Sultanova Guzel Tahirovna - doctoral candidate PhD
JSC "Academy of Finance", Astana, Kazakhstan
ECONOMIC MECHANISM OF FUNCTIONING OF AGRICULTURAL MANUFACTURE
Effective functioning of agricultural production is an
impossible thing without the substantiation and implementation of the
up-to-date economic mechanism.
In the economic literature there are ambiguous
opinions about the mechanisms of management which makes the study of the
functioning of economic systems complicated. In all the diversity of conceptions
about mechanisms, it should be assumed that the real economy functions and
develops within the framework of social production, the mainspring of which is
the economic mechanism. Its component is the economic mechanism, as a specific
expression of the current market laws of development of economic entities in
the production system, which is being formed on the basis of the state's
agrarian policy.
In the practice of management of domestic enterprises
and market structures the economic mechanism and its component part, the
economic mechanism of economic development have been formed. The economic
mechanism is a system of economic, organizational, legal relations, expressing
the character and results of production, distribution, consumption and
accumulation.
In the literature, the following functions of the
economic mechanism are usually distinguished:
- economic realization of property relations;
- regulation of the proportions of social
reproduction;
- the resolution of the contradictions between the
development of the productive forces and the specific forms of production
relations [1].
The economic mechanism of management is the essence of
the economic mechanism, its core basis. It represents a combination of ways,
methods and means of economic influence on the growth and increase of
production efficiency and contains economic levers through which the state and
market structures influence enterprises, their work collectives and individual
workers.
Being formed under the influence of the market and under the regulatory influence of
the state the perfect
economic mechanism of management aims to guarantee an organic combination of the economic
interests of society and the state with local group and individual interests of
commodity producers - business entities.
The economic mechanism of agricultural production is
a constantly developing, open and complex system which consists of manifested
(realized) at different levels of organically interconnected and mutually complementary
elements,being formed under
the influence of market laws and government policy aimed at the effective use of all resources in the
production process, designed to provide its sustainable development [2].
Thus, relying on the established approaches of
leading economists in the scientific literature
and on the list of basic features of an economic mechanism, the following
definition can be made: an economic mechanism is a system of interconnected and
interdependent economic regulators whose functioning is determined by market
conditions, self-regulation and state regulation.
The
optimal combination of the economic mechanism elements determines its main
goal: the ability of economic entities to resist the effects of negative
factors, promptly make adjustments and respond to changes in the market
environment.
The main task of the economic mechanism is to ensure
the organizational unity of economic entities in all spheres of the agro-industrial
complex in raising the efficiency of agricultural production, creating the
necessary conditions for the transformation of economic relations, and
successfully solving the problem of sustainable economic and social development
of the industry.
The new economic mechanism must be built on the
principles of state regulation and support of the industry, self-regulation of
economic entities under the influence of market laws.
The following functions of the economic mechanism of
management are distinguished in the research literature:
- the formation of a fundamentally new approach to the
adaptation of agricultural producers to the market and effective leve rs for their effective functioning;
- ensuring
favorable economic conditions of managing for extended reproduction to every
normally functioning business entity, taking into account the market
requirements;
- building-up of organizational and economic
conditions for fair market competition through the ensuring of favorable market environment;
- the transformation of all workers in the material
and production sphere into real owners of means and results of production, an
equal in rights and mutually beneficial their partnership in the market;
- making favorable organizational and economic
prerequisites for the domestic producers to enter the foreign market;
- maintenance of the environment which is necessary
for the formation of modern economic thinking among labor collectives of
business entities and the whole population, the interest of each employee in
the development of qualifications [1].
For a complete overview, compound elements of the up-to-date
economic mechanism of management in the agro-industrial complex are presented in
Figure 1.
Figure 1. The elements of the economic mechanism of
management of the agro-industrial complex
In the conditions of a market economy, the element of
the economic mechanism represents its competitive interaction, which ensures
the coordination of market participants’ actions through demand, supply,
prices, product quality, etc. The economic mechanism is a way to organize the
integrity of the system of economic relations, ensures the self-development of
a market economy.
It is a
complex, developing production and economic system.
We consider that in the market conditions in order to comprehensively solve the
problems of increasing the production of competitive agricultural products territorial
specialized financial and industrial groups should be developed in the
republic, where agricultural enterprises, banking institutions, processing,
supply and marketing services must be included.
Elements and levers that make up the economic
mechanism of management and are the basis of the economic mechanism include
planning, pricing, crediting, taxation, accounting, etc. They regulate the
economic activity of enterprises. The basis of the economic mechanism of
management is formed by elements of economic relations at various hierarchical
levels, including at the level of an individual enterprise and its
intraeconomic structural divisions. Economic relations are divided into
property relations, relations of production, distribution, exchange and
consumption.
