New rural management and Islamic Councils are being considered as people-oriented institutions during last years with regard to rural economic development. This in turn, demands extra efforts for improvement of this institution status. The major objective of this study is to analyze the influential factors upon strengthening the economic role of these councils in rural area of Harsin (Kermanshah). The research method of this study is descriptive – analytical using questionnaire survey. The sample size is determined to be 50. The sampling techniques were based on simple random sample out of which 32 villages were selected. This is followed by application of Cronbach's for determination of research viability of the research data. K.M.O coefficient (o.7 and 0.71) as well as Bartlett’s test were used. Data analyses were done via utilization of descriptive methods including median, frequency, principle component analysis and Wilcoxon. This study suggests that there exist significant variation regarding economic service provision prior and after the foundation of these rural councils. Moreover, 6 preventive components with respect to economic rural development were identified. They include the legal deficiencies of the councils, their in capabilities related to passing economic rules, peoples cooperation with the councils, the community’s lack of familiarity with the council’s rules, the people’s lack of confidence regarding the council’s performance and their low financial and administrative authorization level. This is followed by identification of four other corresponding factor including community participation, better council membership selection procedure, high acquaintance of council’s members regarding rural economic problems, drawing governmental, public and private financial supports regarding rural projects and high intimacy of council members performance.
