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Scientific basis and applied aspects of the agricultural and rural reconstructive development in Ukraine

O. Borodina

Economy and Forecasting, 2016, issue 4, 70-80

Abstract: In the evolution of agrarian relations, increasing the output usually dominates over other socially important functions of the agriculture, such as social- economic and environmental ones. However, by means of certain political decisions, many countries have achieved harmonious combination of the interests of agriculture and village, as growth in agriculture entails not only the positive effects of increasing amounts of food, but also leads to undesirable results, which worsen the quality of public life. In modern scientific circulation and political practice, the term of "agrarian/rural development" is used, where growth is considered not as the ultimate goal but a means to ensure development. The reconstructive type of development in the agricultural sector involves transformation of the paradigm of national agricultural system oriented to industrialized (industrial) agricultural production towards better understanding of its multiple structure and nature. As agriculture, unlike industry, is directly related to wildlife and humans, the economic activities in rural areas cannot be considered outside the general system of its social relations and environmental opportunities. The reconstructive type of agrarian development can ensure the implementation of the essential features and advantages of domestic agriculture and rural areas based on socio-economic modernization. The process of such modernization involves a transition from the superficial alteration of only external form of agricultural structures who monopolize the natural resources to expand the output of exportable raw materials over changing the core of agrarian relations in order to create real opportunities for their reconstruction. The proposed set of economic, social, cultural, political, and other changes aims at providing an agricultural and rural development based on sustainability. On the one hand, this requires streamlining the economic activities and social responsibilities of the large sized agrarian businesses in terms of public interest (economic, social and environmental). And, on the other hand, it involves building long-term capacity of rural communities to independently develop rural economy (using local resources), and improve social conditions and the environment of their life. The nature of socio-economic modernization of the agricultural sector in the context of its transition over the reconstructive development type is manifested in different countries depending on the achieved level of economic, democratic and institutional development. In less developed and developing countries, the discussion on the transition from the policy of sectoral development over the comprehensive approach (that is, an adequate multi-sectoral coordination of local activities) mostly appears in theoretical terms, and much less in practice. In our opinion, in countries with low overall development and with obvious signs of destructive growth, which, unfortunately, include Ukraine, the urgency of real action in the field of socio-economic modernization will sharply rise as soon as in the near future. This article was prepared within the Ukrainian NAS's target oriented comprehensive research program on "Reconstruction of Ukraine's Economy: Historical Challenges and Modern Projects".

Date: 2016
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