The article covers the ways how in the conditions of the federal relations formation local government, being a specific power level, promotes the formation of flexible management system well adaptable to local conditions, develops the citizens’ creativity and initiative, forms civic consciousness, brings people together to solve local problems, appears to be an important condition for the stability, social peace and prosperity. The process of local government reform as a product of concerted efforts of the state as well as social and political engagement of the citizens is also a question of study in the article. One of the features of the modern period is the principal possibility of national and regional political and social associations direct involvement in local government through participation in the municipal elections. Organizational and political support of local government development granted by parties and movements is the result of many reasons and factors and in the first place of the ongoing process of social democratization, social management decentralization both vertically and horizontally.
