Still recovering from recession, rural America has assets for growth – CAP Report

Rural America was hit harder by the Great Recession than metropolitan areas and has not recovered fully, said the Center for American Progress on Monday. Although rural communities face unique challenges, they have assets for growth that include immigration, natural resources, agriculture, manufacturing and community social capital,  the social bonds and civic engagement that create a resilient spirit in a town, the think tank said in an issue paper.

“Policymakers and pundits commonly characterize rural America as a charity case—or worse, as areas doomed to decline,” write Olugbenga Ajilore and Zoe Willingham, authors of the paper. “While these communities face real challenges, federal investment in their intrinsic strengths can help build a brighter and more inclusive future.”

One in seven people live in rural America, where the median income is lower, the poverty rate is higher and the population is older than in cities. Rural America lost population, for the first time in history, in the early years of this decade but rebounded modestly in 2017 and 2018. “The fastest-growing counties have recreational and scenic amenities that attract migrants,” said demographer Kenneth Johnson of the University of New Hampshire in April. “In contrast, rural farm counties continued to experience domestic out-migration and population loss.”

Tourism and outdoor recreation are powerful elements in helping some rural counties gain population, said Ajilore and Willingham. “The evidence is clear that sustaining nature is a superior alternative for rural communities than relying on extractive industries.”

Communities benefit from immigration as a way to buffer population losses or to grow in size, said the paper. Some 21 percent of “growing rural places nationwide owe their numbers entirely to the addition of immigrants to their community.” Immigrants fill vacancies for skilled or unskilled workers and contribute to economic vibrancy. More than two-thirds of rural counties have lost population since 2010, said the Center. It cited a report by the Economic Innovation Group that a 1 percentage point decline in population leads to a 2-3 point decline in business startups.

“Agriculture, an important feature of many rural economies, faces structural, economic and environmental obstacles that are spurring a new wave of innovation among America’s farmers,” said the report. Similarly, “some rural manufacturers are succeeding at creating high-quality jobs in their communities” through steps such as focusing on local specialties, whether in skills or products, and experimenting with new business practices.

“One of the strengths of rural area lies in their close-knit communities,” said Ajilore and Willingham. “Smaller communities with strong social infrastructure tend to be more resilient than comparable communities without it. For example, higher levels of community attachment and civic engagement are associated with better population retention and broader measures of social welfare.”

To read the issue paper, “Adversity and assets,” click here.

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