The paper is devoted to the problems of development of peripheral regions. It contains a review of theories of endogenous and exogenous development and a description of their evolution. Based on this theoretical discussion two model strategies are presented: (1) modernization of endogenous potential and (2) building the new endogenous potential of a region. In its further part the paper focuses on the experiences of peripheral regions in Portugal and Finland. Finally it offers the recommendations for public policies in the peripheral regions of Eastern Poland.
