Reinforcing Rural Resilience

1. Assessment and recommendations

1.1. Introduction

As global transformations accelerate, from digitalisation and the green transition to shifts in global trade, rural regions are emerging as under-tapped sources of growth and resilience. In many areas, signs of entrepreneurial vitality, economic renewal, and industrial reinvention are already taking shape. Yet the full potential of rural economies to contribute to and shape these transitions remains largely unrealised. Leveraging this capacity requires a shift in policy approach to fully embrace a place-based approach to policymaking, enabling strategies that unlock the potential in rural regions and allow them to contribute more meaningfully to national growth.

This report is timely in encouraging governments across OECD member countries to strengthen rural policy as a means of responding to today’s global transformations. It offers evidence not only of the challenges rural regions face, but also of emerging strengths, ranging from entrepreneurial growth to sectoral renewal, that are too often overlooked. A key contribution of the report is its differentiated analysis of rural areas based on their proximity to functional urban areas (FUAs), distinguishing between those that are close to urban centres and those that are more remote. This approach reinforces the case for more place-sensitive policies that recognise the diversity of rural contexts and support more tailored, effective policy responses.

To be effective, rural development policy must place rural people at the centre, prioritising all dimensions of well-being while investing in skills, infrastructure, and strategic opportunities. This means not only responding to local needs, but also actively steering rural economies towards high-potential sectors aligned with broader megatrends such as decarbonisation, digitalisation, and shifting global trade. Policy should also focus on the four STAR drivers that underpin rural economic growth, each offering distinct opportunities. They include: i) Specific assets only available in rural places, ii) Tradeable specialisation, iii) Access to urban markets and rural-urban linkages, and iv) Resources such as critical minerals or renewable energy.

The policy approach advanced in this report centres on enabling rural opportunity and resilience. Rural regions must be recognised not as areas in decline, but as strategic contributors to national innovation, resilience, and growth. This requires forward-looking, place-based strategies that support economic specialisation and long-term development. Rather than relying on traditional approaches that emphasise structural weaknesses, the report calls for policies that build on rural regions’ distinctive assets, whether in manufacturing, natural resources, or emerging sectors. The roadmap for the discussion in the report, reflected in the figure below, reveals the emerging trends and opportunities in rural places followed by analysis of relevant policy actions across different types of rural regions. The report closes with a discussion of the factors that could hinder successful implementation if neglected, particularly in today’s climate of rising rural discontent and institutional distrust Figure 1.1.

Figure 1.1. A differentiated policy framework for different types of rural regions

Source: Author’s elaboration

1.2. Trends and opportunities across rural types

Although demographic pressures are intensifying, particularly through ageing and population decline, emerging trends in automation, digitalisation and the green economy offer new avenues for rural renewal. Declining workforce availability threatens the long-term sustainability of rural labour markets, both in remote areas and those close to functional urban areas. Rural regions near cities are well-positioned to integrate into innovation and advanced manufacturing networks, while more remote regions can capitalise on resource-based sectors such as renewable energy, sustainable tourism, and bio-based industries and in niche markets. These trends such as automation, digitalisation, and the green transition, create timely opportunities for policies to strengthen the growth potential of rural economies.

1.2.1. Demographic and economic trends

Rural regions are growing more slowly than metropolitan areas, with many experiencing population decline, especially those far from cities. Between 2001 and 2021, rural regions across OECD countries grew by just 3%, compared to over 13% in metropolitan areas, based on country-level averages. Moreover, 47% of rural regions near small FUA’s and 40% of remote rural are already shrinking – compared to just 22% of metropolitan regions. The most remote rural places face the steepest declines, with some losing more than one-fifth of their population over two decades. However, growth patterns vary. Rural regions near large FUAs are more likely to grow, with 15 OECD countries showing positive trends in these areas, largely due to urban spillovers and improved connectivity.

Rural workforces are ageing faster than urban areas, transforming labour markets. Over the last 20 years, the old-age dependency ratio increased at a higher rate in rural regions than in metro regions in all but five countries. In 2001, for each 100 working-age people (20–64), there were 3 more people aged 65+ in rural than in metro areas across the OECD; by 2021, this difference had doubled. The old-age dependency ratio in rural remote regions (38% in 2021) is the highest across rural types and is projected to rise further. Overall, workers over 50 are now the largest age group in rural workforces, creating new labour market and employment challenges.

