Problems of institutional support for innovative development of rural areas

Abstract

The article deals with the content and components of institutional support for rural development on an innovative basis. On the basis of the analysis of literary sources and practical experience, the following institutional problems of the agricultural sphere have been identified: instability of agrarian policy and the need to improve land relations; limited development of cooperatives and active state support for the development of large-scale agricultural production (agro-holdings); lack of non-state structures to protect peasants’ interests; underdeveloped financial and credit infrastructure of the agricultural market.

To overcome the problems of financial support for rural entrepreneurs, it is necessary to create institutions for the spread in the countryside of electronic credit unions, which by having an electronic mechanism of functioning (for example, web banking) can overcome territorial constraints and make significant scaling of activities, which will lead to cheaper financial resources for economically active residents of rural areas. The source of activity within this direction can be territorial state authorities, local self-government bodies, rural activists.

Overcoming the problem of structural imbalances in agro-food chains is possible in the case of institutional changes regarding the introduction and support of the development of agricultural servicing electronic cooperatives.

Creating an institutional environment for the innovative development of rural areas requires the coverage and balancing of areas such as: ensuring the development of innovative activity of agricultural enterprises, personal peasant farms, family-type farms and individual entrepreneurs in the countryside; introduction of innovative changes and innovative public management into the activities of the united territorial communities; introduction of innovative development and innovative mechanisms of activity of educational institutions; creation of conditions for innovative development of infrastructure objects.

In Ukraine, the decisive factor is the comprehensive support for the development of electronic cooperatives of agricultural producers and electronic service cooperatives by officials and deputies of the united territorial communities. Pilot projects should be implemented to set up such cooperatives, demonstrating the ability to scale their activities.