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Is it Possible to Utilise the Agricultural Potential of Ukraine under the Current Agrarian System?

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  • Olena Borodina
  • Vitaliy Krupin

Abstract

The government of Ukraine aims to transform the country into an ‘agricultural superpower at the international level’ with the hope that the sector will gain high foreign currency earnings and become ‘the engine of national economic development’. The large agribusiness corporations have willingly responded to these calls. However, placing hope solely in the corporate sector is inadequate as the key role of agriculture to create business diversity and achieve rural social and environmental objectives will remain unfulfilled. Many other national economies have experienced ‘the offensive’ of capital on agriculture during the twentieth century, with associated negative consequences, thus encouraging them to adopt more balanced agrarian policies which benefit the whole rural population. Utilisation of Ukrainian agricultural potential as an economic growth engine requires a fundamental change in the interpretation of its purpose, which is currently focused on profit†making export†oriented commercial activity. The multifunctional nature of the sector needs to be emphasised, the purpose of which is not only the production of agricultural and food products, but also the creation of public benefits, such as the development opportunities and means for existence for 14 million Ukrainian rural inhabitants, maintenance of ecological balance, regeneration of soil fertility and preservation of rural landscapes.Le gouvernement ukrainien a pour objectif de transformer le pays en une ‘superpuissance agricole au niveau international’ dans l'espoir que le secteur sera une source importante de devises étrangères et deviendra ‘le moteur du développement économique national’. Les grandes entreprises de l'agrobusiness ont répondu bien volontiers à ces appels. Cependant, il ne suffit pas de placer tous ses espoirs dans le secteur des entreprises car, dans ce cas, l'agriculture ne remplira pas son rôle clé de dans la création d'une diversité d'exploitations et la réalisation d'objectifs en matière de développement rural, social et environnemental. De nombreux autres pays ont fait l'expérience de ‘l'offensive’ du capital dans l'agriculture au cours du vingtième siècle, et de ses conséquences négatives, ce qui les a incités à adopter des politiques agraires plus équilibrées qui profitent à l'ensemble de la population rurale. L'utilisation du potentiel agricole ukrainien en tant que moteur de la croissance économique nécessite un changement fondamental dans l'interprétation de ses objectifs, qui sont actuellement centrés sur une activité commerciale créatrice de profits et orientée à l'exportation. La nature multifonctionnelle du secteur doit être mise en avant, sa finalité n’étant pas seulement la production agricole et alimentaire mais également la création de biens d'intérêt public, tels que le développement d'opportunités et de moyen d'existence pour quatorze millions d'Ukrainiens vivant dans des zones rurales, le maintien d'un équilibre écologique, la régénération de la fertilité des sols et la préservation des paysages ruraux.Die ukrainische Regierung versucht das Land hin zu einer landwirtschaftlichen Supermacht auf internationaler Ebene zu entwickeln. Durch hohe Deviseneinnahmen, so die Hoffnung, soll die Landwirtschaft zum „Motor für die nationale wirtschaftliche Entwicklung†werden. Die großen Agrarunternehmen des Landes haben auf diese Ankündigungen positiv reagiert. Es ist jedoch nicht ratsam, die Hoffnung ausschließlich auf große Agrarunternehmen zu setzen, denn so kann die Landwirtschaft ihre Schlüsselrolle, die in der Schaffung von Unternehmensvielfalt und dem Erreichen von sozialen Zielen und Umweltzielen liegt, nicht erfüllen. Im zwanzigsten Jahrhundert haben viele andere Volkswirtschaften eine “Offensive des Kapitals†mit all den damit verbundenen negativen Konsequenzen für die Landwirtschaft erlebt, was dazu führte, dass sie ausgewogenere Agrarpolitiken einführten, die der gesamten ländlichen Bevölkerung nutzten. Die Ausschöpfung des landwirtschaftlichen Potenzials der Ukraine als ökonomischem Wachstumsmotor des Landes verlangt eine Neuinterpretation ihres Zwecks, der zurzeit in profit†und exportorientierten wirtschaftlichen Aktivitäten besteht. Die Multifunktionalität der Landwirtschaft muss dabei in den Mittelpunkt gerückt werden, denn ihr Sinn besteht nicht nur in der Produktion von landwirtschaftlichen Produkten und Nahrungsmitteln, sondern auch in der Erzeugung von gemeinnützigen Gütern. Zu diesen zählen Entwicklungsmöglichkeiten und die Existenzsicherung für vierzehn Millionen ukrainischen Landbewohnerinnen und Landbewohner, die Aufrechterhaltung des ökologischen Gleichgewichts, die Wiederherstellung der Bodenfruchtbarkeit und der Landschaftsschutz.

Suggested Citation

  • Olena Borodina & Vitaliy Krupin, 2018. "Is it Possible to Utilise the Agricultural Potential of Ukraine under the Current Agrarian System?," EuroChoices, The Agricultural Economics Society, vol. 17(1), pages 46-51, April.
  • Handle: RePEc:bla:eurcho:v:17:y:2018:i:1:p:46-51
    DOI: 10.1111/1746-692X.12151
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    References listed on IDEAS

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    1. Brian, Kuns & Visser, Oane, 2016. "Towards an agroholding typology: differentiating large farm companies in Russia and Ukraine," 90th Annual Conference, April 4-6, 2016, Warwick University, Coventry, UK 236326, Agricultural Economics Society.
    2. World Bank, 2007. "World Development Report 2008," World Bank Publications - Books, The World Bank Group, number 5990.
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    1. Nestor Shpak & Ihor Kulyniak & Maryana Gvozd & Jolita Vveinhardt & Natalia Horbal, 2021. "Formulation of Development Strategies for Regional Agricultural Resource Potential: The Ukrainian Case," Resources, MDPI, vol. 10(6), pages 1-30, June.
    2. Tamás Mizik & Péter Gál & Áron Török, 2020. "Does Agricultural Trade Competitiveness Matter? The Case of the CIS Countries," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 12(01), March.
    3. V. Nebrat & K. Gorditsa & N. Gorin, 2020. "Structural and financial risks of land capitalization: lessons of domestic history," Economy and Forecasting, Valeriy Heyets, issue 3, pages 75-96.

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