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Urban and rural areas have different assets that are often complementary and interact within the spatial context of functional regions. These connections between urban and rural areas can improve the exploitation of existing resources as well as increasing the potential of regions in terms of economic activities, well being and equity in the provision of services. The OECD, in collaboration with the European Commission, is using a new analytical framework to assess urban-rural linkages and to help identify the governance forms that will enhance urban-rural interactions. The project focuses on "functional regions"– defined in terms of economic and social activities rather than administrative boundaries – so as to better reflect the true spectrum of rural-urban links. The framework takes into account a broad range of urban-rural interactions, both in terms of socio-economic linkages and governance arrangements. It is based on a matrix that has a spatial dimension (metropolitan regions, network of small and medium-sized cities; and sparsely populated areas with market towns) and a functional dimension (service provision, environmental quality, amenities, and governance).
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