The article aims to investigate peculiarities of rural areas development in the Western region of Ukraine in the context of implementation of their socio-economic modernization mechanisms. The main attention is focused on identifying problems and preconditions for the formation of new approaches to economic development and organization of social sphere in rural areas of the seven Western regions of Ukraine. On this basis priority areas of activation of rural areas’ socio-economic modernization are identified, which lie in implementation of a comprehensive program approach that includes formation of favorable economic conditions, stimulation of the economic activity of local population, creation of proper provision of the needs of citizens in the social sphere and identification of the competitive advantages of individual rural communities. 

region, rural areas, modernization, territorial communities, socio-economic development, western regions of Ukraine 

The research reveals a number of modern socio-economic and legal issues facing rural development in Ukraine. The dynamics of changes in the age structure and demographic decline of rural population is analyzed in the regional perspective. The essential aspects of rural employment are studied. It is shown that rural employment is characterized by a significant share of self-employed persons among the people engaged in economic activity. The study ascertains that self-employment in rural areas is mostly concentrated in the informal economy, which does not provide any social insurance. The trends of entrepreneurship development in rural areas are described in the context of prospects to resolve the rural population employment issues. 

rural development, demographic crisis, rural employment, rural entrepreneurship development 

The article deals with modern trends in the agricultural sector of Ukraine in terms of efficiency of unleashing the agri-industrial potential of rural areas. Methods of assessing the economic potential of the region by comparing the volume of production in times of recession and recovery are used to determine the level of agro-industrial potential realization. The paper proves that the potential is not a static value, and changes dynamically over time depending on its playback, effectiveness and expediency of use. The study found a number of interrelated problems in agriculture of Ukraine. The first issue concerns with the long practice of unsustainable use of soils: systematic violations of agri-environmental regulations on the use of fertilizers and crop protection, non-optimal crop rotation, insufficient funding and implementation of measures to protect soil. Material and technical support of agricultural production is unsatisfactory and rate of the production facilities depreciation is high. The level of wages in agriculture is one of the lowest in the economy, while 35% of the rural population, employed at the place of residence, is working at agricultural enterprises. This contributes to the unfavorable demographic situation in rural areas: rural population is constantly aging and declining; 9-14 or even more units reduce the number of villages annually; living standards in rural areas are sufficiently lower as compared with cites; rural youth massively migrate from villages. At the same time, rural households produce up to 90% (and in some cases up to 99%) of certain agricultural products such as potatoes, vegetables, fruits and berries, milk and beef. The article also states that the rapid expansion of the vertically integrated corporate structures, called agricultural holdings, causes aggravation of existing problems in the agricultural sector. They mainly focus on producing economically attractive agricultural products (mainly crop production), resulting in aggressive land use. Agricultural holdings also reduce the number of employees by using modern high-tech equipment and thereby increasing the unemployment rate of the rural population. Finally, these companies are usually registered in cities and do not pay taxes to local budgets therefore they do not contribute to local social infrastructure development. 

potential of agricultural production, rural areas, development of the agricultural sector in economy