Sustainable development, decentralization and harmonization in the land management of agrarian sector

Source: Calculated based on [9, 10].

In the context of the above forecast for 2010-2014, international projects for improving LM in Ukraine have been developed and partially implemented for agricultural purposes, the main of these are:

1. Pilot project to restore irrigation systems in Ukraine (modernization of irrigation systems on Kakhovka channel) - Export-Import Bank of China, EBRD, Export-Import Bank of the United States according to tender;

2. Pilot project to restore irrigation systems in Ukraine (restoration of irrigation system in the south) - Export-Import Bank of China;

3. Project “Support to fruit and vegetable industry in the southern regions of Ukraine” - Canada, Israel;

4. Project “Development of irrigation reclamation of Ukraine” - World Bank, Saudi Arabia, China;

5. Project “Support to development of Ukrainian agribusiness of small and medium size” - IFC (World Bank Group);

6. Project “Agricultural energy saving and financing of small producers” - private foreign investors Corp. USA (OPIC);

7. Project “Development of granaries and agricultural cooperatives” - Dnipropetrovsk Regional Council, the Department of Foreign Affairs, Trade and Development of Canada (DFATD);

8. Project “Integrated Land Use of the Eurasian Steppes” - EU;

9. Project “Revival of navigation on the Dnieper and the Southern Bug” - “NIBULON”;

10. Project “Start-up of grain technological and deep-water terminal in the port “Pivdennii” - State Enterprise “Seaports administration of Ukraine” (Table 8).

Table 8 International projects for improving LM of Ukraine of agricultural purposes*

Source: Calculated according to [4, 8].

An additional problem in the implementation of these forecasts of agribusiness development is undeveloped national joint agents. In the modern system of logistics infrastructure, in order to enter effectively the foreign market, such as grain, in Ukraine volume should be concentrated at the level of at least 1 million tons, which is possible to obtain from at least 100 thousand ha. This creates conditions for land overconcentration, as without having significant advantages in logistics software, in participation of joint agents and of the state in agricultural policy, including land relations, mini-and micro-agents are trying on their own to solve problems associated with globalization influences; and in accordance with the theory of global strains - to expand land banks and be vertically integrated. Since most private farms (mini-agents) for the quantitative measurement (land area) correspond to European standards of land use, it would be appropriate to harmonize their LM system with the European standards.

Based on this thesis, realization of investment projects in the agricultural sector shows a high probability of “domino effect”, i.e. when the implementation of a project or event with possible external influence will provoke transformational staged implications without external influences. For example, let's consider two projects on the table 8. This effect is created under the action of globalization influences that form in this case consolidated unity of mini-, micro-and corporate agents.

Discussed economic priorities are the subject of this effect and in the financing of the projects pass through the following steps: clustering of small farmers, increasing their income; transition from survival level to average profit production; improving cost-effectiveness of land management; the transition from middle level to the high level of production profitability; improving the social effectiveness of land management; transition from high level to the stable high level of production profitability; improving the environmental performance of land management.

Finally, these transitions are the guarantor of harmonization of LM with the European standards.

In the process of harmonizing with European standards the three-level system of standardization should be overcome, which has developed and operates in Ukraine in recent years. In accordance with the principles of the Association Agreement with the EU, Ukraine should gradually introduce European standards (EN) as national ones. In the area of agriculture and food products, almost 300 international standards of Codex Alimentarius should be harmonized [7, p. 83].

An additional problem in the implementation of international projects with Ukraine is to identify country of origin, which must have certain associations. Thus, according to the action plan issued by the Ministry of Agrarian Policy and Food of Ukraine and central executive bodies whose activities are directed and coordinated by the Cabinet of Ministers of Ukraine through the Minister of Agrarian Policy and Food of Ukraine, the Program of the Cabinet of Ministers of Ukraine and the Coalition Agreement in 2015; the task number 6.29 is the creation and promotion of the brand “product of Ukraine”, the content of which is drawing up and adoption of a legal act on the concept of forming a high image of Ukrainian production on the world market.

In the view of the authors, other more creative options are possible. Ukrainian farmers in their dual development (intensification and organic production) have the opportunity both to significantly increase the volume of exports of agricultural products that are in demand and meet the standards of importing countries; and consolidate the positive image of the country as a producer of organic (useful, healthy, natural) agriculture and food by forming recognizable national brand, which should be formed on analytical and consulting platform of the Association “Ukrainian club of agrarian business”. Advancement of brand (e.g., similar to the «American Way» - «Amway», «Ukrainian Way» - «UkrWay») through, for example, migrant workers, Ukrainian diaspora abroad, advertising on the Ukrainian automobile, rail, water and air transport that travels abroad and high quality of products will create a positive agro-ecological image not only for a specific farming or specific national agricultural sector, but the whole country Ukraine as a food superpower. It is advisable to form national brands on the basis of wholesale markets. For example, agri-food wholesale market in Lviv «Shuvar» can introduce TM «UPway» («Ukrainian-Polish way»), which means Ukrainian- Polish way.

