There was a notable transition in the nature, content, and administration of rural policies in many developed nations in the 1980s and 1990s. These changes concerned issues of governance and institutional framework, the definition of "development," and policy goals and content. A key question, however, concerns the extent to which shifts in the language or rhetoric of rural policy are matched by reality. This paper assesses rural policy changes and their rationale in relation to rural trends at the beginning of the new century. It draws heavily on recent experience in the European Union, especially implementation of Agenda 2000, and also reviews rural policy changes in the United States, Canada, and UK countries. In all these countries, rural policies of a territorial nature now comprise many of these elements: efforts to reinforce rural economies; attempts to restructure agriculture; strengthening of transportation and telecommunications infrastructure; improved business assistance; development of human resources through vocational training, entrepreneurship education, and school-to-work initiatives; local "capacity building"; creation of products based on local identity; new or adapted financial instruments; and new ways of providing public services in rural areas. Trends in institutional arrangements for delivery of rural policy include decentralization, support for bottom-up development, better policy coordination, and regional and local partnerships. Challenges for rural policy and the ways that developed countries are meeting these challenges are discussed. (SV)