Implementation of the goals of sustainable development to ensure food security of Ukraine and their correspondence with the strategic tasks of the state

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Institute of Food Resources of the National Academy of Sciences, Kyiv, Ukraine

Implementation of the goals of sustainable development to ensure food security of Ukraine and their correspondence with the strategic tasks of the state

Nataliia Voznesenska

Researcher of the Department of Economic Research

Abstract

Subject. Theoretical and methodological principles and practical means of assessing the achievement of the goals of sustainable development to ensure the food security of the country. Purpose. Analysis of the state and prospects for the implementation of the defined Sustainable Development Goals in Ukraine and the possibility of achieving them in the food industry. Methods. The theoretical and methodological basis of the research consists of general scientific methods of cognition, fundamental provisions of economic theory, legislative and normative legal acts of Ukraine, etc. Results. The priority tasks for achieving the Sustainable Development Goals in Ukraine were justified, the content and indicators of achieving the Goals were researched, and the strategic tasks until 2Q2Q were analyzed. It was established that in the pre-crisis period (before the pandemic and the fullscale invasion of the russian federation), the Sustainable Development Goals were only partially achieved, although positive dynamics were observed. The need for further improvement of the system of national sustainable development goals and monitoring of their achievement is substantiated. However, the resolution of the set tasks is complicated by the military aggression of the Russian Federation against Ukraine. Scope of results. The results are scientific and analytical in nature and can be used by scientists in further research on the development of the food industry in accordance with the Sustainable Development Goals in Ukraine. They can serve as a source of reference and methodical information and be used by economists, specialists of food and processing industry enterprises, specialists of authorities, researchers, teachers, graduate students and students of higher educational institutions.

Key words: sustainable development goals, poverty alleviation, food security, food industry, food production, agro-industrial complex of Ukraine.

Реалізація цілей сталого розвитку для забезпечення продовольчої безпеки України та їх відповідність стратегічним завданням держави

Вознесенська Н.С., н.с. відділу економічних досліджень

Інститут продовольчих ресурсів НААН, м. Київ, Україна

Анотація

country food security

Предмет. Теоретико-методологічні засади та практичні засоби з оцінки досягнення цілей сталого розвитку для забезпечення продовольчої безпеки країни. Мета. Аналіз стану і перспектив реалізації визначених Цілей сталого розвитку в Україні і можливості їх досягнення в галузях харчової промисловості. Методи. Теоретико-методологічну основу дослідження становлять загальнонаукові методи пізнання, фундаментальні положення економічної теорії, законодавчі та нормативно-правові акти України тощо. Результати. Обґрунтовано пріоритетні завдання щодо досягнення Цілей сталого розвитку в Україні, досліджено зміст та індикатори досягнення Цілей, здійснено аналіз стратегічних завдань до 2020 року. Встановлено, що у докризовий період (до пандемії та повномасштабного вторгнення РФ) Цілі сталого розвитку були досягнуті лише частково, хоча й спостерігалася позитивна динаміка. Обґрунтовано необхідність подальшого вдосконалення системи національних цілей сталого розвитку та моніторингу їх досягнення. Однак вирішення поставлених завдань ускладнюється воєнною агресією РФ проти України. Сфера застосування результатів. Результати мають науково-аналітичний характер і можуть бути використані науковцями у подальших дослідженнях розвитку харчової промисловості відповідно до Цілей сталого розвитку в Україні. Вони можуть слугувати джерелом довідкової та методичної інформації та використовуватися економістами, спеціалістами підприємств харчової та переробної промисловості, фахівцями органів влади, науковими працівниками, викладачами, аспірантами і студентами вищих навчальних закладів.

Ключові слова: цілі сталого розвитку, подолання бідності, продовольча безпека, харчова промисловість, виробництво харчових продуктів, агропромисловий комплекс України.

