of inadequate devolution of budgetary and financial powers to local government; excessive administrative outreach which obstructs the LGIs from performing even those functions that are delegated to LGIs by law; excessive control of central government which undermines the principles and practice of genuine decentralization and delegation of authority; and absence of participatory approach in development decision making, planning and implementation.