Decentralization and rural development: case study of Ukraine

Abstract

The formation of state-building processes requires the development of various sectors of the economy, and agriculture is no exception. In Ukraine, administrative-territorial reform was carried out, which led to the formation of administrative-territorial regulations (decentralization) – the creation of amalgamated territorial communities. Such formations are concentrated in cities, urban-type settlements and rural areas. The decentralization process has actively influenced the rural development in Ukraine. The aim of the study is to determine the directions of rural development in the decentralization process in Ukraine. It is based on the analysis of the current regulatory framework of Ukraine and the results of monitoring the decentralization process, as well as the assessment of the spheres of rural development in Ukraine (economic, social, environmental). The number of amalgamated territorial communities and residents, including ones in rural areas of Ukraine was analyzed. An assessment of the dynamics main indicators of agricultural activity in Ukraine was carried out, positive and negative trends were identified. A comparative analysis was conducted of the existing concept of rural development, based on state subsidies and the new one – through active investment in agriculture, development of promising activities in rural areas, attracting more actors and their collaboration. The results of study are the justification of current paradigm of rural development in Ukraine and the formation of appropriate concept. Prospects for rural development in decentralization are the introduction of entrepreneurship, diversification of agricultural production, investment in agriculture, increasing the economic entities in rural areas, increasing of employees and wages, introduction of organic agricultural production.