This thesis deals with the Kosovar agricultural economy and the introduction of new approaches. Kosova is an economy in transition with high unemployment, young population and structural problems. The privatization process promises a better future and economic growth. However, hard work and new approaches are needed. Privatization does not mean immediate growth. Hereby, clusters are considered as an appropriate approach to develop rural areas. Especially the wine sector in Kosova could be an example for cluster development as it is a promising sector. Wine has a long history in Kosova although wine consumption is not widespread. This sector is a rare example where exports are higher than imports. Climate conditions cheep working force and as stated the background make this sector attractive. Foreign agencies and investors are very interested in this sector. This thesis will show the main problems and main opportunities of this sector. It will describe the structural changes and current developments. Cluster creation is not a government function. Further, it is not a tailor-made solution. In fact, clustering involves many roles. Each participant has certain duties but the whole process needs coordination. The monitoring and supervision of the whole process, the identification of needs and permanent exchange of the participants are organized in a cluster. At the end, a win-win situation is created even if competition is raised to a high level. Competition and the functioning of free markets guarantee the success of the sector and as a results regional development. One cluster helps to create another. Starting one process means that many others could follow. By reading this thesis, the reader should recognize potentials and understand the local circumstances. This is the aim of the study.