Features and areas of village and rural economy development in the northern region

The activities of a village are ensured not only through functioning of the agricultural sector,but also through creating conditions and development of effective mechanisms to boost rural economy. Rural economy as a system of sectors and economic activities, using natural resources,is the basis for improving rural population's standard of living and its sustainable development. The article deals with the content of concepts that make up the system of rural economy and rural development. It discloses the multifunctional role of a village as an original socio-territorial system. The author studies branches and activities, comprising the system of rural economy, anddistinguishes factors and conditions, influencing a level, pace and efficiency of rural economic entities. The work reveals specifics and distinctive features of rural economy in the Komi Republic. Itshows problems of a Northern village, such as low rural incomes, poor infrastructure, and working population outflow. The article discloses influence of the demographic situation on village and rural economy development. The paper analyses the state of rural infrastructure. It indicates that the socio-economic situation in rural areas deteriorated during the market transformation process. Results and consequences of the market reforms for a Northern village are estimated as negative. The author proposes directions to boost rural economy connected with its innovative modernization, diversification, and strengthening of the state's role in managing rural development policy. The study results can be used to work out a long-term program of integrated village and rural economy development in the Komi Republic.