The character and content of economic interrelations and
interrelations formed between the subjects of the market depend on property
relations as they are determinative. An important methodological aspect of the inves
tigatedproblem is the choice of such a governance, which is capable of
organizing the interaction of all structural elements of the economic mechanism
for the purpose of ensuring expanded
reproduction on an innovation-investment basis.
The economic mechanism of management can be considered
at the macro and micro levels. Both the same and specific elements and tools
are used at different levels.
The
economic mechanism of management of the agro-industrial complex, having many
common features with the economic mechanism of other branches of the national
economy, also has its own peculiarities. One of them is the need of the economic mechanism of the
agroindustrial complex to take into account the natural and climatic factor. In
particular, certain economic measures should be envisaged in case of drought or
other natural disasters. Due to the huge size of our country's territory,
agricultural enterprises are in different climatic conditions.
There are significant differences in the fertility of the land, the
location and size of land, etc. These all presuppose the necessary system of
measures to equalize the economic conditions of management at the level of
regions as well as at the level of individual enterprises.
Importantly, each element of the economic mechanism
has features and relative independence, but all of them are harmoniously
combined and complement one another. The market economy introduces a new substantial filling of the mechanism as a
system, complements it with modern elements that can quickly rearrange at any market moment. Without claiming to complete the research, the
following is proposed, in contrast to existing ones, the definition of this
category in accordance with the goals, tasks, functions and principles of
formation.
The modern economic mechanism of management in the
agro-industrial complex has a number of specific features in comparison with
other interindustry complexes by forms of manifestation:
First, this mechanism preserves features from the
former administrative-command mechanism, and moreover to a greater extent than
with the regard to other national economic complexes (higher degree of state
regulation, etc.).
Secondly,
the economic mechanism of management in the agro-industrial
complex is aimed to take into account the
interrelation and dependence of the reproduction conditions on the natural factor.
Thirdly, the multistructure of the economy of the
agro-industrial complex requires a differentiated accounting of the character
of managing the relations of enterprises of various forms of property ownership
(public, private and personal).
Fourthly, agro-industrial production, like no other,
takes into account the specificity of the relations between the transition
period of the emergence of the market mechanism of management, the formation of
which requires a considerably larger historical period.
Fifthly,
the economic mechanism in the agro-industrial complex should take into account
the specific socio-economic role of agriculture and the processing industry in
the formation of the population's consumption fund and the growth of its
welfare (state regulation of the saturation of the national market with food of
own production and prices for socially important goods, protection of domestic
commodity producers in rural areas) [3].
Sustainability of agricultural production has its own
distinctive features. As a rule, they
include soil-climatic, biological, environmental factors; production
technology; organization of rural areas; mentality of the rural population. The
study of agricultural economists showed that the main constraining factors for
the sustainable development of domestic agrarian production are: deterioration
of fertility and soil conditions, price disproportions in the agro-industrial
complex, a shortage of qualified personnel in the industry, a high level of
financial debt of agricultural producers, and a weak development of innovation
processes [4].
Sustainability of agricultural production depends,
first of all, on the purposeful and integrated interaction of the elements of
the economic mechanism of agricultural organizations in market conditions.
The
lack of systematic management of the elements of the mechanism has generated
many negative problems of sustainable development of agricultural production,
its economic and social situation. Particularly important, in our view, the
problems of agricultural development are presented in Figure 2.
Problems of sustainable development of
agricultural manufacture
Figure
2. The interrelated problems of sustainable development of agricultural
production
In our opinion, overcoming the crisis in the industry, which has been
intensified by the impact of the world crisis, must be based on an integrated
approach to the formation of priority areas, taking into account the operation
of the economic mechanism.
During
the research, we identified and substantiated the main elements of its two
levels aimed at sustainable development of agricultural production: at the
level of the system of relations in the agrarian complex: targeted programs,
forms of state support and price regulation, long-term and mortgage lending,
integration, diversification, agrotourism, innovations , personnel and social security; At the
level of the agricultural organization: economic (commercial) calculation,
labor motivation, controlling, budgeting, marketing.
Thus,
overcoming the crisis in agricultural production should be based on an
integrated approach to the formation of priority areas, taking into account the
operation of the economic mechanism.
List of used literature
1. Fadeeva,
G.V. Conceptual directions of regulation of the economic mechanism of
management of agrarian sphere of agro-industrial complex / G.V. Fadeeva //
Bulletin of the Altai State Agrarian University. - 2012. - ¹ 3.
2. Khodos, D.V.
Reproductive processes in agriculture / D.V. Khodos // Economics of Agriculture
of Russia. - ¹ 3. - 2008.
3. Khodos D.V.
Formation of the economic mechanism of agricultural production in the
conditions of market relations [Electronic resource] // URL:
www.kgau.ru/img/konferenc/2010/e1.doc.
4. Kurtsev, I. System Principles of Sustainable Development of
Agriculture / I. Kurtsev // ACC: Economics and Management .- 2008. -¹ 6- P.8-10.