Argues that state government must take a strong lead in promoting rural development. Justification for such a role includes improving the efficiency of the state's economy; making full use of fixed investments; improving rural-urban equity; preserving a rural lifestyle; and responding effectively to population density differences between rural and…

Business incubators can help fledgling firms get off the ground by providing business services and rental space, at below-market costs, for a business's first few years. The payoff for the community is more jobs. Concentrated until recently in urban areas, incubators are now succeeding in rural areas too. (JHZ)

Analyzes the distribution of 1985 federal expenditures among U.S. counties by expenditure function and object and by county type (metro/nonmetro and nonmetro economic base). Concludes that federal spending in nonmetro areas focuses on income redistribution and does not promote economic development. (SV)

In spite of government transfer programs, 10 percent of the United States population remained in poverty after all transfers were made in 1983. In nonmetro areas the poverty rate was 12.8 percent. Many were working poor (taxes reduced their earnings) who will benefit from recent tax reform that lessens their tax burden. (JHZ)

Examines six federal programs offering direct credit assistance to nonfarm businesses in nonmetropolitan areas, 1983-89. The Small Business Loans Program provided 72% of funds. Nonmetropolitan areas overall received federal credit assistance proportional to nonmetro percentage of national population, but assistance was disproportionately low in…