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Imperatives of complementary development in agrosphere

O. Borodina

Economy and Forecasting, 2017, issue 4, 125-136

Abstract: Modern vector of agriculture policy development in leading countries is oriented to complementary characteristics of agro-food systems, where production of actual and public goods are combined. Taking into account the complementary nature of connections between agriculture and rural developments, specific policy regulations and financial instruments are used in order to keep the proper balance. For transition to such policy-making in Ukrainian realities, it makes sense to start using the term "agrosphere" as a united subject of state regulation and state financial support instead of the currently used term "agro-industrial complex" or agrarian sector. Introduction of the term of agrosphere in the policy-making process would ensure that regulation is made for a multi-level and multi-functional system, covering social, economic and environmental aspects, directly connected with food self-fulfillment and export potential fulfillment. Complementarity in agrosphere development is envisioned as inter-connection between agriculture and rural area, under which, as a result of their cooperation, effectiveness of the production, and welfare of rural population increase and broad recovery of production resources is ensured in a certain territory. Transition to complementary development of agrosphere consists in the introduction of the new system of state regulation, which can protect traditional agriculture and village based on public understanding of their complementary nature and form general opposition to the current state of relations between agro-business, natural resources and rural communities. This would require significant public expenditures (first of all financial), involvement of socially responsible private investments and environmentally safe technologies, and specific political instruments, in particular science-based socioeconomic planning on the national level.

Date: 2017
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Handle: RePEc:eip:journl:y:2017:i:4:p:125-136