1. Introduction

Urban government institutions in Bangladesh have been entrusted with different responsibilities relating to delivering better urban services to the citizens. But, these bodies usually find them in a difficult situation as they suffer from different drawbacks, including scarcity of resources, dependence on the central government, lack of autonomy, corruption, central government’s control, and so on. Thus, the government of Bangladesh has adopted the policy of strengthening local and urban government bodies. In this endeavor of the government, various donor agencies, including UNDP, SDC, USAID, DANIDA, and so on, are assisting them to carry out different reform initiatives as well as building the capacity of different actors involved in these institutions. In this chapter, problem of the issue has been discussed along with the importance of carrying out reform agendas and indicators through which governance situation of the CCs have been measured.