Concept of the State Target Program for Sustainable Rural Development for the period up to 2020

APPROVED by the 
decree of the Cabinet of Ministers of Ukraine 
of 2010 No

CONCEPT

State target program for sustainable rural development 
for the period up to 2020

Identification of the problem addressed by the Program

The positive developments that have taken place in recent years in agricultural production have not made it possible to solve the problems of socio-economic development of rural areas, the most severe of which are unemployment, labor migration of peasants and the destruction of social infrastructure in rural areas.

Systemic crises and the decline of rural areas lead to a decrease in the standard of living of the rural population, a decrease in agricultural production, which threatens the food security of the state.

The analysis of the causes of the problem and the justification of the need for its solution by the program method of rural degradation and impoverishment of peasants are predetermined, in particular:

  • low level of development and predominantly monofunctionality of the agricultural sector;
  • low level of profitability of agricultural production;
  • lack of financial support for small agricultural producers;
  • limited financial resources of local budgets;
  • reducing the number of social infrastructure of the village; administrative obstacles to attracting investment.

The imperfection of public policy in the agricultural sector and the system of financing do not meet the current requirements and principles of the European Union. 
The development of rural areas and the solution of economic, social and environmental problems in the countryside has been identified as a strategic goal of the state agricultural policy, for which it is necessary to approve the list of tasks at the state and local level. 
Integrated problem solving is possible through the development, adoption and implementation of the National Target Program for Sustainable Rural Development for the period up to 2020 (hereinafter – the Program).

The purpose of the Program

The purpose of the Program is to ensure the sustainable development of rural areas, improve the standard of living of the rural population, protect the environment, preserve natural, labor and production resources, increase the competitiveness of agricultural production.

Determining the optimal solution to the problem based on a comparative analysis of the possible options

There are two options for overcoming rural degradation.

The first option is characterized by insufficient financing of rural development, in particular social infrastructure, declaring social, economic and environmental measures, in the absence of real mechanisms for their implementation. Provided this option is implemented, the main problems of rural development are not solved, in particular with regard to rural employment and the destructive processes of social infrastructure in rural areas.

The second option involves the definition of a sustainable rural development strategy based on optimization of their social and industrial infrastructure, increasing the employment rate of rural population, reducing labor migration, increasing the competitiveness of agricultural production, increasing its volume, improving the quality and safety of agricultural products, environmental protection and restoration of natural resources .

The second option is optimal, which will help to overcome the crisis situation in ensuring sustainable socio-economic development of rural areas.

Ways and ways of solving the problem, the term of implementation of the Program

The problem is supposed to be solved by:

  • creation of favorable conditions for living in rural areas as a result of:
  • implementation of social standards and norms in accordance with European ones;
  • increase of wages to the average level in other sectors of economy, purchasing power and income of rural population;
  • involvement of members of personal farms in the system of compulsory state social and pension insurance; 
    development of social infrastructure facilities;
  • facilitating the establishment of public utilities for the everyday servicing of rural populations and the improvement of rural settlements;
  • improving the quality of educational services in accordance with state standards of elementary, basic and full secondary education;
  • providing state support to agricultural advisory services;
  • development of physical culture and sports;
  • restoration and protection of historical, natural and cultural heritage sites in rural areas;
  • development of rural agrarian tourism, folk crafts, entrepreneurship, etc .;
  • ensuring environmental protection and environmental safety:
  • removal from intensive cultivation of degraded, low-productive and technogenically contaminated agricultural lands;
  • development of organic agricultural production;
  • organization, development and implementation of land, forest and water resource use plans;
  • optimization of land use as a result of improvement of the system of registration of property rights to land and other real estate, formation of market land relations;
  • increase of competitiveness of all branches of agriculture as a result of:
  • ensuring the economic efficiency of agricultural production and increasing its competitiveness;
  • support for agricultural enterprises, private peasant and farms and agricultural service cooperatives;
  • organization of wholesale and retail markets for agricultural products;
  • implementation of food safety standards and improvement of agricultural product quality in accordance with WTO and EU requirements;
  • improvement of rural development management system as a result of:
  • establishment of a National Agency for Sustainable Rural Development and its regional offices with the status of a state institution;
  • monitoring of rural development sustainable development measures.

The program is expected to be implemented during 2010-2020.

The first phase (2010-2012) envisages the development and adoption of new regulations and amendments to the existing regulations on sustainable rural development. 
During the second phase (2013-2020), an analysis of the implementation of the first phase and adjustment and further implementation of the Program activities is envisaged.

Expected results of the Program implementation, determination of its effectiveness

The implementation of the Program will ensure:

  • increase of employment and increase of incomes of rural population;
  • development of engineering and social infrastructure of rural settlements in accordance with social standards and to increase the volume of social services provision to rural population three times;
  • improving the environmental situation in rural areas, increasing the output of agricultural gross output by half and increasing the incomes of agricultural producers threefold.

Assessment of financial, logistical and human resources required to implement the Program

The Program requires about UAH 300 billion, of which at the expense of the state budget, UAH 148 billion. 
Specific amounts of financial, logistical and human resources for the sustainable development of rural areas are determined during the development of tasks and activities for the implementation of the Program. 
Expenditures for the implementation of the Program are borne by the state and local budgets, as well as rural and urban communities, and private investment. 
International technical and financial assistance will also be involved in the implementation of the Program.