The Best Way to Rejuvenate Rural America? Invest in Cities

A stark spatial hierarchy is emerging in the United States. Big cities are ascendant, enjoying accelerated job growth in a knowledge-driven economy, while midsize cities, small metro areas and rural communities struggle to keep pace. These geographic fault lines have provoked a debate about how to revitalize rural America. What if the best way to rejuvenate small towns is to invest in cities? Proximity to cities does not solely explain rural prosperity. And some direct investments, such as broadband and rural entrepreneurship, can improve rural fortunes. Yet in an economy where private investment flows to places with dense clusters of prized assets, the best rural policy may be supporting the development of small and midsize cities across the country, improving rural residents’ access to jobs, customers, training programs and small-business financing.

[Amy Liu is vice president and director and Nathan Arnosti a policy analyst at the Metropolitan Policy Program at the Brookings Institution]