Social development of rural areas as agriculture stability factor

Fluctuations of agricultural production volume affects greatly on the level of food supply, the condition of food and light industry, rates of gross product growth, volumes of budget incomes and other socio-economic indicators. Agriculture development is a necessary condition for reproduction of population; it is the basis of the country’s historical and cultural potential preservation. Ensuring of stability and development of the agrarian sector is the primary task of the whole system of economic relations.

In our opinion, stability of agriculture means the ability of agro-sector as social and economic system to keep the activity indicators within the acceptance limits for a long time. When is the condition of agriculture considered stable? It is obvious that the answers to the question can be different, because the stability of the system should be considered relative to its ability to do the target purpose and the latter can be formulated in different ways and depend on the situation in the branch. For example if the target purpose is “to produce such volume of agricultural products that ensures high level of payback”, this is one situation. If the target purpose is “to produce agricultural products which meet the highest indicators of quality”, that’s quite another situation. We support the following economists:

L.I. Abalkin, A.D. Nekipelov, V.L. Makarov, I.G. Ushachev, A.P. Zinchenko, V.V. Miloser-dov, A.V. Petrikov, A.N. Semin, S.S. Sulashkin who consider that it is possible to speak about the stability of agro-sector only if the following conditions are fulfilled:

Ф natural productivity of agricultural lands and high productivity of cattle and poultry are maintained for a long time;

Ф there is no dilapidating environmental impact within the limits of natural capacity of ecosystem;

Ф social stability, high standard and quality of life are secured;

Ф for a long time the agriculture organizations have possibility to work on the principles of expanded production;

Ф such condition of material and technical basis that makes it possible to compete with other agriculture organizations.

Domestic scientists present different criteria of agricultural stability classification in their works. Thus, N.K. Vasilyeva [3] divided them into two blocks: internal and external (fig. 1) .

It should be marked the industrial and social-and-economic groups out the internal factors that depend on the processes which take place in the agro-sector. The first group is directly

Figure 1. The factors of agriculture stability

linked with the output of agriculture products. This group includes biological, scientific-and-technical and technological factors. Lately their role has increased considerably. It is obvious that the possibilities to minimize the negative influence of adverse weather conditions, to increase the crop yield and the livestock yield, to reduce the cost per unit and to increase the labor productivity depend much upon the volume of up-to-date scientific-technical achievements which are used by the agricultural organizations. Therefore, being based on adoption of advanced scientific-technical achievements the intensification of production makes it possible to increase the agriculture stability considerably. Forming of modern organization farming structure also contributes to it. Precise allocation of aims, tasks, rights and responsibilities among subdivisions and workers makes it possible to run the production efficiently. So, it is the pledge of stability.

Social and economic factors have an impact on the stability of agro-sector as well. It is obvious that agricultural enterprises can’t work efficiently and stably without the workers who have up-to-date knowledge of agronomy, veterinary science and pedigree cattle. It is impossible to achieve success without skilled economists who can carry out financial and economic analysis and reason the adopted decisions from the social and economic and environmental efficiency. Thus, the level of sector stability depends to a large extent on competence and professionalism of agriculture workers.

In addition to that the provision of the agriculture enterprises with experts (especially with young personnel) is determined to a large extent by the income level of rural population; by the degree of development of social, engineering and road-and-transportation infrastructure.

Along with the internal factors the external factors exercise a significant influence over the agro-sector stability. The following factors should be observed among them: regulation of proportion of prices for the products of different sectors of agro-industrial complex; the size of government support; the measures in export and import policy; the opportunity and conditions of agricultural stock market; the availability and quality of material and technical resources. The group of external environment factors which determine the agriculture stability can include the changes of macroeconomic characteristics in the country (inflation and tax level, refinancing rate, exchange rate etc.), the political stability, the changes in normative legal regulation.

This research makes an emphasis on the study of social development of village of the Vologda region, which did not manage to be solved in days of market transformations. What of them are the sharpest?

The statistical analysis makes it possible to affirm that over 19 years the demographic problems of village become more acute considerably. The number of rural population reduced by 86,8 thousand people (18,6%). There are no dwellers left in one forth out of 8 thousand settlements of the Vologda region. So, one can state the fact of depopulation of the rural territories and economic devastation of the area. To a certain degree it has a negative effect not only on the condition of agro-sector but also on the possibility of preservation of cultural heritage of the region, its originality and national identity.