Formulation of the problem

The agro-industrial complex of Ukraine is currently the leading link of the national economy, which largely determines socio-economic development, forming 14% of the gross added value and more than 40% of the country's exports. Ukrainian agricultural products are known in almost 200 countries of the world. Ukraine occupies leading positions on global markets in terms of export volumes, namely: sunflower oil - 1^st place, corn, oilseeds - 3^rd place, barley - 4^th place, wheat - 6^th place, etc. At the same time, the further entry into the world economic space, the strengthening of the processes of globalization and liberalization of trade requires adaptation to constantly changing conditions, and, accordingly, further improvement of agrarian policy. The analysis of key trends shows the unevenness of development, which is accompanied by a significant number of not only economic, but also political crises. During the years of independence, significant changes have taken place in the country's economy, which require updating the system of strategic planning and forecasting the development of the food industry. The goals of sustainable development have become a driving force in this area in particular.

Materials and methods

The theoretical and methodological basis of the research is general scientific methods of cognition, fundamental provisions of economic theory, scientific works on the problems of ensuring food security, legislative and regulatory acts of Ukraine, etc. The information base of the research was made up of relevant Laws of Ukraine, Decrees of the President of Ukraine, Resolutions of the Cabinet of Ministers of Ukraine, official materials of the State Statistics Service of Ukraine, information of the Ministry of Agrarian Policy and Food of Ukraine, primary data of enterprises, scientific works on the research problem, results of expert surveys, as well as information resources of the global computer information network Internet.

Results and discussion

In September 2019, the Presidential Decree "On the Goals of Sustainable Development of Ukraine for the period until 2030" postulated that "the Sustainable Development Goals (SDG) for the period until 2030 are guidelines for the development of projects of forecasting and program documents, projects of regulatory and legal acts in order to ensure the balance of economic, social and ecological dimensions of sustainable development of Ukraine" [1]. The integration of SDG tasks into public administration contributes to the development of the potential of state institutions that are responsible for national development in the thematic areas of the SDG.

On September 25, 2019, during the Dialogue of Leaders at the UN Summit on SDGs within the framework of the 74th session of the UN General Assembly, the President of Ukraine, Volodymyr Zelenskyy, noted that Ukraine is committed to its commitments regarding the Sustainable Development Goals - to achieve them, a national strategic framework has been created and developed mechanisms for the implementation of the tasks of the Central Bank and their monitoring. When Ukraine, like other UN member states, joined the global process of achieving the Sustainable Development Goals, an inclusive process of achieving them started in Ukraine. Each global goal was considered taking into account the specifics of national development and a total of 86 tasks were defined. Since 2015, a number of reforms aimed at implementing socio-economic transformations and strengthening the democratic system have been launched in Ukraine. Social development centers are integrated into state policy on the basis of "leaving no one behind" [2].

The SDG are a universal call to action to end poverty, protect the planet, and improve the lives and prospects of everyone around the world. Thus, 17 goals were adopted as part of sustainable development 2030 [3]:

Overcoming poverty.

Overcoming hunger.

Strong health and well-being.

Quality education.

Gender equality.

Clean water and proper sanitary conditions.

Affordable and clean energy.

Decent work and economic growth.

Industry, innovation and infrastructure.

Reduction of inequality.

Sustainable development of cities and communities.

Responsible consumption and production.

Mitigation of the consequences of climate change.

Preservation of marine resources.

Protection and restoration of terrestrial ecosystems.

Peace, justice and strong institutions.

Partnership for sustainable development.

All goals are closely interrelated and are of great importance. In our research, we conventionally divided them into sectors: economic, social, ecological and administrative. Our research is aimed at analyzing the implementation and compliance with the goals of sustainable development of existing tasks in the economic sector.

The table examines the task of the first Sustainable Development Goal - poverty reduction, as well as existing strategies, programs, activity plans in accordance with the given goal and the state of their implementation for the planned period of 2020 (Table 1).

Table 1. Goal 1 - Overcoming poverty. Achieving strategic goals in Ukraine

Source: formed on the basis of data of [3-5].

