Development factors of border region's agrofood system in conditions of integration

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Zhangir Khan West Kazakhstan Agrarian-Technical University

Development factors of border region' s agrofood system in conditions of integration

Tarshilova Lyudmila Sergeevna

Abstract

Functioning of agrofood system of the border region depends on the set of macroeconomic and institutional factors. Classification of factors was carried out; limiting factors of agrofood system development in conditions of strengthening of integration processes within the Eurasian Economic Union were defined. Possibilities of regional system adaptation to the changing conditions of external and internal environment were defined.

Key words: agrofood system, integration, macroeconomic factors, institutional factors, border-zone.

agrofood integration eurasian union

Agrofood system with variety of managing forms, organizational and economic, production and social communications is an open economic system developing under the influence of various factors. The main task of agrofood system is high-quality improvement of population's provisioning. It is especially important in conditions of national economy openness and the pursued policy of globalization and integration with the world community as extent of production quality control for population increases under the stream of import production which amplifies in connection with introduction of privileges and preferences within integration association.

Kazakhstan is an equal participant of the Eurasian Economic Union (EEU), actively developing cooperation with Russia, Belarus, Armenia and Kyrgyzstan. The favorable economical and geographical arrangement becomes the defining factor of the country regions in conditions of integration. West Kazakhstan region possesses the most near-border advantageous position among the regions of Kazakhstan as it has the most extended border with five regions of the Russian Federation, i.e. seven of twelve administrative regions of the area are in border situation.

Near-border position of West Kazakhstan region creates additional benefits reducing transportation costs and exception of import restrictions and payments within the EEU functioning. The condition of agrofood system of the region, its improvement, is accompanied by the solution of a wide range of issues. The first group of issues includes possibilities of domestic production and its rational addition with import products. The second group - is the issues connected with the formation of population's income necessary for acquisition of food in the necessary volume and range. The solution of these issues is in a complete dependence from the factors influencing favorable functioning and development of agrofood system.

Kazakhstan scientists Ashimov A.A., Borovsky Yu.V., Ashimov As.A. recommended effective measures for carrying out state economic policy in conditions of integration on the basis of parametrical regulation theory, using major macroeconomic factors - such as investment volume, course policy, production, supply and demand volume [2]. Ananyeva O.M. considered features of agrofood system development and functioning from the position of influence of macroeconomic and microeconomic parameters of agrofood system stability formation, namely classified factors of influence on external and internal signs [1]. Rodionova O.A., Datskova E.V., Babayan I.V., in turn, considered basic elements already inside institutional environment as external factor influencing steady functioning of agrofood system [3]. We suggest to classify factors of efficiency increase of agro-industrial production of the region by its content and influence on regional agrofood system functioning. Various factors in general exert impact on the extent of agrofood system development: ecological, technological, economic, social, institutional, but condition of agricultural production of the region, namely its economic component is a decisive among them (fig. 1).

Figure 1 - Factors of sustainable development of the region's agrofood system

The importance and necessity of institutional factor consideration for the creation of steady behavior conditions of agrofood system is that it is connected with creation of legal conditions providing on the basis of political, legal norms and corrected formation and system functioning in general. Political factors are defined by the purposes and actions for the solution of agrarian policy problems and social security of rural settlements, protection of economic interests of the region and rural producers, including small business, innovative and investment structures and projects.

Ecological factors are defined by the solution of rational environmental management problems, protection of surrounding environment, production of environmentally friendly production. The characteristic of ecological stability requires reduction of data on assessment of climatic factors influence on stability of agricultural production, assuming consideration of the following parameters: gross yield and production productivity of plant growing, livestock of cattle and poultry, gross output of animal husbandry. The level of farm lands area supply needs to be estimated on the following indicators: specific weight of farm lands in the total area of lands; specific weight of arable land in the total area of farm lands.

Social factor can be included in the list of assessment parameters of agrofood system stability on the following indicators: economically active population, employment rate, unemployment rate, indices of nominal and real wage, number of agricultural formations in the region.

Innovative factors characterize development of modern technological systems of production taking into account specific branch features. Application of innovations, preferably, in the branch of agricultural raw materials processing can reduce prime cost of products and the price of sold products.

Special attention is required by economic factors, namely development and creation of protection mechanisms of economic interests of agrofood system structures, its embedding into general regional social and economic system. Economy finds its expression as a specific system with appropriate traits in particular in the regions. The structures of regional agrofood system, developing economic and other activity, use natural, production, financial, scientific and information potentials of economic subjects, thereby promote the increase of efficiency of regional national social and economic systems functioning. In conditions of integration the need for protection of economic interests of the subjects involved in inter-country cooperation increases in connection with expansion of realization markets and competitive environment, especially in conditions of need of import replacement and export production diversifications.

In our opinion, considerable impact is exerted by external factors such as all economical and political measures directed to the implementation of the proclaimed reforms in conditions of the country integration to the world markets. Economical and political measures undertaken by the state substantially influence the strategy of agro-industrial complex development and other branches of economy real sector. Therefore we have taken economic and institutional factors for the specification of their classification into internal (objective) and external (subjective) (table 1).

