ABSTRACT

A New Rural Scene The world is moving towards becoming urban in character, at least in terms of the proportion of people residing in urban areas. But it is still largely rural in geographical terms, taking into account the amount of non-urbanized land. At the same time, the traditional urban/rural divide is gradually vanishing; the economic, ecological and social footprint of cities now reaches far out into rural areas, while rural areas increasingly feature activities that were traditionally found in an urban economy. Consequently, rural areas can no longer simply be seen as the natural home of agricultural activity; sometimes ‘rurality’ refers to extended urbanity. In addition, rural areas are increasingly a part of the modern leisure industry, with mass tourism on the one hand and small-scale recreation on the other. Modern developments in information and communications technologies mean rural areas have a less peripheral character than before. As a result, rural areas currently find themselves at the interface of two sets of forces, namely local and regional developments occurring in their vicinity and global developments taking place at a distance. Globalization is exerting a profound impact on the spatial features of European economic activity and this is particularly evident when the consequences for firms’ location decisions and their organization and logistics are considered. The sustainable development of European rurality requires environmental conditions which are able to preserve rural characteristics but, at the same time, are still able to allow for entrepreneurial expansion. This implies difficult trade-offs between agricultural interests, the importance of rural pursuits, recreation and leisure activities, environmental quality and small-scale entrepreneurial activities that fit a rural landscape. How can the balanced and sustainable development of rural areas be achieved? Four important issues deserve attention in exploring the possibilities for sustainable development of rural regions in the future. These are first, the specific characteristics of these rural areas and the types of economic activity featured; second, the effects of the predominance of small firms, with their vital links to the external production environment, on the potential for development; third, the

nature of new – sometimes green – technologies in combination with the emergence of new models of industrial production and organization and, finally, the opportunities originating from various types of public policies which might promote sound rural development. The four issues will be briefly discussed to set the context for the aims and scope of the book presented in the next section of the chapter. First, economic activity in rural areas is generally based on traditional sectors (such as agriculture and handicrafts) that tend to be less receptive to technical change and may therefore become vulnerable to global competition. Local development in the European periphery is mostly determined by the behaviour of small firms whose low investment levels, lack of access to knowledge bases and limited ability to absorb new technologies constitute major growth impediments. At the same time, the location of traditional industrial activities is changing as it becomes increasingly orientated towards segmented production modes, while specialized activities move towards those areas that can respond flexibly to the new market demands, both locally and globally. The likely result is an increase in the trade flows of goods and services, as well as of information and knowledge, which will tend to lead to intense interactions between those regions which manage to participate in the new developments.