In settings where economic assets – natural resources, skills, infrastructure - are very poorly developed, market forces cannot ignite. And even in countries where market led development is effective on an overall perspective, large areas and large numbers of people can be excluded from the benfits. In such circumstances specific development initiatives are called for to bend market forces to serve the needs of regional and local development policy. Such initiatives are quite unlike the directing methods under planned economy. They are facilitating and based upon partnership.

The challenges are often greatest in rural areas where low skill and income levels are often compounded by low population densities, poor infrasructure and lack of basic services. Rural strategy has to integrate and invigorate social and economic development.

Development of tourism, both foreign and domestic, has been the prefered strategy of many regions. In some areas of natural beauty, income generation from tourism has grown to greatly exceed the traditional mainstay, agricultural income.

In many circumstances development is influenced by supra-national factors. In border territories, cross boundary activity can be a source of job creation and this is of especial interest to the countries now neighbouring (and those neighbouring before the last round of accession) to the EU. Growing trade with the EU has been a source of development also in many countries outside of Europe.