This study was conducted from July to September 2017 in Dhaka City focusing on identifying and analyzing the determinants of political incentives for the Union Parishad (UP) leaders in promoting and nurturing inclusive, participatory and pro-poor governance mechanisms at the lowest tier of the local government. Qualitative method was taken into consideration for this study. FGD and KII were conducted with the local government officials, e.g., Chairperson and UP Members. Numerous participatory workshops, seminars and discussion sessions were carried out to determine the political incentives of UP leaders for inclusive governance. The study results showcased the characteristics of political society both at the local (UP/UZ) and national level (MP/national politics). The study also investigated the nature of civil society (CSOs and NGO) at the local and national levels; nature of clientelism; impacts of recent act, laws and new institutions/program interventions on the behavior/incentives of the UP leaders as well as on the poor citizens – both men and women; and the impact of new businesses, increased literacy and urban linkages (media, migration etc) on the political settlement at the UP level.