O. V. Horpynych
APPLICATION OF FOREIGN EXPERIENCE IS IN GOVERNMENT CONTROL OF
ECONOMY OF AGROINDUSTRIAL COMPLEX IN UKRAINE
Summary. Practice of government control of development of economy of agroindustrial
complex and her influence on the state of food safety of country testify that government control
of market economy essentially is the legal, economic, socialideological, educational and other
activity of public organs, sent to the assistance to the effective functioning of market economy,
her mechanisms with the target of increase of level of public welfare and their addition in those
cases, when a market mechanism decides the task of distribution productive and consumer
blessing effectively not enough.
Key words: government control by an economy, agroindustrial complex, food safety,
having a special purpose, threshold, purchase prices.
Actuality of the article. A management development of economy of
agroindustrial complex is based on prognosis estimations vitally important indexes
of strategy of stable development of country. Food strength security can serve as a
faultless reference-point for a management development of economy of
agroindustrial complex of Ukraine. The objects of government control of economy
are spheres, industries, regions, and also situations, phenomena and terms of socioeconomic life of country, where certain difficulties, problems that can not be
untied automatically on the base of market self-government, were or can arise up,
or it is possible to untie in a further prospect, while the necessity of the normal
functioning of economy and support of social stability require their immediate
decision.
Analysis of the last researches and publications. The problems of food
safety got in eyeshot of representatives of home economic science comparatively
recently. The factor of origin and permanent strengthening of attention to these
problems is a crisis of the Ukrainian economy, that overcame all spheres and
became a substantial obstacle on the way of providing of stable development of
economy and society. Therefore question of establishment of food strength of
territories security with the aim of providing of development and predictable
adjusting of economy of agroindustrial complex, can be examined as one of major
national priorities, that requires an increase attention of scientists, systematization
and sequences of this concept as scientific category. The questions of providing of
food safety and pricing the scientists of О.М engage in agriculture of Ukraine. A.
Chpihak, A. Chpikuliak, E. Chubravska, V. Boyiko, L. Deyneko, L. Strachinskaya.
et al.
The aim of the article is illumination of mechanism of government control
of prices on an agricultural produce in the economy of Ukraine, countries of EU
and USA.
Exposition of basic material. The primary objective of government control
of economy of agroindustrial complex is economic and social stability of the state
and fixing of existent line-up both in the middle of country, and abroad, adaptation
of him to the changeable terms of existence. From this primary objective the socalled tree of certain aims without that can not be achieved objective and main is
mediated by and branches. These certain aims are inalienably related to the objects
of government control of economy (rice. 1).
STRATEGIC AIMS ADJUSTING ECONOMY OF
AGROINDUSTRIAL COMPLEX ARE PROVIDING:
stabilities of food supply for a year at different terms on
all territory of country
resource sufficientness of food stuffs due to an own
production and import
to availability of food products to all layers of
population regardless of acuestss of rational
proper quality of food stuffs
patterns of consumption
Rice. 1. Tree of aims of government control of economy of agroindustrial complex
Government control of agriculture for еuropean countries the phenomenon is
not casual, as efficiency of agroindustrial complex is unchanging pre-condition of
prosperity of all society. Within the limits of government control different tasks get
untied: support of prices and acuestss of agricultural commodity producers,
purposeful forming of the proper terms of sale and production, maintenances of
resources, nature protection activity, social support of producers and infrastructural
politics in relation to rural locality. The various arsenal of methods and facilities is
accordingly used [1].
The analysis of home and foreign experience convincingly testifies that
forming of competition markets and overcoming of monopolistic economic trends
is possible only as a result of purposeful activity of institutes of state
administration. A dynamics of prices is such resulting index of the state of
economy, all without an exception economic processes find a reflection in that. For
this reason the system of prices is the major object of government control.
Examining the system of adjusting of prices (this adjusting touches
wholesale, retail and farmer prices), it should be remembered about the number of
aims of such adjusting :
stabilizing of prices with their oscillation in relatively narrow corridor;
support of farmer prices for the extended recreation of commodity
production;
by means of politics of prices to regulate volumes and structure of
recreation.
Chart of government control of prices practically in entire countries with the
developed market economy approximately identical is establishment usually of top
and lower limits of price-wave and indicative or conditional price that the state
tries to support. Buying up, or sale of products of unrapid spoilage is used at the
same time for commodity intervention and support of desirable standard of prices.
(rice. 2, 3).
From here introduction of the direct planning of production volumes with
passing to the contract system of agreements with farmers. In practice possible is
application of two variants - signing of contracts on limitation of sowing of this
culture and leadingouts of this earth from обороту with corresponding
indemnification, or introduction of direct quota of production volumes.
