National Governors’ Association (NGA) releases Brief with recommendations on Rural Development Strategies

Rural economic development policies must build upon the natural assets of rural America, advises the latest issue brief from the National Governors’ Association (NGA) Center for Best Practices. Innovative State Policy Options to Promote Rural Economic Development suggests rural strengths include natural resources, local business networks, and an under-exploited entrepreneurial culture.

Rural economic development presents distinct challenges as well, including poor links to markets, geographic isolation, a lack of infrastructure and tools for business development and growth, and the out-migration of human capital. The recent economic downturn in the U.S. also has hit rural areas harder than urban and suburban areas, intensifying the challenges for rural communities.

The NGA issue brief suggests states can utilize economic development strategies that rely predominantly on growing a region’s assets rather than relying on outside investment. Three strategies states can employ for rural economic development are highlighted, complete with current examples and explanations of how they have been employed in various states. The strategies are:

* Adapt cluster-based principles supporting the formation and operation of industry-driven networks. Community colleges and universities can become central points for workforce training, technology access and research and development for emerging clusters. States should make certain that rural clusters have access to vital resources, which includes capital, advanced technology and business planning tools.

* Promote entrepreneurship outside of the agricultural sector providing access to capital through budget appropriations or a venture capital fund. Entrepreneurs in a community must be identified and encouraged, and technology such as online networks must be used to join rural populations with the resources that can assist their entrepreneurial ventures.

* Reinvigorate the agricultural sector through diversification and value-added agricultural practices obtaining the fiscal means for rural economies to create higher-value products and shift agriculture in a more advantageous direction. Efforts to diversify the agricultural base should be supplemented with technical and infrastructure support through the promotion of market evaluation and product development.

Innovative State Policy Options to Promote Rural Economic Development can be downloaded at: http://www.nga.org/cda/files/0203RURALDEV.pdf

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