There is threatening situation with extreme death-rate in the countryside. While in 1990 the death rate was 1,04 times higher than birth rate, from 1994 to 2005 the number of dead persons in the villages and settlements of the Vologda region was 2 – 2.6 times more than the number of born persons (fig. 2) . In some certain years this indicator in the countryside was 1.3 – 1.5 times more that such indicator in the urban territories. Negative demographic situation has led to reduction of agrarian sector’s labor potential which became one of the factors of agricultural production rates decrease. As is shown in figure 2 the increase in the gap between the number of born and dead in the country during 1990 – 1999 was accompanied by agricultural production decline.

At the present time the main part of rural population (more than 53%) – is people of retirement and preretirement age. Young generation is seeking to find job in the town and to move close to the district center where the level of social sphere development is higher than in the village (or in the outlying districts). “There are remarkably little young people among the members of personal subsidiary plots”, A.V. Golubev writes. “Fattening the cattle in their peasant households, parents do their best to push out their children from the village to the town… There is no continuity as a tendency in transferring the personal subsidiary plots from fathers to children” [4, p. 14].

According to the data of All-Russian research institute of agriculture economics only 17% of rural school-leavers want to cast in their lot with village. After graduating the agrarian institute of higher education only 7% of students are ready to work in the rural areas under any conditions. About one fourth of young experts is ready to go for work to the rural area provided that they have comfortable dwelling and high salary, and 45,5% are not about to connect their life with village at all. Keeping such attitudes of mind and spreading them among rural youth undoubtedly put the village’s future at risk and make the problems of social and economic development of the rural areas and the problems of agro-sector stability more acute.

Figure 2. Excess of death rate over birth rate in a rural areas and dynamics of manufacture of agricultural products in the Vologda region

The ratio of death rate to birth rate in rural areas, times

Pace of production at agricultural enterprises (in comparable prices, % to 1990)

The process of reduction and disintegration of the settlement system caused weakening of social infrastructure potential because of decline of financial basis, its content and development. Over the years of market transformation the narrowing of the village social sphere was keeping high rates. The number of schools in the districts of the region was reduced by 244 (32.1%) in 2008 in comparison with the year of 1990. As a result the pupils from out-settlements have to spend 1.5 – 2 hours a day to get up to school from their place and back (5 – 9 km).

The provision of the rural educational establishments with laboratory equipment, educational supplies, textbooks and instructional technologies is still an acute problem. It is obvious that in the poorly equipped schools the students can’t get proper education which is necessary for entering and studying at the higher educational establishments of our country.

One more negative tendency has been formed in the rural area - health-care agencies are being closed down. For the last 19 years the number of village first-aid stations decreased by 207 (25.3%) in the region. In the region there were only 95 hospital beds per 10 thousand rural people in 2008 while in 1990 there were 160 hospital beds. In 2008 in the rural area the number of doctors was 2.1 times lower and the number of nurses was 1.2 times lower comparing with the urban area. Sometimes it is necessary to go 70 – 100 km in order to take out a tooth.

The network of cultural and leisure-time institutions has suffered great losses in the period of market-style reforms. The number of clubs and recreation centres has been reduced by several times, the number of libraries – by almost 20% (tab. 1). The opportunity to give the countryman access to the funds of central and regional libraries and to visit the theaters and exhibitions is still rather theoretical than practical because of road-and-transportation, financial and other difficulties.

Lack of housing is another factor which makes the rural areas more unattractive for youth and undermines the stability of agricultural production. The volumes of housing introduction in the rural area decreased much at the beginning of 1990s and stayed at the low level for a long time (tab. 2) . The execution of the target programme “Social development of the village” makes it possible to improve the situation in the sphere of housing construction in the rural area in 2007 – 2008. However, per 100 people in the rural area there were 25,4 sq. m. of housing introduced in 2008 that is more than by 2 times less than in 1990 and by 26.4 sq. m. less than in the towns of the Vologda region.

