Theory and reality of the EU's rural development policy application in the context of territorial cohesion perspective-The case of the Czech Republic in the long-term period of 2004-2013

•Analysis of the relationship between the CAP second pillar and territorial cohesion.•Comparison of agricultural and non-agricultural tools in the Czech Republic.•Territorial cohesion analysed by socio-economic indicators in period 2004-2013.•Verification by detailed statistical analysis at the level of municipalities.•Critical discussion of the EÚs Rural Development Policy focus.

Strategic and legislative documents concerning the EU's rural development policy emphasise the link with territorial cohesion. Long-term identification of the countryside with agriculture, however, ushered in a focus on this sector in the rural development policy. This has been also further emphasised by the policy inclusion into the Common Agricultural Policy in 2007. The aim of this paper is to assess the socio-economic characteristics of the municipalities, within which subsidies of the rural development policy were localised. The analysis includes the most important tools in terms of financial allocation. These tools are divided into the agricultural and non-agricultural allocations, for the period of 2004-2013. The results of the analysis indicate close interconnections and a targeting of agricultural tools on farmland and municipalities with characteristics of the supported sector. Non-agricultural tools were marginal in financial terms and diversified with respect to their focus. The relationship of the provided subsidies with the socio-economic level of the supported municipalities was not entirely clear. The dominant part of the rural development policy was therefore not implemented in line with the objectives of the socio-economic dimension of territorial cohesion.