Introduction
Rural economy is a term that refers to the economic activities and outcomes that take place in rural areas, which are defined as areas outside of settlements with more than 10,000 resident population1.
Rural economy includes both agricultural and non-agricultural industries, such as forestry, fishing, tourism, manufacturing, services, and creative sectors2.
Rural economy also encompasses the social and environmental aspects of rural life, such as culture, heritage, community, biodiversity, and natural resources3.
Rural economy is important for several reasons, such as:
- It contributes to the national and regional economy. According to the Department for Environment, Food and Rural Affairs (Defra), rural areas account for 17% of England’s total economic output (Gross Value Added), 16% of England’s total employment, and 19% of England’s total businesses1. Rural areas also provide essential goods and services for urban areas, such as food, fibre, energy, water, and recreation3.
- It supports rural development and livelihoods. Rural economy provides income and employment opportunities for rural people, especially for those who are disadvantaged or marginalised, such as women, youth, ethnic minorities, and people with disabilities4. Rural economy also helps to reduce poverty and inequality, improve living standards and well-being, and enhance social cohesion and inclusion3.
- It preserves rural heritage and identity. Rural economy reflects the history, traditions, and values of rural communities. Rural economy also fosters a sense of pride and belonging among rural people, as well as a sense of responsibility and stewardship for their land and resources3.
- It protects rural environment and biodiversity. Rural economy depends on the health and diversity of the natural environment. Rural economy also promotes sustainable management and use of natural resources, such as soil, water, forests, wildlife, and landscapes3.
However, rural economy also faces some challenges and constraints that need to be addressed by policy makers and stakeholders. Some of these challenges are:
- It is affected by external factors. Rural economy is influenced by various factors that are beyond its control, such as climate change, market fluctuations, trade policies, technological changes, demographic shifts, and urbanisation23. These factors can have positive or negative impacts on rural economy depending on the context and the response.
- It is characterised by diversity and complexity. Rural economy is not a homogeneous or simple phenomenon. Rural economy varies widely across regions.
Conclusion
Rural economy involves a lot more aspects than we imagine. Not only is it the opposite of Urban economies, but also, it helps deliver vital resources such as food and helping save heritage, traditions and history!
