Establishing good governance in developing countries is demanded by the International Donor Agencies as a prerequisite for aid assistance. To comply with this, the government of Bangladesh, like other governments of developing countries, is trying to develop participatory local government to support overall good governance. Research studies have asserted that, although rural people in Bangladesh are participating in development programs through their elected representatives, this participation has not been effective in ensuring good governance. Considering this background, literature relating to good governance through people's participation has been reviewed, and it is found that while the government of Bangladesh is pursuing democracy centrally, locally it is practising autocracy