Object of research: development of rural areas and the processes of management by these areas. Objective: justification of the theoretical and methodological foundations of rural areas development based on the realization of their potential and developing of practical recommendations for an effective system engineering for management by these areas. Methods: analysis and synthesis, monographic, systems analysis, economic-mathematical modeling, structural and statistical analysis, clustering, mapping, dynamic and index, comparative and graphical. Novelty: for first time conceptual bases of rural development, including their system characteristics, principles of operation, the basic imperatives of endogenous model and strategic development priorities in the context of administrative-territorial reform, deepening of the European integration process and stimulate the development of local community initiatives are justified, methodological approach to analysis of the functioning of rural areas is proposed, scientific bases of development management of rural areas, based on the principles of participatory, adaptability and heterogeneity and include targets, subjects, management tasks and immediate measures focused on balanced development of all subsystems of rural areas and implementing of the priorities of the concept of endogenous development are developed, improved scientific and methodological basis of the research of potential of rural areas, management system of rural areas development, methodical approach to assessing the quality of life of rural residents, which includes the system of performance in terms of economic, demographic, environmental and educational fields of rural areas development. Scope of application: in the activities of the Presidential Administration of Ukraine in the development of the Concept of innovative rural areas development, in determining the main objectives of rural areas development in the context of the European integration prospects of Ukraine, the Ministry of Agrarian Policy of Ukraine in finalizing the draft of the State Target Program of sustainable development of rural areas until 2020, the Ministry of Foreign Affairs of Ukraine in the formation of rural areas development policy on the basis of progressive approximation of Ukraine to EU rules and regulations, the Main Department of Agricultural Development of the Lviv Regional State Administration in the formation of the draft of Program of rural areas development in Lviv region until 2015.