While metro regions lead overall in GDP growth, there are pockets of growth across rural places. Metro regions have on average outpaced rural in GDP growth (2.2% vs. 1.7% annually, 2001-21), and the GDP gap between urban and rural has widened since the 2008 global financial crisis. However, performance is diverse across countries and types of regions, and some rural regions are outperforming. In Germany, Portugal and Switzerland, rural regions grew at a faster pace, creating pockets of growth. Among the different types of rural regions, those near FUA’s, especially small FUAs, show stronger economic performance, highlighting the importance of rural-urban linkages and intermediate cities.

Rural performance looks more resilient in GDP per capita growth, which suggests that capital-labour substitution is leading to some efficiency and productivity gains. In 16 OECD countries, the rate of growth in GDP per capita in rural regions was higher than in metro regions over 2001-21. In 11 OECD countries, rural regions converged to the national average. Amongst types of rural, it is rural near small FUAs that recorded stronger GDP per capita growth across the OECD (1.8% annually). Still, productivity gaps remain, and productivity growth slowed in rural regions after the 2008 financial crisis – disrupting a pre-crisis process of rural-urban productivity convergence, mainly driven by remote rural regions.

Economic specialisation varies significantly across rural places, so they are likely to pursue different opportunities. Rural near midsize/large FUAs tend to specialise in manufacturing and tradeable sectors. Rural near small FUAs have mixed economic structures, but manufacturing also plays a key role. In 15 countries, rural near a FUA featured the highest share of employment in manufacturing in 2001. Rural remote regions are more reliant raw materials and primary activities such as agriculture, forestry, fisheries, natural and public administration. These specialisations mean that rural regions near cities can benefit from urban spillovers, supporting high-value sectors like digital services, advanced manufacturing, and innovation hubs. Remote rural can build competitive advantages in raw materials, primary activities (e.g. sustainable agriculture, forestry etc.), renewable energy, and nature-based tourism.

Advanced rural manufacturing remains a key driver of rural growth and employment. The sector matters for rural: one out of five rural jobs are in manufacturing. This share is expected to increase with digital-driven decentralised manufacturing models and more integrated regional supply networks. The employment share of manufacturing is higher in rural regions near a FUA. And rural regions matter for the sector: almost half of OECD manufacturing jobs are in rural places. Automation is an advantage in this context, not a risk. Automation and land advantages make rural regions cost effective, efficient and sustainable. Automation and the subsequent labour-capital substitution make talent shortages less pressing, while increasing overall productivity.

1.2.2. Four STAR drivers of rural economic growth

Four core drivers underpin rural economic growth, each offering distinct opportunities and policy implications.

Figure 1.2. STAR drivers of rural growth

Source: Author’s elaboration

• Specific assets of rural places: Rural regions possess distinctive characteristics – such as remoteness, land availability, and strong community ties – that, when strategically mobilised, can become powerful drivers of economic growth and innovation. Examples include large-scale renewable energy installations, eco- and outdoor tourism ventures, and military or technology testing sites. Renewable energy generation in particular, is a rapidly expanding sector, with rural regions producing 63% of renewable electricity across the OECD. Yet without deliberate policy frameworks, the economic benefits often bypass local communities, accruing instead to external investors or urban centres. Unlocking the potential of these assets requires strategic investment and governance mechanisms that ensure value is retained and reinvested within rural economies.

• Tradeable specialisation: Tradeable sectors are essential for rural regions to achieve scale, improve productivity, and integrate into global value chains. They represent the most significant source of future economic opportunity for many rural regions, particularly in an increasingly interconnected and technology-driven global economy. Rural regions have traditionally anchored their economies in tradeable goods, such as agriculture, resources sectors such as mining or forestry, tourism and specialised manufacturing. The tradeable sector is an important source of competitiveness for rural regions. OECD evidence shows that employment growth in the tradeable sector is positively correlated with productivity gains at the TL3 level. Moreover, regions that shift employment towards tradeable industries tend to experience stronger economic performance over time. Moving forward, an essential element for the rural growth model with a focus on tradables will be for trade barriers to remain low or inexistent.

