Rural Diversity: An American Asset

Abstract

Rural America is an exceedingly diverse place, and this diversity constitutes a national asset. Diversity can be documented by an examination of any social or economic attribute one wishes to choose—educational attainment, per capita income, occupation, and ethnic background provide examples. This diversity shapes both the public policies applicable to the countryside and the opportunities of rural communities and rural people. Highly centralized public programs and policies, unless they provide for local adaptation, are unlikely to be successful. Many existing federal programs have outlived their usefulness. Federal entitlement programs continue to be enormously important to rural people and can be made even far more effective by recognizing rural differences. Not all rural areas will flourish in the future; the supply of rural places that would like to attract economic activity far exceeds the demand for such places. Exogenous forces that will improve the prospects for some rural areas include an increase in the number of people of retirement age and with a retirement income as well as growth of outdoor recreation and tourism activities. Entrepreneurship will continue to be of great importance as diverse rural places discover ways they can serve an increasingly urban and global society. The cost of distance and the benefits of space are key parameters in establishing the economic framework within which economic development will occur.