This paper focuses on the Local Action Group as a partnership and considers
how such entities fit within the Polanyian triadic model of social order.
The rhetoric of LEADER and endogenous development would suggest that LAGS a
re a manifestation of the principle of reciprocal relationships. Osti concl
udes, however, that although there is a shift away from the hierarchical pr
inciple, the direction of change is, in fact, towards quasi-markets. In the
se markets, territories are provided with an enhanced capacity as strategic
agents but are also susceptible to control hy local/regional economic and
political interests. His theoretical ideas are grounded in a study of LEADE
R in Italy.