Informal governance involves socially shared values and structures that are created and enforced outside of formal/official systems to arrange for community needs and services. In Bangladesh, examples of informal governance include credit societies, garbage collection, mosque/school management, dispute resolution, and responding to emergencies. Informal governance relies heavily on social capital, which is the trust and networks that allow people to cooperate voluntarily. However, social capital has declined in Bangladesh due to issues like political divisions, central dependence, and lack of community spirit. Reforms are needed to local government and build social capital, such as participation, devolution, and capacity building.