Much has been made of the decline of rural areas. Yet many are finding their footing again by seizing new opportunities arising from the green and digital transitions. How can policy makers help them ride the wave and reinforce rural resilience?
A new rural reality
Rural regions are increasingly home to the solutions we need for the future, particularly to make a success of the digital and green transitions. They provide the raw materials we need for our gadgets, and the space to generate renewable energy. Rural places are also emerging as hubs to support advanced, clean, and digital manufacturing, attracting both industry and entrepreneurs.
Rural regions produce more than 60% of renewable electricity in the OECD, host many of the sites for solar, wind, and bioenergy production, are home to significant deposits of critical minerals and offer the land and know-how needed to lead on sustainable forestry and agriculture.
Nearly half of OECD manufacturing jobs are located in rural regions. Many of these jobs are shifting toward clean production, automation, and digital supply chains. New business models, from remote work to agri-tech, are making rural locations more attractive not just for traditional sectors, but potentially also for entrepreneurs looking for an improved quality of life, to enjoy the unique assets of rural places.
Rural regions near cities are well placed to benefit from urban spillovers including access to markets, infrastructure, and knowledge with lower congestion and cost of living. And more remote regions, with their unique natural assets and cultural heritage (especially in regions with Indigenous Peoples), have the potential for new economic life through eco-tourism, nature-based industries, and strategic investment in local value chains.
Various rural areas are already seizing these new opportunities. Between 2001-21, 13 countries saw GDP per capita in rural regions grow faster than the national average and across three countries (Germany, Portugal and Switzerland) rural regions grew faster than metro regions.
Turning potential into progress
Unlocking rural opportunity means shifting from one rural policy to many. Rural areas vary in their skills, sectors, infrastructure and connections with other places. The right policies will look very different for rural areas that can benefit from being close to cities compared to those for remote islands.
To succeed, policy makers need to embrace this diversity, encouraging each place to find its own path, and backing plans with the right funding and technical support.
Italy’s National Strategy for Inner Areas (SNAI) targets remote regions facing demographic and service decline by building on their unique assets and addressing place-specific challenges. It uses integrated development and multilevel governance to tailor solutions to each area’s distinct needs and its natural and cultural resources.
Accessible and high-quality services are also needed. In too many rural areas, basic public services have deteriorated, undermining quality of life and attractiveness. In 2023, life expectancy at birth remained lower in rural areas, with a 2.4-year gap between remote and metropolitan regions.
PISA data across 31 OECD countries shows that urban students outperform rural students in reading by an average of 45 points, equivalent to more than a full year of schooling. Targeted service provision such as Western Australia’s Emergency Telehealth Service for remote areas is essential to bridge this gap.
Effective rural policy also requires better community engagement. Across many OECD countries, rural residents express strong attachment to their communities, yet rural regions report the lowest confidence in their local economies, dampening well-being outcomes and institutional trust. In Northern Ireland, the establishment of the Rural Community Network has been instrumental in fostering trust through community-led development Initiatives.
The road ahead for rural regions
If rural regions are to play their full role in driving climate action, strengthening supply chains, and boosting growth, policies must reflect their diversity if they are to unlock their potential. Our Reinforcing Rural Resilience report, launched at this year’s OECD Ministerial Meeting on Regional Development Policy, offers governments a timely roadmap to act.
Drawing on decades of OECD rural policy experience, it sets out practical tools to support thriving, forward-looking rural communities, at the centre of national transformations.
Bridget Donovan is a Policy Analystat the OECD’s Centre for Entrepreneurship, SMEs,Regionsand Cities, where she contributes to the Mining Regions and Cities Initiative. Her work focuses on strengthening wellbeing across economic, social, and environmental dimensions in regions affected by mining. Previously, she worked in ESG consulting, conducting materiality assessments for mining companies, and in Indigenousorganisations, supportingcapacitybuilding andorganisationaldevelopment.