The paper presents the results of a scientific study of the impact of local action groups (LAGs) on local sustainable development.

Local Action Group (LAG) embodies the LEADER approach for the development of rural areas. In the Croatian context, the implementation of the LEADER approach in multi-sectoral local development planning began towards the end of the first decade of the 2000s with the participation of civil society organizations. This continued after joining the EU, and today there are 54 active LAGs. As their activities have not been systematically researched so far, this study, using a mixed methodology including focus groups, surveys, and case studies, examined the opportunities and limitations of LAG activities in Croatia.

The results have shown that the human resources of LAGs are generally satisfactory, with a strong emphasis on the need for education and support. Their budgets are increasing, but there is still room and a need for diversification of funding sources and greater allocation of financial resources. There are significant administrative requirements that hinder the efficient work and development of LAGs. Some needs are also emphasized, such as greater autonomy and flexibility, which would enhance their work in the community and support local development. The results suggest that LAGs are not recognized as a priority at the national level of policies, but their potential as stakeholders in the development of rural areas according to their own needs and priorities is also emphasized.