The round table participants discussed relevant questions connected with the PMR Agricultural-industrial complex.
Professor Mikhail I. Trach, the Department of Management, made a report on his analysis of the trends and perspectives of the PMR agricultural-industrial complex and its influence on the social and economic development of the region.
The round table heard the following reports:
1. The analysis of the PMR agricultural-industrial complex condition in 2018-2020.
2. State and private partnership as a means of the PMR agricultural-industrial complex development.
3. The analysis of the PMR agricultural-industrial complex influence on social and economic development of the region.
4. The evaluation of the PMR agricultural-industrial complex labour force.
The reports identified and analyzed in detail the factors and problems affecting the development of the PMR Agricultural-industrial complex. As a result, the participants agreed on the Agricultural-industrial complex in the modern agrarian States being an indispensable stand-alone resource, important for national competitiveness support. The effective use of agricultural potential is an important factor in achieving the strategic objectives of the PMR development.
Professor, Candidate of Economic Sciences Trach M.I gave his assessment of the Agricultural-industrial complex situation. The present historical stage of human development can be characterized as a stage of testing the ability to exist in a civilized way in the context of the ongoing attempts to build the so-called “democratic world order”. As we seen, this has led to the destruction of both political and economic systems, which naturally affects the fate of people. From our point of view, this is the result of revolutionary ways of changing the existing world order, economic systems and individual life patterns. Revolutions, as we know, destroy the existing order, and a considerable transitional period of time is required to come to a new state and economic systems, civilized economic and social relations, which, under ineffective public administration can be a lasting, or may lead to another revolution. In order to avoid this, any change in the political structure of the State or in the economic system must take place through an evolutionary process, which happens not overnight, but through gradual improvement of the state political system, economic and social relations. In this case, economic and human losses will be minimized and the objectives will be achieved.
What is our situation? In our case, we are dealing with a very profound revolutionary transformation, to be precise. Our Republic is a tiny part of the broken system. We have to build it from scratch, not being a subject of international law and not having experience in state-building.
The vast majority of the land is now suitable for agricultural use. At the same time, the effective agricultural production of the republic can and should be significantly increased. However, with the current fragmentation of agriculture it is impossible to solve this problem nor is it possible to achieve social objectives in rural areas. It does not take a genius to realize that a full life in rural area is unthinkable without jobs. Only economically active employment of rural inhabitants guarantees the village maintenance and development. In the PMR there are unique historical rural settlements with a good geographical location (the river flows across the whole territory, the international route passes here), all villages are electrified, gasified, and there is guaranteed water supply.
In a market economy, the creation of circular economic organizations will make it possible to reduce significantly the transaction costs that the disparate producers of goods pay to find suppliers or consumers and to sign contracts with them, to control contracts’ compliance, legal protection costs, as well as the expenses, connected with market imperfections (for example, difficulties in obtaining information on valuations and quality of goods, unreliable sources of supply, restrictions on the number of retail outlets).
In theory and practice, there are several contractual forms of public-private partnership (PPP). These are contract, lease, trust agreements, concession contract, business partnerships and economic societies. The contractual forms of public-private partnership are defined by the Law “On Public-Private Partnership” as the basis for carrying out this type of economic activity.
In our opinion, with the PMR agriculture being in the current state, when the land is divided into shares that are leased out to the citizens, creation of business partnerships and societies (commercial organizations) can be the most appropriate form of PPP contract.
The main difference between this form of PPP and contractual PPP is that it implies the joint participation of public and private partnerships in an enterprise with joint capital through the establishment of a commercial society. It may be a simple partnership or a limited liability company or a joint stock (public-private) company. Taking into consideration the direction of the Republic to reform the relationship between the forms of rural ownership, namely, the distribution of land in shares to former collective farm workers, while the land remains State property, in the agricultural-industrial complex a situation has developed requiring the organization of a cost-effective interaction of all the market economy participants. The purpose for which agricultural reforms were initiated was not for landusers to pay landowners. By the way, is it even appropriate to talk about any reform in this sector? Economic reform is not about destruction, but about major transformations, changes in the farming program, in economic management, in the ways and means of implementing economic policies in order to improve the efficiency of the economic system. In our opinion, all the processes that have been carried out in the Republic over the past quarter of a century and that continue to be carried out now are purely simulations of reforms. The reason for this is that the State does not have a concept and therefore a strategic development program, which is essential for the sector. Available natural and climatic conditions, labour resources, exceptionally favourable infrastructure – all these are the factors that allow to have a highly developed agricultural-industrial complex, which will give a powerful boost to the development of related industries (synergistic effect). It goes without saying that, in the current state of the sector in question and of the economy as a whole, it is extremely difficult to solve this problem. While the land has been largely transferred to production use, all other production capacities for storing and processing agricultural primary products and related industries (livestock, poultry production) are almost completely destroyed or require substantial capital investment for renovation. Of course, the State or private business alone will not solve this problem.
Financial and property contributions may be paid to the statutory capital of joint-stock companies. Property contributions may be:
− buildings, constructions, equipment, material resources and other material assets;
− property rights (rights to use land, water, buildings, constructions and equipment);
− intellectual property;
− securities;
− foreign currency funds.
Senior lecturer of the Department of Management Kozma E.S. analyzed the population of the PMR employment in the agricultural-industrial complex.
Dume Monday 10 January 2022 - 07:54:02
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