• Access to urban markets and rural-urban linkages: Rural places located near cities benefit from spillovers in demand, productivity, and resilience, as urban economies enjoy economies of agglomeration. These connections support access to markets, services, and infrastructure, while also positioning rural regions as attractive alternatives in the face of urban pressures, such as high housing costs, inequality and environmental stress. Cities enjoy productivity and income advantages driven by agglomeration, and their resilience to shocks is markedly higher: only 4% of metropolitan regions experienced economic contractions over the past two decades, compared to 13.8% of rural regions (based on TL3 data). Urban pressures such as high land and housing costs, rising inequality, and environmental constraints also drive people and firms to consider rural locations close to cities, particularly when infrastructure and services are accessible. Releasing negative externalities in agglomerations can also help boost national growth.

• Resources (natural resources): Minerals, forests, and energy reserves when managed strategically, can drive long-term prosperity in rural and remote rural regions, generate high-wage employment, and support national productivity goals. Mining and forestry-intensive regions frequently outperform national averages in GDP and productivity. On average, mining regions across the OECD exhibit GDP per capita levels 18% higher than their national economies – with some, like Antofagasta in Chile, reaching up to three times the national average. However, these regions are also vulnerable to global commodity cycles, resource depletion, and environmental degradation. Industry diversification is typically low – 15% below national benchmarks – and patenting activity is nearly 50% lower, constraining adaptive capacity and innovation. Reinvesting resource revenues in infrastructure, education, and economic diversification is essential and governance mechanisms should ensure local benefit capture while promoting resilience.

1.2.3. Key enabling factors for rural resilience

Although there is a range of enabling factors to support rural competitiveness and resilience, this report suggests three areas of prioritisation: fostering skills, enhancing entrepreneurship and innovation and improving digital connectivity. Other critical enablers and foundational conditions include quality infrastructure, access to finance and effective local governance.

• Addressing rural skills gaps: Rural regions face persistent skills gaps and labour shortages, worsened by ageing populations and youth outmigration to cities for education and career opportunities. This weakens local labour markets and limits growth. Rural students often struggle with developing relevant skills, with PISA results showing competence gaps between urban and rural areas— – also primarily by socio-economic factors more than education quality. Interestingly, rural residents report similar satisfaction with education services as urban dwellers, suggesting that brain drain, rather than service quality, is the greater challenge. Digital skills in particular, are essential for rural regions to fully benefit from digitalisation and close the gap in technology adoption. A 7.7 percentage point divide in internet use between leading and lagging regions – and over 20 points in countries like Ireland, Türkiye, and Japan – highlights persistent digital inequality. Rural workers are also far less likely to access remote work, with uptake at nearly half that of urban areas, reflecting the need for stronger digital capabilities across rural labour markets.

• Strengthening entrepreneurship and innovation: Rural innovation and entrepreneurship lag significantly behind metro areas. Though advancement in innovation measurement, along with the fact that rural regions engage less in science and technology and more in incremental innovations, suggest that the gap is not as large as typically reported, insufficient entrepreneurship is still a big challenge. Youth start-ups are lagging in rural areas; in the EU, there were proportionately 25% fewer young start-up entrepreneurs in rural areas as compared to cities in 2019. Lower youth start-up rates are also driven by the higher outward migration rate of youth to cities as well as the age structure composition of the rural workforce that includes a smaller share of youth to the overall workforce. But in any case, young rural entrepreneurs are 8.6% less likely to start a company than urban ones. Most of the rural-urban entrepreneurship gap is explained by socio-economic characteristics such as education, sector of activity, household characteristics and living conditions.

• Expanding digital connectivity: Digital infrastructure is increasingly vital for economic and social development in rural areas, but gaps remain. Despite advancements in broadband coverage, there are still important gaps in connectivity and download speeds between rural and urban regions in OECD countries. On average one-third of rural households do not have access to high-speed broadband and only 7 out of 26 OECD countries have secured access to a high-speed connection for at least 80% of rural households. Broadband speeds can enable or hinder access to opportunities such as education, healthcare, and teleworking – all of which directly influence quality of life and development in rural areas. To seize the benefits of digitalisation, access to communication infrastructure needs to be complemented by the widespread adoption of digital technologies and by digital skills. Recent evidence from OECD countries shows that there is still a clear regional divide in the take-up of digital technologies.

