The Carter Administration is adopting a Small Community and Rural Development Policy because: (1) rural America's human and natural resources are a mainstay of the nation's economy and way of life; (2) many rural areas are in the midst of significant economic and demographic change; (3) rural people and communities have greater unmet basic human needs; (4) clear policy direction and a framework for integrating current federal efforts is needed; and (5) improvement of the rural data base upon which programs can be developed is essential. The Administration, in partnership with Congress, state and local governments, and private sector leadership, is committed to work toward: meeting basic human needs of rural Americans; providing opportunities for rural people to be fully and productively employed; providing a favorable climate for business and economic development; addressing the rural problems of distance and size; and promoting the responsible use and stewardship of natural resources and environment, while preserving the quality of rural life. The policy, which describes present and proposed initiatives, addresses rural problems in the areas of housing, health, water and sewer, education, income maintenance, social services and legal aid, job creation, economic development, energy, transportation, communications, capacity building, and environment and natural resources. (NEC)