Why rural communities are critical for B.C.’s economic development

What defines a rural community? Governments often set the bar at a population of 10,000 or less. Statistics Canada has created a more sophisticated “index of remoteness,” though that too has its flaws.

Sarah Sinclair thinks she knows the answer: “You know you’re rural if you can’t buy underwear in your town.” Or you go to a store for services other than what’s advertised on the storefront.

It’s dangerous to apply hard and fast rules to what’s considered rural, Sinclair has learned over the past few years as the executive director of the BC Rural Centre, based in Kaslo, in the Kootenay region. “Once you define it, somebody is going to be left out,” she says.

What’s clear is that rural communities make a substantial contribution to the B.C. economy and support jobs and economic activity in cities. “Forestry, mines, farms, fisheries—90 percent of it comes from rural areas,” Sinclair says. Rural areas account for about $25 billion a year in provincial GDP.

“Rural economic development is critical to B.C.’s economic future because the people who live and work rurally are often the first step in accessing the abundant natural resources that our province is renowned for,” says Ben Campbell, chief executive officer of the Northern Development Initiative Trust, based in Prince George. “The value chain begins in rural areas.”

But rural areas face challenges. As always, the huge distances involved in rural living mean residents often pay higher prices and taxes for lower levels of services. Increasingly, rural areas are bearing the brunt of climate change impacts such as forest fires, drought, floods and pest infestations. And Canada’s aging demographics have particular repercussions in places where health services are hard to come by.

“Rural residents need to be more nimble and adaptive than ever before,” Campbell says. “The predictability of the seasons is no longer something to be relied on.”

The good news about rural

Since 2022, the B.C. government has tried to assist rural development with the Rural Economic Diversification and Infrastructure Program (REDIP). In its first three years, the program committed $142 million to 450 projects across B.C., helping create an estimated 7,000 jobs in rural areas.

There are other positive things going on outside B.C.’s urban areas, too. Investments in renewable energy are on the rise. Improved digital connectivity is both increasing the productivity and market reach of existing businesses and making room for new, digitally based enterprises. Cooperation and reconciliation with First Nations is leading to new economic opportunities in areas such as eco-tourism.

The BC Rural Centre grew out of a temporary body set up to help rural areas in the southern Interior recover from the impacts of the mountain pine beetle infestation in the early 2000s, which has been linked to climate change. Today the organization engages in advocacy, offers consulting services and stages the annual Keeping It Rural conference, where attendees learn about solving uniquely rural problems.

The British Columbia Economic Development Association (BCEDA) likewise dedicates a significant part of its work to supporting rural communities across the province. Through hands-on programs, practical resources and collaborative initiatives, BCEDA helps rural communities strengthen their economies, build resilience, and shape their futures.

The BC Economic Summit, held each May, brings together economic developers, local leaders, Indigenous communities and industry partners from across B.C. to share ideas, celebrate innovation and address the unique opportunities and challenges faced by rural regions. Sessions often focus on practical solutions for workforce development, investment readiness and rural resilience.

BCEDA also offers a variety of resources to support rural economic growth, including manuals on topics like business retention, investment attraction and local economic recovery. One of BCEDA’s most effective programs is DisasterSmartBC, which has assisted numerous rural communities in navigating and recovering from wildfires, floods, and other crises by providing on-the-ground support, business engagement and recovery planning.

“Our mission has always been to empower rural communities with the tools and support they need to thrive,” says Dale Wheeldon, president and CEO of BCEDA. “We know that rural B.C. is full of opportunity and, by working together, we can turn challenges into momentum for growth.”

The rural lifestyle comes down to a choice

Population attraction and retention is the ultimate issue affecting rural areas. But that ultimately comes down to personal life choices. “In my travels throughout central and northern B.C., I’ve met countless individuals who moved to a rural community for what they thought would be a short-term job, only to fall in love with the lifestyle and the sense of belonging,” Campbell says. “Many end up staying for decades, raising families, starting businesses, and becoming deeply rooted in the community.”

“The idea of community is what makes rural so beautiful,” Sinclair adds. “There’s a different mindset.”