Round Table Meeting on “Local Governance and Education in Nepal: Issues and Policy Options”was organised at Hotel Yak and Yeti on Jan 12,2012. A key objective of this study is to develop better understanding of the political economy factors (both formal as well as informal) contributing to misappropriation of development resources at the local level and identify both formal (policy level) as well as informal (practice level) interventions that can help curb such misappropriations.