A NEW ERA FOR RURAL POLICY

Although the rural economy is more diverse than in was three decades ago when the Rural Development Act of 1972 was signed into law, Rural America still remains heavily tied to commodities, both industrial and agricultural. With globalization bringing increased competition, rural regions are now looking for new sources of competitive advantage.

Mark Drabenstott, vice president and director of The Center for the Study of Rural America at the Federal Reserve Bank of Kansas City, examines the future of  U.S. rural policy in “A New Era For Rural Policy.” The article is featured in the fourth quarter edition of the Economic Review.

Drabenstott writes that there are exciting economic opportunities on the horizon, but capitalizing on them will require fresh policy directions. He offers four directions that appear especially promising:

·        New incentives for communities and counties to think regionally that will help them find new niches and a threshold level of critical mass;

·        New programs to foster rural entrepreneurs that can create local wealth and attractive jobs in rural regions;

·        New investments in research and technology that will help rural regions build a larger knowledge-based economy;

·        Redefining the roles of higher education institutions to lend assistance to rural leaders and businesses.

            Drabenstott’s article, which is based on his testimony before the House Committee on Small Business, and past editions of the Economic Review are available on the Bank’s Web site at www.kansascityfed.org.

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