Forecasting of efficiency and productivity level in agriculture are carried out in this block of factors classification; justification of organizational and economic conditions development and specialized production structure; optimization of content, structure, movement and concentration of food resources, etc.

Table 1 - Economic factors of agrofood system development

Foreign trade turnover develops on the basis of these operations sum of goods export and import for a certain period of time. In modern conditions of integration into the world community the value of foreign trade turnover amplifies, and it is defined as the parameter by means of which the extent of the country successful development within functioning of integration association and extent of the region participation in the development of the similar relations is estimated.

The formation of system of strategic parameters of agrofood system development includes justification of productive and economic parameters of food system for the application of planning and regulation in practice. Improvement of production and branch structure of agrofood system assumes definition of raw and processing conditions combination, ratio of branches and kinds of activity providing balanced functioning of its basic elements, observance of intra-industry and intra-branch proportions.

Improvement of organizational and economic structure of agrofood system includes definition of conditions of proportional production and processing and sales of products, distribution of income and food resources, organizational and economic bases and production parameters of activity, in the integrated formations of food system.

The functioning of agrofood system in conditions of near-border region and amplifying processes of the country integration into the world economy, the task of food supply is supplemented by providing system with competitiveness in neighboring commodity markets of border regions, and as a result, reductions of import production quantity, thereby, strengthening of export of the made agricultural production that will become incentive and control for production competitiveness.

The outlined positive tendencies of the competitive environment development in agrofood market and available internal capacity of the regional agrofood system, promoting formation of their long-term competitive advantages on domestic and world markets, will be fully realized at the state active policy on creation of institutional conditions of competition: creation of equal conditions of development of all forms of ownership and forms of managing, protection of property rights, effective antimonopoly policy, stimulation of small business.

Development of integration processes at the present stage complicates problems of agrofood system and its activity in general. Owing to this condition, there is an additional influence on agrofood system, its structure and functions [4].

The influence of institutional conditions on the development of agrofood system is caused by the problem of ensuring regional food security in the system of inter-country cooperation. The role of institutes in economy is considered as a set of norms and rules structuring interaction of economic agents. Institutional factors in connection with cooperation within EEU which we also suggest to classify into internal and external factors have an important impact on a positive result of foreign trade turnover of the region (table 2).

Table 2 - Institutional factors of agrofood system development

Export and import duties, barriers in the form of dumping prices and monopolized markets, measures of licensing, standardization and technical regulation belong to the number of institutional conditions as influence factors on the development of inter-country trade relations and development of the countries agrofood systems.

Achievement of economic growth due to the increase of efficiency of resources use is the most important condition of ensuring food security of the country that is the main objective of agrofood system functioning stability. The parties abstain from providing export assistance in favor of certain enterprises or production of goods other than raw. Besides, strict rules on competition restrictions prevention are also set on other assistance types. The restrictions to the access to natural monopolies objects and restriction for trade between the countries are regulated.

Introduction of these conditions can have significant effect on the condition of Kazakhstan's commodity markets as application of export and import duties is very significant institutional condition of economy state regulation at the level of internal factors of influence on agrofood system functioning. Such tool as customs and tariff regulation is actually used to each of national economy branches with various purposes, including to agriculture branches and agrofood system functioning there.

Competitiveness and development of agrofood system is formed by external economic and social relations, social and economic role of the government and institutional conditions. They influence nature of national resource base, technological capabilities, organizational structure and characteristics of agricultural commodity markets.

Thus, internal and external factors of stability conditions formation of agrofood system are based on institutional and economic stabilization of natural, material, financial and manpower effective application processes. They represent the set of actions for regulation of agrofood supply system of the country and its regions, taking into account state and market requirements, priorities, forms and methods of production stimulation of food resources. Using advantages of globalization process and integration associations to occupy a certain niche in the market of agrofoodstuff by means of supply with export food according to the results of the international labor division.

References

agrofood integration eurasian union

1. Ananyeva O.M. Institutional bases of stability formation of national system of food supply // Nauka-rastudent.ru. - 2015. - No. 03 (15) / [Digital resource] URL: http://nauka-rastudent.ru/15/2448/

2. Ashimov A.A., Borovsky Yu.V., Ashimov As.A. Elements of the theory of parametrical regulation of market economy mechanisms [Digital resource] URL: http://group-global.org/ru/node/15045.

3. Rodionova O.A., Datskova E.V. Institutional transformations and development of integration processes with agrarian and industrial complex// Economy of agricultural and processing enterprises. 2005. №1-p. 39 - 43.

4. Tarshilova L.S. Theoretical and methodological aspects of the territorial organization of agriculture in the conditions of strengthening of economic integration processes // Interdisciplinary researches in science and education. - Kiev. - 2015. - №4Sp. [Digital resource] URL: http://mino.esrae.ru/182-1500. (reference date: 21.10.2015).

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