Экономические науки / 12.Экономика сельского хозяйства.

Ekaterina Olіynik

State Uman Pedagogical University named after Pavlo Tychyna, Ukraine

DEVELOPMENT OF RURAL CREDIT CO-OPERATIVES IN TERMS OF MARKET REFORMS AGRARIAN

SECTOR OF UKRAINE

One of the prerequisites for the development of credit cooperatives in rural areas can be considered the formation of new structures in the agricultural sector of Ukraine, which is a result of the agrarian reform 90 years. However, the biggest deterrent of established small farms is the lack of financial resources and poor government support. Increasing commodity production farms, primarily depends on their existing financial credit and bank credit for small farms is still inaccessible.In the process of market reform agrarian sector of Ukraine rural credit cooperatives is not enough attention paid to both the state and the newly created agricultural enterprises.

Unfortunately until now the rural credit co-operatives not been widely used in the agricultural sector fell from range interests of public finance - credit support. World experience says to survive countryside, farmer, as the air requires cooperation. Most farmers create the material basis of cooperatives can not because their partner has to perform state. It is an indisputable fact and it is the experience of European countries, Canada, USA, Australia [5]. Features rapid emergence and increase production demonstrated cooperatives. Their positive and negative experience will certainly be taken into account for the development of small agricultural enterprises in Ukraine [4, p.9].

In Ukraine, according to the laws "On Cooperation" [1] and "On Agricultural Cooperation" [3] distinguish between production, servicing and consumer cooperatives. As for the credit cooperative, it is in the law is not fixed, and the main legislative acts that define its organizational - legal basis is the law "On credit unions" [2] and the concept of the development of credit cooperatives [6]. And despite the fact that the beginning of the development of credit cooperation of Ukraine is the nineteenth century. Thus, the study of the above regulations, suggests that in the law there is no definition of "credit cooperative" and bases its activities, and in practice it is identified with the credit union. Thus, there is a need to distinguish these two concepts and corresponding amendments to the Law of Ukraine "On Cooperation", which will cover the definition and basic principles of credit cooperative.

Since the second half of the nineteenth century until today the development of credit cooperation in all sectors of the national economy have gained importance. Today there are many fundamental scientific research on the formation and development of credit cooperatives in rural areas, but effective mechanism for the implementation of this process is absent. In turn, the activities of credit unions can be considered the first step in building financial and credit institution oriented agricultural producers, and drawing on foreign experience can be argued that this is the initial stage of a system of credit cooperatives in rural areas.

Despite the neglect of cooperative ideas, the need for rural credit cooperatives is extremely important, as credit cooperatives are an integral part of the market economy. Due to the rural credit cooperatives small farms can operate effectively and improve areas of their activities. Conducting financial flows through rural credit cooperatives can develop small agricultural enterprises and improve the socio-economic development of the village.

Development of rural credit cooperatives should focus on:

• develop programs of rural credit cooperatives throughout the country;

• the role of the state and of the support and regulation of rural credit cooperatives;

• creation of favorable conditions for the development of rural credit cooperatives;

• improving organizational - economic mechanism of functioning of rural credit cooperatives;

• selection of the hierarchical model of rural credit cooperatives should take into account international experience of developed countries and international trends cooperative movement;

• common principles of rural credit cooperatives;

• differentiated state support for rural credit cooperatives.

Socio - economic importance for rural credit cooperatives are multifaceted and diverse.

Picture 1 Socio - economic importance of rural credit cooperatives

Thanks to the development of rural credit cooperatives can provide access to financial services for the rural population, improve the welfare and purchasing power, to raise funds to the credit of the State; enhance the revitalization of rural and regional communities. Thus, the positive experience of the agricultural credit cooperatives in developed countries shows that it is the most effective form of lending to small farms and its adequacy market relations. Cooperative rural credit system is used worldwide for the development of the agricultural sector and specializes in serving small and medium-sized businesses in rural areas.

Literature:

1. Law of Ukraine "On Cooperation» № 1087-IV of 10.07.2003 [electronic resource] - Access mode: http://zakon.rada.gov.ua.

2. Law of Ukraine "On credit unions» № 2908-III of 20.12.2001 [electronic resource] - Access mode: http://zakon.rada.gov.ua.

3. Law of Ukraine "On Agricultural Cooperation» № 469/97-VR from 17.07.1997 [electronic resource] - Access mode: http://zakon.rada.gov.ua.

4. Zbarskyy V.K. Small businesses: A Look at the problem / [V.K. Zbarskyy, A. Varchenko, M.P. Kaninskyy, J.S. Yanyshyn] // Economics and Management APC: Proc. Science. works. - White Church, 2010. - Vol. 2 (71). - S. 5 - 115.

5. Moldovans L. Ukrainian Village will not be unless rural cooperatives [electronic resource] / L. Moldavan // access mode Chem.: Http://www.zerno.org.ua.

6. Order of Cabinet of Ministers of Ukraine "On Approval of the Concept of development of credit cooperation» № 321-r dated 06.07.2006, the [electronic resource] - Access mode: http://zakon.rada.gov.ua.