Municipal service provision in rural communities

EU policies for rural development stress the importance of investments rather than subsidies and aim at integrating different sectoral policies in order to improve the coherence and effectiveness of public expenditure. Policies also emphasize a place-based approach for rural development and thereby setting a competitive framework for local development. Rural municipalities are challenged due to demographic changes and population decline and consequently need to adjust municipal services. In this respect it is stressed that service provision need be linked to strategic planning based on urban hierarchies and considering local resources and place bound potentials. 

This paper draws on a study of rural municipalities in Denmark examining how service adjustments e.g. closing of local schools are managed by rural municipalities and local communities. The paper further discusses whether rural municipalities can plan strategically, manage service provision and support place bound potential in rural communities in light of a competitive framework for local development.