Analyzing the data the table. 1 and the statistical data for the proceeding years, it can be determined that the progress towards achieving the goal by 2020 is as follows:

- decrease in the share of the population whose average household equivalent total costs are lower than the actual subsistence minimum (decrease from 58.3% in 2015 to 41.3% in 2019), which was the result of the implementation of state policy aimed at maintaining the income of the population (Population statistics in 2018 exceeded the corresponding indicator of 2015 by 89.3%, while the actual change in the subsistence minimum increased by 44.6% during this period);

an increase in the area covered by the state social enterprise, in the total number of the poor target, from 63.0% in 2015 to 70.9% in 2018, which even exceeds the institutional level the target indicator for 2020 (65%), thanks to the focus on providing various types of public support for vulnerable population groups, including: provision of housing subsidies; support for low- income families; single mothers and fathers who are raising children under the age of 18 and live in conditions where their social needs are not fully met;

reduction of the share of food expenses in August household expenses, from 54.6% in 2015 to 49.4% in 2018, which ensured the achievement of the target indicator established on or 50.0% in 2020, thanks to the realization of the purchasing power, population growth and the slowdown in consumer price inflation (consumer price index in 2019 was 108.3% compared to 144.4% in 2015).

The reasons for the lack of progress in reducing poverty are: the limitation of the financial possibilities of the budget, which does not allow to ensure a corresponding increase in the level of social standards, as well as the subsistence minimum, which is the basis for determining the size of state social guarantees. The share of conditionally free funds in households remains at a low level. This determines their low economic capacity, viability and ability to resist the challenges of the socio-economic environment.

In order to accelerate progress in achieving Sustainable Development Goal 1, we consider it necessary to:

to reform the system of social standards and guarantees with the aim of establishing economically justified relationships between the main state guarantees and, accordingly, achieving a balance between the main sources of income of the population;

to reform the pension system in order to comply with the principles of social justice and to stimulate the younger generations to official employment;

to initiate a differentiated approach in the system of providing services in the social sphere with the aim of improving access to free or partially free services for vulnerable categories of the population;

develop a new strategic document that should take into account the challenges of today and be based on the principle of equality (ensuring the satisfaction of the basic needs of all citizens of the country);

Goal 2 of the current policy covers three main areas that are interrelated - this is the achievement of balanced nutrition, the productivity of the entire economy and the production of consumer products (Table 2).

In general, out of 11 indicators measuring the progress of achieving Goal 2, positive dynamics are observed for 9, while the figures for the 7th achievement of the specified target limits until 2020 have been quite political so far.

The food industry is a leading sector of the domestic economy, which makes a significant contribution to the gross added value and forms the export potential of the country. One of the factors in the development of agriculture and food industry was the active modernization of production processes. Thus, in 2019, capital investments in the agricultural industry increased by 2.0 times compared to the level of 2015, and in the food industry by 2.4 times. The degree of depreciation of fixed assets in agriculture in 2018 compared to 2016 decreased by 1.9 percentage points, from 37.3% to 35.4%, in the food industry - by 2.8 percentage points, from 51.1% to 48.3%, respectively.

More rational use of the available resource potential in combination with processes of technological renewal contributed to the growth of labor productivity in agriculture. Thus, in 2018, labor productivity in agriculture amounted to 10.89 thousand US dolllars per employee, which is 25.5% higher than the 2015 level and exceeds the 2020 target.

During the year of wet production, the need of the domestic market for food products is met within 97%, which corresponds to the optimistic level of food security recommended by the FAO, and allows to form a powerful database for export. However, this is not a sufficient condition to ensure food security for all households, and especially for the most vulnerable sections of the country's population.

Table 2. Goal 2 - Overcoming hunger. Achieving strategic goals in Ukraine

Source: formed on the basis of data [3-5]

In the global index of food security (2019 rating), Ukraine took the 76th position with a total score of 57.1 points (with a maximum score of 100 points) out of 113 countries of the world [6]. The main challenges for the country and factors for the reduction of the Index are low GDP per capita, insufficient amount of state funding of scientific research and the latest developments in the agricultural sector, underdevelopment of infrastructure, as well as risks associated with military actions and political instability.

