Improvement of economic policy and state regulatory mechanisms in the agricultural sector in the context of strengthening its competitive positions
Journal Title: Visnyk Ternopilskoho natsionalnoho ekonomichnoho universytetu - Year 2017, Vol 1, Issue
Abstract
The article deals with the essential elements of state regulations in the agricultural sector under conditions of market-led transformations of Ukraine’s economy. These transformations are related to the improvement of economic policy and aimed at strengthening competitive positions of agricultural producers on the market of agricultural foodstuffs. The economic inter¬est of business activities in the agricultural sphere is largely dependent on external factors that under market conditions have significantly changed the way of revenue generation for agricultural producers whose competitiveness in achieving profitability of goods is sufficient to allow meeting targets of sustainability in agriculture and solving social problems in rural areas. The research provides a comparative analysis of the growth rate of gross output in the agricultural sector and aggregate financial aid from the government. The analysis proves that over the last twelve years, the growth rate of gross output has outpaced the growth rate of aggregate aid of Ukraine’s agriculture. Moreover, the aggregate financial aid is characterized by considerable fluctuations, and there has been a gradual decline in its amount. It is found that the outcome of the National Programme of the Development of Ukraine’s Rural Territories for the period up to 2015 was a significant underperformance of forecast expectations in the agricultural sector. In recent years, the current framework of financial assistance for agriculture has not yielded the desired financial and social results. Therefore, it is concluded that there is an urgent need for changing approaches to their formulation and implementation. It is stated that market mechanisms are not self-sufficient, and they require organized actions by market participants and the state. It is concluded that the state financial assistance for agriculture should be provided to the following areas: support of commercial agriculture and increase of competitive ability of agri¬cultural sector; support of small producers, family farms and cooperative associations; land protection and rational use of farming land; setting support prices for certain agricultural prod¬ucts; development of market infrastructure; support of local initiatives for the development of rural regions and the quality of life in rural areas.
Authors and Affiliations
Taras Dudar, Volodymyr Dudar
Keywords
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