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Why Decentralisation Matters for Bangladesh’s Democracy and SDG Future

Abu Sayed Md Nazmul Haider

Abu Sayed Md Nazmul Haider

Published: 24 Oct 2026, 12:00 AM

Why Decentralisation Matters for Bangladesh’s Democracy and SDG Future
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Democracy in a country isn’t defined solely by the vitality of its national legislature, the regularity of its elections or the robust institutions in its capital. Its real litmus comes much closer to the regular folks: the village where a farmer is asking for agricultural assistance, the urban community where local residents are calling for a better waste management system, the community where women are asking for social protection, the local school where parents want quality education for their children, etc.

Democracy is made relevant when citizens see the government as their own, when it hears their voice and attends to their needs. The power of decentralisation is therefore not just an administrative issue, but a democratic empowerment issue.
Bangladesh is at a pivotal moment in its development and faces an important governance challenge. The results of the past decades have been impressive. Since independence, Bangladesh has become one of the poorest countries in the world and is currently one of the countries with the greatest poverty reduction, economic growth, human development and social indicators.

However, the nature of development challenges is changing. Today it’s not just about roads, bridges and infrastructure. It’s about ensuring development is inclusive for all citizens, communities and regions. To achieve this, there is a need for a governance system that will decentralise decision-making in Bangladesh.
This is where decentralisation is crucial.

Development cannot be designed only from the centre

Bangladesh’s geographical and socio-economic diversity shows the need for local decision-making capacity. Climate change poses risks to coastal communities, drought poses challenges to northern communities, and rapid urbanisation calls for solutions unique to the needs of the communities involved, not a single approach from the nation.

Bangladesh is a very diverse nation. The problems of a climate-change-exposed coastal community differ from those of a dry northwestern region. Urban centres are facing problems of rapid growth, while rural areas are facing problems of remoteness. This is a challenge for a centralised system of governance. National-level policies may not necessarily reflect the needs, cultural landscape and priorities of local communities.

Local governments, however, are naturally poised to have a sense of local issues. They are aware of the villages without adequate sanitation, the communities in need of climate adaptation, the roads in need of repair and the vulnerable families who need social assistance.

Poverty, vulnerability and marginalisation in Bangladesh are not homogenous; they tend to be more localised and context-specific and solutions to them are needed that respond to local realities. It is crucial to empower strong and accountable local governments to better understand what is needed, design effective interventions, and ensure that development reaches the most disadvantaged groups. Thus, good local institutions have a core role to ensure inclusive, equitable and sustainable development.

But the international journey of the Sustainable Development Goals (SDGs) also corroborates this reality. Whilst governments commit to the SDGs at the national level, implementation is mainly carried out at the local level. Local action is crucial for poverty reduction, healthcare, education, sanitation, climate resilience and sustainable cities.

To further understand the link between decentralisation and SDG achievement, there are examples. Identification of vulnerable households at the local level is essential for poverty reduction programmes; planning for climate adaptation is essential at the district level; and local coordination is essential for improving sanitation, healthcare and education.

SDG effectiveness will not be complete without local institutions being empowered.

Democracy begins beyond election day

In many societies, democracy is more of an electoral concept in which people vote for the person they want to represent them. Elections are important, but the sole pillar of democracy is not elections. Participation, transparency and accountability are crucial for a healthy democracy. Citizens must be able to influence decisions that affect their lives.

Local governments provide the closest platform for such participation. A citizen may never have an opportunity to meet a national policymaker, but a Union Parishad member, councillor or local representative is available to meet with them. A functioning local government makes citizens active rather than passive elements of development.

Another advantage of a decentralised governance model is that it improves accountability. Decisions are closer to citizens; public representatives are closer to being on the run. Thus, decentralisation is related to the consolidation of democracy.

Bangladesh’s decentralisation journey: progress without full empowerment

The decentralisation process in Bangladesh is also constitutionally based. The establishment of local government bodies, along with their responsibilities and powers, is based on Articles 59 and 60 of the Constitution. But the big hurdle is translating constitutional recognition into substance on administrative, financial and political autonomy.

In Bangladesh, the importance of local government has never been overlooked. Local government institutions are an important part of governance and recognised in the Constitution. Over time, various reforms have been introduced, bringing Union Parishads, Upazila Parishads, Municipalities and City corporations as means of grassroots administration.

However, the gap between institutional existence and actual empowerment remains significant. There are numerous local government institutions with responsibilities, but with limited authority. They are expected to provide services, carry out development activities, and respond to community demands, but generally lack adequate financial support and administrative autonomy.

The unfinished decentralisation is related to several structural issues, such as high administrative centralisation, weak fiscal powers, institutional overlapping and poor local capacities. Improving local government should thus also involve the transfer of responsibilities, as well as the provision of resources, authority and accountability. 

Financial dependency is one of the most difficult challenges to face. A local government which relies almost exclusively on allocations from the central government cannot be called autonomous. The bases of political and administrative independence lie in financial independence. The current mechanisms of governance in Bangladesh, with centralised control and a complex funding process, pose significant difficulties for local government institutions in effectively responding to people’s needs.

