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Financial Analytics: Science and Experience
 

Evaluation of the State support efficiency for the agrarian sector of economy

Vol. 8, Iss. 9, MARCH 2015

PDF  Article PDF Version

Available online: 8 March 2015

Subject Heading: Economic policy

JEL Classification: 

Pages: 2-13

Semenova N.N. Ogarev Mordovian State University, Saransk, Russian Federation
nnsemenova@mail.ru

Importance An agricultural sector is the main producer of essential agricultural food products, and it plays a crucial role in ensuring the country's food security and food sovereignty. In the context of globalization of socio-economic processes and international competition, risks and threats to the sustainable development of the domestic agricultural sector significantly increase. In this regard, the efficient functioning of agriculture is possible only with an active government support at the Federal and regional levels. Creating conditions for the sustainable development of rural areas, accelerating the growth rate of agricultural production on the basis of increasing its competitiveness should be a priority area of the State's agricultural economic policy.
     Objectives The research aims to analyze the State support efficiency for the agrarian sector of the Russian economy. To evaluate the State support efficiency of the agrarian economic sector, I used the OEDC methodology, which envisages the use of key main indicators: support for manufacturer, customer's support, support for public services, combined support for agriculture, as well as nominal coefficient of assistance to producers.
     Methods The article considers the main issues: defines the indicators used in global practice to evaluate the State support for agrarian sectors of economy; identifies the main trends of this support for agriculture; makes a comparative analysis of the State support efficiency for an agrarian sector of the economy in Russia and the United States of America.
     Results The paper concludes that under-investment and low efficiency represent the main problems in the researched field of the State support for the Russian agrarian sector.
     Conclusions and Relevance The Russian Federation's agricultural sector is funded to a much lesser extent than in the United States, and budgetary funds not only being spent inefficiently, because they mainly facilitate the support for producer's agricultural products, and are not aimed to bolster the consumer's needs, or render support for public services. I emphasize that such an arrangement upon budgetary funds application actually facilitates their funds' badly washing out from the agriculture sector through price disparity.

Keywords: Keywords: State support, economic agricultural sector, producer support evaluation, consumer support evaluation

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