Lizzie Dickerson

4 May 2024

It’s time to start viewing Appalachia as a place of opportunity. This might seem recklessly optimistic. After all, heavy challenges face these communities, from decreasing populations to few employment opportunities to the opioid crisis (1). But assuming that Appalachian policy can only dig the region out of crisis after crisis is counterproductive. Local entities, from governments to nonprofits to universities, need to reimagine their development strategies, leveraging community strengths to stabilize towns long-term. Federal support is essential for this project, but many federal strategies for rural relief are ineffective. Appalachia needs policy solutions that give communities agency in creating change and provide sustainable, long-term support for leaders.

Rural development often focuses on attracting employers, but this method does more harm than good. Walt Ranalli, former mayor of Thomas, West Virginia, points out that Appalachia’s history of being exploited for its resources makes people in the region vulnerable to the “colonial mentality”—relying on outsiders to spur economic growth (2). Many Appalachian communities run after the next big employer to replace their town’s former industry—be it coal, steel, or manufacturing. But the tax incentives these corporations receive rarely benefit community members. In many cases, workers at Amazon, Walmart, or Dollar General are forced to rely on welfare to supplement their income (3). Financial breaks for the wealthiest company in town also weigh on municipalities’ budgets. In their efforts to attract jobs, leaders prevent themselves from making long-term investments for their communities (4). This mindset is also reflected at the state level. Of the $500 million in financial support for private enterprises approved by the West Virginia Economic Development Authority last year, $357 million went to out-of-state businesses (5). Large national businesses may seem like safe bets to boost employment. But with little long-term commitment to Appalachia, West Virginia may find that these employers are fair-weather friends. Unlike businesses begun by locals, corporations like Walmart and Amazon can easily pack up and leave at will. Declining areas may see their fortunes reversed when employers decide they need a location with a larger worker base (6).

Local innovation is an untapped Appalachian resource. Small, community-rooted businesses are not a luxury beyond the reach of rural communities. Policies and programs can create opportunities for locals to launch their own businesses in response to community needs—for instance, the shortage of childcare (7) or grocery (8) options in many Appalachian areas. They can also allow Appalachians to occupy a space in the market that cannot easily be moved overseas: the creation of artisan products. Companies like Contraxx Furniture, which originated in Appalachian Ohio, are already showcasing Appalachian workmanship across the country. Other enterprises could fulfill nationwide demand for handcrafted products (9).

A renewed emphasis on entrepreneurship must take place at all levels of government, with policies to support budding entrepreneurs. Starting a small business is a daunting prospect for anyone. For those with no entrepreneurs among their friends and family, it can seem impossible. Currently, many Appalachian universities and governments do provide entrepreneurship coaching. These programs could be adjusted to follow a model similar to the MIT FabLab program located at Independence Community College in Kansas. This program trains people to develop an entrepreneur mindset, rather than expecting them to enter coaching with a plan already outlined (10). 

Funding avenues for small businesses are also limited. To pair small business investment with local buy-in, Appalachian states could form programs similar to Network Kansas. This nonprofit funds community-based teams that review project loan applications from local entrepreneurs. Community members decide which projects to accept based on the needs of their town, and entrepreneurs receive support from people they are familiar with (11).

Although new businesses are better job generators than older, established firms, they are also prone to failure (12). If Appalachian towns want to support small businesses through economic ups and downs, a good first step is to limit the destructive influence of dollar stores. Dollar General and its kin demand tax breaks from communities and then use their dirt-cheap prices to drive other stores out of businesses. This exacerbates food access struggles for Appalachian communities (13). Preventing the introduction of dollar stores is a policy worth considering. In Georgia alone, 18 cities and towns have successfully blocked dollar store development (14).

Some Appalachian communities have successfully improved local outcomes by attracting large-scale outside enterprises while retaining realistic expectations. Mayor Tom Johnson of Somerset, Ohio, aims for development that is “top down and bottom up simultaneously.”

Map by the Appalachian Regional Commission.

After four years of work, Johnson brought a $10 million hospital that would bring improved healthcare and job opportunities to Somerset. He plans to leverage this investment to build a support system for local entrepreneurs. In Lawrence County, Ohio, the Lawrence Economic Development Corporation (LEDC) remediated a polluted site into an industrial park with 17 firms creating over 700 jobs. The LEDC holds the private sector accountable, ensuring that the economic activity they generate benefits community members. Companies that indicate interest in locating in the park are vetted by LEDC, and the nonprofit also provides financial assistance for promising employers (15). Any economic development policy pursued by Appalachian leaders should leverage local strengths and build channels for external revenue flows. As Appalachian businesses begin to export world-class products or attract tourists, they add money to local economies (16).

