About Us

Executive Editor:
Publishing house "Academy of Natural History"

Editorial Board:
Asgarov S. (Azerbaijan), Alakbarov M. (Azerbaijan), Aliev Z. (Azerbaijan), Babayev N. (Uzbekistan), Chiladze G. (Georgia), Datskovsky I. (Israel), Garbuz I. (Moldova), Gleizer S. (Germany), Ershina A. (Kazakhstan), Kobzev D. (Switzerland), Kohl O. (Germany), Ktshanyan M. (Armenia), Lande D. (Ukraine), Ledvanov M. (Russia), Makats V. (Ukraine), Miletic L. (Serbia), Moskovkin V. (Ukraine), Murzagaliyeva A. (Kazakhstan), Novikov A. (Ukraine), Rahimov R. (Uzbekistan), Romanchuk A. (Ukraine), Shamshiev B. (Kyrgyzstan), Usheva M. (Bulgaria), Vasileva M. (Bulgar).

Additional Information

Authors

Login to Personal account

Home / Issues / № 2, 2012

Economics

Methodological Approach to the Structurization of a Region’s Agrarian Sector Socio-Economic Development Goals
T.M. Polushkina

Introduction. Agrarian sector in Russia, in general, and in separate regions, in particular, is considerably lagging behind the leading world powers in the level and the rate of its onward motion. Russia doesn't have another alternative except for the breakthrough type of development (on the basis of the model which would smooth the ways for development). Here we should try not only to reach the accelerated development and strive for the acceleration of any changes; the top priority must be accelerated and steady development in the right direction. These principles must run through the conception of agro-industrial complex development on any regional level. The goals determine the whole subsequent development path. For all that it is important to choose the right course of action, for false development is almost always accompanied by colossal expenditure of social effort and money, and may even lead to the change of the whole course or to the change of the development path as well.

The purpose of this work is to substantiate a methodological approach to the structurization of the agrarian sector socio-economic development goals. The author: 1) determined the goals, the alternatives and the parameters of a region's rural development bearing in mind the objectively existing trends and regularities of its development; 2) substantiated possible tendencies towards the rise in rural development stability, standard of living and motivational component of villagers' behaviour directed to their self-financing and self-rule; 3) developed some conceptual approaches which ensure the so-called "breakthrough" in a region's agro-industrial complex economy; 4) pointed to some prior trends of the state regulation of the agrarian sector development.

By and large, in this conception there must be determined: 1) the goals, the scales, the proportions, the rates and key trends of the development of a region's agro-industrial complex itself as well as of some of its structurally functional subsystems; 2) the mechanisms of crisis situations overcoming; 3) and the system of state influential measures for the purpose of providing the rural goods manufacturers with favorable business activity conditions which are to promote its efficiency; 4) the level and the means of achievement of stable rural development and the means of improvement of the rural sector quality of life.

Figure 1 shows the excerpt of "the tree of goals" drawn for the agrarian sector socio-economic development. On the level of each particular region this process is regulated / controlled by the state. In our opinion the final goal of a region's rural development is the rise in the standard of living of a region's population and its quality of life as a whole. This is the fundamental principle on which agrarian strategy of any level must be based. Economic foundation of a social approach is based on the regions' interest in raising agricultural industry effectiveness and in solving social and other problems of rural areas. The elements of the second level (2.1. - 2. 3) correspond to the main principles and the conception structure.

In order to better prepare the solutions connected with the achievement of alternative goals, it is necessary to take into account several goals. The degree of the attainment of each one is evaluated by its own index. Local authorities consider various possible alternatives which contribute to the achievement of some goals in the highest degree. "The tree of goals" may serve as a basis for selecting the most preferable alternatives as well as for the evaluation of the systems being under development and their interconnection.

The goal setting procedure began with the process of a region's development problems revealing and regulation. The basic methods which we used were statistic and logical analyses.

"The tree of goals" excerpt indices are as follows:

1 level:

1 - rise in the standard of living and in the quality of life of people:

2 level:

2.1. - Optimization of agricultural policy and the mechanisms of its realization; 2.2. - Ensuring of a region's food security; 2.3. - Achievement of the agricultural industry efficiency based on the balanced nature of all its elements and coordination between its sub-industries and the structure of public needs for agricultural produce; 2.4. - Stable development of rural areas;

3 level:

3.1. - Rise in the funds and power supplies, expansion of production automation, introduction of advanced power- and labour-saving technologies; 3.2. - System growth of economic fertility by: a) using the most effective melioration methods, b) intensifying recultivation, c) increasing organic fertilizers application; 3.3. - Ensuring of the main agricultural branches stable development, in particular, animal husbandry by using resource potential more effectively and by supporting product high competitive edge; 3.4. - Optimum use of productive factors and markets stabilization; 3.5. - Provision of balanced and available foodstuffs according to the scientifically well-founded norms of nourishment; 3.6. - Increase in the quality of agricultural produce; 3.7. - Creation of conditions for preservation, reproduction and improvement of natural resources and bioclimatic potential used in agriculture; 3.8. - Working out of comprehensive state regulation system devoted to the agro-industrial complex development and directed to the revival of potential production and to the improvement of goods manufacturers financial solvency; 3.9. - Creation of favourable (equal rather than discriminating conditions in comparison with other branches of national economy) organizational, socio-economic, normative and legal conditions for agrarian sector development; 3.10. - Creation of favourable living and working conditions for the rural sector; 3.11. - Formation of original and self-developing social, ecological and economical territorial system; 3.12. - Ensuring of social adaptation and effective employment;