Along with the development of the agricultural industry, which has sufficient food supply both for the population of Ukraine and for the development of exports, the Government raised the issue of increasing the welfare of settlement, which laid the foundation for the process of the initial transition to a more balanced diet. Thus, according to the results of 2019, the consumption of almost all basic human products increased compared to 2015: meat - up to 53.6 kg per person per year from 50.9 kg (the target for 2020 - 61 kg), fish - up to 12.5 kg from 8.6 kg, vegetables - up to 164.7 kg from 160.8 kg, and fruits - up to 58.7 kg from 50.9 kg (the target for 2020 is 65.0 kg). The only exception was milk consumption - a decrease of 1 person per year to 200.5 kg compared to 209.9 kg, which was observed against the background of the decrease in milk production, which has been ongoing since 2014. At the same time, the still insufficient purchasing power of the population and the economic affordability of food products prevent from perfecting the balanced diet of Ukrainians. Thus, due to products of animal origin, the caloric content of the diet is provided by only 29% at the optimal level of 55%. Increasing the purchasing power of the population, increasing the productivity of agriculture and providing quality food products is an important component of national food security.

Production of organic products during all years, including in 2020, is carried out in accordance with standards equivalent to the legislation of the EU and other countries. In 2018, the Law of Ukraine "On the basic principles and requirements for organic production, circulation and labeling of organic products" [7] was adopted, which defines the requirements for the production and circulation of organic products in Ukraine. It is also worth noting that the number of agricultural producers of organic products in Ukraine has increased significantly in recent years - from 294 in 2016 to 501 in 2018 (certified according to organic standards).

In order to ensure the necessary progress in the implementation of all objectives of Goal 2, the following measures are necessary: improvement of regulatory and institutional support for agricultural development; development of state support tools on a long-term basis; development and implementation of a comprehensive agricultural development program; improvement and introduction of public and private partnership models for the development of rural areas (clusters and cooperation); effective implementation of the legal framework in the field of organic production, circulation and labeling of organic products.

Goal 8 of Sustainable Development covers two main areas that are closely related - economic growth and decent work. In total, out of 14 indicators that measure the progress of achieving national Goal 8, for 2 are defined targets until 2020 have already been achieved, for 3 - there is a high probability of achievement by the end of 2022, for 5 - there is positive dynamics that need to be accelerated, and negative dynamics are observed according to 3 indicators (Table 3).

The initiated reforms, the course towards European integration, the reorientation of business from Russian to developed Western markets, despite strong geopolitical challenges (the negative consequences of the temporary occupation of Crimea, the city of Sevastopol and parts of the territories in the Donetsk and Luhansk regions by the Russian Federation), created the conditions for reaching 2020 year: the average annual growth rate of real GDP at the level of 2.9% (for 2016-2019), including per person - by 3.4%, thanks to the accelerated growth of investments and consumer demand of the population (by 8.4% respectively), increasing the employment rate from 64.4% in 2015 (by gender: women - 59.1%; men - 70.2%) to 66.9% in 2019 (61.6% and 72.7%, respectively) with a target target of 66.0% in 2020 and a labor productivity level higher by 11.1% in 2019 compared to 2015 thanks to the modernization of production and the introduction of a new wage policy, the result of which, among other effects, consisted in an increase in real wages on average annually by 12.6% for 2016-2019, reduction of gender inequality in income by reducing the gap between the average wages of men and women from 25.1% in 2015 to 22.8% in 2019; reducing the unemployment rate from 9.1% in 2015 to 8.2% in 2019 and the number of young people who do not work, do not study and do not acquire professional skills from 17.2% in 2015 to 14. 5% in 2018; improvement of Ukraine's place in the ranking of the Global Innovation Index by 17 positions to 47 in 2019 compared to 2015 (with a target of 50 in 2020).

Table 3. Goal 8 - Decent work and economic growth. Achieving strategic goals in Ukraine

Source: formed on the basis of data from [3-9]

Among the positive trends, it should also be noted: an increase in the number of employed workers in medium and small businesses by 0.5 million people in 2018 compared to 2015; decrease in the number of victims of industrial accidents; improving Ukraine's place in DoingBusiness' ease of doing business rating by 17 positions to 64th place in 2019 (compared to 2015).

