There are five programming regions and regional development agencies. Regional development agencies must be involved in the administration process of the EU's prestructural funds. Research is done using Richard Rhod's classification of regions and the experience and practice of Great Britain in specially supported regions. The program of specially supported areas is the main financial instrument in Latvia, which promotes territorial development in depressive regions. The administrative territorial reform will make rectification in specially supported areas and in planning regions.

During the last decade economy of Latvia has experienced a decrease, crises and also depression. Further development process of Latvia could lead to a rapid economical boom. The application of scientific researches into the development of nationaly economy of Latvia is one of the important aspects. Though the globalisation and commercalisation of scientific researches must be taken into account as well. Science development is opening wide range of possibilitities for research perfection. Most of the Latvian, Lithuanian and Slovakian entrepreneurs are 30-40 years old, who suddenly appeared in the circumstances of conventionally free economy in their twenties.

Latvia has essential territorial differences in socio-economic development. Therefore the task of the state is to realise such regional policy which decreases unfavourable territorial differences, facilitates balanced territorial development and increases the life quality of the inhabitants. The regions deserving special support have an important role in the implementation of regional policy. The state support from the specially established Regional Fund is mainly being given to the enterprises which are located in the regions deserving special support, sometimes - to local governments. Up to now the state support was more frequently given to the peasant farms and individual enterprises and occasionally to the stock companies, local governments etc. In the period from 1998 to 2000, interest payments for specific credits compile 82% from the usage of the Regional Fund. The directions of the application of the Regional Fund are not wide at present and they should be diversified.