The report said failing to award the 2011 event to Japan was a mistake

The 2015 Rugby World Cup must be awarded to a developing nation so the sport can break away from its "ghetto", according to a report.

England and Wales may make a joint bid for the event, along with South Africa.

"Rugby union is stuck in a ghetto," said consultant Quentin Smith, who is also chairman of Sale Sharks.

"The first question for any decision made by the International Rugby Board (IRB) must be 'How does this push forward globalisation?'"

Japan are also understood to be vying for the 2015 competition, having been pipped by New Zealand for the right to host the 2011 tournament.

"Quite clearly that was a mistake - deciding to go to Japan would have opened up substantial new markets," added the report's co-author William Field, a partner at Spectrum Value Partners, a consultancy group whose work encompasses the sports industry.

The report stated that the sport's world governing body, the International Rugby Board (IRB), was "unrepresentative and undemocratic" with too much power awarded to the eight foundation unions.

"Over half of the world's 4m registered players are English and 97% of people watching last year's World Cup final came from foundation unions," said Field.

"There is a deep, systemic problem within rugby, The perspective needs to shift to be more international. Globalisation needs to become the number one agenda item within rugby

606: DEBATE Who should host the 2015 World Cup?

"A cultural shift needs to take place. The World Cup is one of the biggest decisions the IRB has to make. It is important rugby makes the right decision next time."

Earlier in July, Australian rugby chief John O'Neill said that smaller countries were being priced out of the opportunity to host the Rugby World Cup.

The IRB wants �100m and �120m respectively from the hosts of the 2015 and 2019 events.

"There are very few countries that could put their hands up for that sort of commitment," said O'Neill.

"I'm not sure these can be sustained over the long haul without reducing the candidates down to France and England."

The IRB will announce the host nations for the 2015 and 2019 World Cups next July.