However, such progress is not sufficient, it was held back mainly as a result of: the negative impact of armed aggression; loss of inter-industry and logistical connections in the regional and foreign economic space; incomplete replacement of the losses of the traditional Russian market (reduction of exports of goods to the Russian Federation for 2014-2019 amounts to 11.5 billion USD); entering new markets and expanding the presence in European markets (increased exports of goods to EU countries and other countries, except the Russian Federation and Kazakhstan - 1 billion USD), which is associated with the complexity and duration of the processes of such an exit; insufficient active implementation of innovative products and technologies in the industry, which should help conquer new markets; insufficient external demand; low participation of the banking system and the stock market in financing investment projects; slow reform of the judicial system and weak protection of property rights, which restrained the inflow of foreign investments.

At the same time, there are trends in which progress is generally absent. Thus, reliable and safe working conditions for workers are not provided, as evidenced by the insufficient decrease in the indicator of the share of workers employed in jobs with harmful working conditions in the total number of full-time employees (from 28.9% in 2015 to 28.4% in 2017). Also, according to the indicator of the number of deaths from accidents at work, there is a negative growth trend - during five years (2015-2019), the growth was 13.0%.

In response to the challenges faced by the economy of Ukraine during the pandemic period, in the post-pandemic period and in the conditions of war, in order to ensure the achievement of strategically important priority goals, it is necessary to: corresponding demand for labor force; strengthen the ability of domestic enterprises to compete in modern world conditions, including in response to today's challenges; take into account when making economic policy decisions future changes in management systems, models of social relations and economic connections, which will give impetus to the acceleration of the digital transformation of the economy, which will lead to an increase in the demand for jobs, which involves the maximum level of intellectual involvement.

Sustainable Development Goal 9 has a special role to play in ensuring progress towards all SDGs, creating the conditions for growth in value added and GDP. For the economy of Ukraine, technological renewal is extremely important, that is, the restoration of the industrial base, the effective introduction of scientific and innovative potential, the automation of production processes and the reconstruction of the infrastructure are necessary.

In total, out of 14 indicators that measure the progress of achieving the aforementioned Goal 9, data for the period 2015-2019 are currently unavailable for 3 indicators.

Out of 11 indicators, only 4 have positive dynamics, including one target until 2020, two indicators achieving targets is quite realistic, another one - weak dynamics, which with high probability indicates the unachievability of targets benchmarks until 2020 (Table 4).

Table 4. Goal 9 - Industry, innovation and infrastructure. Achieving strategic goals in Ukraine

*the data is being refined

Source: formed on the basis of data [3-5, 8, 9]

The lack of progress on the components of Goal 9 is caused by a number of reasons, in particular: the lack of a comprehensive state industrial policy that would determine the strategic directions and key priorities of industrial development; the continuation of armed aggression by Russia, as well as trade restrictions; insufficient activity of industrial producers regarding the introduction into production of new innovative products, digital technologies and compliance with international standards; loss of inter-branch and logistic connections in the regional and foreign economic space.

Goal 17 of sustainable development defines partnership in four directions, which are interrelated - partnership in the financial, technological, economic spheres and compatible systemic activities. ranks in the interpex of a permanent lawsuit, taking into account many interested parties, in particular, between the public and private sectors, under the conditions of completion indicators for measuring economic progress (Table 5).

Table 5. Goal 17 - Partnership for sustainable development. Achieving strategic goals in Ukraine

Source: formed on the basis of data [3-5,9,10]

In total, out of 5 indicators measuring the progress of achieving national Goal 17, three have negative dynamics. However, among the achievements on the way to achieving Goal 17 and the development of Ukraine in general is the signing of the Association Agreement between Ukraine and the European Union, on the one hand, by the European Atomic Energy Community and their member states, on the other (the provisions of cooperation concluded by Ukraine and the EU in 2014 effective from January 1, 2016, fully entered into force from September 1, 2017). The agreement foresees not only the gradual liberalization of trade with the European Union, but also stipulates the harmonization and adaptation of national legislation to EU legislation, political dialogue, reforms in the sphere of economy, justice, and foreign policy. An important part of the Association Agreement is the provisions on the Deep and Comprehensive Free Trade Area (DCFTA). Since the beginning of the FTA (January 1, 2016), the European Union has become the largest trade partner of Ukraine with a specific weight of trade in goods and services - more than 40% of the total volume of foreign trade of Ukraine (according to State Statistics).

