Functional development of rural areas of the Carpathian region in the context of ensuring the effectiveness of decentralization of power

Abstract

Rural areas play a significant role in the development of the economic complex of the state. Ensuring its dynamics is especially important for the regions, which are noted by the agricultural production profile, the Carpathian region in particular. Since a nature of functioning of rural areas is manifested through functions they perform, efficiency of realization of some of these functions mainly depends on conceptual models of territorial development practiced in the state and on a role, played by its basic branch in economics – the agriculture. In the article problematic aspects have been systematized and analyzed, based on existing agrocentric approach to development of rural areas of Carpathian region, in the organizational, industrial-economic, financial-economic and social-economic dimensions, as well as defined promising directions of ensuring increase in their functionality in context of decentralization of power. Structural changes that took place in development of the agricultural segment of Carpathian region during the period of reforms had some ambiguous character and defined mostly destructive impact on functions realization intrinsic to rural areas. Although, on the one hand, during the last years capitalization of the agricultural production took place on the large scale, due to engagement of financial-production capital and was formed high-tech corporate brunch management segment, on the other hand, significant industry distortions, deepening deformation of rural labor market, degradation of the social sphere and rural settlement network in general still remain. Increasing functionality of rural areas anticipates, on the one hand, expanding spectrum of the functions performed by a rural settlement, and, on the other hand, ensuring diversification of rural area development. Dynamics of the referenced processes is defined by success of institution of efficient economic mechanism, which will provide reorientation to benefit subjects of rural economy of distributive relations activity in the industrial, food and financial links of the chain of added value formation, created by those subjects. One of the most important, and at the same time, the most difficult tasks of the government decentralization politics, is seen in a clear definition and differentiation of the spheres of influence and responsibility of all stakeholders in the development of rural areas: rural communities, agribusiness and rural entrepreneurs, the state, and the scientific sphere.