Rural communities have been influenced by postwar reforms, rapid economic growth in industrial areas and agricultural policies. Rural families, heavily dependent on agricultural production earlier, responded to these changes by sending excess labor force to urban and industrial areas. Demographic changes in fertility and mortality in rural areas corresponded with their counterparts in urban areas. However, migration and nuptiality showed different trends: 1) rural-urban migration was phenomenal in the 1950's and the 1960's; 2) the proportion of single males has increased more in rural areas. The aging of the rural population advanced more rapidly as the result of rural-urban migration. Nevertheless, patrilineally extended families were kept intact in rural areas unless economic opportunities were scarce in the area for family heirs.
Increase in human capital investment and in opportunity cost of household production, intrduction of timesaving home appliances, social security and high cost of living has affected decision making in marriage and childbirth in general. In rural areas, however, where extended families are common, joint production and division of labor are more effective than in small nuclear households. Farm households must increase labor productivity both in agriculture and household production in the course of rural development.
It is important to reconsider the population reproduction process in rural development. Household production, interaction among household members, inter-generational income transfers and family security are major characteristics of the family. Intergenerational cooperation and equity as well as a more attractive environment for women in labor force and child-rearing must be incorporated in rural development policy measures. In addition, these measures should be directed toward 1) locally characteristic and transitory aging population, 2) increase in unmarried male population, 3) decrease in population, and 4) enhancement of infrastructure for population reproduction. It is important to propose several policy options. Participation of family members not living in the rural area in a policy-making group may be helpful in formulating options as well as mobilizing their resources.

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The purpose of this paper is to study the basis of necessity and process of promoting a new Industry In rural area, especially in the less favorable area in Japan. Major results are described that follows:
(1) Until now a basis of necessity for promoting a new industry in the area is not clear. In this paper, an ideal arrangement of population in Japan is calculated with using the arrangement of German population as a model. A method for examination of the necessity is suggested.
(2) As a result of reviewing some papers which are concerning with revitalization of rural area, it is pointed out that recently the importance of cooperation between people in the town and rural area is stressed too much.
(3) Generally rural areas are classified in to two types. One is the type, to which a lot of visitors come from towns. The other one is the type, in which the major connection with towns is trade of products. In the former type, the cooperation between rural area and town is very important for promotion of a new industry. In the latter case, however, the cooperation cannot function well. In this case designer, who lives locally, often play an important role. They know the local resources on the one hand and the consumer's needs in the town on the other. Therefore they could match both factors efficiently and promote a new Industry.
(4) Finally the importance of principle of subsidiarity is emphasized as a principle of regional policy in the era of decentralization.

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Accompanying the elevation of living standard of the people, sense of life values of the people is changing and Japan is also now approaching the “green resort” age. However, for its realization, there are a number of problems that must be resolved. The first of these is formation of social environment. The second is improvement of natural and rural environment. The third is development of human rsources and improvement of organization system. The fourth is planned challenge of developing new businesses in agricultural communities. The last is elevation of potential of shouldering business risks and establishment of entreprenueeur consciousness.

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Rural societies in the mountainous and the semimountainous areas are facing three kinds of crises; loss of self-identity, degradation of environment and the obstruction of reproduction of communities. In order to avoid these crises, it is necessary to rebuild the whole process of living, consisting of material, mental and political aspects, and to bring about redistribution of population. The choice of residential place is determined not only by economic factors, including varieties of opportunity costs, but noneconomic factors such as mental and political aspects. Recently the latter factors became more important. According to a case study in Miyama Town, Kyoto Prefecture, where not a few persons migrated from the cities, a semi-official organization is playing an important role so as to decrease mental and political costs, that migrants to rural areas will face. In addition, complex system of use for public facilities and collaboration among neighbouring towns and villages are required for the preparation of mental aspects such as education, cultural activities, nursing for elders, etc.

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