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We discuss two approximation paradigms that were used to construct many approximation algorithms during the last two decades, the primal-dual schema and the local ratio technique. Recently, primal-dual algorithms were devised by first constructing a local ratio algorithm and then transforming it into a primal-dual algorithm. This was done in the case of the $2$-approximation algorithms for the feedback vertex set problem and in the case of the first primal-dual algorithms for maximization problems. Subsequently, the nature of the connection between the two paradigms was posed as an open question by Williamson [Math. Program., 91 (2002), pp. 447--478]. In this paper we answer this question by showing that the two paradigms are equivalent. [ABSTRACT FROM AUTHOR]