EN
Considering the role of local government in stimulating local economy development, and at the same time in shaping development processes, it must be stressed that local government has certain functions to perform consisting of shaping life conditions that are beneficial to the residents and the operation of business entities. To achieve this purpose it undertakes various activities, and uses legal and economic instruments. With this in mind, this publication attempts to demonstrate the role of territorial government as an entity that directly and indirectly stimulates local economy development processes, along with the presentation of selected instruments and actions conductive to shaping these processes. The considerations in this study pertain to the conditions of the functioning of territorial government units in Poland at the local level. Of course, due to the length of the paper, only selected issues of this broadly understood problem will be discussed.