This note focuses on the rural sector.It takes as its starting point the premise that the Upazilaand the Union Parishads can jointly form the backbone of asystem of rural local governments in Bangladesh. The keyinterventions required are to strengthen the Upazila as anindependent tier of government - especially relative tonational parliament - and to clarify the relationshipbetween the Upazilas and Union Parishads so that the two canjointly work as one system of local government. In thiscontext, holding elections at Upazila level will be animportant step to take, but this action alone will notresult in a sustainable or effective system of localgovernance. Upazilas require clarity on their functions andtheir relations to Union Parishads, adequate untiedresources for which they can be held accountable andappropriate checks and balances on their powers. There is abroad social consensus for strengthening local governance inBangladesh. This is largely expressed as support forstrengthening the role of Upazila and Union Parishads,through elections and greater political decentralization.