Giving Compass' Take:
- Local leaders in rural America are promoting the idea of updating federal policy changes that support small business growth to advance rural economic development during COVID-19.
- How can donors help support policy changes that drive progress for rural areas during the pandemic? How does the virus impact these areas differently than urban centers?
- Read more about rural America recovery efforts.
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The COVID-19 pandemic is threatening to exacerbate the nation’s geographic divergence in community well-being and economic prosperity that has been widening since the Great Recession. Over one-quarter of U.S. counties had not yet recovered to pre-2008 levels before the pandemic hit. This is disproportionately true for rural America, whose diversity belies general perceptions and is attracting leaders such as Todd Wolford of Wytheville, Va, and Lindsey Dotson of Charlevoix, Mich., who direct rural economic development organizations and are eager to build rural institutions and places that thrive.
Wolford and Dotson are focused on growing and supporting small businesses, which—similar to most rural areas—provide the majority of jobs in their communities. In rural small towns, main street is “the heart of your community,” said Wolford. “[It’s] what makes your community unique…what makes people want to come to your community.” Yet their experiences demonstrate that federal policy for rural development is outdated and mismatched in helping rural leaders meet the demands and opportunities of the modern economy and the additional pressures wrought by COVID-19.
Federal rural policy was designed for a different era and a different economy, and must be modernized to effectively support places like Charlevoix and Wytheville. With over 400 programs spread across 20 agencies, federal assistance requires greater coherence, greater flexibility, more strategic financing options, and longer investment horizons to successfully unleash vision and innovation in rural America. Simple tweaks are unlikely to make the kind of impact that rural leaders have in mind.
Read the full article about rural America during COVID-19 by Tracy Hadden Loh and Anthony F. Pipa at Brookings.