RURAL ECONOMY: DIRECTIONS OF NEW THEORIZATION AND IMPLEMENTATION OF BEST EUROPEAN FINANCIAL REGULATION PRACTICES

Abstract. A Ukrainian intellectual-expert community is at the initial stage of forming a methodological basis of the rural economy ontogenesis that is determined, first of all, by the ongoing decentralization reform, a new role of the rural economy from the national perspective of a new (both coronavirus and post-COVID) economic reality in ensuring food sovereignty, economic recovery of the economy, in general, and rural territorial communities, in particular, with regard to new challenges associated with the ageing of the rural community, de-population, predominance of the rural employment in the rural area and financivization of relationships within the rural economic agents, ultimately creating a new normality of the operation and development of the rural economy. Taking into account that Ukraine has strategically outlined its aspiration for integrating into the European Community having successfully passed a forming phase of group dynamics (according to Bruce Tuckman), has moved to a conflict phase having enlarged its orthodox understanding to the absence of proper parity in the development of socioeconomic, financial-institutional processes inside the rural economy, having created the threats to its transition to comprehensive digitalization and «greening» of finances applied for it. In the European Union, this problematics has been studied and an analysis of searches of directions of its solution has been carried out since the 50s of the past century actualizing the necessity to typologize best regional practices, their implementation from the perspective of the agrarian policy with regard to iteration of the Public Finance Management System Development Strategy, directions of the modernization of state support for agricultural goods producers, a gradual transition from a support institution to an assistance institution. To achieve the goal, which was defined as typologization of theoretical leverages and empirical inter-influences and inter-dependencies of the ontogenesis of the rural economy in the conditions of the implementation, by the European Community, of the UN 2030 Sustainable Development Goals as the basis for new strategying and financivization (including their «greening») of its development in our country, the methods were used: of induction and deduction, comparison and systematization — in researching the historiography of the notion «rural economy», penetrating it with a «financial» spirit and processes of «greening» financial-economic relationships of the economic agents of the rural economy; of synthesis and analysis — for characterization of financial support (assistance) of the rural economy with regard to modern approaches to the establishment and development of the Common Agricultural Policy in the EU member countries in order to implement a comprehensive regulatory European-colored movement towards digitalization and financivization including the post-COVID financial recovery of the rural economy, the formation of the basis for the financial central focus on local value added; of morphological analysis — for a new parametrization of the rural economy with regard to evolvement of the financial vector towards stimulating agro-producers for sustainable and comprehensive development; a graphical method — for vivid presentation of theoretical and methodical material; а abstract-logical method — for theoretical generalization and formulation of conclusions from the conducted research. Formed typologies of theoretical leverages of the rural economy enabled to clearly crystallize the parameters inherent to it only, in particular: goal-oriented collaboration of various economic activity types carried out within the rural territorial community in order to form local value added, ensure local food sovereignty and food security, create conditions for developing integrated corporate associations based on symbiomatics of the agrarian and construction economies; both enterprises (corporations, agro-food clusters) and individual entrepreneurs as well as households determining the operation of the food market and focusing the financial system on the respective genotype of economic agents involved in the rural economy, act as the entities of the rural economy; the compliance id provided, with the principle of sustainable and inclusive development, the «green» ontogenesis of the system of state support (assistance) of agro-producers; the orientation is substantiated, towards a new scaling of rural construction projects, social infrastructure including that involved in counteracting a coronavirus infection providing conditions for meeting the intellectual-staff needs of economic agents-stakeholders of the rural economy. Conducted generalization enabled to single out a number of modernization stages of the EU Common Agricultural Policy, in particular, in terms of mass-qualitative and mass-variable characteristics of financial support (assistance) of agro-producers as well as characterize the current central focus in their development on the rural economy institution expressed, in particular, through rural territories (rural territorial communities) in terms of promoting implementation of village-saving projects of rural development and solution to financial-economic, social and ecological problems of the rural area. A new European-colored parametrization of the rural economy has become a basis for formulating an own conceptual-categorical construct, in particular, the «rural economy» and its related financial-economic categories and notions as a system of the economic agents, whose activities being associated with the rural territory envisage using natural and other raw-material-climatic resources to meet the food needs of the community and perform financial-economic, social-food functions within the modelity of the operation of the national economy, with regard to the basic principles of sustainable and inclusive development, «greening» of state and local finances etc. The proposed definition relying on laid foundations in scientific studies of Ukrainian and foreign academic economists and actual parameters of development of rural territories, in particular, in respect of the mechanisms of financial support (assistance) in the EU member countries promotes further formation of the methodological basis for the harmonization of co-development of agrarian and financial policies in order to stabilize the rural economy, give it the signs of sustainability and European-formed financivization priorities. Keywords: rural economy, financivazation, state support (assistance), agriculture, rural territory, agrarian policy, state and local finances, natural-climatic resources, «green» finances. JEL Classіfіcatіon Q18 Formulas: 0; fig.: 2; tabl.: 0; bibl.: 20..

Medienart:	E-Artikel

Erscheinungsjahr:	2021
Erschienen:	2021

Enthalten in:	Zur Gesamtaufnahme - volume:5
Enthalten in:	Фінансово-кредитна діяльність: проблеми теорії та практики - 5(2021), 40

Sprache:	Englisch ; Ukrainisch

Beteiligte Personen:	S. Petrukha [VerfasserIn]

Links:	doi.org [kostenfrei] doaj.org [kostenfrei] fkd.net.ua [kostenfrei] Journal toc [kostenfrei] Journal toc [kostenfrei]

Themen:	Agrarian policy Agriculture Business Economics as a science Financivazation Rural economy Rural territory State support (assistance)

doi:	10.18371/fcaptp.v5i40.245198

funding:
Förderinstitution / Projekttitel:

PPN (Katalog-ID):	DOAJ028408470