Abstract
The purpose of this paper is to identify the main problems related to the sustainable development of rural communities, as well as the possible solutions to overcome them. This paper uses an analytical and synthetic approach, method of comparison and analogy, and descriptive analysis. The starting point of the research is actually a brief overview of the current situation in rural Serbia, while the central part of the paper presents an analysis concerning the development of the rural economy in the representative villages of Grabovica and Ribare in the Republic of Serbia. Research results are given in the form of specific guidelines for a new approach to local rural development and strengthening the role and responsibilities of local government in the development process. The main conclusion that follows from the results of the research is that continued and constant work is needed in order to empower local communities to take responsibility for their own development, as well as to support local initiatives to this end.