Concessional Lending as a Perspective Tool of Development of Agribusiness

Abstract

1. Introduction In the modern global economy, countries actively cooperate, exchanging goods and services. However, some countries are export-oriented and gain advantages from international trade while preserving national production, and other countries import too much and lose national sovereignty, with their own production declining and taking them into a trap, with them being unable to independently satisfy internal demand. The general quantitative criterion of measuring the level of import dependence of countries is the trade balance. Significant excess of import over export is critical and threatens national security of the country. However, an important role here belongs to high-quality analysis of foreign economic activities of the country. A person can survive without most of goods and services, so their import is not critical, while dependence on the import of so-called inferior or essential goods is a serious threat, as a person cannot live without them. The essential goods include accommodation, basic clothes, and food. Need for construction and basic textile production, is, as a rule, satisfied by internal production, but many countries cannot independently satisfy their internal demand for food products. This brings up a problem of food security. That's why the most serious threat is posed by country's dependence on food import. The reason for such dependence is lack or low level of agribusiness and, correspondingly, elimination of this reason allows solving the problem of national food security. This causes the topicality of study of perspectives and search for new tools of agribusiness development. This research offers the hypothesis that concessional lending is a perspective tool of agribusiness development. The purpose of the article is to verify this hypothesis, determine the advantages, and develop recommendations for the use of concessional lending for agribusiness development. 2. Subject The object of the research is agribusiness in non-food countries. The topic of the research is organizational & economic and managerial connections and relations which emerge in the process of use of concessional lending as a tool of development of agribusiness in non-food countries. Non-food countries are countries that do not specialize in agricultural production due to unfavorable natural and climatic situation, but are interested in development of national agribusiness for provision of national food security. 3. Materials and methods Analysis of works of modern scientists on the problem of development of agribusiness showed that most of research is devoted to substantiation of expedience and necessity for development of agribusiness; among them are the works of (Garthwaite et al., 2015), (He, 2015), (Jacknowitz et al., 2015), (Maitra & Rao, 2015), (Mazaeva and Rogachev, 2012), and (Bannikova et al., 2015). Also, a large number of works are oriented at allocation of national peculiarities of development of agribusiness and solving the problems of particular socio-economic systems, related to provision of food security: (Grouiez, 2012), (Bernardes, 2015), and (Medernach & Burnod, 2013). However, there is a lack of research, devoted to the search for perspective tools of development of agribusiness which are universal for various countries, which reflects the necessity for further studies in this sphere. As a method for determining the perspectives of development of agribusiness, this work uses SWOT-analysis. Also, the article uses the method of factor analysis for allocation of the factors of agribusiness development, method of institutional analysis for allocation of current and innovational means of influencing these factors, and method of problem analysis for determining the ley problems of development of agribusiness and search for their solution. In order to determine the limits of the research and simplify the work with the research object, the work uses the methods of modeling of socio-economic systems and systemic analysis. …