The Importance of Rural economic development and Rural Investment
427 views · Published 29 November 2018 · 2:33 · Indexed 25 September 2026
Channel: RFD-TV · 2018 · Entertainment
Nov 2 2018 Washington DC As lawmakers dig in for the final days of campaigning, the economy is a key talking point. While the nation grows overall, rural communities have not fared as well—efforts to change that are gaining traction. RFD-TV’s Sarah Mock brings us the story. The US has rebounded from the 2008 recession, but the recovery has been slowest in America’s heartland. “It’s clear rural America is lagging behind urban America in terms of economic development. Banks view that as an opportunity, not a deficit. An opportunity to be the people on the ground to make the first buck, to make the first investments.” Formerly at USDA, McKenna says part of the problem is investor simply don’t know what these opportunities are. but he says investors also fail to make the profitable investments communities need simply because rural projects tend to be small. “Rural economic development requires a little bit more time and attention, and a good example of the difference is scale. Institutional investors are looking to invest $5 billion, $100 billion on infrastructure and big projects. Very often the opportunities in rural America are $5 million projects or $10 million projects. They’re small game for institutional investors that have the economic resources.” He says there is a role for the federal government in encouraging these investments and raising awareness. But the private sector will be the bigger driver. “The private sector has money to invest. They know how to make money from those investments, whether that’s in broadband, hospital systems, water systems, venture capital simply lending money. The private sector is well familiar with how to flex their muscle. But there’s a lack of awareness of those opportunities.” Another challenge when making the pitch for rural investment—explaining that rural communities can be as economically complex as their urban neighbors. “Agriculture is less than 10% of the economy of rural America. It’s a big piece, it’s an obvious piece, but it’s a small piece. Nonetheless, it’s the piece that most people think about. But that’s just one small piece of rural America. Think renewable energy. That’s a much larger piece or the economy of rural America these days and obviously a huge source of our growth in our energy supply has come from rural America and our energy resources that exist there.” Because small businesses are the number one source of new jobs in the us economy, McKenna argues that attracting investment for small companies, and building communities with robust infrastructure where they can thrive, will be the most effective way to bring prosperity to rural america. An important lesson for lawmakers looking to win the rural votes. For RFD-TV, I’m Sarah Mock in Washington. The rural opportunities initiative, a partnership between Georgetown, Mississippi state, Iowa state, and Purdue universities, recently hosted their heartland summit in Bentonville, Arkansas, sponsored by the walton family foundation, an organization looking to drive economic development in Rural America. Matthew McKenna, Rural Opportunity Initiative Executive In Residence Sarah Mock Washington Bureau Chief, RFD-TV @Sarah_K_Mock
