An alternative policy approach to rural development in regions facing population decline

Many rural regions in Europe used to be characterized by weak economic performance and negative population development. While in a long-term perspective this is not any more valid for large parts of Western Europe, a number of rural regions face persistent population decline. By analysing the case of Austria, where approximately one-third of rural areas have experienced such negative population change over the past decades, this paper will examine the impact on economic performance, income levels and well-being patterns. Addressing the crucial and persistent obstacles to positive population trends, new theoretical approaches and perspectives are discussed for overcoming limitations in development. Future approaches for regional development have to go beyond strategies for targeting economic growth, but have to address issues of local participation, social innovation and establishing trust as preconditions to effectively impact well-being dimensions. Such a mobilization effort would be the result of a comprehensive social transition process which would foster an altered narrative for these rural regions compared to the current and predominant focus on compensation and growth policies. Despite strong interlinkages with other regions and actors, the needs of local people would be central and both would be a cornerstone for social innovation.