Conceptual provisions of diversification of rural territories’ development in condition of decentralization

Abstract

The purpose of the article is to develop conceptual provisions of diversification of development of rural territories in Ukraine in terms of decentralization. The paper proves that diversification should be considered as a means of ensuring integrated development of rural territories in connection with the need to create new mechanisms for interaction between all rural territories, the need to optimize existing agricultural activities and introduce new productions. The author argues that there are important reasons for the diversification of development of rural territories, including low level of material well-being and employment of rural residents, low profitability of agricultural enterprises, environmental pollution and degradation of soils. Ensuring the diversification of the development of rural territories is suggested to be based on the principles of unity and integrity, taking into account the process of decentralization, with due consideration of geographical, economic, ecological, ethnic and demographic characteristics of each rural territorial entity. The factors of containment of the process of diversification of rural territories’ development in terms of decentralization are identified, including the insufficient legislation, limited natural resources, low level of public awareness, lack of financing of rural development programs from the State budget; lack of entrepreneurial experience of population; lack of start-up capital to start a business. The factors stimulating the process of diversification of the development of rural territories are allocated, including the reform of decentralization; conducting business trainings; providing consulting assistance in the legal and economic spheres. The directions of diversification of development of rural territories are determined including the diversification of agricultural production, diversification of non-agricultural activities and diversification of sources of financing.