4 level:

4.1. - Assistance to the revival in parity ratio between agriculture, resource-providing branches and (food) processing industry; 4.2. - Provision all manufacturers with equal conditions, regardless of the forms of ownership; 4.3. - Antimonopoly regulation development; 4.4. - Creation of conditions for the formation and development of methods of agricultural production economic regulation; 4.5. - Improvement of agricultural produce price regulation and that of consumer price control; 4.6. - Direct regulation of agricultural production and agricultural produce market; 4.7. - Extension of the measures directed to the supply and demand regulation of agricultural produce, etc.;

5 level:

5.1. - Working out and introduction of some techniques allowing to regularly track down price shifts and to opportunely take administrative decisions for maintaining parity relations; 5.2. - Realization of the system of strict control over restoration and maintenance of parity ratio, etc.

The algorithm of determination of the most preferable alternatives among the existing ones is following. As the goals in "the tree" are complementary rather than mutually exclusive, for the elements of the second level is used a hierarchy analysis method worked out by Thomas Saaty. This method is one of the most effective one for solving poorly-structured tasks (a hierarchy analysis method).

We have chosen the following criteria for the purpose of comparing the second level goals in pairs. 1. Budget expenditure; 2. Decision-making in favour of the population; 3. Expenditure on tasks realization; 4. NPP[1] conformity with federal and regional programs aimed at the solution of the most important problem at a time (table 1). Each criterion of the second level goals got its priority. The next step is to calculate the vector of priority according to the given matrices. For this purpose it is necessary: a) to calculate the main vector which becomes a vector of priority after normalization; b) to find index of coordination as well as ratio of coordination. As is well known, the value of ratio of coordination is acceptable if it is less than or equal to 10%. In our calculations all ratios of coordination are less than 10%, so, they are considered acceptable.

Table 1 - Matrix for the comparison of pair criteria

Criteria

1) budget expenditure

2) decision-making in favour of the population

3) expenditure on tasks realization

4) NPP conformity with federal and regional programs aimed at the solution of the most important problem at a time

Vector of priority estimates

Normalized estimates of vector of priority

1) budget expenditure

1

1/9

1/7

1/3

0,27

0,045148

2) decision-making in favour of the population

9

1

3

5

3,41

0,570613

3) expenditure on tasks realization

7

1/3

1

3

1,63

0,272291

4) NPP conformity with federal and regional programs aimed at the solution of the most important problem at a time

3

1/5

1/3

1

0,111948

Ratio of coordination

3,89%

5,97

On the basis of these calculations we have the following development trend of a region's agrarian sector (table 2).

We have come to the conclusion that it is the alternative with the maximum value of global priority that should be chosen. This value is equal to 0,526638. So, the goal 2.3., which corresponds to the achievement of the agricultural production efficiency, must be a top priority.

Further for this goal we evaluated numerically various alternatives beginning with the third up to the fifth level of "the tree of goals". We integrated expert methods of forecasting and quantitative methods of administrative decisions elaboration (PATTERN, Delphi, Cherchmen-Akoff).

According to the PATTERN method we calculated coefficients sought for goals relative significance.

Table 2 - Priority of agrarian sector socio-economic development goals

Alternatives

Criteria

Global priorities

1) budget expenditure

2) decision-making in favour of the population

3) expenditure on tasks realization

4) NPP conformity with federal and regional programs aimed at the solution of the most important problem at a time

Numerical value of vector of priority

0,045148

0,570613

0,272291

0,111948

2.1.Optimization of agricultural policy and the mechanisms of its realization

0,604322

0,104121

0.045449

0,595071

0,165690

2.2.Ensuring of a region's food security

0,047816

0,052907

0,087734

0,048934

0,061716

2.3.Achievement of the agricultural industry efficiency

0,104139

0,589717

0,578475

0,249421

0,526638

2.4.Stable development of rural areas

0,243723

0,253254

0,288341

0,106574

0,245957

The above-given calculations help: a) to select some real priorities, b) to range the consequence of alternative decision-making and c) to substantiate the conception of agro-industrial complex development on a regional level. In our case the highest value corresponds to the branch №12 (2.3. - 3.8. - 4.5. - 5.12.).

Conclusions

The research showed that the prior trend of a region's agrarian sector socio-economic development is the achievement of the agricultural industry efficiency by elaborating comprehensive (all-embracing, integrated) state regulation system devoted to the agro-industrial complex development. It is attainable through the improvement of agricultural produce price regulation and that of consumer price control. Price support policy and price support system are of paramount importance. All other trends will be alternative; they are as follows: 5.13, 5.11. 5.17, etc. (figure 1).



References:
1. Forecasting and planning of socio-economic development of Russia and its regions: Monograph edited by Doctor of Economics, Professor E. N. Kuzbozhev and Master of Economics, Senior lecturer Yu. V. Vertakova; Kursk, 2003. P. 155-189 (314 p.)


Bibliographic reference

T.M. Polushkina Methodological Approach to the Structurization of a Region’s Agrarian Sector Socio-Economic Development Goals. International Journal Of Applied And Fundamental Research. – 2012. – № 2 –
URL: www.science-sd.com/451-24036 (28.03.2024).