It was specified that the current system of the development incitement of the mountainous and other problematic areas in Ukraine has a narrow set of promotion means. It was proved that the important issue is the formation of a functioning system of the mountain areas development, which would allow to build a structured, stable economy within them. It was determined the main shortcomings of the domestic institutional management system for the mountain areas development. It was defined the efficiency of the system for the ability to realize strategic objectives of management, to ensure the effectiveness of the mountain regions management, the appropriate level of filling the budget and ensure the preservation of natural resources. Special attention was paid to the problems of mountain areas in Europe. We consider a number of tools to stimulate economic activity in the mountainous regions of Europe. For the results of the study we formulated the conclusions and proposals for the development of an effective system of Ukrainian mountain areas development.