This essay examines the role of investment capital in rural development. The development of government capitalism is traced. Outlined next are the premises for private and public investment. Geographic/geopolitical concerns in the formation of investment priorities are described. The need for greater availability of investment capital for small business ventures is discussed. Covered next is the development of realistic incentives for public/private investment. Ways and means of effectively coordinating federal and state investment capital programs are presented, and a model for public/private partnership is provided. Discussed next is the provision and development of appropriate technical assistance for sustaining and developing local economic ventures (with special attention to the role of education, business extension services, technical assistance entrepreneurs, and banks). Initiation of a national education training and technical assistance program for diversified rural finance development and management is considered. (Related reports on rural development in America are available separately through ERIC--see note.) (MN)