MODERN ASPECTS OF FORMING ORGANIZATIONAL AND ECONOMIC MECHANISM FOR STATE REGULATION OF GRAIN MARKET DEVELOPMENT IN UKRAINE
Abstract
The article notes that the operation of the organizational and economic mechanism for the state regulation of the grain market of Ukraine is meant to promote stabilization, sustainable development, and consistent improvement of the effectiveness of grain-product output.
It is proposed to define ‘an organizational and economic mechanism for the state regulation of grain market development’ as an interrelated totality of organizational and economic forms, methods and tools which are used to perform interrelated functions of public authorities and bodies, to whom the state delegated regulatory powers for ensuring effective functioning, increase in quantitative and qualitative levels, fulfillment of socio-economic functions, aiming to provide a sustainable development of the grain market sphere of the agro-industrial complex and the related economic fields.
It has been pointed out that the organizational and economic mechanism for grain market development should be implemented with the help of levers that can be grouped (sometimes quite tentatively) according to their two major characteristic features – organizational mechanism levers, and economic regulation mechanism.
Among the key components and areas of the mechanism for the state regulation of the development of the grain market of Ukraine, the following ones can be highlighted:
– levers of the organizational mechanism are: improvement of the normative and legal framework which regulates the grain market relations; reduced costs and financing of reconstruction of deteriorated motor roads; introduction of new modern plant varieties and hybrids; increased number of certified grain storages; improved effectiveness of the performance of state agents in the grain market; involvement of young people to work at grain sector enterprises, etc.;
– levers of the economic mechanism: access for grain producers to cheap and quality financial and credit resources, attraction of private investments; incentives for the domestic grain producers and processing enterprises to enter the stock market of IPO; encouragement of the export of grain-processed products of high added value; stabilization of prices for grain and products of its processing in the domestic market, and a number of others.
The group of organizational mechanism tools also includes: support to creation of grain servicing cooperatives, encouragement of production of durum wheat varieties for domestic processing enterprises, a qualitative increase of the technological level of grain production, strengthening of requirements to grain product storage.
Among the levers of the economic mechanism, a special emphasis is laid on forecasting and planning, provision of government assistance to economic entities, cheaper bank credits, financial backing of grain market enterprises from own sources.
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