Another achievement is obtaining a visa-free regime between Ukraine and the European Union (Regulation (EU) 2017/850 of the European Parliament and the Council of May 17, 2017, which decided on the visa-free regime of the EU with Ukraine) [11]. The visa-free regime with the EU is not only freedom of movement for citizens of Ukraine, but also new opportunities for the development of production, tourism, the transportation market, and increasing the potential of trade.

Negative dynamics of foreign direct investment attraction is observed. If in 2015, 3 billion dollars were attracted to the economy of Ukraine. USA, then according to the results of 2019 - 2.5 billion dollars. USA. The main factors that restrained the inflow of foreign direct investment into Ukraine are as follows: ongoing military actions on the territory of Ukraine as a result of armed aggression by the Russian Federation, slowing down of privatization, investors' mistrust of the judicial system, and imperfect legislation regarding the protection of property rights of investors and creditors.

Macroeconomic stability is the basis for sustainable development. An increase in real GDP at least twice by 2030 with a simultaneous increase in the employment rate of the population aged 20-64 to 66,9% in 2019 (compared to 65.6% in 2018) will ensure increased economic competitiveness, create a base for economic development and promote social harmony.

Conclusions

The analysis of the state of implementation of the tasks and the degree of achievement of the Sustainable Development Goals made it possible to obtain an objective view of the economic problems and challenges of today and formulate proposals for the necessary steps to accelerate economic progress in the future.

The analysis of the achievement of strategic tasks in Ukraine for the implementation of Goal 1 of sustainable development showed that a positive trend has emerged over the period 2015-2020. Thus, the result of the implementation of the state policy was: the growth of the population's income - the total resources of the population in 2018 exceeded the corresponding indicator of 2015 by 89.3%, while the actual size of the subsistence minimum increased by 44.6% during this period; an increase in the share of the population covered by public social enterprise from 63.0% in 2015 to 70.9% in 2018, which even exceeded the target index established for 2020 (65%); a decrease in the share of expenditure on food in the total expenditure of household goods from 54.6% in 2015 to 49.4% in 2018, which ensured the achievement of the target indicator established for 2020 at the level of 50.0%.

The strategic tasks under Goal 2 "Overcoming hunger" for 2015-2020 were not fully implemented. In particular, the planned indicators were not achieved regarding: consumption of milk, dairy products and fruits per person; shares of food industry products and processing of agricultural raw materials in the total export of the country; shares of agricultural land under organic production; agricultural production index.

The goals of Goal 8 "Decent work and economic growth", Goal 9 "Industry, innovation and infrastructure", and Goal 17 "Partnership for sustainable development" remained unachieved.

In order to ensure the fulfillment of all the tasks of the Goals of sustainable development, it is necessary to: improve the legal and institutional support for agro-food development; develop state support tools on a long-term basis; develop and implement a comprehensive program for the development of the agrarian sphere, include the food and processing industry; improve and introduce public and private partnership models for the development of rural areas (clusters and cooperation); effectively implement the legal framework in the field of organic production, circulation and labeling of organic products, etc.

The Russian Federation's temporary occupation of the Autonomous Republic of Crimea, the city of Sevastopol and parts of the territories in the Donetsk and Luhansk regions, which began in 2014, created a threat to peace, security and cooperation not only in Europe, but also at the global level. Active military operations daily lead to significant human and economic losses, cause large-scale internal and external displacement. The destructive consequences of Russia's armed attack on Ukraine turned out to be critical, which caused a chain reaction of imbalance of all macroeconomic indicators. Solving the problems related to the ongoing armed aggression through international legal settlement, reintegration of temporarily occupied territories and restoration of territorial integrity and sovereignty of Ukraine within internationally recognized borders will be a significant contribution to achieving the goals. The key to successful achievement of the goals during the decade can only be the consistent implementation and monitoring of targeted policy and budgeting of the Goals of sustainable development. The main purpose is to achieve the Goals by bringing people's living standards closer to the average European level.

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