Purpose. The aim of the article is identification and critical analysis of problems and substantiation on their basis of perspectives, instruments and mechanisms of rural development of Ukraine on the basis of improvement of institutional and innovative policy of the state, with achievement of economic security and sustainable multifunctional development of rural areas, regions, territorial communities and subjects of business activity in the context of European integration and convergence to the standards of the European Union.
Methodology of research. The methodological basis of the study is the theoretical development of domestic and foreign scientists on the problem, legislative and regulatory materials of Ukraine and the EU. In the course of the research, general scientific and special methods are used, namely: monographic, analytical, abstract and logical and other methods – to summarize the results of the literary review on the problem under study, to substantiate the directions of rural development research, and to write programs for promoting rural development.
Findings. It is substantiated that rural territory is a complex and multifunctional natural, social and economic, production and economic structure, characterized by a set of peculiarities inherent in it, namely: the area of land; landscape features; the number of people living and their type of employment; the number, species diversity of flora and fauna; volumes and structure of production; development of social and industrial infrastructure and other features. It is found that the format of the approach to the definition of the concept of “rural area” has changed significantly, in which it is not only the concept of space, where agriculture and forestry occupied a major share, but also the understanding that it is a place that has had considerable human, natural, cultural and social capital.
It is determined that the territorial model of rural development, unlike other models, provides two parallel variants of development: the focus on the development of agrarian and agro-industrial sectors as drivers. This model recognizes the importance of local institutions (private and public) both in developing the directions of development and in the management and implementation of development programs. It is substantiated that, it is advisable to create appropriate regional development agencies to ensure the planned regulation of this process in order to make effective use of the territorial-resource potential of the rural territories of the region. It is proved that the activation of rural development is provided mainly on the basis of the implementation of the applied principles of agricultural policy related to institutional and innovative, sectoral and territorial stimulation, which facilitates the transition to sustainable development.
Originality. The priority methodology for the study of rural development is defined, which includes the construction of a logarithm when writing a program for rural restoration and development. The structure of the regional public agency for rural development of Podillia is substantiated, which envisages the following functional departments: strategic management of rural development; formation of competent population; transfer of innovative technologies (products); design, which develops different types of innovation and investment projects for the sectoral and territorial economy.
Practical value. It is determined that the common agricultural policy of the European Union is aimed at: balanced development of economic, social and environmental spheres; multifunctional development of rural areas; transition to principles of rational use of nature; protection of interests of rural population and formation of economic mechanism of development of rural territories in the system of social and economic security of the state.
It is established that within the territorial development model, the importance of local institutions has been found to be complemented by the need for effective coordination between the different levels of governance of this policy, starting with EU policy, which is manifested through financial support and establishing a system of rules and guidelines, and further to national, regional and local levels. This combination contributes to the success of rural development policy, which has made multi-level governance one of the key features of rural development policy.
Key words: rural areas; communities; strategy; institutional and innovation development; economic security; EU standards.
Financial Levers of State Support for Rural Development: European Experience and Domestic Realities