The influence of a formal and informal system of the Local Action Group (LAG) board’s performance on the perception of its members is analysed in association with the suitability of the rural development projects for the LEADER funds co-financing. The unique in-depth survey data was obtained from the surveys with the 103 LAG board’s members using the written questionnaire designed for the inquiry and from the existing data analysis on projects which were co-financed by the LEADER funds in Slovenia in the years 2008 and 2009. The informal system of performance of the LAG board members was found to influence significantly its members’ perception on the suitability of projects to be co-financed by the LEADER axis. The opposite was established for the formal system, which had an insignificant influence on the board members’ perception on the suitability of projects.
formal system, informal system, institutions, lobbying, project selection