An analysis of rural population growth and its economic consequences in California, Wisconsin, North Carolina, and Vermont helps explain the changing conditions in rural America and indicates the direction policy should take. Despite their distance from financial centers and their low density, rural areas are generally characterized by a more urban economy, new and diverse employment patterns, and growth in the service sector, all of which have moved rural economics from single-industry economic bases to a complex, diverse, modern place. Existing rural economic policy is now inadequate because it does not address such issues as uneven rural growth, inequalities in economic opportunities, and the reduction of federal resources for communities. An effective redirection of rural policy should consider: (1) redefining economic development strategies to make them more sensitive to rural environments, human resources, and local traditions and institutions; (2) enhancing multijurisdictional economic development organizations such as government districts and organizations, community-based organizations, and special limited-power organizations; (3) improving the quality of rural work by creating economic diversity and targeting opportunities for job and career advancement; and (4) creating economic development programs for the disadvantaged. (SB)