CAPACITY BUILDING OF RURAL AREAS IN SERBIA THROUGH FORMING LOCAL ACTION GROUPS

In great part of its rural areas, Serbia has all prerequisites for promotion and successful implementation of the concept of Local action groups and integrated rural development: richness of diversity in rural areas. significant natural resources, preserved natural environment of rural areas, great potential for development of wide range of non-agricultural activities in the countryside. On the other hand, there are many limitations and weaknesses in the field of rural development: unfavourable production and ownership structure in agriculture, unfavourable business environment for SMEs and enterpreneurs, little support for farmers from agricultural budget, underdeveloped physical and market infrastructure, lack of entrepreneurial spirit, lack of linkage between farmers, high government centralization and limitations of local self-government in implementation of rural development projects.