The level of improvement of agricultural housing facilities remains poor. According to the statistics data only 31% of it is equipped with running water, 21% – with sewage system, 20% – with central heating and only 14% - with hot running water.

About a half of roads in the rural area needs partial repair and great additional maintenance costs. Under the conditions of population reduction and great dispersion of settlements the

Table 1. The condition of social infrastructure in the rural areas

Indicator	Year					2008 to 1990, in %
	1990	1995	2000	2005	2008
Number of kindergartens	937	486	387	353	325	34.7
Number of dailyeducational organizations	760	757	712	575	516	67.9
Number of village first aid stations	818	759	696	674	611	74.7
Numberof clubs and recreation centres	1,090	888	789	741	301	27.6
Number of mass libraries	799	711	685	666	637	79.7

Table 2. Deployment of dwelling houses in the Vologda region, sq. m. per 1 resident

Area	1990	1995	2000	2005	2008	2008 to 1990, in %
Rural area	0.52	0.15	0.09	0.16	0.25	48.6
Urban area	0.51	0.39	0.17	0.26	0.52	102.0

Table 3. The basic indicators of household budgets of theVologda region (peramember of household a month at the average), roubles

Indicator	Urban area			Rural area
	2006	2007	2008	2006	2007	2008
Disposable resources	10,727	10,255	13,009	5,564	7,372	8,678
including gross income	7,453	9,466	11,747	5,288	6,858	8,152
including in the families with two children under 16 years	4,546	7,646	10,722	3,708	4,527	6,023
Consumersexpenditure	5,976	7,065	9,171	3,700	4,284	5,566
including the food costs	1,969	2,266	2,865	1,626	1,812	2,521

principle of financing of municipalities per capita by allocation of funds to road maintenance has aggravated the problem of preservation of transport infrastructure still more. For the lack of good roads it is difficult to do visiting forms of medical, cultural, consumer and trade services of population. Many settlements have no bus service in spring and autumn. The agriculture commodity producers expend much money on recovery of the expenses connected with highways maintenance and with rise in the cost of transportation.

Of course, if the comparative analysis of social sphere development in the village in 1990 and at the beginning of the XXI century would be carried out, it is necessary to notice that at that period of time there were positive tendencies as well. For example, fixed location phones, mobile communication, satellite TV and Internet came into service in many villages and settlements of the region, the transport connection with the district and region centres improved, the range of goods became wider in retail chain. In some certain settlements there were projects of engineering infrastructure put into operation and there was supplying with gas. However there is still a lot to do.

Low living standards of the population remain one of the most urgent problems in the country. Its urgency is proved by the data of the Centre of All-Russian monitoring of rural social and labour sphere of All-Russian research institute of agriculture economics, according to them two thirds of rural people believe low income to be the main problem of the village [2]. The results of sample survey of the Vologda region government statistics service give us a possibility to say that in 2008 the disposable resources1 per one member of household in the rural area were 8,678 rubles, that is 1.5 times lower than in the urban area (tab. 3). Gross income of the family with two children under 16 years was 6,023 roubles in the rural area and 10,722 roubles in the urban area. At the same time the food costs in the structure of expenditures for the consumptive use of households were 45.3% in the rural area and only 31.2% in the urban area. While in 2008 the disposable resources of the urban dwellers of the region were by 2.8 times higher than the level of living wage, in the rural area this ratio was no more than 1.8 times.

High poverty level of the rural population of the region can be explained by low income of agricultural organizations (the principal economic players), their poor financial condition and lack of possibility to pay proper salary to the worker. The retrospective analysis makes it possible to say that while in 1991 the material remuneration in agriculture was 92% out of the average economic index, in 1995 it was 57.3% and in 2008 – 68.5%.

The analysis of backlog of social development of village of the Vologda region can be continued, but it’s more important to define the ways for solving the problem of social development of the village and to understand what steps are necessary to increase the standard and quality of rural life. During our researches we have come to a conclusion about necessity of realisation, first of all, of some measures of organizational and economic character.

1 The disposable resources of households are a sum of monetary funds which are at households’ disposal to ensure their expenses and to make savings as well as the cost of foodstuff in kind and the cost of privileges in kind.

