Nataliia Kutsmus


The purpose of the study is to summarize the existing theoretical and methodological approaches to understanding the essence of the notion ‘rural economics’ and to reason that multifunctionality is a precondition of stable development. The methodology of research is based on a systematic approach, according to which rural economics is considered to be an open type of social and economic system that transforms exogenous and endogenous potential of rural territories into a certain level of rural development. The methodology of rural economic development is based on the following methodological approaches: economic, ecological, social and institutional, each one of which completes the idea of interdependence of rural economics and its territorial basis, i.e. rural area. The subject of study is a scientific-theoretical and applied principles of rural economy development. The results of the study demonstrate that agro-centric model of rural economics, the development of which focuses on formation and support of goods safety, is being displaced by multifunctional model in conditions of strengthening of human-centric priorities of the social development. Contents of this model lies in the perception of the rural economy as a diversified, multifunctional socio-economic system, whose development aimed at the welfare of the rural population. As the goal of rural economies is ensuring high welfare standards of the rural population, providing interconnection problems in the functioning of the system of rural development policy. It’s proved that the sustainable development of the rural economy it provides for the implementation of the set of economic and socially important function that displays the development of socio-economic system beyond the actual production and contributes to its focus on material and non-material welfare of the rural population. Qualitative changes in the properties of the rural economy aiming at self-development and self-organization, maintaining equilibrium, the interaction of all subsystems, requiring a phased increase in the capacity of individuals, households, communities and businesses; further increase links between towns and villages. One of the preconditions for the formation and implementation of multifunctional model of rural economy defined set of social and economic relations that occur in rural areas and connected to their inner potential and human capital, and are aimed at the welfare of the rural population. The article stressed that sustainable development of the rural economy is possible only if economic growth combined with social transformations that accompanied solving socially important issues. However, it is concluded that neorealism is a conceptual framework for evolutionary transition methodologies for sustainable rural development to a higher level of quality – “reasonable” development. Practical significance of made theoretical and methodological conclusions regarding selected aspects of the research is to build a philosophical vision of priorities and promising model of rural economies, whose role in economic and social growth of the country is constantly increasing, especially under the influence of available military and political challenges and economic changes.

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rural economy, rural development, rural community.


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