CHANGES IN LEADER FUNDING FOR NON-AGRICULTURAL AREAS

Alexa Madalina Melania
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Alexa Madalina Melania: BUCHAREST UNIVERSITY OF ECONOMIC STUDIES, ROMANIA

Annals - Economy Series, 2026, vol. 1, 313-325

Abstract: LEADER funding, initially focused on agricultural modernization, has increasingly supported non-agricultural development as a means of strengthening rural economies and improving quality of life. This article examines the evolution and impact of LEADER interventions in Romania, highlighting how Local Action Groups (LAGs) have facilitated diversification through community-led strategies. Drawing on programmes results, literature analysis, and trends across the three programming periods, the study outlines the shift from basic infrastructure investments to a broader portfolio that includes rural entrepreneurship, tourism, social services, innovation, and digitalization. The 2014–2020 period marked the consolidation of LEADER as a major instrument supporting SMEs, social inclusion, and cultural initiatives, while the 2023–2027 CAP Strategic Plan introduces digital tools, sustainability goals, and expanded community participation. Although reforms such as process digitalization and simplified management aim to increase efficiency, challenges persist regarding uneven LAG capacity and the limited scale of non-agricultural investments. The cancellation of intervention DR-29 further reinforces LEADER as Romania’s primary mechanism for supporting rural non-agricultural activities. Overall, evidence shows that LEADER contributes positively—though modestly—to job creation, service quality, and local economic diversification. Romania’s experience demonstrates how flexible, community-oriented funding can empower rural areas to pursue sustainable and innovative development paths.

Keywords: LEADER funding; rural development; Non-Agricultural areas; Romania (search for similar items in EconPapers)
Date: 2026
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