Resumen
Bangladesh has been experiencing a major political transformation since the re-establishment of democracy in 1990. This democratic environment significantly affected the autonomy and capacity of local government units in policy adoption. In Bangladesh, urban local self-government units are identified as poorly governed while their capacity in policy adoption is significantly compromised. As part of the central government, these units have a constitutional guarantee in demonstrating their existence with autonomy and efficiency. Meeting the challenge of establishing local democracy is a constitutional obligation for local self-government representatives and people. In urban areas, the increased influence of central government and the compounding effects of inefficiency and dependency of local self-government units mean that they are in need of adequate administrative autonomy and capacity. This study aimed to explore the factors and issues that impact on policy adoption process at urban local self-government institutions. This exploratory-descriptive research used a mixed method framework to achieve calculative findings with qualitative data support. Central government?s control over financial regulations and a range of political and administrative practices are identified in decreasing administrative capacity of the urban local selfgovernment institutions in Bangladesh. Though it was assumed that the re-establishment of national democracy may have resulted in an autonomous local self-government system, this has not been transformed. Thus, the identified findings have implications in capacity building of urban local self-government institutions in relation to their policy adoption and application.