The challenges faced by Appalachian communities go beyond economic development. For decades, the rest of America has viewed Appalachia with disdain. Popular culture portrays Appalachian people as poor, backwards, and unskilled. These perceptions are entrenched in Appalachian communities’ self-image, creating a deep sense of shame and an urge among young people to leave (17). Building Appalachian pride is a slower process than landing the next shiny employment center—but it is vital for creating sustainable change in communities. Appalachian towns need policies that center and build upon their beauty and vibrancy. Only then can they become places where people stay not out of obligation but out of genuine affection for their hometowns. 

Beauty does not automatically lead to prosperity. But noticing, maintaining, and creating beauty in rural towns is a key battleground against communal despair. Local policy should recognize beauty as a key resource for Appalachian towns on par with industry or mining. Tourists already flock to Appalachia for its mountains and rivers (18). Local and state governments should focus on preserving these places and improving locals’ access to them (19). Emphasizing the natural beauty of Appalachian towns embodies a community’s identity in a particular space (20). In Shamokin, Pennsylvania, former mayor John Brown used beauty as a catalyst for revitalization. Brown and his wife began to leave flowerpots and notes on the porches of well-kept houses in the former coal mining hub. Encouraging those who created beauty in Shamokin sparked residents’ imagination. People began to contact Brown, asking him how they could help make Shamokin beautiful. Business owners began brainstorming ways to attract visitors to the town. An economic revitalization group formed and raised money to repair a set of historic steps (21). Beauty is a powerful policy goal.

Centering local culture and vibrancy through revitalizing downtowns is another important part of building pride in Appalachian communities. Doing so is a challenge, especially in an era of big-box stores and online shopping. But successful small towns across America make it clear that downtowns serve an important role in communities. Rural downtowns can become local hubs of activity—places to see and be seen, to attract tourists, to go out on a Friday night, to take photos before high-school dances. Encouraging entrepreneurship is vital not only to bring downtowns back to life but to reinvent them as centers of local expertise. Several policy programs to encourage entrepreneurship have already been discussed. These programs can be paired with policies that address vacant storefronts, bringing local businesses into downtowns starved for life. Undervalued Appalachian towns are especially good spots for artists seeking cheap rentals. Thomas, West Virginia saw a revitalization of its downtown thanks to the opening of a successful live music venue. This business sparked word-of-mouth advertising that brought other artists into town. Soon, Thomas was filled with studios, galleries, and restaurants (22). Purposeful outreach towards artists could recreate this success in other Appalachian communities.

Although Appalachian leaders should prioritize these policy strategies for their communities, few towns have the resources to implement most of these programs on their own. Appalachia needs federal support to encourage sustainable growth and provide resources for leaders. Over 400 federal programs exist to support rural areas, and yet many communities struggle to access these funds (23). To address Applachian challenges, policymakers must restructure grant requirements, reimagine long-term goals for federal funding, and help Appalachian communities match their needs with the appropriate programs.

Grant programs aimed at redevelopment often have match requirements too high for Appalachian towns to meet. Match formulas tend to be designed with urban areas in mind, at a scale that is inaccessible for rural areas with few philanthropic or government resources. Grant programs cannot be one-size-fits all. In some cases, it may be appropriate to have separate application processes for rural and urban communities. Federal programs should also keep in mind the diversity of rural areas in America. Appalachia’s challenges are very different from those faced by communities out West (24). Within the Appalachian Regional Commission (ARC), the federal agency aimed at Appalachian development, grant match requirements are on a sliding scale. “Distressed” counties contribute 20% of the funds, while “transitional” counties must contribute 50% (25). This model can be applied to other federal grants. National and regional philanthropic organizations also tend to focus their funding on cities (26). Investment in Appalachia could provide money communities need to access grants.

Federal funding also tends to be narrowly tied to short-term projects (27). Billions of dollars are spent on rural transportation, water, and housing each year (28). When the project in question is complete, the federal funds disappear. Communities are left searching for the next big investment. To end this cycle, a portion of federal funding should be used to support communities’ long-term goals. Capacity-building programs can give leaders the tools to use federal funds wisely. Forgiving student loans for college graduates who return and invest in their hometowns, or funding programs that provide high school students opportunities to job shadow or intern in their communities, could alleviate the pressures of brain drain (29). Operational support for local organizations could give their employees breathing room, allowing them to focus on people rather than technical problems (30).