There needs to be a change in the basic way the government works; the centre should not be making all the decisions. Instead, the centre should set national standards, provide resources, and allow local institutions to develop solutions based on local realities. 

Lessons from countries that decentralised successfully

There are a few lessons that Bangladesh can learn from international experience. Nordic countries show that financial and administrative decentralisation works best when coupled with responsibilities, resources and accountability mechanisms; and India’s experience underscores the need for constitutional recognition and representation at the grassroots. 

Bangladesh is not alone in facing the challenge of balancing national coordination with local autonomy. There are similar transitions in many countries and lessons to be learned.

India: political recognition of local democracy

The Indian experience of Panchayat Raj is a relevant case study. Local government was given more formal recognition and increased its role in democratic governance through constitutional amendments. The reservation system of women and marginalised groups widened participation at the grassroots level.

But the case of India shows that political recognition is not enough. Local governments need sufficient funding and staffing to be effective. It is clear from the lesson in Bangladesh that decentralisation is more than the establishment of institutions; it must empower them.

Indonesia: transferring power after political reform

Since 1998, the decentralisation process in Indonesia has been among the largest in the world, transferring powers from the national government to local governments. More responsibility was delegated to local governments for public services, budgeting and development planning. Indonesia’s decentralisation process is proof that decentralisation can enhance citizens’ responsiveness and participation.

Nordic countries: decentralisation based on trust

The Nordic countries, and especially Sweden, Denmark and Finland, are considered to have successful decentralised governance. They have a high degree of autonomy in matters of education, health and social services. However, decentralisation does work there because it rests on three fundamental elements of local government: clear responsibilities, sufficient resources and robust accountability.

The message for Bangladesh is not to emulate another country’s model but to grasp the principles of successful decentralisation.

Urbanisation makes decentralisation more urgent

City corporations and municipal governments must be empowered to address urban governance issues like traffic jams, waste disposal, drainage and environmental stress, and provision of affordable housing. The successful management of these challenges can be achieved only through local planning and community engagement, and cannot be addressed by central ministries alone.

Bangladesh is quickly transforming into an urban society. Based on available estimates, some 40% of the population currently resides in urban areas, and this percentage will continue to grow over the coming decades. Urban challenges require local solutions. Central ministries are not the only ones capable of effectively managing traffic, waste management, affordable housing, environmental protection and social services. City corporations and municipalities need to be stronger, more professional and more accountable.
The quality of local governance will play a crucial role in the future of Bangladesh’s cities.

The way forward: from control to partnership

However, decentralisation shouldn’t be interpreted solely as the devolution of power to the local level. A lack of transparency, institutional capacity, and accountability can generate new risks related to decentralisation, including the potential for influence by local elites, inequities in service provision, and misuse of resources. Thus, there is a need for effective oversight, citizen involvement, and professional capabilities for effective decentralisation.

Bangladesh doesn’t need a weaker central government. Instead, there must be a more intelligent interaction between the central and local institutions. The central government should concentrate on national policy, coordination, and the distribution of resources, and local governments should be given more autonomy to implement programmes and address community problems.

Multiple changes need to be made. The first is the need for real fiscal decentralisation in Bangladesh. Local governments should have greater autonomy and stable financial resources to raise revenue. Secondly, there should be a clear definition of responsibilities. Lack of clarity regarding the roles of ministries, elected representatives, and local institutions undermines accountability. 

Thirdly, there is a need for citizen participation to be a routine. Public consultation, participatory planning mechanisms, and social accountability processes need to be integral parts of local government. Fourth, there is a need to further strengthen local government institutions through professional capacity. Planning, budgeting, digital governance, and project management training are essential. The National Institute of Local Government (NILG) should be expanded again to develop strong local leadership.

Fifth, technology use should change the nature of local government. The use of digital platforms can enhance transparency, minimise delays and foster a more direct link between citizens and government agencies. Lastly, monitoring of SDGs should be made a main pillar of local government. Progress at the district, municipality, and community levels should be reflected in the development indicators, which should also be measured nationally.

A new governance vision for Bangladesh

Decisions in Dhaka will not be the only ones that will determine the future of Bangladesh. It will also be influenced by thousands of community decisions made around the country. Local governance is critical for a farmer in a remote village, a worker in an urban settlement, a young entrepreneur in a small town and a vulnerable family impacted by climate change.

Decentralisation is thus not a call for devolution of power from the state. It’s a call to action for getting the government closer to the people. Those who know what the issues are best should have the authority to solve them is a simple yet powerful principle that must be embraced on the path towards a stronger democracy and sustainable development.

Bangladesh has made incredible progress with centralised national activities. The next step is to enable grassroots people and institutions. Building local government will not only enhance service delivery but also strengthen democracy and accountability, and accelerate progress towards the SDGs. Ultimately, the success of Bangladesh’s democracy will depend not just on what happens in Dhaka, but on how empowered people feel in every corner of the country. The future of governance belongs to those who bring power closer to people.
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The writer is an Associate Professor in the Department of Public Administration at the University of Rajshahi.

He can be reached at [email protected] 

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