Problems and Contradictions of the Financial System of the Agro-business Industry of Russia in Contemporary Conditions and Methodological Aspects of their Overcoming

Zoya Sh. Babaeva, Ramazan B. Shahbanov, Sabina R. Shahbanova, Burliyat N. Asekova, Marina V. Postnova
European Research Studies Journal, Volume XX, Issue 2B, 467-482, 2017
EOI: 10.11214/thalassinos.20.03.029

Abstract:

The article deals with the problems related to financial provision of investing activities of agribusiness industry as the most important sector of the Russian economy, as well as the ways of overcoming these problems. The authors formulated main concerns hindering economic growth and development of Russian agribusiness industry, and substantiated the dependence of the economic development of the agribusiness industry on the level, content, and mechanism of financial support.The article refines the major contradictions in the financial security of agribusiness industry developments, which reduces the level of financing and contributes to the emergence of disproportions in terms of both the industry-specific aspect and the territorial (regional) aspect in the development of the agricultural sector of the economy. It is proved that in spite of excessive government centralization of financial resources in the state budget, solutions to the critical national problems on the social arrangement of the agricultural regions and financial support of the needs of agribusiness industry are not achieved yet. The authors give critical assessment of financial and credit policy of the Bank of Russia, which led to the monopolization of the financial market and the emergence of speculative and often criminal banking operations to extract excessively high income. It is noted that wrong state policy has resulted in a significant differentiation in the development of Russian regions.The authors prove the necessity to align socio-economic development of agrarian regions in Russia and create their own food economy by ensuring the development of agricultural production with due considerations of climatic and other conditions characteristic of the various regions. The article reveals also causes and contradictions hindering financial well-being of enterprises of agro-industrial complex, substantiating and systemizing main objectives, methodological approaches, and organizational measures aimed at overcoming these contradictions in the development of financial support in Russia in the current context. Provision of financial resources in accordance with the proposed approaches and measures will allow comprehensively solving problems concerned both the development of infrastructure in rural areas, and peculiarly, the strengthening and growth of agricultural production.


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