Upazila Paishad (UZP) a decentralized local government tier at the sub district level in Bangladesh performs the coordinating role for delivering services to the local people. Globalization as a process of free flow of information, capital, goods, services and larger number of labour movement across the border has changed the demand of local economy and local people. In this context, the research question was how the UZPs perform its responsibilities in respond to the need of local people and economy and what role the local government should perform to fulfill the demand of changed situation? The article was based on the secondary materials along with incorporating personal learning during facilitating some initiatives of UZPs. Some of the elected representatives of the UZPs especially Vice Chairmen are found to be more interested in exercising administrative power rather than exerting influence utilising their political and social power. The UZP as an institution for planning overwhelmingly depends on the central government for financing the development programme that discourage to design project by articulating the voice of local people. A good amount of resources is spent through the transferred department for development projects and the UZPs have very limited role for planning and executing those programmes. Other than the routine works the decision making is consultative in nature and decisions are taken in the monthly meeting but influence of the MPs is evident. Poor functioning of Upazila committees and presence of different departmental committees in implementing the departmental programme inhibits the UZP to perform their monitoring role properly. Structural deficiency to coordinate the activities of non government and other organizations also inhibits the UZP to play its role according to the changed economy. The UZPs need to be more innovative to exercise its administrative, social and economic power for coordinating the activities of multiple organizations for both private & public and working with a cross section of people. The members of UZPs can be motivated to explore the problems of resource utilization at the grassroots level and support individual imitative on a competitive basis. For increasing the capacity of generating own income of UZPs, central government can encourage UZPs to submit projects related to their own need on a cost sharing basis in addition to the ADP allocation.