System of institutional and investment support of rural areas development in the USA

Oksana Prokopchuk, Iryna Gorbachova

Abstract


Purpose. The aim of this paper generalization of US experience in creating a system of institutional and investment support for rural areas, the use of which will facilitate their revival and creating a favorable living environment for peasants.

Methodology / approach. The theoretical and methodological basis of the research is the fundamental position of modern economic science. General scientific methods, including dialectical method of knowledge of economic processes and phenomena in their relationship, have been used in the study of the US’ rural areas institutional and investment support system, the results of which serve as the basis for proposals to improve the national model of rural development policy investment support.

Results. The article summarizes the US’ experience in establishing of institutional and investment support of rural areas development. The similarity of development trends and features of rural areas in the USA and Ukraine has been proved. The priorities of rural development policy in the USA have been identified.

In the process of rural areas supporting, state realizes the functions of information support and establishment of partnerships between authorities, rural communities and business.

Institutional system of rural areas financial support in the USA are formed by U.S. Department of Agriculture, U.S. Rural Infrastructure Opportunity Fund, National Co-operative Bank (СоВаnk), private investment companies, including Rural Business Investment Company, etc. The result of partnership between these institutions is intensification of investment processes in the US’ rural areas. The strategic portfolio of their activities forms the following priorities: growth of small businesses, creation new jobs in rural America, activation of rural entrepreneurship initiatives, environmental protection, development of rural charity, development of education and solving the problems of rural isolation, promotion of bioeconomy.

The main aspects of the US rural development policy that can be implemented under domestic conditions are defined.

Originality / scientific novelty. The scientific novelty of the study is to identify the positive aspects of US’ experience in establishing of institutional and investment support of rural areas development that can be implemented under domestic conditions.

Practical value / implications of the results are to substantiate the proposals for improving the institutional environment and the system of investment support for the rural areas development.


Keywords


institutional support; investment support; rural development; rural development policy; rural areas; support mechanism.

References


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