In recent years, there has been growing discussion about rural development, population decline in rural areas, and the need for balanced regional development in Serbia. At the same time, one basic question is asked much less often: “What is actually a rural area?” The answer to this question is not just a matter of definition.
It directly affects how we develop and target rural development policies, how public funds are distributed, and which areas are identified as priorities for support. Although the term “rural area” is often used in strategic documents and public policies, Serbia’s legal framework does not provide a single definition. The Law on Territorial Organization of the Republic of Serbia defines municipalities, cities, the City of Belgrade and settlements as basic territorial units, without distinguishing between urban and rural areas.
At the same time, official statistics use a division into urban and other settlements, which is applied by the Statistical Office of the Republic of Serbia in population censuses and other publications. This division is not defined by the Law on Territorial Organization.
Instead, it is a statistical classification whose main purpose is to collect, process and compare data. Unlike the administrative division, the DEGURBA methodology classifies areas based on spatial and demographic criteria. These include a 1 km² grid of spatial cells, population density, total population and the spatial connection of populated cells.
Based on these criteria, local administrative units are divided into three categories: 1) cities; 2) towns and suburbs; and 3) rural areas.
This classification makes it possible to determine the level of urbanisation based on actual spatial and demographic characteristics, rather than the administrative status of a settlement. At first sight, this may seem like a statistical methodology. However, its importance goes much further. The way we define an area affects everything from measuring quality of life to creating economic policies.
No methodology can fully describe the complexity of an area. Population density, although important, does not tell us enough about access to public transport, healthcare, education, digital infrastructure or employment opportunities. Two areas may have a similar population density but completely different development prospects, depending on factors such as their connection to larger centres.
Therefore, DEGURBA should be seen as an important starting point for developing public policies, but not as the only criterion.
A modern approach to rural development must also consider the functional connections between areas – in other words, whether people can access jobs, education, healthcare and other key services and facilities that affect quality of life in rural areas.
In this context, transport connections are particularly important. Public discussions about rural development most often focus on agricultural support, subsidies or local entrepreneurship. While these are equally important topics, much less attention is given to the infrastructure that allows people to continue living in these communities.
The experience of European countries shows that a high-quality regional railway network can significantly expand economic opportunities in rural areas, reduce spatial isolation and make smaller communities more attractive places to live. The example of Southern Italy shows how better railway connections can contribute to rural development. The Naples–Bari high-speed railway connects smaller cities such as Avellino and Benevento with larger urban centres, reduces travel times and improves access to labour markets, services and other economic opportunities.
However, in order to develop such policies systematically, a clear strategic framework is needed. At this point, it is important to note that Serbia does not currently have a valid strategic document that comprehensively guides rural development policy. The document most often mentioned today as a framework for rural policy – the National Rural Development Programme for 2022–2024 – was never adopted and remained only a draft. At the same time, the Strategy of Agriculture and Rural Development of the Republic of Serbia for 2014–2024 has expired. This means that, since 2024, Serbia has not had a valid strategic document that comprehensively defines the direction of rural development.
It was only in 2026 that a public consultation process on the proposed new strategy for 2026–2034 was launched, showing a lack of continuity in strategic planning in this area.
Nevertheless, although it was never adopted, the Draft National Rural Development Programme shows the direction in which the state intended to develop this area. The proposed measures recognise the need to strengthen the competitiveness of agriculture, diversify economic activities, support young people and women, develop local initiatives and improve living conditions in rural areas. Importantly, this approach no longer views rural development only through the lens of agricultural production, but as a broader process that includes economic, social and environmental aspects.
One dimension that is still not sufficiently recognised is the functional connection between areas. Although the Draft recognises that quality of life in rural areas depends on access to quality physical infrastructure, including transport connections, this is mentioned only at a general level.
Regional transport connections are not really recognised as an important development tool.
In particular, there is little consideration of the role that local and regional railway networks can play in improving access to jobs, educational institutions, healthcare and other public services. For this reason, the Institute for Development and Innovation advocates for greater attention in public policies to the development of local and regional railway infrastructure and networks, in order to improve connectivity and support rural development.
In this context, railways are not only a means of transport, but also one of the key tools for connecting areas and supporting balanced development. Developing local and regional railway connections can help ensure that smaller communities are not seen as peripheral and isolated, but as part of a wider functional area where people have access to jobs, education, healthcare and new economic opportunities.
Where good connections exist, rural areas have a better chance of retaining their population, attracting new investment and becoming an active part of regional development. Therefore, railway infrastructure should not be viewed only as a transport issue, but as a much broader issue of economic policy.
Author: Milica Dolašević, Institute for Development and Innovation
