Providing the financial support to the task of the technological security provision in the farming sector of Ukraine

Regional and branch economy
Authors:
Zhavoronkova Galina V. Krachok Liudmila I.
Abstract:

Ukraine is an agrarian country, judging by its historically established type of economy, its natural resources, national mentality – and the high share of farming products in its gross domestic product. All these factors make the problem of funding the technological security in the farming sector most urgent. In order to simplify the process of raising funds for the farming sector, we suggest the following: working out unified integrated norms of goal-oriented public financing of high priority development areas; in order to modernize farming enterprises: defining clear rules of regulating public funds allocated for these goals; motivating enterprises to attract investment into innovations; offering preferential loans or partial refunding of loan interests from local or regional budgets – for the enterprises which have adopted innovative technologies, etc. Thus, technological security of the farming sector requires a range of mutually agreed actions. Changes are mostly needed in such areas as legislation, statutes and regulations, institutional management environment and implementation of innovative and technological activities in the farming institutions and organizations, the mechanism of financial assurance and fiscal support. The essential issue here is a program of high-priority development areas in the farming sector for technological modernization and strengthening the national R&D potential. Besides, a special significance is given to the process of establishing an executive control body to manage the technological security of the sector, and authorizing it to ensure the highest practicable level of security in the national agriculture. It seems to be obvious that science-based technological modernization of agriculture in the country shall contribute to the sustainable development of its agro-industry and to the stable growth of the gross domestic product due to the production of competitive farming products.