I honestly don't know how I would have answered such a question as an undergrad, it probably would have been terribly generic and unimpressive. I come from rural Iowa, all of the schools I attended and jobs I worked at prior to graduate school were between 95% and 100% white. I mostly only associated with people who were as much like me as possible because I had a fair bit of interpersonal insecurity and worried that people from different political/financial/etc. backgrounds wouldn't like me. Diversity honestly played a tremendously minimal part in my life and I don't know that I did hold a tremendous amount of value for it at that time. Would that have been considered an acceptable answer? Does this mean I wouldn't be an effective and/or ethical psychologist? My long-term career goal (which I accomplished) was to return to rural Iowa and practice here, serving the previously mentioned very homogenous community I grew up in, not because I am a racist butthole but because mental health here is god awful and I know how hard it is to grow up here without help. Is that population not valuable enough to want to serve? Does that not count as diversity? It should because no one else wants to work here. My county has 220k people and 22 licensed psychologists and I happen to know that at least 6 of them only practice part time.
Interesting points! I have a few thoughts:
1. Yes, being raised in a rural area "counts" as diversity, even if you do not plan to live there again. Similarly, being raise in a markedly underserved community also "counts"
2. "Diversity" is the most commonly used term in these topics, but I agree, it's imperfect. Diversity largely means "being different within the same space", which is not quite what we're aiming at. The field is gradually moving towards using "inclusion" or "multicultural competency" instead, which is why the later versions of the personal statement question use these terms
3. Other posters asked questions similar to yours, in the general themes of: Why should I be penalized for coming from a monocultural Euro-American background? Do I have to be multiculturally competent if I am to practice in the same mono-cultural area?
The answers to these are, of course, complicated. First, the ultimate goal is not to penalize you for not checking a certain minority box, but to invite you to reflect on your multicultural competency (I've wrestled with the precise wording to evoke this response and not box-checking). So, if you hail from rural Iowa, you can reflect on rural culture, on lack resources for rural mental health, or simply on the fact that, as a member of a dominant mono-culture, you have been raised in relative privilege, and confronting this privilege will be beneficial to your training. My understanding that these types of responses would show openness to multicultural training, such that you would not be penalized for your background. Ostensibly, you could be "penalized" for hailing from your background AND expressing a lack of understanding of privilege and other cultural issues. So, "I have been raised with privilege" is an encouraged response, whereas "I am White, so I have no culture" or "Race doesn't matter, because we're all the same inside" would be discouraged responses.
Second, even if you plan to return to rural Iowa to practice, it would still benefit you to be trained in multicultural competency, because a. the population in your area may shift (e.g., similarly to influx of Somali and Hmong refugees to rural Minnesota), b. because APA considers this a mandatory competency, c. because, should you be accepted into our program, you will work with very diverse clinical and research populations. So, even if multicultural competency won't matter the day after you graduate, my program is ethically bound to consider how effective you could be delivering clinical services here. Again this doesn't meant that we'd rather accept students who check boxes, rather than students who don't. But this may mean that we'd potentially rather accept students who have some inkling or openness to multicultural competency, rather than students who don't have a clue. (Potentially, because these are hypothetical changes proposed by our diversity committee, and the current admission process is very traditionally "merit-based").