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FEATURES OF ECONOMIC AND ORGANIZATIONAL MECHANISM FOR FORMATION OF FOOD SECURITY SYSTEM
Y.S Baitilenova, A.N. Narenova, G.E. Amalbekova Taraz State University named after M.H. Dulati [email protected]
The main function of the economic and organizational mechanism of state regulation is to find the optimal combination of market freedom with the regulation of food safety process It is very difficult to implement, and neither the economic science nor the practice hasn t been solved this problem. The level of agricultural production has a direct impact on the state offood security andfood sovereignty of the country.
There are many reasons for this, but the most important ones are the loss of active controllability of the economy as a whole and agriculture, in particular, the absence of a state mechanism for regulating relations in this sphere, violation ofparity ofprices and equivalence of exchange of the agricultural sector with other sectors.
Key words: agro-industrial complex, peasant farms, world trade organization, gross domestic product, gross national product, state regulation of the economy, forced industrial-innovative development, material and technical supply.
The main directions of state regulation of development of agriculture attributed the formation and reproduction of effective subjects of market relations, development and maintenance of strong demand for food and agricultural raw materials, support sustainable offers of food and other agricultural products, the formation and maintenance of the price system, which ensures promotion of sustainable supply and demand of the population for food and other commodities, the creation of infrastructure for the stable functioning of land markets, material and technical resources, capital, the system of wholesale and retail markets etc.
Understanding the complexity of creating an efficiently functioning system of state support and the difficulties of carrying it out in the current conditions of Kazakhstan presupposes studying foreign experience [1]. At the same time, it is important to determine whether it corresponds to the capabilities of the country and regions in the use of these or those innovations from the position of the greatest return from the allocated funds. In countries with highly effective agricultural production, there are stable systems of state support for agriculture.
Special attention should be paid to the system of state support for agriculture in countries with high efficiency of agricultural production. Among them, the United States is of the greatest interest, where agriculture belongs to the sphere of strategic
interests, and its products, along with nuclear raw materials and defense technologies, constitute a strategic resource of the state. The basis for the state impact on agricultural production is the creation of conditions for effective financial provision of the agricultural sector, while the rate is placed on the autonomy of agricultural enterprises in these issues.
In the United States successfully operates a system of agricultural loans, low levels of bad debts (about 1%). In recent years, an important place in the credit of US agriculture has been taken by insurance companies, whose share in the total volume of loans to the agrarian sector varies from 10 to 20% and is currently about $ 20 billion. Such activity of insurance companies in this sphere is due, first of all, to the availability of significant free financial resources, which can be invested in agricultural projects. When lending to agricultural production in the United States back guarantee provided credit is secured by real estate. Promotion of mortgage operations of the state contributes to the revitalization of the commercial banks and other credit institutions [2]. Financial resources secured by real estate can be issued by land, savings, commercial banks, credit unions, mortgage companies, the number of which is steadily growing in the United States. Of particular importance in the policy formation of the United States Food security is a state program of food aid to the needy and poor.
No less interesting for Kazakhstan is Japan, which is characterized by diversity of climatic and limited natural resources. In addition, it is one of the few developed countries that form their individual model of economic development called the "planned-market economy." Agriculture in Japan is the most important branch of the economy, despite the orientation towards the development of knowledge-intensive industries. Comprising only 2% of GDP, it provides over 70% of the country's needs for food, and processing enterprises - in agricultural raw materials. From the point of view of economic policy, Japan's agricultural sector receives reliable and powerful protection through subsidies and protectionist policies [3]. The practice of state regulation of the agricultural sector in Japan is based on state subsidies for programs for the purchase and production of agricultural crops, especially rice, as the main crop in the population's diet.
