Scientific and practical journal
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Regional Economy
   



Journal Regional Economy -- re2014.03.149

Repository of Institute of Regional Research Repository of Vernadsky Library UDC 330.837:338.43
Borshchevskyy, V. V. (2014). Vplyv instytutsiynykh dysfunktsiy na efektyvnist' vykorystannya sotsial'no-ekonomichnoho potentsialu rozvytku sil's'kykh terytoriy [Influence of institutional dysfunctions on the efficiency of use of socio-economic potential of the rural areas development]. Rehional'na ekonomika - Regional Economy, 73(3), 149-161. [in Ukrainian].
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Authors

Resume

The basic institutional dysfunctions in the context of their influence on the efficiency of social and economic potential of development of the rural areas of Ukraine are investigated. The theoretical and methodological principles of forming and deep-rooting the main institutional dysfunctions are analyzed. The special attention is paid to the «institutional traps» (steady inefficient institutions which reduce transactional costs of their participants, but increase these costs for the economy in general), «institutional mutations» and «mimicry of institutions» (partial or complete change of the internal target orientation of the institute while maintaining its «outer shell»), «anomie of the institutions» (weakening and incompleteness of the institution, decrease of the real importance of the rules that it support).

It was found the obvious dependence of the described institutional dysfunctions on the presence in the economic space of the country such institutional gaps as: «institutional vacuum» (lack of institutions and norms required for the proper regulation of the economy), «institutional ruptures» (regulatory disparities between adjacent institutions or institutional levels), «institutional pits» (the part of the institutional space in which there is a simultaneous need of institutional changes but there are no institutional mechanisms of such changes), «anti-institutions» (norms that does not comply with the spirit of particular institutional environment and rules of economic behavior).

The examples of the destructive influence of the institutional dysfunctions on the efficiency of using the potential of social and economic development of rural areas of Ukraine are proposed. In particular, the attention focuses on the significant decrease of labor productivity and falling of profitability of agricultural production under the influence of the «institutional traps», «institutional mutations», «institutional anomie» and «mimicry of institutions».

The reasons for the emergence of the major institutional dysfunction in the rural economy are identified. In particular, the genesis of formatting of the institutional «corruption trap», «illegalization trap» and «trap of self-implementing pessimistic expectations» under the influence of the «institutional vacuum», «institutional ruptures», «institutional pits» and «anti-institutions» that cause the lack of control of the local government, destroy the sound competition in the rural economy, decrease the quality of human and social capital of the village, demoralization of the rural society is traced.

Means of minimizing the destructive impact of the institutional dysfunctions on the efficiency of using the potential of social and economic development of rural areas of Ukraine are proposed. This primarily refers to blocking the reasons that lead to the producing of the institutional «corruption trap «, «illegalization trap» and «trap of self-implementing pessimistic expectations» in rural areas. In addition, directions of forming in the rural economy of a number of institutions that can to compete with «institutional traps» are outlined. These institutions will ensure for their participants smaller transaction costs than under conditions of the «institutional traps» and destroying these traps. Agricultural clusters and agro-industrial parks may be the examples of such institutions.

The tools that can ensure the efficient use of the socio-economic potential of Ukraine rural areas on the basis of development of the local self-government village institutions, rural entrepreneurship, education and health protection of the rural residents are described.

Keywords:

institutional dysfunctions, rural areas, socio-economic potential, efficiency


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