Economy, finances, management: Topical issues of science and practical activity

MAZUR Kateryna  –  Candidate of Economics Sciences, Associate Professor, Head of the 

Department of Agrarian Management, Vinnytsia National  Agrarian University (3 Soniachna Str., 

Vinnytsia, 21008).

MAZUR Anatolii  –  Doctor of Economic Sciences, Professor, Professor of the Department of 

Agrarian Management, Vinnytsia National Agrarian University (3 Soniachna Str., Vinnytsia, 21008).

The main problem of the current state of the agrarian economy is that with the intensification and expansion of the agricultural export potential, the destruction of the rural way of life and the gradual decline of the rural territories are observed. These processes are flourishing against the backdrop of large-scale landowners who accumulate large tracts of land in the agrarian sector, and by virtue of monopolizing the production of export-oriented food products, are effectively eliminating agriculture from profit sharing. The peasantry thus becomes a primitive and underdeveloped sector of the economy, which operates on the basis of self-survival. The situation is exacerbated by governmental support for large-scale production as the main direction of increasing agricultural potential in the national economy. At the same time, there is no awareness in the society that rural economy, which is predominantly based on farms and agriculture, is a holistic socio-economic system, which includes: production of safe food, recreational activity, conservation of nature and landscapes, protection of traditional Ukrainian identity, traditions. Thus, problems remain that require in-depth study, in particular, of establishing effective institutions to prevent potential risks; research on institutional changes and their impact on the development of public relations; development of methodology for empirical measurement of transaction costs in the existing institutional system.

This requires the search for theoretical approaches to substantiate the conceptual provisions of the feasibility of existence and multiplication of activities of farms and farms. The essence and place of the theory of institutionalism in the development of rural agrarian relations are determined. It is emphasized that the basis of industrial relations should determine the person, his needs and quality growth of human potential in the countryside. The basic factors of promoting the introduction of institutional principles in the development of the rural economy are outlined, and the substantiation of directions and content of the institutionally oriented influence on the activity of small forms of farming in rural areas is provided. The article formulates the author's proposals concerning the main directions of institutional support of family farms in rural territories and emphasizes the need to increase the role of the state in the formation of the institutions necessary for the agrarian market, including the means of state protectionism.

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