Its peculiarities are the agrarian policy of the countries of the European Union. A single agrarian policy of the EU was formed taking into account the internal and external components of its member states. Taking into account internal positions, a significant part of the budget is spent on maintaining a low level of prices for agricultural products and food (in the form of subsidies to farmers). These costs are compensated by consumers due to high taxes. The external vector of the policy lies in the choice of such a price policy and protectionism that create the conditions under which excess food production reduces imports and promotes the export of subsidized goods. Interesting enough is the experience of the European Union countries in the field of supporting agricultural production [4]. State support for the agricultural sector in the EU countries has some specific features that differ from the American model. This applies to cooperative organizations engaged in financial support for agricultural enterprises, low-interest loans for the modernization of agricultural production,
significant amounts of subsidies provided, tax breaks, price regulation, etc. The regulatory framework for regulating agricultural production in the EU member states is very developed and covers all spheres of the agricultural sector. Regulatory impact concerns competition in the agricultural products market, product quality, its standardization, investment activity of agricultural enterprises, social security of workers employed in the agrarian sphere of the European states.
The main instruments for supporting the agriculture of the EU countries is quotas and prices. For each country, quotas for agricultural output are established annually at the level of interstate agreements, which can be implemented in the EU. The basis of state price regulation in the countries of the European Union are the general prices, which are fixed annually [5]. General prices indicate the level at which the market price should be located, as well as the level corresponding to the beginning of the application of price regulation mechanisms to maintain the market price, such as customs duties and subsidies. General prices form the basis for providing agricultural producers with various types of government guarantees and support measures. The application of common prices in the EU countries is focused, first of all, on protecting the interests of agricultural producers.
In modern conditions, the level of development of agriculture determines, first of all, the level of food security of the state, i.e. ensuring the maximum quality of life at the expense of the appropriate level and food supply, which is characterized by two main features - the abundance of food and the availability of its receipt by the population. It can be learnt as an integral and essential part of national security, which is defined at different levels and objects: the world, the global (all mankind), national (state), regional (region), household (family), the individual (individual). Food security assumes that reproduction replenishes the necessary amount of food to meet evergrowing and changing needs, its status is estimated by two main indicators: a general indicator of food security, which is the level of production of grain per capita and the indicator of the amount of surplus grain stocks in the world [6]. The degree of sustainability of food security, as well as guarantees for emergency situations, is estimated through remaining reserves in the state reserve before harvesting the next crop. A volume corresponding to 60 days of world consumption is approximately 17% of the total annual consumption, it is considered safe.
Identification of some trends in the development of the food market in Kazakhstan as a whole, as well as research materials of scientists allow us to formulate the main problems of the food market development and its regulation, which cause a low level of efficiency in the agricultural sector and, accordingly, a low level of food security for the population of the country and its regions [7].
The main reason for the growth in the volume of imports of fruit and vegetable products is the underdevelopment of the system of storage and processing of perishable products. The high share of imports in the markets for consumption of deep processed products (meat products, dairy products, vegetable oil, canned vegetables and fruits) characterizes, first of all, the insufficient development of the processing sector and the shortage of food products of deep processing.
To improve the efficiency of the food market, it is necessary to develop a scientifically based strategy that includes the following areas:
-Stable development of the agro-industrial complex, increase in their competitiveness, ensuring food security and adapting agrarian production to modern conditions;
- Reservation, rational use and reproduction of fish, wildlife resources, objects of the nature reserve fund, as well as creating conditions for sustainable water supply and effective water use;
-Creation of normal living conditions for the village on the basis of optimizing rural settlements, ensuring the growth of the potential of rural areas through the integration of rural development programs.
In developing strategic approaches, in our opinion, it is necessary to pay attention to the following aspects of the development of the food market:
-Dependence on imports for certain types of food;
-Inadequate measures of state regulation of the food market, protection of the domestic market and support for the export of certain types of food;
- Insufficient control over the safety of domestic and imported food products;
- There is no mechanism for optimal economic relations between market actors based on the harmonization of their interests and responsibilities, supporting the income of commodity producers;
- An effective system of pricing for agricultural products and food has not been formed;
- Inadequate economic accessibility of food to provide the population with food in the amount and structure necessary for an active and healthy life;
-Balance of the structure of nutrition by individual ingredients [8].
