The Changing Economics of Rural Communities

The purpose of this chapter is to show that economic factors help to explain many of the observed changes in the spatial distribution and condition of rural communities. A diverse range of economic factors, acting on rural places with different histories and endowments of capital, generate different economic outcomes for these communities. The chapter also considers the ways in which these factors might affect the future sustainability of rural communities.I begin by explaining the ways in which economic changes within the farm sector and its associated industries have altered the distribution of economic activity between rural communities. Changes within the other primary industries, and the effects of changes in other industries represented in rural communities, are then considered. The various categories of capital are examined in turn, to illuminate the ways in which changes in them have affected, and are likely to affect, the economic condition of rural communities. The effects of economic policy interventions on rural communities are then briefly outlined. Finally, conclusions are drawn regarding the role of economic factors in the possible future of rural communities.