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Local and regional democracy is a pillar of democratic societies. However, democracy in the EU pre-candidate countries is still young and fragile. Determined and sustained efforts are needed to develop and consolidate institutions and the rule of law. Concerning Serbia, the topic touches on politically sensitive territorial issues. As an ethno-heterogeneous state with regions distinguishing themselves strongly from each other, many country specific features need to be considered. This book identifies the existing historical, political and socio-economical complexities in distributing power and analyses the impact of reached achievements on the basis of various examples. Are the undertaken efforts sufficient to appropriately regulate the territorial organisation? Does the large number of challenges outweigh the opportunities? The author gives a comprehensive evaluation of the situation on Serbia's competence to respond to international and internal expectations which have accumulated as part of the transition policy. The book addresses domestic decision-makers, representatives of international organisations and citizens of Serbia who are actively participating in democratic life.