Наукові горизонти (Oct 2020)
DEVELOPMENT OF RURAL ECONOMY: EUROPEAN PRIORITIES FOR TRANSITION ECONOMIES
Abstract
The study substantiates the fact that the need to consolidate various approaches to the establishment and development of the rural economy in different countries is increasing, which is explained by the growing degree of transparency of national economies, intensified cooperation between them and the creation of interstate economic entities. In this context, there is a direct correlation between the globalization of the economy and the convergence of rural development policy, which is based on the mechanism of inclusive rural transformation. The purpose of the study is to substantiate the special features of the development of the rural economy as an objective process of market transformation and outline the benefits of the European experience for transition economies. It was substantiated that radical structural and institutional transformations in socioeconomic systems (both sectoral and territorial) were the impetus for the development of the rural economy as a modern phenomenon in the field of scientific knowledge around the world. First of all, this refers to the countries where the agricultural sector predominates in the development of GDP, and there is also a significant share of the rural population in relation to the urban population. It was proved that rural areas require a separate policy and mechanisms to manage their development, develop an appropriate institutional platform for the functioning of the rural economy and rural business, ensure proper living conditions for rural residents, preserve the environment, rural flair as well as cultural and historical heritage. The specific features of inclusive rural transformation in different groups of countries (with transition, agricultural, and urban economies) are highlighted, which reflects the process of increasing rural productivity, expanding employment opportunities, improving access to services and infrastructure, enabling policy influence, etc. It was theoretically proved that the effectiveness of market levers determines intersectoral cooperation and the level of economic development of the country (including the territorial division – urban and rural areas). It was established that the implementation of a successful economic policy on the transition to market principles in some countries, particularly EU member states, and their recognition as leaders of economic growth is accompanied by targeted government support and active innovation-oriented government policy with prudent use of various institutional regulators. The necessity and advantages of using the European experience of rural economy development for the countries with transition economies are proved.
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