It’s Not Your Daddy’s
Rural Economy . . .
Building Vibrant Economies and
Communities in Rural America
Lionel J. “Bo” Beaulieu
Southern Rural Development Center
Mississippi State University
Introduction




The 1990s appeared to be good to rural
America
Over 3.8 millions jobs created
But recent events suggest that the economic
health of rural America is fragile
Many states are facing significant declines in
jobs due to layoffs and business closures.
A vibrant Rural America
will depend depend on . . .




Quality human capital resources
An entrepreneurial spirit that
supports internal economic
development
A rural area with excellent digital
infrastructure
Broad-based civic engagement
It’s Not Your Daddy’s
Rural Economy
Employment Composition in the
Nonmetro U.S., 1990 and 2000
Goods Producing
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Services Producing
66.2%
69.5%
11.1
33.8%
30.5%
1990
2000
Percent of Jobs Generated by Each Sector
in the Nonmetro U.S.,1990-2000
Goods Producing
89.9%
Services Producing
10.1%
Average Earnings Per Job in
the Goods Producing Sector
NM: 60.8% of Metro
$50,000
$45,000
$40,000
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$0
NM: 66.5% of Metro
Metro
Metro
NM
NM
1990
Goods Producing
2000
Average Earnings Per Job in
the Service Producing Sector
NM: 65% of Metro
$40,000
$35,000
NM: 70.7% of Metro
Metro
$30,000
$25,000
Metro
$20,000
$15,000
NM
NM
$10,000
$5,000
$0
1990
Service Producing
2000
Why the Increasing Gap in
Average Earnings?
No. Employed
1990
No. Employed
2000
2000 Ave.
Earnings
Manufacturing
4,206,182
4,324,057
$35,184
Retail Trade
3,959,799
4,828,513
$15,427
Services
5,164,340
7,067,417
$21,167
NM Industry
Type
60% of employment growth in the nonmetro U.S. between
1990-2000 was linked to the Retail Trade and Services industries
Human Capital Resources in
Nonmetro America
Educational Attainment,
1990-2000 (25+ years old)
LT H.S.
High School
Some College
Bachelor's +
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Metro
Nonmet
1990
Metro
Nonmet
1994
Metro
Nonmet
2000
Nonmetro Educational Attainment,
by Race and Ethnicity 1990-2000
LT H.S.
High School
Some College
Bachelor's +
100%
80%
60%
40%
20%
0%
1990
1994
2000
African Americans
1990
1994
Latinos
2000
Ranking of Graduation Rates by State
State
Ranking
Graduation Rate, 1998
Georgia
51
57%
Tennessee
50
59%
Mississippi
49
60%
District of Columbia
48
60%
Arizona
47
60%
Alabama
46
62%
Vermont
6
85%
Pennsylvania
5
85%
Nebraska
4
85%
North Dakota
3
87%
Wisconsin
2
87%
Iowa
1
93%
Source: High School Graduation Rates in the United States (November 2001),
Less Than a High School Education
100
80
60
40
20
0
1986
1988
1990
1992
Primary-Upper
Primary-Lower
Second-Upper
Second-Lower
High School Degree
100
80
60
40
20
0
1986
1988
1990
1992
Primary-Upper
Primary-Lower
Second-Upper
Second-Lower
Certificate or Associate Degree
100
80
60
40
20
0
1986
1988
1990
1992
Primary-Upper
Primary-Lower
Second-Upper
Second-Lower
Bachelor's Degree or Higher
100
80
60
40
20
0
1986
1988
1990
1992
Primary-Upper
Primary-Lower
Second-Upper
Second-Lower
Strategies for Strengthening
the Viability of Rural America
Enhance the community’s
human capital resources

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Great strides have been over the past
decade
But additional enhancements are
needed. The question is how?
Traditional method has been to focus on
improving the performance of schools
These plans place too much burden on
schools alone
No Child Left Behind Act
of 2001
What we should do . . .
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Start with the very youth who live in
rural America today
Work to ensure that the homes and
communities in which youth are
embedded recognize the key roles they
must play in helping shape the
educational success of these young
individuals
Factors Explaining Standardized Composite
Test Scores of 8th Graders (n=8,756)
Background
Family
Community
School
30
Percent
25
20
15
10
5
0
tro
e
M
r
co
e
tr
e
M
r
he
t
oo
et
et
m
m
n
o
on
N
N
j.
j.
d
d
a
A
no
N
How to promote educational
advancement of youth
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Help equip parents/guardians with
knowledge and tools that promote the
educational progress of their children
Build positive teacher/student and
teacher/parent relationships
Build youth supportive communities

Community Youth Scholarship Program
Create an entrepreneurial
spirit in Rural America
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Capturing the “big” plant still a
dominant strategy in rural areas
As a result, approaches that build
on local talents and resources are
often overlooked
Some strategies . . .
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Address the needs of existing firms and help
them expand and become stronger
Uncover and invest in the talents existing in
the community already – these are
entrepreneurial opportunities
Reduce imports by producing appropriate
products locally
Bottom line . . . Help create and strengthen
internally grown small businesses
Businesses with payrolls . . .

Nearly 64 percent of
all establishments in
the U.S. employ less
than 10 persons (as
of 1998)
National Commission on
Entrepreneurship Study
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Four key ingredients for spurring
entrepreneurial activities:
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Access to quality workers
A community that embraces and nurtures
entrepreneurs
Local governments that enact supportive public
policies
Local economic development officials who see it
as a legitimate strategy for creating local jobs
Build the digital capacity
of rural communities
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Recent U.S. Commerce has upbeat picture
about advances in the adoption and use of
computers and the Internet
Digital inclusion is important given that a
majority of current jobs now require some
skill in the use of technology
Major efforts are needed to help rural
America become fully engaged in the global
marketplace via the use of IT
Special attention will be needed in certain
regions of the U.S.
Computer Access in Metro and
Nonmetro Homes,by U.S. Regions,2001
Northeast
Midwest
South
West
U.S.
70
60
50
63.5
64.1
67.1
59.6
40
63.4
63.3
60.4
55.7
46.4
30
20
10
0
Metro
Nonmetro
55.6
Internet Users in Metro and Nonmetro
Areas, by U.S. Regions, 2001
Northeast
Midwest
South
West
U.S.
60
50
40
57.5
48.6
49.5
45.4
30
52
47.5
47.9
.
45.9
38.3
32
20
10
0
Metro
Nonmetro
Expand civic engagement
in rural communities
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Rural communities must commit themselves
to rebuilding a corps of civically-minded
citizens
It will require:
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All segments of the community be involved
in guiding the future of the community
New and expanded leadership development
opportunities be provided
Leadership responsibilities to be shared;
this will help build trust
Support for the establishment of localoriented small and entrepreneurial
businesses
Communities that subscribe
to these principles . . .
Concluding comments
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Have outlined some key components that can help place
rural communities on the path to social and economic
progress
These efforts are consistent with the work of the RCCI,
especially those aspects dealing with economic
development and civic engagement.
It is important that the efforts designed to build vibrant
communities be undertaken as a partnership, one that is
dedicated to creating coordinated working relationships
among Extension educators, community/tribal college
faculty/staff, and other public and private sector entities
concerned about the well-being of rural people and
places.
Thank You ! !
Small Group Discussion
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To what extent are the trends described in
this report similar/dis-similar to the conditions
that exist in your communities?
Rate your communities on the following:
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Quality of its human resources
Entrepreneurial spirit
Digital infrastructure
Civic engagement
Outline 3-5 strategies that your group
believes may be worth considering in an
effort to create vibrant communities and
economies?