Leaders in Appalachian towns also struggle to navigate complicated grant application processes (31). Seeking out and balancing federal resources eats up time they would rather spend working with their community (32). The ARC tells counties looking for grants to contact their state program managers for help, but most states only have one person in that role (33). The Biden administration’s Rural Partners Network has made strides towards connecting rural communities with federal resources. In the program’s first year, more than 800 local governments and nonprofits met with federal staff to match challenges to government funds. Currently, the network includes 10 states, with West Virginia the only Appalachian state represented (34). Expanding the program across Appalachia would multiply the impact of federal dollars. Federal staff—or university programs—could also go beyond resource navigation to help communities develop strategic long-term plans to market themselves in the application process. A partnership between Pineville, Kentucky and the University of Kentucky’s Community and Economic Development Initiative created a five-year plan for downtown revitalization. This structure helped Pineville obtain $8 million in private and public investments (35). 

Appalachia—from its hills to its cities—has something to offer that is different from other places in America. Bottom-up policy, focused on building the capabilities of local leaders and entrepreneurs, can create sustainable growth in Appalachia, allowing towns to go from surviving to thriving.

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The author wishes to thank Kristin Kanthak of the University of Pittsburgh Political Science Department for her input on this piece.

Title image credit: Nicholas A. Tonelli via Flickr under Attribution (CC BY 2.0) license.

Works Cited

[1] “Population and Age in Appalachia.” n.d. Appalachian Regional Commission. Accessed April 10, 2024. https://www.arc.gov/about-the-appalachian-region/the-chartbook/appalachias-population/.

[2] Pipa, Anthony F. 2023. “Policy lessons—and surprises—from the ‘Reimagine Rural’ podcast | Brookings.” Brookings Institution. https://www.brookings.edu/articles/policy-lessons-and-surprises-from-the-reimagine-rural-podcast/.

[3] “FEDERAL SOCIAL SAFETY NET PROGRAMS: Millions of Full-Time Workers Rely on Federal Health Care and Food Assistance Pro.” 2020. United States Government Accountability Office. https://www.gao.gov/assets/d2145.pdf.

[4] Harris, Chris. 2020. “After generations of disinvestment, rural America might be the most innovative place in the U.S.” Ewing Marion Kauffman Foundation. https://www.kauffman.org/currents/rural-america-most-innovative-place-in-united-states/.

[5] Tony, Mike. 2024. “West Virginia Keeps Favoring Big Companies.” Governing. https://www.governing.com/policy/west-virginia-keeps-favoring-big-companies.

[6] Felts, Tommy. 2017. “Before prime time: Did Amazon’s 1999 arrival in Kansas deliver on hype?” Startland News. https://www.startlandnews.com/2017/11/amazon-1999-coffeyville-kansas-hype/.

[7] Malik, Rasheed, and Leila Schochet. 2022. “Rural Communities Need Federal Child Care Investments.” Center for American Progress. https://www.americanprogress.org/article/rural-communities-need-federal-child-care-investments/.

[8] Broy, Elinor. 2020. “Food Deserts in Appalachia: The Impacts of COVID-19 on Families and Children.” Children’s Defense Fund Ohio. https://cdfohio.org/cdf_oh_blog/food-deserts-in-appalachia-the-impacts-of-covid-19-on-families-and-children/.

[9] O’Callahan, Ted. 2018. “Can Appalachian Ohio Build a New Economy?” Yale Insights. https://insights.som.yale.edu/insights/can-appalachian-ohio-build-new-economy.

[10] McKenna, Matt. 2020. “Promoting Rural Entrepreneurship and Rural Economic Development – Third Way.” Third Way. https://www.thirdway.org/report/promoting-rural-entrepreneurship-and-rural-economic-development.

[11] Ibid

[12] Haltiwanger, John, Ron S. Jarmin, and Javier Miranda. 2013. “Who Creates Jobs? Small versus Large versus Young.” The Review of Economics and Statistics 95, no. 2 (May): 347-361. https://doi.org/10.1162/REST_a_00288.

[13] McGreal, Chris. 2018. “Where even Walmart won’t go: how Dollar General took over rural America.” The Guardian. https://www.theguardian.com/business/2018/aug/13/dollar-general-walmart-buhler-haven-kansas.

[14] Corkery, Michael. 2023. “As Dollar Stores Proliferate, Some Communities Say No (Published 2023).” The New York Times. https://www.nytimes.com/2023/03/01/business/dollar-stores-rejected.html.

[15] O’Callahan, Ted. 2018. “Can Appalachian Ohio Build a New Economy?” Yale Insights. https://insights.som.yale.edu/insights/can-appalachian-ohio-build-new-economy.

