Institutional Models for Managing Rural Development in the Economy of the European Union Countries: Specifics, Priorities, Tools

Abstract

The relevance of the study is conditioned by the need to create an effective model of the current institutional environment that can ensure the unity of economic processes in the management of rural territories in Ukraine based on the best foreign practice. The purpose is to summarise the experience of the EU countries on the functioning of institutional models for managing rural development for adaptation in Ukraine. The task is to formulate conceptual approaches to the formation of an institutional model for managing rural development in Ukraine, considering the fundamental principles of building a system for rural development management in the EU countries. General scientific methods were used as a tool for obtaining information for informed management decisions in the field of rural development management: analysis and synthesis; induction, deduction and analogy; abstraction; generalisation; idealisation, etc. The main trends and priorities of the agricultural policy implemented by the European Union are considered. Centralised and decentralised rural development management systems are described. Heterogeneous management models between centralisation and decentralisation are presented. The multi-level nature of the management concept as a key specific component is substantiated. The functioning of the system of distribution of tasks between the European Commission, the national state, and the regions is considered. Models of distribution of programming and management competencies in various management systems, and the forms of relations between different levels of government have been improved. The procedure for the functioning of the rural development programming system in Germany is presented. The classification of different countries based on the distribution of responsibility for managing programmes that were intended for rural development is considered. Vertical coordination and relations between the state and regions in countries with a decentralised form of governance are analysed. Methodological approaches to the development of an institutional model for managing rural development are proposed. The practical significance of the study lies in the development of recommendations that improve the efficiency and consistency of management decisions on the establishment of an institutional model for managing rural development in the Ukrainian economy.