1.2.4. From growth to well-being and the importance of perception

Economic competitiveness is a crucial determinant of rural wellbeing, but not the only one – the environment and access to services also matter. Access to quality services is a key driver of well-being, but significant disparities persist between rural and urban areas in OECD countries. Rural inhabitants have lower access to service facilities, including for education, healthcare, banking and digital infrastructure. Service delivery costs tend to be higher in less densely-populated areas due to sparsity, lower economies of scale, and higher transportation costs This in part contributes to poorer social outcomes in rural regions. Data trends show rural-urban disparities that extend to health outcomes, including life expectancy and health prevalence. Life expectancy at birth remains lower in rural areas, with a 2.4-year gap between remote and metropolitan regions.

Perceptions of rural residents on their local economy and services matter for life satisfaction. Data from sentiment surveys shows that rural residents are more attached and engaged in their communities than metro populations, but less confident about their local economies and often less satisfied with local services, all of which reduces their well-being. Opportunities need to reach local communities, since discontent across rural places is emerging across different countries. Recent social tensions across the OECD signal a degree of dissatisfaction with current policies in some rural places.

1.3. Trends and analysis highlight important implications for rural policy

Policies must be tailored to the diverse realities of rural regions, reflecting their economic and demographic differences. Rural regions near midsize or large cities tend to perform better in demographic indicators due to stronger rural-urban linkages, while remote regions face greater risks of economic decline and population loss. This highlights the need for targeted strategies, diversifying economies and investing in high-value sectors to build resilience. For regions facing gradual decline, adaptation policies can help manage change while preserving quality of life. In areas with rapid demographic contraction, more decisive interventions may be needed to avoid downward spirals and maintain long-term viability.

Policies need co-ordination towards place-specific goals, with local economic strategies and place-based industrial policies to proactively steer rural transformation efforts. Rural regions require more than generic support – they need targeted, proactive strategies that identify and develop high-potential sectors based on local strengths and assets. Smart specialisation offers a framework to guide public and private investment towards areas with comparative advantage, turning local competencies into globally competitive sectors. Industrial policy can catalyse this by promoting tailored interventions in sectors such as advanced manufacturing, renewable energy or the bio-economy, especially when aligned with national priorities. Multi-level governance is critical to deliver this, combining national strategic direction with local implementation and entrepreneurial discovery processes that are responsive to fast-evolving global trends.

Policy makers must adopt a forward-looking approach to make rural areas resilient. A new competitive role for rural regions can be enabled by how well they adapt to global megatrends. Local communities need to reimagine the possible. Automation offers productivity opportunities, particularly in capital-intensive sectors like agriculture and manufacturing. Rural regions are uniquely positioned to lead in renewable energy, carbon sequestration, and sustainable agriculture. Also, prosperous rural regions need to plan long-term. Resource extraction needs to be balanced with investment in innovation, human capital, and industry diversification to remain resilient to global shocks. The experiences of both high- and low-performing mining regions underscore the need for strategic policy interventions to ensure that resource wealth translates into broad-based, sustainable development.

Policies beyond growth, including for service delivery, are essential in rural regions not only for well-being but also for economic competitiveness and trust in public policy. Access to quality services such as healthcare, education, digital infrastructure, and banking is a key driver of rural well-being, yet significant disparities with urban persist across OECD countries. These gaps not only contribute to poorer social outcomes, but also undermine the attractiveness of rural regions for residents and businesses, weakening their economic potential and shape rural perceptions reporting less confidence in local economies and public services. This underscores the need for innovative, cost-effective service delivery models, alongside clear communication and engagement strategies to strengthen local confidence, ensure policy buy-in, and address dissatisfaction emerging in some rural regions.

Policies need to bring and communicate benefits to the communities and regions to gain local buy-in. In the green economy, for instance, rural regions face the paradox of being significant producers of green energy while having higher per capita emissions. Rural regions must ensure that green energy initiatives taking place also benefit local communities to avoid backlash and resistance. In the quest for new sources of growth, rural regions seem particularly exposed to economic and environmental trade-offs. Similarly to energy projects, the exploitation of natural resources, such as mining and forestry, brings economic opportunities, but also leads to environmental degradation, raising concerns about sustainability and the true cost of these developments. This growing divide where rural communities are bearing much of the environmental burden without fully reaping the rewards has also contributed to rising discontent.

