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A.A. Klimenko
Summary. The article is based on theoretical analysis of scientific approaches and their
generalization by clarifying the nature and content of state regulation of agriculture.
Key words: government regulation of the economy, regional policy, state targeted apps,
development strategy.
The statement of the problem. Economic policy is implemented through
appropriate tools, the use of which is aimed at achieving by economic system the
society of defined objectives, providing the desired mode of operation.
The analysis of recent researches and publications. An important
contribution to the development of theoretical and methodological principles of state
regulation of agriculture were made by such scholars as V. Andreychuk, A. Datsiy, M.
Koretsky, A. Lisietsi, D. Plekhanov, O. Shevchenko, O. Shpychak etc. However,
require further study and clarification of issues related to the nature and content of
state regulation of agriculture on the stage of development of market relations.
The article aims to clarify the nature and content of state regulation of
agriculture on the stage of development of market relations.
The main material. First, you need to define and clarify the main categories of
issues that cause debate. Thus, in some scientific studies there is identification of the
concepts "state economic policy" and "state regulation of the economy." However, we
share the opinion of scientists who believe that the government's economic policy is
the basis for state regulation of the economy. State economic policy is seen as a
deliberate state influence on economic processes at the macro and micro levels,
creation and improvement of conditions for economic development under the social
system [2, p. 14].
State regulation of agriculture is a process of influence on its development
incentives complement the market mechanism and the creation of opportunities
through entities to carry out productive activities to improve their competitive
According to V. Andriychuk, state regulation of agricultural sphere is a system
of economic, financial, legal, organizational and social measures taken by the State
for effective and sustainable development of agricultural production and ensure the
full population quality food at reasonable market prices [1, p. 56].
In turn, O. Zinchenko believes that government regulation of agriculture is a
system of enforcement actions to create optimal conditions for development.
We believe that government regulation of agriculture is a set of economic,
organizational, legal and economic policy measures designed to create an effective
and stable-growing development of multifunctional agriculture to ensure food
security and strengthen its competitive position in world agricultural market.
Given that agricultural policy is a part of economic policy, so the distribution
of its objectives should be used to agriculture. Objectives of agricultural policy
should be divided into finite and applied, which in turn are divided into a number of
intermediate. By the intermediate demands, first, to have a sufficient degree of
measurability, secondly, quickly, clearly respond to changing tool. Only after
achieving intermediate goals can get the final result and identify areas to achieve it.
At the stage of development of market economy agrarian sector occupies a
crucial place in the modern system of national economy. It is the development and
successful operation of this field determine the state of the economy, the availability
of food in the state, the level of the balanced development of market relations.
A unique feature of the agrarian sector is the large variety of natural resources.
These include agricultural land that covers 41.9 million Ha or 69.4% of the total
territory of Ukraine, 33.3 million Ha of arable land accounts for 2.2 mln Ha for hay,
5,3 mln Ha pasture 1,1 mln ha occupied by plantations. Ukraine arable land than the
land resources of several countries. However, the economic potential of the
agriculture sector is the least revenue.
Today one of the main tasks of the state is to provide conditions for the
development of multifunctional agricultural areas as economics. Polyfunctional
agrarian sphere is covered by comprehensive basic characteristics, which must have a
branch in the implementation of the basic functions [5].
The main objectives of state regulation of agriculture are: economic growth
sector, which determines the progress of the national economy of the state or region,
and calls for an increase in agricultural production, improving productivity in the
industry, as well as the formation of a rational structure of demand and product mix;
ensure the sustainability of agricultural production due to the stability of market
prices, prevention and deterrence of hyperinflation support at some level of rural
employment, to balance income and expenditure in the agricultural budget and
foreign trade, preventing the emergence of large budget deficits, debt or negative
balance of foreign trade in agricultural products; ensure economic justice in
agricultural development. Achieving these goals largely depends on the
implementation of state functions. State functions are determined by the laws of the
economic system and serve it effective. The main regulatory functions of government
in a market economy are discussed in the economic literature is normative,
stimulating and distribution. The regulatory function of the state is realized in the
formation of the legal principles of the market economy. The essence enabling
function is to stimulate economic growth and maintaining market equilibrium.
Distribution function connected, on the one hand, the achievement of a more
equitable distribution of income in society, on the other - with a more efficient
allocation of resources in a market economy.
Regarding the agricultural sectors of the economy, then the main functions of
state regulation include the following: target; regulatory; stimulating; coordination of
interests between producers and consumers of agricultural products, raw materials
and food; social; correcting; a competitive environment for all agricultural markets
and support sustainable development of the industry by providing stable demand for
food and agricultural raw materials; support local food exporters in foreign markets;
finance major areas of science on the sector development; controlling [3].
In our opinion, the functions of state regulation of agrarian sphere advisable to
narrow the purpose of coordination and a clear focus on achieving a specific task.
Among them is dominated by economic, social, environmental, innovation and
The economic function is to perform the basic tasks of agricultural areas to
ensure conditions for the functioning of the economy. It includes agricultural
production to meet the needs of the population and ensuring food security, the use of
production resources and other sectors involved in the development of linkages, the
functioning of agricultural markets, creating financial flows, investment attraction
and use more.