[16] Ibid

[17] Miller, Emily, and Kathryn Edin. 2022. “Coming of Age in Appalachia, Emerging or Expedited Adulthood?” The Russell Sage Foundation Journal of the Social Sciences 8, no. 4 (May): 50-67. https://doi.org/10.7758/RSF.2022.8.4.02.

[18] Kobersmith, Kim. 2022. “Growing the Outdoor Economy in Appalachia with a Collaborative Spirit.” The Daily Yonder. https://dailyyonder.com/how-appalachia-is-growing-its-outdoor-economy-through-collaborations-and-capacity-building/2022/06/29/.

[19] O’Callahan, Ted. 2018. “Can Appalachian Ohio Build a New Economy?” Yale Insights. https://insights.som.yale.edu/insights/can-appalachian-ohio-build-new-economy.

[20] Bednar, Jenna. 2023. “Governance for Human Social Flourishing.” Daedalus 152, no. 1 (February): 31-45. https://doi.org/10.1162/daed_a_01958.

[21] Pipa, Anthony F. 2022. “Transforming coal country in Shamokin, Pennsylvania | Brookings.” Brookings Institution. https://www.brookings.edu/articles/transforming-coal-country-in-shamokin-pennsylvania/.

[22] Pipa, Anthony F. 2023. “Protecting community integrity during a creative transformation in West Virginia | Brookings.” Brookings Institution. https://www.brookings.edu/articles/protecting-community-integrity-during-a-creative-transformation-in-west-virginia/.

[23] Bustillo, Ximena. 2023. “Rural communities need help figuring out how to navigate federal programs.” NPR. https://www.npr.org/2023/03/08/1161284053/biden-rural-funding.

[24] Community Strategies Group. 2019. “Rural Development Hubs.” The Aspen Institute. https://www.aspeninstitute.org/wp-content/uploads/2019/11/CSG-Rural-Devel-Hubs.pdf.

[25] Appalachian Regional Commission. n.d. “Match Requirements for ARC Grants.” Appalachian Regional Commission. Accessed April 10, 2024. https://www.arc.gov/wp-content/uploads/2020/09/Match-Requirements-for-ARC-Grants.pdf.

[26] Ramirez, Martha. 2023. “Five Takeaways From IP’s New Report on Giving for Rural Communities.” Inside Philanthropy. https://advance.uic.edu/wp-content/uploads/sites/7/2023/10/Five-Takeaways-From-IPs-New-Report-on-Giving-for-Rural-Communities-_-Inside-Philanthropy.pdf.

[27] Pipa, Anthony F. 2023. “5 recommendations from Reimagine Rural for the 2023 Farm Bill and federal implementation | Brookings.” Brookings Institution. https://www.brookings.edu/articles/five-recommendations-from-reimagine-rural-for-the-2023-farm-bill-and-federal-implementation/.

[28] Community Strategies Group. 2019. “Rural Development Hubs.” The Aspen Institute. https://www.aspeninstitute.org/wp-content/uploads/2019/11/CSG-Rural-Devel-Hubs.pdf.

[29] O’Callahan, Ted. 2018. “Can Appalachian Ohio Build a New Economy?” Yale Insights. https://insights.som.yale.edu/insights/can-appalachian-ohio-build-new-economy.

[30] Community Strategies Group. 2019. “Rural Development Hubs.” The Aspen Institute. https://www.aspeninstitute.org/wp-content/uploads/2019/11/CSG-Rural-Devel-Hubs.pdf.

[31] Pipa, Anthony F. 2023. “5 recommendations from Reimagine Rural for the 2023 Farm Bill and federal implementation | Brookings.” Brookings Institution. https://www.brookings.edu/articles/five-recommendations-from-reimagine-rural-for-the-2023-farm-bill-and-federal-implementation/.

[32] Community Strategies Group. 2019. “Rural Development Hubs.” The Aspen Institute. https://www.aspeninstitute.org/wp-content/uploads/2019/11/CSG-Rural-Devel-Hubs.pdf.

[33] Appalachian Regional Commission. n.d. “Match Requirements for ARC Grants.” Appalachian Regional Commission. Accessed April 10, 2024. https://www.arc.gov/wp-content/uploads/2020/09/Match-Requirements-for-ARC-Grants.pdf.

[34] Bustillo, Ximena. 2023. “Rural communities need help figuring out how to navigate federal programs.” NPR. https://www.npr.org/2023/03/08/1161284053/biden-rural-funding.

[35] Downtown Revitalization Playbook. n.d. “Downtown Pineville, KY.” Downtown Revitalization Playbook. Accessed April 10, 2024. https://www.downtownplaybook.org/case-studies/downtown-pineville-ky.