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The central government of a developing country assumes the primary responsibility for national development but local government also has its share to contribute. Indeed, national development is not likely to succeed without a genuine partnership between the two. An analysis of the present state of local government reveals basic weaknesses and modernization is necessary in the interest of efficiency and development. Community development has also proved to be an effective means of promoting self help and fostering national development through local government. Before assessing the role of local government in national development in South-East Asia, a few words on the relationship of government in general to development may be useful. In this respect, a distinction may be drawn between so called developed and developing countries. As experience has shown, much of the economic development of industrialized countries has been due to the initiative, capital and management deployed in the private sector. This does not mean, however that government in such countries has been entirely indifferent to economic development.