The paper aims at examining the levels of social cohesion and socio-economic dysfunctionality in former State Agricultural Farms (post-PGR) areas and at assessing the possibilities for initiating bottom-up actions, and for participating in the creation of mechanisms for local development. Data used in the study was obtained in multimethods approach, i.e. mainly during a questionnaire survey, in-depth interviews and observation concerning the financial situation and the social environment (social problems and cohesion), that is, the elements predicted to be the key factors obstructing effective corrective actions within local development. We have demonstrated that post-PGR areas should be treated as especially problematic not only because of their economic dysfunctionality, but mainly because of the complex social problems they experience (lack of local ties, hostility, aggression between neighbors). Such a difficult environment requires substantial interference which should take into account the problems specific to the population. The threat resulting from the heterogeneity of such communities should be a significant factor shaping the perception of local development problems.

The objective of the paper research is to assess the role of the implementation of the local development strategies (LDS) elaborated by the local action groups (LAGs) in the regional development and addressing social problems in Latvia. The paper examines the role and place of LDS in territorial development planning in Latvia, carries out thematic analysis of the projects implemented under the LDS as well as tries to assess the LEADER approach impact on regional development and addressing of social issues on the local level. The authors use unpublished data on LEADER projects and apply quantitative and qualitative analysis methods. Most of LEADER projects have been implemented to facilitate the development of infrastructure related to recreation and quality leisure time as well as culture and sports. Rural inhabitants have noticed positive changes in their local territory introduced by the LEADER approach. Though, in order to enhance the role of LAGs and LDS in addressing regional development and social problems at local level, it is advisable that the potential interaction of the activities provided by all regional planning documents is observed when determining priorities at regional level (presently the place and role of the LDS has not been formally defined), while implementation of the LDS should pay more attention to long-term effects and even accomplishment of target priorities.