The brand is formed not only by the activities of producers, but also includes social world of consumers - mediatized world of everyday existence of people in the form of fan clubs, societies and lifestyles. Brand is what determines and mediates the relationships between people. If a brand is defined as a cultural phenomenon, whose values are carried by people, namely citizens or members of one ethnicity/ company (in the form of a friendly attitude and corporate volunteering) and consumers, it is the relationship that is distributed between them that determines the presence of the brand of the country/ company or lack thereof. Modern forms of interaction between brand and consumer are the socalled brand communities that operate in real and virtual spaces, as well as a wide range of “creativity” (from the real advertising and personalization to codesign). Therefore, it is important to create meaningful social media and to involve autonomous creativity of consumers to obtain maximum economic benefit (value) along with the spread of moral values (values). Thus, consumers can independently perform certain operations: self-service when buying goods or obtaining services through special equipment, from product selection and finishing checkout (consumer as a quasi-employee); providing consumers with information on the quality of service of their staff through various forms of monitoring and evaluation (consumer as a quasi-observer); spreading information on the company by posting comments in social media, real advertising, wearing symbols and attributes of brands (consumer as a quasi-marketing specialist).

In the conditions of integration of agricultural production of Ukraine into the world economy, the importance is growing of forming its competitive advantage through the creation of organic product sold as an ecological brand, eco-brand. Domestic researchers defineeco-brand as an intangible asset that is formed through bilateral process of value interaction (purity, healthy lifestyle) of organizations and consumers.

According to C. Koeber, agricultural producers find it important to identify and consider the value of this asset for assessing and forecasting their own economic performance. The value of ecobrand is defined as the total expenditure on the formation of semantic-symbolic component of organic agricultural products, and not as the cost of production of valuable relationships that underlie the concept of “eco-brand.” Therefore, the problem is the integration of a meaningful core of brand in the methodology for assessing its value, namely identifying the sources of its formation [4; 15, pp. 207-213]. From among the latter efficient LM of the national agricultural sectorplays an important role.

Summarizing the study, it should be noted that the actual effectiveness of LM corresponds to 17.3 % of the potential for the current state of the external and internal influence factors of environment. Comparing its level to the European average, according to the author's methodology, it can be stated that it is equal to 10 % of the level of Netherlands, or 20 % of the level of Germany, or 53 % of the level of France (given only a partial indicator “population, which is actually fed out of 1 ha of agricultural land”). Thus in the conditions of significant threats to national defense, Ukrainian business as a completely plastic institution almost instantly (only in 2014) moved the center of gravity from metallurgy, energy and chemical industries towards the agricultural sector. With the economic and political instability, this process can be amplified through great productive motivation and globalization influences.

In economies of countries dependent on import (for agricultural products and food-stuffs) global deformation resulted in reducing immediate dependence, i.e. the formation or increase of stocks of agricultural products and food on domestic area. This will slightly reduce the range of variation of seasonal price fluctuations primarily for grain, and will also attempt to increase the amount of reserve funds, that will increase the demand of spasmodic type for food against the background of its stable growth. The possibility of Ukraine in this background to increase significantly its own production is for domestic producers the most realistic and clear globalization perspective.

We emphasize the need of diversifying agricultural production and markets, deeper processing of products that will allow to export products with greater added value and, consequently, will permit to receive its larger elements - rent, depreciation, wages, interest, profits; e. to motivate the appropriate agents of Land interests.

In addition, for term of globalization in Ukraine related to land use, according to the authors, is marked by the influence of LM efficiency drivers, such as: the development of logistics infrastructure; security of private land ownership and other rights to it and added value from its use; the availability of cheap funds for business; the level of monopoly; ease of doing agribusiness; the level of corruption; the system of state quality standards; the development of public-private partnerships; decentralization of power; the system of state protectionism. These drivers, depending on the specific situation, may change places with each other, in other words they are mobile. The list of drivers is also temporary, e.g. the possibility exists of the appearance of new drivers or elimination of their effect due to the loss of sensitivity of land users on their change.

Regarding preventive and administrative adapters, today one of the largest of these is the moratorium on sale of agricultural land. The country's scope represents the general economic conditions, registered in the Commercial and Land Codes, as well as taxation, provisions of the Law of Ukraine “About Foreign Economic Activity” non-restriction of land banks, forming vertically integrated structures. Globalization prospects of national land users under the action of these drivers, preventive and administrative adapter with peculiarities enabled by the country's scope, are forming position of land users in the international system of division of labor, which ultimately determines the level of LM perspective.

The perspective level of land use should be considered in the process of harmonization of national LM of the agricultural sector of globalization prospects for sustainable development and food security. According to the authors, this process can be represented as a scheme of harmonization of economic interests of actors of land relations through financial and organizational capacities of these actors. The logic of the scheme is explained by the fact that the basis of actions of LM are economic interests of mini-agents, micro-agents, joint agents, the state, regional and global agents, which are oriented on a certain amount (share amount) of owning, using and handling objects of management (land, land rights or the added value from land-use), taking into account possible level of globalization impacts (social, economic, political, organizational, financial, information). Thus, a dynamic level of efficiency of LM is formed, as well as its tendency, to be perceived by agents of land interests as input for the new cycle of activity (operational, tactical or strategic planning).

Conclusions

As a result, we should note that the basic global trends and their impact on LM of the agricultural sector of Ukraine are reduced mainly to increased anthropogenic load on them. The author scheme of “domino effect” from the implementation of investment processes in agriculture, towards harmonization of LM with the European standards. We suggest creation of a network structure of organic products under the trademark «UkrWay» for analytical and advisory platform of Ukrainian club of agrarian business. We develop the scheme of harmonizing economic interests of land relations actors through of their capabilities. We design the scheme of forming perspective level of LM through globalization perspectives and internal drivers.

References (in language original)