To solve these problems, the following measures are proposed:
It is necessary to stimulate the development of high-quality rural production and the production of deep processing products;
-Stimulation of the development of a modern storage system and the use of a mechanism that activates the laying of products for storage for certain periods to ensure uniform supply of goods to the market throughout the year and to exclude significant seasonal price fluctuations;
- Regulation of prices for socially significant food products;
-Provision of the quality of food in all parts of the promotion of goods;
- It is necessary to improve the system of customs and tariff and non-tariff regulation, including quantitative import / export restrictions, licensing of export-import transactions;
-Stimulation of the development of alternative forms of marketing (multi-level rural consumer cooperatives) and the creation of commodity and logistics centers for optimal commodity circulation and reducing production losses;
-Creation of long-term interregional relations between producing and consuming regions, ensuring the patio-temporal saturation of the market.
The agro-industrial complex is one of the most important sectors of the economic and organizational mechanism of Kazakhstan. Its current state and further development rates remain the guarantor of the country's food security and the main factor of stability in the country's domestic food market. As for the sphere of processing, then here, the main direction of our efforts will be its technical and technological re-equipment. The refining industry is supported by the state through the provision of tax incentives, subsidizing the interest rate of loans received to replenish current assets, reimbursing part of the cost of introducing international quality standards into production [9]. It is planned to subsidize interest rates and loans received in financial institutions for technical and technological re-equipment.
There is a need to emphasize that the main and strategic direction of the country's activity has been and remains the industrialization of the industry due to its technical and technological re-equipment, for without it it is not necessary to talk about raising labor productivity, improving the quality of products and, ultimately, ensuring food security.
It should be noted that all efforts to expand and improve the economic mechanism of state support for agriculture, to strengthen its legislative base are ultimately aimed at minimizing the risks of agricultural production and, consequently, increasing the investment attractiveness of the agricultural sector of the economy, since without investments it is impossible to count on serious development industry. The dynamics of the development of the agro-industrial complex is directly related to the macroeconomic situation and inter-industry proportions. The optimization of these proportions is the most important factor for the sustainable development of the industry and, consequently, the food security system.
Natural factors are still uncontrollable, primarily because of the insufficient level of development of scientific research related to the development of long-term forecasts. At present, there are opportunities for creating the foundations of an alternative ecological system of agriculture. This requires the implementation of a complex of agro technical, natural-biological measures. The decisive importance here is economic, social, organizational and managerial, as well as technical and technological measures.
At the heart of the formation of the food supply system, objective processes are the market processes, relations and technologies for the creation and promotion of food resources from the producer to the final consumer, which predetermines the integrating and cooperating functions in the distribution, promotion and provision of food for the population. The development of integration processes contributes to strengthening the competitiveness of the emerging systems of food security, both regionally and nationally.
Economically developed countries have rich experience in applying the mechanism of state regulation of the agrarian sphere in a market economy. Today, the system of state regulation of agriculture and related industries in countries with developed market economies is a highly developed system that encompasses all the
economic and social aspects of agriculture. It is necessary to synthesize all the best and effective in the world agricultural production with the already existing achievements of the domestic agro-industrial complex [10]. The method of peer review identified the following areas of government regulation, which should certainly used in Kazakhstan: the priority of land lease to large farms; application of target prices, reduction of interest on loans for modernization of agriculture, establishment of a corporation for the insurance of farm credit; introduction of adaptive planning; the use of per hectare subsidies depending on zoning of farming.
The effectiveness of the regional system of food security is determined by the mandatory availability of procedures for the comprehensive diagnosis of its condition and planning measures to ensure food security in the region. Improvement of such planning involves the introduction of balance sheets (actual and forecast) for the main food groups and types of food resources. Regional balances should be supplemented with food supply balances of individual territories and balances in the form of a social order to supply socially significant facilities and special consumers.
List of references
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