In Bhutan, there has been a positive move towards further decentralization and with the transition to constitutional democracy in 2008, the Constitution as well as the newly approved Local Governments' Act of Bhutan 2007 provide for further power and authority to be given to decentralized bodies and elected representatives at local level.

Development partners working in the area of decentralization and local governance, including UNDP, UNCDF, Denmark, Austria, SDC, JICA, and UNICEF are taking initiative towards greater harmonization and alignment to support this very positive but challenging move towards greater decentralization.

Through the Local Governance Support Programme (LGSP) harmonized support to RGoB will be provided to support the establishment of a fully fledged and effective local governance system in Bhutan.

The programme will begin by July 2008 and operate till June 2013, coinciding with the 10th Five Year Plan (FYP) period, and will support the objectives and goals of the 10th FYP.