State's role in the development of rural territories and rural economy of the North

Negative processes are observed in rural areas and rural economy sectors of the North. The number of rural population is decreasing, the process of its aging is going on, the infrastructure is deteriorating. The agricultural sector, especially in the rural periphery, is characterized by the destruction of production potential, the reduction of agricultural production of all types. Overcoming negative processes in rural areas and in the agricultural sector is associated with the increasing role of the state. The purpose of this article is to substantiate theoretical and methodological approaches to the development of a state regulation system for sustainable rural development, methods and mechanisms of support for the leading branch of the rural economy - the agricultural sector in relation to the Northern region. Based on theoretical approaches about the state’s nature, place and role in the economy regulation, the models of socio-economic and social development are considered. The author proves that it is impossible to ensure sustainable socio-economic development of rural territories and rural economy under the existing liberal-monetarist model of economic development of Russia. The objective necessity of state’s intervention in this sphere is proved, methods, mechanisms and tools of the state regulation of the village and rural economy are offered. Foreign experience of state regulation of rural territories and agrarian branch development are considered and the possibility of its rational elements use in the conditions of this country is shown. The analysis of rural development financial support is given. The main trends of agriculture support are revealed, the volumes, directions and shortcomings of financial support of the branch are identified. The influence of state support on the level of agricultural organizations’ profit and profitability is shown. The program-target approach is proposed as a tool of state regulation of agricultural and agrarian development. The results of the study can be used to improve state support for the agri-food sector, as well as to develop of a long-term program of integrated development of the Northern region’s rural territories.