Many factors affect low investments in Smederevo and among them, above all, are: high commercial and non-commercial risks, tardy economic transition and underdeveloped institutions, which guarantee in practice the rights deriving from the private property and contracts. Rural development in Smederevo requires that sources of competitiveness move toward high education, the efficient market and capability to earn on the existing technologies, i.e. the focus of agriculture should be moved from physical resources to knowledge, especially since agricultural enterprises in Smederevo have non-profitable business performances, which manifest through decline in the market share and profitability, increase in indebtedness, inadequate investments and the increased volume of new business ventures at the expense of the primary business. It is noticeable that the adequate entrepreneurial skills and the innovated managerial abilities and skills are necessary. Accordingly, exactly the development of innovation and transfer of innovative knowledge and technologies from the academic to agricultural sector are the most important form of activities, which stimulate development. In that sense, it is necessary to stimulate the common work of universities, research institutions and agriculture as well as to use the equipment and knowledge of everybody at universities and institutes by the companies and vice versa and the student projects and practice. The policies of labor market should increase the participation of additional education programmes and training in measures of an active employment policy, which comprises the different programmes of qualifications and trainings, re-trainings and additional trainings, functional primary education of adults. At the same time, the above-mentioned programmes should be directed to the most vulnerable groups in the labor market and individuals with multiple vulnerability factors, first of all, through strengthening capacities at the local level for improvement of educational development and trainings in the field of agriculture and rural development.

The present volume is the collection of the conference papers presented on The 2nd International Symposium Agricultural economics and rural development. Realities and perspectives for Romania, organized by The Research Institute for Agrarian Economy and Rural Development during 8-9 of September, in Bucharest, Romania. The main aim of this symposium was both to present the newest research results and findings in field of agricultural and rural development research and, also to encourage the direct implementation of these results in practice by creating a strong cooperation between academicians and researchers with the field experts and investors. The symposium proceedings is structured in 2 specialized sections and the plenary one, where the read my find interesting argues regarding this research field.

The implementation of numerous programs/rural development strategies of local governments in Serbia depend partly from activities of local government, and partly from willingness of associations of physical persons and legal entities, cooperatives and other members of the LAG - to take steps to implement action plans and strategic development priorities of local communities. However, it is important to note that for greater participation of LAGs in implementing rural development policy in Serbia a number of assumptions should be fulfilled: (1) strengthening the number and capacity of socio-economic of citizens' associations, clusters, cooperatives, agricultural companies and other potential members of LAG (2) creation of more favorable economic climate/environment for bigger investment in agriculture, primary processing and many other activities associated with agriculture, which can be successfully realized in rural areas of Serbia. In further work the emphasis is being put on these two key assumptions of successful application of Leader approach in future programs and policies for rural development in Republic of Serbia.

The Economics of Agriculture (Ekonomika poljoprivrede) is an international scientific journal, published quarterly by BSAAE (Balkan Scientific Association of Agricultural Economists) in cooperation with Institute of Agricultural Economics (IAE) Belgrade and Academy of Economic Studies, in which are published original scientific papers, review articles, pre-announcements, book reviews, short communications and research reports.