From managerial point of view decentralization is regarded as a way of achieving economic and administrative efficiency. According to Cheema and Rondinell (1983) decentralization has been a reaction to three main historical factors in development process: (a). Disappointment with the results of centralized system of planing during the 1950s and I960s; (b). The emergence of the growth with the equity in the 1970s which required new organizational structures including those concerned with popular participation; (c). The increasing socio economic complexity of developing countries resulting the realization that decentralization might be more effective way of planning and administration. Further it is also assumed that decentralization is necessary to accelerate the peace and spread the benefits of growth, integrative diverse regions in heterogeneous countries and use scarce resources more efficiently to promote development in poverty stricken areas. Smith (1992) also emphasizes that the idea of decentralization will assist the rural masses to enjoy the