News | 12 Juni 2025

Strategies for action on ‘Shrinking Smartly and Sustainably’

Effectively responding to demographic change requires a multi-level governance approach across a wide range of policy areas, while tailoring policies to the needs, challenges and opportunities of each region.

Image by Siegfried Poepperl on Canva

Image by Siegfried Poepperl on Canva

A new OECD publication provides a comprehensive framework to support policymakers in designing and implementing place-based strategies that foster resilience, inclusiveness and long-term sustainability. 

As rural areas face sustained population decline and ageing, the publication sets out policy recommendations for national and regional governments to turn demographic challenges into opportunities for more resilient, sustainable futures. These include:

  • Acknowledge demographic realities and anticipate change through evidence-based policy responses;
  • Tailor adaptation and mitigation strategies to regional demographic realities;
  • Ensure policies are aligned with the right territorial scale, such as functional areas, to improve planning, resource allocation and urban-rural cooperation;
  • Adapt spatial planning, land use and housing policies to demographic trends by promoting compact development, alongside renovation and efficient use of infrastructure and land;
  • Create age-friendly places that support healthy ageing, integrate care systems, and foster inter-generational communities through innovation and inclusive services;
  • Strengthen co-ordination across sectors and levels of government through integrated planning and vertical and horizontal governance mechanisms;
  • ‘Do more with less’ in shrinking areas by optimising existing assets, avoiding inefficient investments, and reforming fiscal frameworks.

Discover the latest Rural Pact resources on the topic of demography.