390 Copyright © 2016, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited. Chapter 18 DOI: 10.4018/978-1-5225-0320-0.ch018 ABSTRACT The chapter relects the evolution, institutionalisation and functioning of the local self-governing institu- tions in the tribal areas of India in the context of the emergence of Globalised Model of development. The decentralised self-governing institutions, otherwise known as Panchayats have been functioning since a long period of time in the country. However, the functioning of these institutions since the last three decades has passed through the era of reforms in which the so called economic reforms under the canopy of globalisation inluenced their functioning. Such scenario created implicit and explicit impacts on the functioning of these institutions. Further, the tribal self-governance system, cultural practices, livelihood pattern and above all socio-economic development programmes also pass through the phase of transition, which creates hope as well as challenges for the tribals. INTRODUCTION The increasing global debate on the functioning of local government has attracted the attention of many scholars of the world to explore the different facets of these institutions and their relationship with the matter development in a globalised era. It is widely believed that in the contemporary era of development the local self-governing institutions have been playing a prominent role while contributing significantly towards the process of socio-economic betterment 1 . The ongoing changes in the world economic order Democratic Decentralisation and Functioning of Local Governments in Tribal Areas of India: Possibilities and Constraints in the Era of Globalisation Bishnu Prasad Mohapatra Centre for Economic and Social Studies, India