At Future Economic Rural Network (FERN), we’ve long argued that rural regions are vital—not just to local livelihoods, but to national resilience, economic innovation, and environmental sustainability. So when the OECD released its 2025 report Reinforcing Rural Resilience, it felt like a powerful endorsement of the priorities we’ve been championing for years.
The report comes at a pivotal time. From ageing populations to digital divides and increasing public disillusionment, rural communities across the OECD face profound challenges. Yet what emerges clearly is not a tale of decline, but one of opportunity—if we’re prepared to act with nuance, vision and urgency.
What sets this OECD framework apart is its refusal to treat rural regions as a homogenous bloc. By distinguishing between areas close to cities and more remote territories, the report allows for policy approaches that reflect lived realities. That insight aligns directly with our own Rural Futures Framework, which has consistently stressed the importance of place-based strategies. One-size-fits-all simply doesn’t work.
The data behind the report is sobering. Remote regions are ageing rapidly and often shrinking. They struggle with labour shortages and have limited access to services like healthcare and high-speed internet. Meanwhile, residents express concern about economic prospects and trust in institutions. But there are also bright spots—especially in rural areas near cities—where per capita GDP is growing and innovation ecosystems are beginning to take root.
The OECD sets out four key drivers for unlocking rural growth: leveraging specific rural assets; expanding tradeable specialisation; building stronger rural-urban linkages; and responsibly managing natural resources. All four are priorities we work on every day, whether through enabling rural SMEs, supporting digital access projects, or advocating for green energy investment.
We were also encouraged to see the OECD push beyond metrics to consider perception and lived experience. Rural wellbeing isn’t just about statistics—it’s about whether people feel they have a future. That’s why we continue to emphasise community-led solutions, inclusive policy design, and communication that is two-way, not top-down.
As always, the implementation challenge looms large. Policy frameworks are only as good as their execution. The OECD rightly calls for cross-sector collaboration, improved rural data, and a stronger institutional voice for rural communities. These are precisely the areas where we at FERN are investing our efforts—helping local authorities collaborate across borders, equipping communities with foresight tools, and amplifying rural perspectives in national debates.
Key Findings from the OECD’s Rural Resilience Report:
-
Rural regions are ageing faster and experiencing population decline, especially in remote areas.
-
Economic performance varies widely: some rural regions near cities are outperforming national averages in GDP per capita.
-
Nearly half of OECD manufacturing jobs are located in rural areas—highlighting their strategic role in tradeable sectors.
-
Access to public services like healthcare, education, and broadband remains a persistent challenge for rural residents.
-
Perception data shows strong community attachment in rural areas, but declining confidence in local economies and public institutions.
-
The OECD identifies four “STAR” drivers of rural growth: specific rural assets, tradeable specialisation, access to urban markets, and natural resources.
-
Digital divides continue to limit rural resilience, with broadband speeds and digital skills lagging behind urban areas.
-
The report calls for tailored, place-based policies that reflect the unique strengths and vulnerabilities of different rural regions.
-
Effective policy implementation requires improved rural data, cross-government coordination, and stronger local participation in decision-making.
A Framework for Future-Ready Rural Policy
Abstract This article critically examines the OECD’s 2025 publication Reinforcing Rural Resilience, presenting a synthesis of its spatial typology, policy recommendations, and empirical findings. The analysis explores how place-based, differentiated policy frameworks are necessary to address demographic challenges, economic divergence, service disparities, and trust deficits in rural regions. Drawing on the STAR model (Specific assets, Tradeable specialisation, Access to urban markets, Resources), we evaluate the potential of rural territories as agents of transformation in an era of green transition, digital acceleration, and geopolitical instability.
1. Introduction In light of accelerating global disruptions—climate change, supply chain reconfiguration, and digital transformation—rural areas must no longer be viewed as policy afterthoughts. Instead, they should be recognised as central actors in sustainable economic systems. The OECD’s Reinforcing Rural Resilience provides a timely intervention, shifting the analytical and policy discourse towards rural regions as strategic partners in national development.
2. Spatial Differentiation and the Functional Rural-Urban Continuum A central contribution of the report is its refined spatial classification. By delineating rural areas based on proximity to Functional Urban Areas (FUAs), the OECD enables a more granular understanding of rural diversity. This distinction—between rural near FUAs and remote rural—facilitates the design of policy interventions that are sensitive to spatial disparities in infrastructure, labour mobility, service access, and innovation potential.
3. Demographic and Economic Trends The report’s analysis of demographic decline highlights the uneven nature of ageing and depopulation across the OECD. Remote rural regions are particularly exposed to demographic contraction, with old-age dependency ratios surpassing those of metropolitan areas. However, rural regions near cities demonstrate more dynamic population and economic trends, supported by urban spillovers and enhanced connectivity.
Despite overall lower GDP growth compared to metropolitan regions, rural areas show significant heterogeneity. In several countries, rural per capita income has converged with national averages, driven by capital-labour substitution and the expansion of decentralised manufacturing models. These findings underscore the need for tailored industrial strategies that account for local comparative advantages.
4. The STAR Drivers of Resilience The OECD identifies four drivers critical to rural resilience:
- Specific assets such as land, remoteness, and community networks
- Tradeable specialisation in agriculture, manufacturing, and tourism
- Access to urban markets which fosters productivity through rural-urban linkages
- Natural resources, including minerals and renewable energy potential
These dimensions, conceptualised as the STAR model, provide a framework for rethinking rural economic development in a globalised, decarbonising economy.
5. Service Delivery and Social Outcomes Access to essential services remains a major fault line in rural well-being. Gaps in broadband access, healthcare, and education have persisted despite digitalisation efforts. The report shows that rural residents report stronger community ties, yet lower satisfaction with public services and economic opportunity—highlighting the importance of perception-based indicators in policy evaluation.
6. Enabling Rural Competitiveness The OECD advances a multidimensional strategy for resilience, prioritising digital infrastructure, workforce development, entrepreneurship, and innovation. Remote areas require investment in connectivity, localised vocational programmes, and circular economic models. Meanwhile, peri-urban rural zones can leverage proximity for high-value manufacturing and service innovation.
7. Governance and Implementation The report underscores the institutional challenge of policy coherence and delivery. It advocates for:
- Integrated cross-ministerial action
- Data expansion through rural-specific indicators
- Functional scale coordination via Functional Rural Areas (FRAs)
- Participatory policymaking that amplifies rural voices
FERN’s own work corroborates these imperatives, particularly in amplifying civic engagement and forecasting rural needs through spatially-disaggregated data.
8. Conclusion Reinforcing Rural Resilience signals a shift in OECD rural policy—towards a resilience paradigm rooted in spatial differentiation, well-being metrics, and future-oriented governance. It provides a comprehensive framework to reposition rural regions not as peripheral beneficiaries, but as core contributors to national adaptation and sustainable prosperity.
Keywords: rural resilience, spatial policy, OECD, functional urban areas, STAR framework, rural demography, digital inequality, decentralised manufacturing, rural governance
You can read the entire OECD document here.