The following organization and economic measures are necessary:

Firstly, when solving the problem of rural territories development it is necessary to overcome the departmental disconnectedness. Today neither of the departments of the Russian Federation develops the rural territory in an integrated way. M.E. Nikolaev, a deputy chairman of Council of the Federation of the Federal Assembly of the RF, notices truly that “everybody develops the rural area separately: one develops the rural economy, another develops education, local self-government or health care. So here in the same settlement we can develop production and “optimize” i.e. close the school and to transfer culture, libraries and sport under the charge of municipalities...” [6]. Therefore in the first place it is necessary to work out some unified approach to the rural territories development on the state level.

Secondly, it is necessary to introduce the sections concerning the rural area into the state and regional programmes and strategies of long-term and middle-term development of the economic and social sectors. The academician A.V. Petrikov stressed time and again that it hasn’t been done so far: “if you look through the health care and education programmes – there is no rural part” [7].

Thirdly, the main (base) settlements which perform the function of service centres for a group of settlements should be marked out in the human settlement pattern. It is obvious that the authorities won’t support and won’t be able to support the development of social and economic potential in all rural places because of limited financial resources. In this connection it is important to search rural area and to fix those territories where the measures for increasing the social potential will give essential positive effect. Meanwhile it should be considered that the implementation of these projects mustn’t reduce accessibility of social services for the rest of rural people.

Fourthly, the heads of rural settlements and the staff of the Department of municipality development should help to form new institutions of civil society in rural areas – such organizations which can skilfully develop a system of relationships between households, authorities and business having ensured the protection of economic and social interests of different groups of population. Socially active citizens and their communities with the assistance of authorities, business and independent mass media are able to do a lot to restore and develop rural society and rural territories. It is the man or rather the group of initiative and active people capable of consolidating people who must be the principle resource of development.

Fifthly, one should increase the level of financial and economic independence of local self-government authorities in order to perform the functions of maintenance and development of road, communications and other objects which are in settlement administration charge. This task can be solved by changing the standards of budget and taxation legislation.

Sixthly, it is necessary to carry out the complex of measures to increase the agricultural organizations revenue performance. Only in this case they will be able to modernize the production, to improve the labour conditions, to increase the level of wage, stability and attractiveness for young experts. It is necessary to carry out the complex of measures to diversify the rural economy. To give tax preferences and easy credit to the rural enterprises which are engaged with trade and consumer services, agro-tourism, handicrafts and agriculture produce processing. To solve the problem of agriculture production distribution by creating the consumer and supply cooperatives and it will create an extra impulse for development of personal subsidiary plots and to a certain degree it will help to reduce the level of rural unemployment.

Seventh, we need to cancel the debts of agriculture commodity producers who invest money in development of engineering, social and road-and-transportation infrastructure of rural area, to compensate the standard costs for maintenance of nonproduction projects which are on balance of the agriculture organizations.

To solve the problems of development of social sphere in the country, to improve life quality and economic activity of rural population the regional authorities need to take active practical measures. Thus, as a result of implementation of measurements within the project “Development of social potential of rural settlements” the pilot territories’ socio-economic situation has improved. In the Novlenskoye settlement of the Vologda district, the economic basis of which is composed by three large agricultural cooperatives (collective farms of “Novlensky”, “Ilyushinsky” and “Nefedovsky”), a general practitioner’s office was opened, as a result sickness rate has declined, and birth rate has twice increased compared with 2005. A sport playground for children, a stadium and a training hall were built which allowed to increase population’s inclusion in sports from 12 to 30%. Development of roadside business is active in the settlement. The main result of the project is the formation of active life position among the population, strengthening of healthy lifestyle and family values, development of projects joining business, power and citizens. This experience shows that the development must be started with the rural people themselves, their conscience of necessity of changes.

At the All-Russian conference “Innovation development of rural territories” in March, 23 – 24, 2010 the deputy governor of the Vologda region N.V. Kostygov noticed that some other measures to solve the problems of rural area are being realized in the region. However for cardinal change we need some state approach. All authorities must understand that social development of rural territories and increase in agrarian sector efficiency – they are not only the basis of food security but also national security, growth of well-being of all population of Russia. The state government must face the rural area and mustn’t realize half measures hastily but it must conduct the reasonable and complex policy of development of rural economy and rural territories.