The highest purchase price is used exactly for stopping of increase of price
index for corresponding period of the price adjusting.
The price adjusting is not oriented only to the domestic aims. His
mechanism is actively involved and in foreign trade sphere and touches defence
of internal markets and home production first of all.
Interesting is experience of European union (EU) in this industry [2].
Functioning of markets of agricultural products within the framework of EU shows
a soba the difficult system in that leading positions are occupied by the system of
government control. Thus intervention from the state, her influence, on an internal
market has systematic character and comes true after different directions. At the
public purchasing of agricultural products or during realization of them from state
supplies the organs of interference come forward as a direct market agent.
Ціни Prices
Ринкові ціни Market prices
Рівень мінімальних цін Standard of minimum prices
Урядові платежі Governmental payments
Місяць року Month of year
Rice. 2. Mechanism of action of market minimum price
Ціни Prices
Ринкові ціни Market prices
Рівень максимальних цін Standard of maximal price
Припинення урядових платежів Suspension of governmental payments
Місяць року Month of year
Rice. 3. Mechanism of action of market maximal price
For support of prices in EU characteristic is a variety of forms depending on
the type of products. At price of interference (or intervention) purchase
organizations of EU are under an obligation to buy the farmer products offered to
them. The same the certain volume of obligatory purchases is avouched for on
minimum prices. For providing of market flexibility the increase of cost of
interference is envisaged on a size from 2% to 40% depending on the type of
products (so-called market element of price) for the sale of her outside the district
of production something at higher price [3].
By the last decade on the markets of those agricultural commodities, on that
within the framework of EU complete to provide was attained, the organs of Union
began to accept events that limit a production, namely: introduction of quotas on a
production and realization, walking away from principle of guaranteeing of prices
for any amount of commodities, that are supplied to the market, and also gradual
price-cutting of interference.
Quotas were establishment on a purchase on the assured costs of grain, milk,
hard wheat, sugar, cotton, sunflower, rape, raisin/pl and row of other products. It
obligates producers to adapt to market limitations and keep here former levels the
profits. Therefore purchase organizations buy in on the assured prices only the
determined amount of products, higher that a pay is conducted at more subzero
price. Yes, within the framework of EU the general maximum size of production
volume, that is then distributed between countries - members of EU is determined.
Setting a free price that is a reference-point for contractors at the market, the
organs of Union (Council of ministers of countries of EU) determine the most
optimal standard of market prices.
A reference price appears at adding to it is differentiated megascopic
(depending on the type of products) on a size from a 2% - 40% cost of intervention
from transport charges from the district of production to the district of basic
consumption. Otherwise speaking, it is a price that an union would like to obtain
the basic consumption of certain types of products on wholesale markets.
An important category in the system EU is a threshold (or imported) price
that determines the level of custom defence of internal farmer prices. The size of
threshold price some below than having a special purpose, however taking into
account transport charges on unit of products she must be higher than having a
special purpose price. Having a special purpose and threshold prices show a soba a
top limit in the system of defence of prices and perform the duty of top limit on
that products, on that самозабезпеченості is not yet attained the countries of EU.
Thus, a price mechanism shows a soba the important means of financing of
agriculture due to consumers. These internal prices that exceed the standard of
world prices give an opportunity to carry out financing of farmers, prevent to
penetration to the internal markets of Union of producers in that an unit cost is
below.
Except a price mechanism, the general for EU norms of organization and
adjusting of markets of agricultural raw material and food stuffs include
controlling after the grant of budgetary grants, and also the European events, sent
to providing of acuestss of producers, support at certain level of the suggested
retail prices, that gives an opportunity to unify the terms of competition both in
industry of production, and in industry of sale.There is aspiration of national
organs of Union to find such facilities and events in the sphere of support of
producer, what would provide to him approximately equal positions in the
separately taken country. It is set that a right on the receipt of budgetary help
strong farms, enterprises of food industry and sale, have economically. Thus
national politics in the sphere of the budgetary financing is in close dependence on
market organization of that or other industry (for example non-admission
overproduce of certain products within the framework of EU). There is a branch
aspect of grant of subsidies and other payments by the governments of countries of
EU. It is subsidies to the producers of milk, citrus, processors of potato on starch,
to the vine-makers and others like that.
In EU national grants are given within the framework of European grant
politics in accordance with her principles. Any other help that would create the
"terms of most assistance" within the limits of any separate country is forbidden.