1.4. Rural regions can benefit from tailored policy actions

To take advantage of emerging opportunities in rural regions requires policy actions targeted to specific types of rural places. Rural regions close to functional urban areas (FUAs) require specific and varied action to capitalise on and address assets and challenges. It also requires attention to whether the policy is distinctly rural development policy or policy across other departments or ministries that impact rural regions. This will influence who is responsible for the policy action and the potential cross-ministry or department co‑ordination needed. This report outlines three key areas shaping well-being standards for rural dwellers tailored to varied levels of policy makers across the two main types of rural places (rural close to FUA and rural remote): i) economic competitiveness, ii) provision of services, and iii) the green transition. These three dimensions are necessary but not sufficient on their own to raise well-being standards in rural regions. Policies need to integrate across all three according the different contexts and priorities.

1.4.1. Policy actions for rural places close to functional urban areas

Economic competitiveness

Rural regions located near functional urban areas (FUAs) benefit from better access to markets and can tap into the advantages of agglomeration, such as shared services, infrastructure, and knowledge exchange. These areas are well-positioned to attract a skilled labour force and retain talent, increasing opportunities for economic growth. Manufacturing plays a crucial role in the economic base of rural regions close to cities, and its continued development is essential for long-term competitiveness. Proximity to FUAs can enable rural manufacturing to better integrate into broader supply chains and respond more rapidly to market demands.

To unlock this potential, policies must focus on enabling future manufacturing growth through investment in infrastructure, skills, and innovation. Innovation in these rural regions must align with the specific opportunities presented by agglomeration, including collaboration with nearby urban centres and research institutions. This can foster the development of niche industries and high-value products that benefit from both rural assets and urban linkages. Strengthening these rural-urban connections supports inclusive regional development and resilience. It also enhances the ability of rural places to diversify their economies while preserving local identities.

Service delivery

Rural regions located near cities have a unique opportunity to leverage their proximity to deliver high-quality public services that fulfil cost, accessibility, and quality. This closeness can support shared infrastructure, better access to healthcare and education, and stronger service networks. However, this advantage also comes with a proximity paradox where rural regions near urban centres may struggle to maintain or finance local services due to being overshadowed by nearby cities. It is essential to ensure that these regions are not left behind in planning and investment decisions.

Addressing housing demand is another growing challenge, as people are increasingly moving to rural places close to cities for affordability or lifestyle reasons. This rising demand can drive up housing costs, strain local infrastructure and worsen urban sprawl. Strategic planning is needed to ensure housing remains accessible while preserving the character of rural communities. Strengthening co‑ordination between rural and urban governments can help balance growth and protect rural quality of life. Ultimately, turning proximity into an advantage requires targeted policies that recognise both the opportunities and pressures facing rural regions near cities.

Environmental policies and leveraging the green transition

Rural regions close to FUAs face unique pressures and opportunities that require tailored climate and land use policies. As these regions experience growing urbanisation pressures, land use planning becomes critical to balancing the competing needs of housing, agriculture, industry, and environmental protection. Smart land use strategies can help manage these tensions, guiding sustainable development while preserving the natural assets that rural communities depend on.

Circular economy models offer powerful tools to address rural challenges by promoting resource efficiency, reducing waste, and creating new economic opportunities. These models can support local industries such as agriculture, forestry, and manufacturing while regenerating ecosystems and reinforcing climate goals. By designing policies that reflect the specific dynamics of rural areas close to cities, governments can create synergies between environmental sustainability and regional economic growth. Integrating circular approaches into regional planning also helps future-proof these areas against climate risks and integrate them into value chains.

1.4.2. Policy actions for rural remote places

Economic competitiveness

Rural remote regions hold significant potential for growth by taking advantage of numerous unique characteristics and ensuring tailored approaches to leverage these assets. By reducing their distance to markets through improved infrastructure and connectivity, rural regions can create linkages where possible. Capitalising on remote-specific assets such as natural resources can drive local economic development, especially when paired with sustainable management practices. A key factor in this process is the meaningful inclusion of local community members, including rights holders such as Indigenous peoples, in the development of projects, ensuring that benefits are shared and cultural knowledge is respected.

Rural remote areas can also unlock tourism opportunities, offering a powerful way to diversify remote economies, drawing on unique landscapes, heritage, and community experiences. Innovation can play a crucial role in enabling these regions to overcome geographic challenges and develop context-specific solutions, especially in niche areas (mining, bioeconomy, tourism etc.). Support for digital connectivity, entrepreneurship, and education are essential to help remote areas take advantage of these opportunities.

