The diminishing role of the federal government in rural development has created an opportunity for new initiatives in this area. One potentially useful response is the creation of a state-rural policy center. Such centers can combine the efforts of land grant institutions, extension services, and state universities in the development and evaluation of rural policy issues and responses to the many changes occurring in the rural sector. Rural economic development efforts are needed that promote local government capacity building and attract business and industry to rural areas. Regional approaches, circuit riding professionals, cooperatives for production and marketing, and telecommunications technologies are some of the options that promote rural development and link the rural sector and economy with the larger urban sector and global economy. Based on these issues and changes, several broad areas need focused attention and study in order to enhance the prospect of rural development: rural people and communities, economic development, local government finance, community services, natural resources and environment, rural values and social change, and educational outreach in rural areas. The rural development needs of Pennsylvania (the state with the largest rural population in the nation) and recent efforts in that and other Northeast states are cited. (NEC)