Recent rural economic trends suggest two major emphases for enhancing rural development opportunities. First, today's youth, regardless of where they ultimately live and work, will need an unprecedented level of education and technical skills to compete in the increasingly high-skill "new economy." Only 17 percent of rural adults age 25 and older had completed college in 2000, half the percentage of urban adults. Moreover, the rural-urban gap in college completion has widened since 1990. In the past, many rural areas hosted industries that required a reliable pool of low-wage workers. Today, a labor force with low education levels poses a challenge for many rural counties seeking economic development. Employers are now more attracted to rural areas offering concentrations of well-educated and skilled workers. Low wage levels are no longer sufficient to attract businesses. Rural areas with poorly funded public schools, few good universities and community colleges, very low educational attainment, and high levels of economic distress may find it hard to compete in this new economy. All of these are major obstacles to the educational progress of local youth and to local development efforts.
Second, rural economic health and vitality depend on innovative ways to generate income. Jobs are declining and incomes are eroding in rural areas that depend on natural resource-based industries, such as farming and mining. Those areas that can adopt innovative income-generating strategies to build on their assets, diversify their economies, attract new businesses, and sustain their successes will likely thrive in the global economy. Many rural areas have successfully built on their assets and taken on new roles—providing labor for a diversity of industry, land for urban and suburban expansion, sites for prisons, and natural settings for recreation, retirement, and enjoyment. Enhancing rural communities as places to live, retire, and vacation may improve not only the quality of life for existing residents, but also the possibility of attracting new businesses and residents. These rapidly growing areas can help sustain their successes by ensuring that the changing demand for essential services and infrastructure is adequately met.
Recognizing the diversity of rural America is a key component of any strategy to enhance the economic vitality of rural communities. Rural diversity means that there is no single recipe for rural prosperity. Opportunities and challenges facing rural America vary by community and region. Rural diversity also means that rural community issues are often most effectively addressed at the local and State level. Programs designed to tailor assistance to local needs and improve program and service delivery work best at the local level, while the Federal Government can have an important coordinating role. Broad regional approaches have also proven to be effective in fostering economic development and facilitating service delivery. Efforts to enhance the economic opportunities for rural Americans call for unique partnerships among the spectrum of American institutions, including different levels of government, the business community, public advocacy groups, and local organizations.