TVA Rural Studies

Telecommunications and Rural Development:
Threats and Opportunities

Edwin B. Parker
Parker Telecommunications
May 1996

3. Rural Development Essentials

Information technology, primarily telecommunications and computers, is part of the problem that requires rural communities to adapt, whether they want to or not, and at the same is time part of the solution available to make successful adaptation possible. Telecommunications and other information technology do not offer a magic solution for rural economic development, however. The process of rural development is more complex than that.

The essentials of rural economic development can be classified into three categories. The first is investment in human capital, which means providing education and health care for the residents of each rural community. People are the only important resource. All else depends on their thoughts and actions.

The second essential category is investment in the physical infrastructure necessary for economic development—water, power, transportation, and telecommunications. The telecommunications infrastructure is important today because of the dramatic changes in what is possible and because failure to change may leave rural communities at a serious competitive disadvantage. Nevertheless, we must not forget that telecommunications is only one element of essential infrastructure. An adequate supply of clean water, adequate waste disposal, electricity and transportation networks are also essential. It may be true that humans cannot live by bread alone. It is at least equally true that humans cannot live by information alone.

The third essential, but most difficult, category is reform of our social organizations—the ways in which we collectively relate to each other. The potential accomplishment of an individual acting alone is minuscule compared to the potential of organized groups working together. Individuals are shaped by their families, schools, peer groups, communities, employers, governments, and the businesses and social organizations they contact. Social pressures are strong, particularly in small rural communities. The changes necessary for rural economic development require local leadership. Change involves risk, which makes change difficult in some risk-averse rural cultures. Much of the economic development in rural communities will depend on risk-taking entrepreneurial small businesses. Role models, incentives, social support, and a variety of services—including financial, technical, accounting, legal, consulting, training, and marketing services—may all be required. Installing computers and telecommunications equipment and networks will not magically change rural culture and bring about development. It may take strong leadership and organized social pressure to obtain the necessary infrastructure in the first place. Once obtained, silicon and fiber optics (or other technologies) by themselves do not bring about economic development. Innovative, organized uses of the technologies to enhance or provide competitive advantages to rural communities are the real stuff of development.

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