To such sort of help belong: price interferences (raises are to the prices), adjusting
of production volumes, high indemnification for export products. Together with
that a national government participates in realization of events in relation to the
improvement of quality of products that is produced, providing of veterinary
supervision, input of achievements of scientific and technical progress, guard of
environment, stimulation of production in the so-called problem districts,
providing of minimum level of profit to the shallow economies.
In addition, a fiscal policy can be given by both the states - by the members
of EU and autonomous formations (autonomous districts of Italy, departments and
districts of France), or federal states (earth of Germany) that have the local
budgets.
Thus, European politics in an agrarian sector is sent to clear organization of
markets of sale, support of farmer acuestss, help in realization of surpluses of
products and others like that.
It is possible to draw conclusion, that within the framework of EU elemental
mechanisms combine with adjusting from the side of countries-members and
Union on the whole. It is necessary to distinguish the next main lines of
mechanism of adjusting of markets in EU:
for - first is aspiring of organs of EU to introduction of only on all territory
of Union prices for stimulation of the optimal placing of agricultural production;
secondly is establishment of purchase prices below internal market with that
producers realized the products, but not handed over her to the organs of
interference.
Experience of the price adjusting of agricultural production in ЄС is useful
enough, especially taking into account the sizes of Ukraine and her natural terms.
Interesting is practice of government control of agricultural production in the
USA. Here the basic producers of agricultural produce are large commercial firms
that present 3,6%% from a general amount and produce about 50%% products. On
these farms wage labour is used, and shallow domestic farms (50%%) produce
everything about 3%% products.
An anxiety about welfare of nation is in direct dependence on development
agrarian to the sector of housekeeper that has clear expression at realization
purposeful of agricultural politics the American government.
In the field of development and realization of the agricultural programs in
the USA it follows to distinguish three basic moments that influence substantially
on them :
- principle of voluntarily for participating in the programs;
- introduction of having a special purpose or planned prices on
"programmatic" products;
- introduction of the governmental programs on creation of food supplies.
Basic instruments of adjusting of agricultural production in the USA are
having (to the plan) a special purpose prices. They were entered in 1973 by Law
"On food in agriculture". On the determination driven to the economic report, a
having (scheduled) a special purpose price is the standard of prices, set by a law.
She is set on the next types of products : wheat, corn, sorghum, barley, oat, rice,
long-staple cotton. Farmers that participate in the government programs on the
marked cultures get a difference between a плановою price or market during a
period certain a law, depending on that from prices higher.
With introduction of планових prices there were three types of problems :
determination of standard of planned prices;
development of formula or method for realization of adjustment of
planned price;
determining the amount of products that needs defence by means of
planned price.
First the standard of planned prices was set coming from charges by the
productions of wheat, corn, long-staple cotton. Their adjustment was envisaged in
accordance with the changes of charges of production. In 1981 basis of forming of
планових prices was anniented "for to the charges", as she resulted in hasty
growth of inflation at the end of 70th. In this connection on a period planned prices
were 1982-1985 set taking into account the expected inflation rates. But even after
the protracted period of application of planned prices it so not was found optimal
method for their determination. The standard of planned prices set presently
exceeds the general charges of productions.
Except direct payments farmers get and compensative. They are paid to
those farmers, that participate in the programs on the production of wheat,
cornmeal, rice and cotton. These payments size is determined from settling for a
bushel, pound, metric centner of products, coming from a difference between the
price level, accepted on Law (by of planned price), and market price, or by a
mortgage, depending on that from them higher. If a middle price exceeds planned,
payments do not come true. Adjusting of production by means of stimulation of
farmers to take participating in the production of planned cultures expensive costs
to the American government. Support of planned prices at high level results in the
height of charges on realization of the food programs. Participating in the programs
is advantageous for producers, because due to them farmer prices and acuestss are
supported higher level of open market.
The reformation of agrarian industry and personification of earth conducted
in our country had to provide commercialization of all links of agroindustrial
complex, create market infrastructures due to making of optimal price, tax, credit
and custom politics, productive approach in state support of subjects of agricultural
production, and also by means of events that provide the scientific and technical,
technological and skilled strengthening of industry and to decide the intricate and
important problem of providing of food safety of the state at the level of modern
necessities of development civilization. But practice showed that through the
unsatisfactory scientific ground of questions of prognostication of the state of
objects and volumes of timely regulation interference, imperfection of instruments
of agrarian strategy, subzero qualification of managerial staff, slow introduction of
market mechanisms, government control of economy of agroindustrial complex as
yet ineffective. Creation in Ukraine of the balanced food economy maybe only at
the terms of realization of the forecast mechanism of government control of
agroindustrial complex that includes the wide complex of events in relation to
influence of the state on the system of economic relations.
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