Service delivery

Remote rural places face significant challenges in delivering public services, particularly as demographic shifts such as ageing populations and youth outmigration reshape community needs and workforce capabilities. Adapting public service delivery to these changes requires flexible, place-based approaches that make the most of limited resources. In education, supporting remote schools through digital tools and stronger community involvement can help ensure quality learning despite low student numbers. In some cases, the restructuring of school networks may be necessary to address rising per capita costs in remote regions, provided that accessibility to educational institutions is maintained through appropriate transport solutions. Healthcare access can be improved by embracing innovative solutions such as telemedicine, mobile clinics, and localised care models.

Investing in broadband connectivity is fundamental not just to increase access and the quality of services, but also to build digital skills that enable essential activities like communication, entrepreneurship and innovation. Revitalising housing through adaptive re-use and renovation can help attract and retain residents, while preserving community heritage. These strategies can collectively improve quality of life and build resilience in remote rural regions. Integrated planning and strong local partnerships are key to making these solutions work on the ground. Ultimately, tailored public service models can ensure that remote rural communities remain vibrant, inclusive, and well-connected.

Environmental policies and leveraging the green transition

Rural regions have a leading role in the clean energy transition, particularly with renewable energy production offering a powerful lever for both local economic development and meeting global climate goals. By strategically investing in and managing renewables capacity, rural regions can generate local jobs, attract investment, and become drivers of national climate targets. To fully unlock this potential, targeted policies and investments are needed to ensure remote areas have the appropriate ecosystem to support projects such as liveability, skills, services, and infrastructure.

Policy strategies related to renewables should integrate energy, land use, infrastructure, and social inclusion goals to ensure long-term impact. Indigenous peoples, often living in rural or remote regions, are particularly vulnerable to the effects of climate change but also possess deep knowledge and practices that can contribute to climate resilience. Recognising their rights, leadership, and expertise is essential in developing effective and just climate strategies. Inclusive approaches that centre Indigenous voices can lead to more holistic and equitable outcomes. Rural climate policy must be tailored, collaborative, and grounded in place-based strengths to ensure local communities not only participate but benefit from these developments.

1.5. Effective implementation of policy actions requires a transformative approach

Targeted rural policy is essential, but without attention to implementation factors, its impact will be limited. Key challenges include low policy coherence, fragmented co‑ordination across government agencies, and insufficient efforts to address issues at appropriate geographic scales or to promote collaboration between municipalities. To strengthen implementation, a more comprehensive and nuanced evidence base for rural places must be developed. This involves investing in both qualitative and quantitative data to assess policy impacts, monitor the evolving state of rural communities, and better understand the lived experiences of rural residents – particularly in relation to quality of life. In addition, empowering rural communities is essential. Targeted actions that amplify the rural voice – through meaningful consultation and clear communication of policy intentions – can foster trust, accountability, and sustained engagement. Without this, even well-designed strategies risk falling short of their potential. This framework is essential to explore the connection between discontent and rural well-being address the growing expectations of rural citizens for co‑ordinated, long-term solutions that extend beyond electoral cycles and bureaucratic divisions.

