Rural Development

Patchwork of Federal Programs Needs To Be Reappraised Gao ID: RCED-94-165 July 28, 1994

The traditional sources of America's economic vitality--such as farming and industries based on natural resources--have undergone gradual yet significant restructuring during the 20th century. This restructuring has been accompanied by long-term economic disappointments: Poverty rates have remained high in rural counties, and unemployment rates have generally been higher in rural areas than in cities. These conditions have fueled an exodus from many rural areas, worsening their problems. This report (1) identifies the factors that influence a rural area's economic success or failure and (2) evaluates whether federal programs efficiently address rural economic problems.

GAO found that: (1) many factors, such as sparse population, isolation, and dependence on a single industry, affect the economic vitality of a rural community; (2) effective local leadership and long-range planning can enhance opportunities for economic development; (3) according to local and regional officials, the delivery of rural assistance is inefficient because many federal programs are difficult and costly to implement; and (4) the federal interagency group established to address the delivery of rural assistance can take only limited action because it lacks the authority to make changes in the programs.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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