Is it possible to foster the development of rural territories? An analysis from local development theory

This article addresses an important gap in the local development literature: the lack of approaches that systematically identify and organize the factors that determine and influence local economic development in rural territories. Drawing on local development theory, which hypothesizes that territories possess endogenous resources (economic, human, institutional, and cultural) whose effective mobilization can generate economies of scale, the main objective is to analyze and systematize the territorial characteristics and local productive systems that enable the consolidation of local development processes. Methodologically, the study employs an integrative literature review with thematic synthesis (1990 – 2022) and qualitative content analysis, complemented by semi-structured interviews for expert validation. The results identify four interrelated categories: (i) the sustainable use of natural conditions and resources; (ii) the provision and organization of strategic resources for local productive systems (human capital, natural resources, and energy); (iii) innovation, entrepreneurship, and institutional support networks; and (iv) the management of territorial internalities, such as social capital, infrastructure, migration, and public safety. Finally, the study concludes that efficient resource allocation alone is insufficient in the absence of effective demand; rather, the integration of local products into value chains and access to external markets function as key levers to stimulate production, attract investment, and improve population welfare.