Modelling of Diversified Development of Rural Areas

Abstract

The need for diversification as an effective tool for the rural area development is reasoned and it is substantiated that the transition from the sector-specific structure of the rural economy to the multi-sectoral economy involves the development of new activities, more rational use of the available resources of rural areas, making them more sustainable and competitive. A critical interpretation of the theoretical approaches to substantiating a promising model of rural development was carried out and their options were analyzed. It is proved that rural territories are a complex socio-economic system, and the process of their diversification is conditioned by the object-subject relationship. Based on the implementation of the functional-structural-target approach, the model of diversified rural economy has been developed, taking into account the degree to which some of other sector prevails in its structure, as well as their various combinations. The promising areas of rural economy restructuring based on the expert assessment have been identified. Structurally, the model links the main areas and activities: agricultural (traditional and lost); nonagricultural (industry and construction, forestry, arts and crafts); service sector (education, healthcare, recreation, consumer services). The proposed model of diversified rural development allows an objective assessment of the potential and level of diversification of the rural economy, and the use of assessment results will facilitate the adoption of informed management decisions and the formation of rural policies at the regional and local levels.