Social Inclusion or Market Competitiveness? A Comparison of Rural Development Policies in the European Union and the United States Sally Shortall and Mildred E. Warner Abstract The language of EU rural development policy appears more interested in social inclusion and that of US policy more interested in market competitiveness. We seek to determine why policies directed at rural development in the EU and the USA differ. In both contexts new rural development policies emphasize partnership and participation but we find local participation is used to promote social inclusion in the EU and market competitiveness in the USA. An examination of these dimensions illustrates important transcontinental differences and similarities in rural development policies. We explore the socio-historical reasons for differences in the commitment to social inclusion, while also noting similarities in the priority of market competitiveness. Keywords European Union; United States; Market competitiveness; Social inclusion; Rural develop- ment policy; Partnerships; Participation; LEADER; New Markets Tax Credit; Empower- ment Zone Enterprise Community; Rural Development Councils Introduction A recent special issue of Social Policy & Administration (vol. , no. , ) focused on ‘the rural question’ (Giarchi ). While Woods () explores commonalities between an emerging politics of the rural in North America, Australia, Britain and New Zealand, the other articles show differences in language and priorities for rural policy in Europe and North America. While the European papers discuss social inclusion and rural social mobilization (Shucksmith et al. ; Halhead ; Anderson ), the only US paper focuses on market-based approaches to government (Warner ). Other US literature on rural development has emphasized governance and social issues, Address for correspondence: Mildred E. Warner, Department of City and Regional Planning, Cornell University, Ithaca, NY , USA. Email: mew@cornell.edu S P &A  0144–5596 DOI: 10.1111/j.1467-9515.2010.00730.x V. 44, N. 5, O 2010, . 575–597 ©  The Author(s) Social Policy & Administration ©  Blackwell Publishing Ltd,  Garsington Road, Oxford OXDQ , UK and  Main Street, Malden, MA , USA