RURAL ECONOMY OF THE NORTHERN REGION: SPECIFICS, DIRECTIONS AND MECHANISMS OF DEVELOPMENT

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Valentin А. Ivanov

Institute of Socio-Economic and Energy Problems of the North of the Komi Republic Research Center of the Ural Branch of the Russian Academy of Sciences, Syktyvkar, Russia, ORCID 0000-0003-1491-8114

For citation: Ivanov V. А. Rural economy of the northern region: specifics, directions and mechanisms of development. Sever i rynok: formirovanie ekonomicheskogo poryadka [The North and the Market: Forming the Economic Order], 2021, no. 2, pp. 46-55 DOI: 10.37614/2220-802X.2.2021.72.004

Abstract. The article presents the results of the research to substantiate the directions and mechanisms of development of the rural economy of the Komi Republic. The theoretical and methodological basis of the study was the works of the scientists in the field of development of rural economy sectors. The methods used were analytical, statistical, logical, comparative, SWOT analysis, and expert assessments. When studying this topic, we used normative legal acts on rural development, data from territorial statistics. The paper considers the views of the scientists and economists on the content of the concept of rural economy, identifies the features and problems of its development. The predominance of small forms of management in the branches of the rural economy has been established, and the low profitability of the products produced has been revealed. The article shows a decrease in the role of the rural economy in the overall economic activity of the region. In order to expand the areas of activity in the rural areas, the diversification of production is proposed. Mechanisms and priority areas for improving state support for the development of the rural economy have been developed. To eliminate the currently prevailing tactical approach to solving the current problems of the rural economy, its strategic management is justified. As an effective mechanism for the development of rural economy sectors, it is proposed to use strategic planning and forecasting. The methodological foundations of the strategy development are substantiated. The formulated scientific and methodological provisions of strategic planning are the basis for the development of strategies for the development of agriculture in the Komi Republic and reindeer herding in the European North-East of Russia. The results of the study are used in the development of the Strategy of Socio-economic Development of the Republic of Komi for the period up to 2035, and can also become the basis for improving state support for rural economy sectors, for the preparation of strategies and programs for the sustainable development of its industries and spheres at regional and municipal levels. The use of the research results is possible in the further research work of the author, as well as in the educational process.

Keywords: rural economy, forms, methods and mechanisms, diversification, directions for improving regulation, strategy, Komi Republic, European North-East.