Over the last two decades or so Bangladesh has experimented with a series of new models/ approaches and institutional frameworks for addressing poverty and rural development. Although the intensity of poverty has been arrested to some extent but the social disparity and inequality remained persistently the same. There are also strong criticisms of not maintaining a comprehensive approach to address the issues of poverty and development. Against such backdrop, with the persistent pressure from the development partners and donor agencies, a Poverty Reduction Strategy has been approved by the Government of Bangladesh. It is argued that without a comprehensive reform and revitalization of the local government system specially the Union Parishads (the grass roots based rural local government) it would be difficult, if not impossible, to achieve the goals of PRSP. There is also a need to reconceptualize the term governance with a considerable focus to include “pro-poor” issues and aspirations particularly in a country like Bangladesh.