Throughout the world, the relationships between central and local governments are changing. One aspect of this change is the movement towards more decentralization, providing local governments with greater autonomy over a wide range of issues. The other aspect of change has to do with a shift in focus from national to regional policy determination with an emphasis on identifying local competitive advantages and making local choices with regards to socio – economic development and quality of life issues. In short, much of the responsibility for local development has now shifted to the local level. This has a direct impact on the functions and operations of local government units (LGUs).