1.6. 16 Recommendations to Reinforce Rural Resilience

Table 1.1. Recommendations

Recommendation		Actions (Rural close to FUA)	Actions (Rural Remote)
Enabling competitiveness
1	Bridge the digital divide by expanding broadband networks and digital literacy programmes in rural places.	Launch “last-mile” broadband subsidy schemes to extend fibre coverage in growing peri-urban areas. Partner with nearby tech hubs and universities to provide short-term digital bootcamps for rural residents. Integrate digital infrastructure planning into regional development strategies to ensure alignment with new housing and industrial developments.	Deploy satellite-based internet solutions and mobile broadband towers to reach geographically isolated communities. Establish digital community centres that double as learning hubs and connectivity anchors in small remote towns. Provide subsidies or tax incentives for private providers to deliver broadband to low-density areas with low commercial returns
2	Address labour shortages by implementing apprenticeship programmes and vocational training aligned with local industry needs.	Expand partnerships between rural schools and nearby urban employers to co-design vocational training pathways. Offer dual-location apprenticeships combining rural practical placements with urban classroom-based instruction. Incentivise manufacturing firms to host apprentices by offering wage subsidies and mentorship support	Deploy mobile training labs to deliver hands-on skills programmes in remote communities with limited infrastructure. Partner with local Indigenous organisations to co-create culturally appropriate vocational programmes in tourism, land management, and trades. Provide relocation and housing stipends for trainers and apprentices to overcome distance barriers and ensure retention.
3	Encourage rural entrepreneurship and business innovation through financial incentives and incubator programmes.	Provide micro-grants for rural start-ups in high-growth sectors like agri-tech, clean manufacturing, and digital services. Set up rural innovation incubators in shared co-working spaces with fibre broadband and mentorship access, connecting rural entrepreneurs with experienced business leaders and investors through online and in-person mentorship programmes. Create local procurement incentives for public services to contract with nearby rural entrepreneurs. Connect rural SMEs to research institutions and funding schemes in urban areas.	Launch "start local" schemes offering seed funding and business coaching tailored to small-scale, community-driven enterprises (e.g. eco-tourism, artisanal food, or land stewardship services) and for digital innovation. Establish mobile business support teams that visit remote communities to assist with business planning, licensing, and grant applications. Support co-operative business models and community-owned enterprises that build collective capacity in places with limited individual capital.
Mobilising rural assets
4	Develop smart specialisation and local industrial strategies to guide long-term rural transformation via key sectors.	Identify strategic sectors: conduct regional growth diagnostics and facilitate stakeholder engagement to identify sectors with strong rural-urban market potential. Map rural-urban economic linkages to analyse commuting patterns, supply chains, and service flows Engage both urban and rural stakeholders to assess policy overlap and co‑ordination gaps. Facilitate multi-stakeholder smart specialisation workshops, identifying key collaboration opportunities with urban areas.	Identify strategic sectors: use participatory mapping and community-led diagnostics to uncover niche opportunities (e.g. circular economy, renewable energy, cultural tourism) tied to natural or heritage-based assets. Benchmark against peer regions that have developed specialised value chains in remote contexts (e.g. forest-based bioeconomy in Finland), adapting models to local conditions. Map local capacities and gaps in skills, services and infrastructure to identify needed investments.
5	Direct place based industrial policy tools—investment, incentives, infrastructure—towards locally selected sectors	Provide targeted support to first movers, pioneering entrepreneurs and SMEs aligned with local comparative advantage. Offer incentives (e.g. subsidised credit, skills training, regulatory fast-tracking) to SMEs serving urban-linked sectors like logistics, green tech, or digital services. Invest in agro-industrial parks or innovation hubs near transport corridors to foster economies of scale and integrate with urban markets Channel industrial policy support into peri-urban manufacturing zones, tech-enabled clusters, and supply chain integration with metropolitan economies. To strengthen resilience, promote and invest in Invest in service linkages (e.g. logistics, packaging, R&D) around existing industrial clusters to build diversified supply chains and SME ecosystems.	Support small-scale, decentralised infrastructure (e.g. digital hubs, artisan workshops, energy microgrids) and offer targeted incentives for firms investing in locally strategic sectors. Tailor support to businesses in strategic rural sectors (e.g. renewable energy, sustainable agriculture, cultural industries), prioritising basic infrastructure and access to markets. Invest in specialised artisan hubs, agri-food processing zones, or renewable energy platforms focused on clustering local producers and reducing transaction costs. To strengthen resilience, promote complementary activities around flagship sectors-e.g. eco-tourism tied to local food, crafts, or energy-through support for microenterprises and community co‑operatives.
6	Strengthen co‑ordination among local governments, businesses, and community organisations to align rural development strategies	Establish regional co‑ordination bodies to connect local governments, chambers of commerce, and civil society groups to co-develop and monitor rural development strategies Align incentives and funding mechanisms in rural and urban places through collaboration	Create and resource platforms for co‑ordination between various remote rural actors. Facilitate capacity building among local government and community actors (including Indigenous and civil society organisations) to ensure adequate resources in engaging in consultation.
