Lessons from rural development in OECD countries

Despite the different challenges facing rural areas in developing countries, the experience of rural development in OECD countries has some relevant lessons to impart. This chapter outlines the evolution of rural areas in OECD countries. The transformation of OECD economies over the last few decades has resulted in a declining and ageing rural population and lower share of agriculture in gross domestic product (GDP). While cities are the main source of economic growth in OECD countries, however, a large rural population can coincide with a high GDP per capita. A new paradigm for rural development in OECD countries, in existence since 2006, sees rural areas in a new, more positive light: rather than being treated as lagging regions that need propping up with subsidies, it views them as sources of untapped potential that can contribute to national growth, with the right policies and investment. This requires local-level governance autonomy and capacity, and cohesion and co-ordination across multiple levels of government.