SOCIO-ECONOMIC CONTENT OF DEFINITION “DEVELOPMENT OF RURAL TERRITORIES” AND ITS RELATIONSHIP WITH THE DEVELOPMENT OF RURAL ECONOMY

  • Svitlana Belei “Yurii Fedkovych” Chernivtsi National University (CHNU), Chernivtsi
Keywords: rural economy, rural areas, development

Abstract

The current stage of development of the rural economy of Ukraine is characterized by processes of globalization and European integration, which is explained by the increased competition in the global and domestic markets for agricultural and food products, the liberalization of foreign economic activity, and the creation of transnational corporations. Global trends are objectively logical and require finding adequate tools for adaptation in the country's internal economic environment. Such conditions require a rethinking of the nature and objectives of the rural development policy, since the functioning of the rural economy in the context of globalization and European integration is characterized by significant systemic features and structural changes. The rural economy is often identified with the agrarian economy and, accordingly, is considered synonymous with the definition of "rural economy" and "agrarian economy." This identification leads to the adoption of erroneous management decisions that have negative consequences for both rural areas and the country as a whole. The main reason for the identification of the concept of "rural economy" with the concept of "agrarian economy" is the identification of the village with agriculture. The interpretation of the rural economy as an agrarian economy can be explained by the long predominance of agriculture in the structure of activities in rural areas. The development of agriculture ensured rural development.
The rural economy characteristic is the interrelation of the conditions of production and its results and is formed as a single economic mechanism with interdependent internal processes and phenomena. Historical and cultural traditions, the geographical location of the countryside, the remoteness of the rural area from the border, and its role in the international division of labor have a significant impact on the characteristics of the rural economy. The border status of rural areas can be considered as a favorable condition for the development of rural areas. At the same time, economic and production, socio-cultural ties also create a number of threats, in the long-term perspective, in the absence of a regulated influence from the state, can lead to negative consequences.
In modern conditions, the rural economy is an open dynamic socio-economic system that undergoes constant changes under the influence of exogenous and endogenous factors, the result of which is the achieved level of development of rural territories, the functioning of which aims at not only ensuring the development of rural territories, but also fair distribution of results among all the subjects of rural areas and is aimed at ensuring favorable living conditions and livelihoods rural population.

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Published
2019-07-26
How to Cite
Belei, S. (2019). SOCIO-ECONOMIC CONTENT OF DEFINITION “DEVELOPMENT OF RURAL TERRITORIES” AND ITS RELATIONSHIP WITH THE DEVELOPMENT OF RURAL ECONOMY. Knowledge International Journal, 32(1), 39 - 45. Retrieved from https://ikm.mk/ojs/index.php/KIJ/article/view/1400