The social function of agriculture is related to the living conditions of the rural
population, creating social infrastructure. This feature is reflected in the concept of
sustainable rural development, which in recent years has acquired special
Ecological function is implemented to use in agricultural production land,
water, flora and fauna. Given the dependence of agriculture on nature-climatic
conditions and the impact on the quality of natural resources, its main objective is to
provide optimal environmental balance in rural areas and the preservation and
development of agricultural landscapes as the basis for agro-tourism.
An innovative feature on the needs and possibilities of scientific and
technological progress, particularly genetic engineering techniques, protection of
biological objects against diseases and pests and other biotechnologies that affect
product quality.
Information function is characterized by the fact that the performance of all
functions vyscherozhlyanutyh only if there is clear management decisions should
take into account the specific characteristics and agriculture.
Therefore, in our opinion, multifunctional agricultural area is a branch of the
national economy, the efficient development and operation of which is provided
through the economic, social, environmental, innovation and IT functions, and its
competitiveness is the main driving force for strengthening the strategic position and
priorities of the domestic and global agricultural markets.
We were impressed with A. Lisiecki position [4] which identifies the following
principles of scientific management in the agricultural sector: providing people with
food, as it is a feature that formed the vital interests of society and individuals (to
solve this problem is solely due to increased competition in the market, namely
through the development of its two sectors: public and private); providing innovative
self-financing of agricultural complex as a task that requires government regulation
(public support should be based on the shift of emphasis towards the "green box" and
reduce market and price support, such as intervention systems and subsidies, which
are classified as "amber box "). The main activities of "green box" are: the study and
research programs on plant breeding and seed production, etc; formation of interbranch organizations and sectoral integration and structuring of production, market
and distribution of factor income; and control and the fight against pests and diseases
of plants and animals; training of specialists, managers of farms; advisory services,
provision of information and transfer of research results; control of food quality and
standardization; marketing services; infrastructure and programs to improve the
environment and so on; creation of state reserve funds to ensure food security;
Government insurance programs agricultural incomes, etc.).
Therefore, to ensure compliance with state regulatory functions on aggregate
agricultural producers need, first of all, that the following principles. First, the
principle focus, which means matching system elements defined purpose.
Commitment regulation provides active nature enables the transition to economic
growth strategy.
Second, the principle of consistency, which is because, on the one hand, the
economy is considered as the only object of regulation, and the other - as a set of
relatively independent subsystems. Consistency requires a certain sequence in
measures of state regulation regarding regulation of individual objects.
Thirdly, the principle of adequacy that characterizes the approach of maximum
theoretical model state regulation of the agricultural sector to objective laws and
trends of the economy. Preventing loss of adequacy is achieved through the
specification of goals by changing circumstances orientation to continuous updating,
taking into account the rate of managed objects in shaping management decisions.
Fourthly, the principle of alternative regulation based on the need for the
adoption of alternatives when it has a qualitatively different variants of the industry.
The main problem of practical implementation of this principle is the separation of
development options that can be exercised by those who can not be realized.
Fifth, the principle of objectivity, which is that regulations state regulation of
the agricultural sector should be developed based on statistical data, official data
central and local authorities, the results of scientific research.
Sixth, the principle of science that ensures continuous improvement
methodology and use of international experience in the regulation of the agricultural
Seventh, the principle of reasonable sufficiency represented in that country are
subject to only those functions that can not be carried out other parts of the economic
system as a result of their limited power and lack of resources.
Eighth, the principle of gradualism, ie, command-administrative methods of
regulating legal and economic replaced as creating objective conditions - demonopolization, privatization, stabilization, etc.
In our view, the fundamental principles of state regulation of agricultural areas
must include: agricultural protectionism, the unity of economic and social objectives,
program control methods, and communication of indecative and presriptive.
In a market economy, emphasis should be placed on the use of new principles and
rejection of it inadequate methods. Thus, the system of policy planning should go to
program budgeting control, which means a combination of self-regulation of
agricultural markets and development of the agricultural sector. In general, the state
acts on the principles of state regulation of agriculture and changes them to a level
that ensures the formation of competitive market mechanism or ensure its effective
Government programs are designed to enhance economic activities and
development of the state of market relations; ensure the restructuring of agriculture;
solution of social problems related to employment of the rural population, the
development of social infrastructure; elimination of local socio-economic crises;
creating conditions for environmental safety, etc. [1, p. 52-63].
The basis for forecasting and programming socio-economic development of the
agricultural sector are system achieved macroeconomic indicators, state social
standards and norms to the population, national and ethnic characteristics,
characteristics of social infrastructure, opportunities for potential investors and
investment attractiveness.
Conclusions. Thus, government regulation of agriculture is that the state
through the use of legal, administrative and economic instruments governing the
behavior of agricultural producers, determines the prospects of agricultural sector of
the economy, takes directing role to implement long-term development programs.
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4. Лисецький А. С. Продовольча безпека України : теорія, методологія,
емпіричний аналіз / А. С. Лисецький – К. : Оріяни, 2005. – 374 с.
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В. Скидан // Економіка АПК. – 2006. – № 5. – С. 29-35.
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