The paper is to examine an idea of world literature which puts on stage a new cultural reality in which the local problems get more global and the global issues more local because of the weakening of nation-state system under global capitalism. As the interaction between the global and the local is less mediated and more direct, the local is now getting an important place with all kinds of tension and contradiction. It becomes also one of the primary grounds meeting with global modernity, in which even the last existence of otherness on the earth disappears under the control of the global world system. In fact, the powerful potential of literature is coming from the under-national local space with subalternity and insurgence, threatened by the devastating effects of global capitalism. However, the existing theories of world literature, such as Fredric Jameson`s, Franco Moretti`s and Pascale Casanova`s, have tendency to pass over the meaning of the local as an essential place of world literature. Compared with these theories, Leslie Marmon Silko`s Ceremony can be an important example of ‘local’ world literature in that it dramatizes the contradictions and conflicts between global modernity and local histories and shows local people frustrated by and struggling against the destructive effects of global modernity.