ENThe fundamental components and model of regional economic - social development and local planning stages are discussed. There are basic principles of development which should determine the strategies and approaches taken: policy should focus on the bottom half of the income structure, emphasis should be on local control and linkages, self-reliance can be achieved by the interdependence of equals, development must be sustainable - socially, financially and environmentally. Therefore development requires new mechanisms while simultaneously re-forming the economic, social and political institutions to serve the interests of all.