Abstract

The article analyzes the issues of rural development in Ukraine, focusing on its economic and social aspects. It emphasizes that over the past decade, the agricultural sector has transformed into a powerful branch of Ukraine's national economy, significantly influencing macroeconomic trends. Global food market trends have become an additional factor in the development of the domestic agricultural sector, positioning Ukraine as one of the key players in this segment. In specific sectors, Ukraine is a leader in the global food market and has maintained its competitive position for an extended period. Specific mechanisms of financial support are employed to support agricultural enterprises in Ukraine. However, even within the agricultural sector itself, attitudes toward this support are mixed. Positive evaluations are often overshadowed by the complexity and bias of various procedures, the limited number of enterprises eligible for such support, and the resource shortages allocated to finance the corresponding programs. It is essential to acknowledge that the main focus of existing financial incentives is to stimulate increased agricultural production volumes. However, this approach largely ignores the social challenges of rural development, exacerbates the distortions inherent in urbanization, and creates strategic threats to the development of rural areas. In particular, there is a highly concerning situation regarding skilled labor, with many rural communities lacking social infrastructure. Unemployment and low wages demotivate rural residents. Over the past decades, the agricultural sector has experienced a true “technological breakthrough”. However, the shift in technology has also transformed labor requirements, adding pressure to the socio-economic aspects of rural development. It is argued that the state must shift from merely stimulating the agricultural sector to fostering comprehensive rural development. If a comprehensive approach to the development of rural areas is ignored, in the medium term it will lead to the stagnation of the agricultural sector of Ukraine under the pressure of economic and social problems.

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