<p>Beginning with the theoretical survey of social, economic, ecological and institutional<br />relevancy of rural development, the work explores vital potentials, priorities and<br />challenges of rural development, together with basic reasons for contrivance of the<br />model of rural development in the Republic of Serbia and the countries of the Western<br />Balkans in the conditions of Euro integrations. After the insight into the related<br />literature, the necessity of solving problems of rural development as integrated and<br />compatible with specificity of particular region in contemporary conditions is<br />emphasized, since no generally accepted universal model of sustainable rural<br />development exists, but depends on rural developmental potentials and social and<br />economic surroundings. Although the policy of sustainable rural development of<br />European Union is not perfect per se, it still provides the best and strongest support to<br />social and territorial cohesion of rural regions and is significant primarily as a reference<br />base for the outline of further strategy and policy of rural development of the Republic<br />of Serbia and the countries of the Western Balkans from the viewpoint of their more<br />effective endogenic development and EU integration. The countries of the Western<br />Balkans have suitable preconditions for successful application of the concept of integral<br />rural development; however, there are numerous limitations in the development of these<br />regions in the process of European integrations. These countries are faced with<br />significant structural changes in the economic, organizational and management<br />structure in terms of new EU rural policy. Therefore, all countries conduct reforms<br />aimed at harmonization and strengthening connections with major priorities of EU rural<br />development; hence a suitable model of rural development is still being shaped in<br />practice. The ultimate effect of these changes is related to strengthening of local<br />entrepreneuring and organizational activities and initiatives, the network of local<br />organizations of civic society and local action groups in the function of improvement of<br />competitive abilities of rural economy. Defining clear and realizable strategic aims and<br />priorities, as well as their implementation will be of decisive importance for<br />contrivance of the model of rural development in the Republic of Serbia and other<br />countries of the Western Balkans in the future. Significant unsolved issued were<br />identified together with the courses of regulatory reforms of development of rural<br />regions in these countries.<br />Intersectoral and interregional connection, decentralization and strengthening the role<br />of local factors in the creation and realization of strategies in policy, model and practice<br />of rural development have a strong effect on more efficient activation of localresources, increase of attractiveness for investment in rural regions and more rational</p><p>utilization of finance for the development of rural communities. Demographic<br />revitalization of rural regions, promotion of rural economy and entrepreneurial<br />stimulation of the programs of development of small and medium enterprises, as well as<br />environmental protection and facilitation are of vital significance</p>