Understanding rural America is no easy task. It is tempting to generalize and oversimplify, to characterize rural areas as they once were or as they are now in only some places. As this report has shown, however, understanding rural America requires understanding the ongoing changes and diversity that shape it. Likewise, policies, if they are to be effective in assisting rural areas, will have to recognize the realities growing out of that change and diversity.

The diversity of rural America means different areas have different needs.

The economies of individual rural areas differ, as do the resources upon which they are built and the opportunities and challenges they face. Some have participated in the economic progress of the Nation over the last half century, while others have not. Even among those that have benefited in the past, many are not well positioned to compete in today's global economy. Each of those types of areas has different needs. No single policy can sufficiently address the needs of all.

Still, there is an overall pattern of economic disadvantage in rural areas.

The historical and defining features of rural economies often constrain development. Regardless of other differences, efforts to assist rural areas must take into account these common rural characteristics:

• Rural settlement patterns tend to be small in scale and low in density.
• The natural resource-based industries on which many rural areas have traditionally depended are declining as generators of jobs and income.
• Low-skill, low-wage rural labor faces increasingly fierce global competition.
• Distance and remoteness impede rural areas from being connected to the urban centers of economic activity.

"High-amenity" rural areas, however, are growing.

Many rural areas with amenities such as mild climate, mountains, coastlines, and lakes are gaining population. These areas are attractive to retirees and tourists, and their influx has led to increases in employment--especially in services--and income for the areas. Areas with amenities, therefore, have a development asset, but as a result must deal with issues of managing their growth.

There is no single recipe for rural prosperity, but the potential is considerable and there are logical ways to promote development.

Because rural areas differ, no easy answers or "one size fits all" policies will work. In light of that, the following should not be viewed as a recipe or checklist of any kind. Rather, it is a set of principles that take into account the different rural conditions and trends discussed in this report and show promise in helping rural areas and people realize their goals. Because they are principles, the manner in which they are applied will vary according to the needs of individual situations.

• Improve the connections between rural and urban areas by improving infrastructure and the dissemination of information and the ability to use it. Advanced telecommunications, for example, while not a panacea, afford rural communities more economic opportunities by providing them with better access to information, markets, and services such as business and technical assistance, medical care, and educational opportunities.
• Encourage and assist rural firms to target specialized, niche markets. Some rural areas have tapped into markets for handmade tapestries, others specialize in high-end furniture, still others concentrate on highly technical equipment. These markets typically yield higher returns and face less competition than traditional, standardized markets. Again, connections are important, as access to information is critical in finding and tapping these markets.
• Create "artificial scale economies" to counter the higher costs of government and business due to small-scale, low-density settlement patterns. Examples include "flexible manufacturing networks," where firms work together on tasks such as product development, marketing, and buying supplies; and "multi-community collaboration," where communities form a partnership to jointly buy services and equipment or provide municipal services. Both are ways to emulate economies of scale to reduce costs.
• Improve the competitiveness of rural firms by enhancing the core skills of both management and labor. Competitiveness in today's market increasingly depends on the ability to obtain and use information, technology, and new management techniques.

The challenges facing rural America today are indeed diverse, complex, and changing. There is hope, however. Armed with accurate information and a clear understanding of the challenges, policymakers working together with rural citizens can meet those challenges. The vitality of rural America, its people, and its places can be maintained. With care and informed decisionmaking, rural America can continue to play a role of national importance contributing to the economic, social, cultural, environmental, and recreational well-being of all Americans.

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Updated: February 11, 1997