Rural Diversification 101
What is rural diversification, and why does it matter?
In the simplest terms, rural diversification involves changing and growing local economies so that they no longer rely completely on one particular industry. In Alberta, rural economies have traditionally been based on primary activities such as farming, oil and gas extraction, mining and forestry. If one of these industries experiences a slump, or even collapses, the local economy suffers extreme consequences.
Since diversified economies produce revenues from a variety of sources, they are far more resilient during economic downturns. Marketing to local, domestic and international markets means that sales will be less affected by any regional crises. When a primary industry, such as forestry, goes into a slump, secondary industries in the same field, such as wood manufacturing, may still be viable. And if there are several sources of jobs in a region, then having one industry fail doesn’t create such dire economic repercussions.
