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DEVELOPMENT OF THE INSTITUTIONS OF INFRASTRUCTURE PROVIDING IMPLEMENTATION OF THE CLUSTER INITIATIVE

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PDF: Author(s): Zinich L. V.,
Number of journal: 4(49) Date: November 2019
Annotation:

With the advent of the strategy of development of agriculture oriented to economic stability there was a need for emergence of new forms of functioning of market subjects which provide continuous interaction of these subjects, successful implementation of infrastructure and other projects. Dynamics of these processes is a driving force in improving the mechanism of functioning of farms of the population in the specific territory. Degree of formation of the infrastructure servicing personal subsidiary farms does not correspond to their production, financial, information and other needs. Ineffective activity of the institutions of infrastructure leads to increase of the production expenses of farms of the population, increase of transactional losses, which negatively affect their functioning. The effective development of infrastructure is possible only with participation of the state and attraction of resources of local governments. The institution of infrastructure providing implementation of regional cluster policy in the sector of small farms is examined in the article. Scientific bases of development of rural farmsteads in the institutional structure of the food market, their specifics within the cluster theory of development of territories and indicators of efficiency of interaction of farms with market partners are revealed. Participation in the structure of a microcluster allows getting additional competitive benefits as a result of cumulative influence of scale effects and synergy. Participants of a microcluster interact with each other with the purpose of production and implementation of agricultural products providing competitiveness of both certain participants, and a cluster in general. Mechanism of their influence: non‑profitable producers of a microcluster can overcome the lower boundary of profitability by means of the specialization providing increase in productivity of work and decrease in product cost.

Keywords:

farms of the population, problem areas, infrastructure, institutes, cluster initiative, food microcluster, rural settlement, agrofood market, contractors, reserves.

For citation:

Zinich L. V. Development of the institutions of infrastructure providing implementation of the cluster initiative. Business. Education. Law, 2019, no. 4, pp. 118–122. DOI: 10.25683/VOLBI.2019.49.420.