The purpose of this paper is to examine the alternatives for reorganization toward the decentralization-typed local government structure which will help to improve the nation competitiveness in the future. This paper lays special emphasis on the following two alternatives; (1) consolidation of provinces and metropolitan cities, (2) creation of the province-state like regional government, on the condition that reorganization of local government structure is useful not only for administrative efficiency, coping with a changing environment, and balancing of regional disparities, but also for the decentralized state system and the national competitiveness. First, the consolidation alternative promotes the transfer of central authorities to local governments, by devolving the central authorities such as regional economy and planning, ordinance-making, new tax-raising to the consolidated provinces. Second, the province-state alternative which creates a kind of regional governments, also promotes the political, financial decentralization, thereby the province-state will be devolved the authorities of law-making and will be able to share some percentages of national tax from central government. The paper, after all, proposes that the consolidation alternative should be put into practice prior to the province-state one, in that the alternative will ensure the decentralization and national competitiveness as well as will be subject to a low legal, political restriction.