Improving rural services
7	Ensure essential services are available in a timely and affordable manner	Foster service integration and co‑ordination through rural-urban partnerships Invest in staffing of key services to meet demand from those travelling from rural places	Invest in incentives to attract and retain service workers Strengthen community-based service capacity through training and employment of local workers Address cost barriers through subsidies or fee-wavier programmes Support mobile solutions to deliver services to remote communities
8	Enhance transportation options	Improve regional public transport links through improved co‑ordination and inter-modal systems Pilot innovative and flexible transport solutions such as on-demand transport in low-density areas	Partner with local NGOs or community groups to scale up community-run transport Integrate on-demand systems for transport to key service areas
9	Support affordable housing and flexible housing policies	Promote medium-density housing near transport links and flexible housing models such as tiny homes, and multi-generational housing Implement inclusionary zoning and land use reforms	Prioritise housing for local and essential workers through housing schemes Allow temporary or seasonal housing permits for areas with fluctuating workforce needs
Leveraging the green transition
10	Ensure strong land-use plans that protect the environment, address tensions, and capitalise on unique opportunities	Incorporate urban expansions into spatial planning, safeguarding agricultural land, green spaces, and biodiversity corridors Invest in green infrastructure and integrate into rural-urban spaces to reduce environmental pressures from urbanisation	Strengthen environmental governance through promoting sustainable extraction practices, enforcing regulatory frameworks, and empowering local communities. Embed climate resilience in land use plans through adopting ecosystem-based adaptation strategies, resilient infrastructure investments, and community-based planning (including Indigenous or community-led conservation and monitoring).
11	Ensure inclusive engagement in the green transition opportunities	Strengthen local participation in renewable energy initiatives to improve social acceptance and ensure long-term viability of investments. Enhance community-led energy projects, such as co‑operatives and benefit-sharing models. Provide education and training on the importance of the green transition and sustainability	Engage with local communities to allow rural populations to take ownership of local energy assets. Through energy projects, support workforce retraining and economic development strategies. Provide education and training on the importance of the green transition and sustainability
	Ensuring effective policy implementation
12	Policy Coherence and cross government Integrated action	Leverage governance tools (e.g. co-financing, consultation processes, intergovernmental committees) to align investment and enhance cross-sectoral co‑ordination.
		Develop indicators to track inter-sectoral collaboration (e.g. number of committees, budget allocations, stakeholder engagement metrics).
		Introduce a rural proofing process tailored to national and regional contexts to integrate rural considerations into policy development.
13	Building Scale and Promoting Co‑operation	Base policies on Functional Rural Areas (FRAs) to reflect functional economic and spatial dynamics of rural regions.
		Enhance rural-urban linkages through incentives, governance capacity-building, and improved interconnection metrics.
		Promote public private partnerships to mobilise investment and innovation for sustainable rural development.
14	Improving Rural Evidence	Improve data collection on rural well-being by identifying the key domains that matter most to rural communities. This requires a blend of empirical research and participatory engagement to ensure that indicators reflect lived realities.
		Develop and maintain rural proofing intelligence comprised of: State of rural data to establish a clear understanding of rural conditions. Potential impact data to evaluate how specific policy proposals may affect rural communities—particularly in ways that may be unintended, disproportionate, or overlooked—thus supporting necessary policy adjustments. Value-added data to demonstrate how working with rural communities—rather than overlooking or bypassing them—can help non-rural ministries (e.g. environment, health, education, energy) more effectively achieve their policy goals.
15	Actions to galvanise and value the rural voice	Support rural local governments in adopting a broader range of financing tools, such as municipal bonds, land value capture, and public–private partnerships. Establish or strengthen institutions (e.g. local government financing agencies) to facilitate access to affordable capital and reduce reliance on national transfers.
		Effective engagement should be inclusive of diverse stakeholders; ensure two-way dialogue; provide prior access to relevant information; and, include transparent feedback mechanisms to show how input influences decisions
		Invest in spatially disaggregated data to strengthen rural foresight intelligence and track the impacts of megatrends and change drivers.
16	Effective Communication	Transition from one-way communication to a participatory model. Adopt a three-tiered communication approach—inform, consult, partner—to actively involve rural communities in the design, delivery, and evaluation of policies. Co-develop and tailor messages with rural communities. Work collaboratively with rural residents and local organisations to co-create messages that reflect community values and priorities. Use trusted local messengers and appropriate communication channels. Leverage existing local communication networks, including community leaders, organisations, and influencers, to deliver policy messages and select channels that match rural realities. Develop inclusive and accessible communication strategies - Ensure communications are inclusive by integrating visual aids, local languages, and non-digital formats. Institutionalise strategic communication planning across all policy reforms impacting rural areas and incorporate communication planning into all stages of policy design—particularly for changes with rural implications.