This paper analyses the evolution of the notion of territorial cohesion in the European Union, with an emphasis on the importance given to the processes of participation and to the specificities of local realities. Despite space and territory has always received attention from the economic theories of development, only recently the territorial dimension was considered fundamental by the European Union. Even though the European Rural Development Policy has always had a greater territorial focus than other European policies, the real relevance of participatory models and the involvement of local actors within this policy has been questioned and must be scrutinized. The reference to a Portuguese cooperative financial institution illustrates this assessment by providing evidence on the role that a local institution can play in rural development.FC
