The subject of the research are legal and strategic documents of the Republic of Croatia, that regulate regional development policy directly or indirectly through regulating spatial planning, rural development and public administration. Comparative analysis method was used to research legal regulations and strategic documents concerning regional development and local and regional government systems in Denmark, Slovenia and Ireland, in relation to objectives and principles of European Union's cohesion policy. The synthesis of findings on the complex institutional framework of Croatia's regional development policy and the experiences of studied countries, led to making conclusions and defining recommendations for improving regional development administration in Croatia. Research results indicate the need to reform the territorial organization in order to establish larger local and regional administrative units with the capacity to initiate economic and social development throughout their territories. Decentralisation of functions, authorities and budget income from national towards sub-national level should aim to stimulate polycentric development and strengthen the urban system. Due to the multi-sector nature of regional policy, it is important to establish inter-ministerial coordination at the national level and vertical coordination between the national and sub-national level in order to harmonise and reach development goals. Closer cooperation between regional policy, local and regional administrative units and coordination of EU funds, while at the same time taking into consideration spatial planning objectives, contributes to a more efficient regional development policy.