UDC 332.143:338.43.01

O. Bodnar, assistant
Supervisor: V. Lagodienko, Doctor of Economics, professor
Mykolayiv National Agrarian University

Institutional support for rural development is a combination of public and private institutions that ensure the availability of legal, organizational and economic conditions necessary for rural development, rural areas and rural communities.
Today in the world, despite the generally prevailing idea of the direction and nature of rural development institutions, there is no common understanding of purpose and the definition of these institutions.
As a result of studying we have identified the following main weaknesses of institutional support for rural development as incomplete legislative framework, lack of institutional capacity and inefficient programmer documents for rural development; neglect of infrastructure in rural areas; resource and functional limits of local governments and low institutional capacity of communities in rural areas; lack of effectively active institutions in formatting and developing integrated relations between business entities.
According to the identified problems, strategic priorities of the state policy for improving institutional support in agricultural development should be: the improvement of the institutional and legal support in agricultural development, coming closer to the requirements and standards of the EU countries; developing mechanisms for upgrading infrastructure to ensure agricultural development; creating a favorable environment for developing the community institutions in rural areas; creating a positive institutional and psychological basis for rural development at a basic level, increasing the attractiveness and promoting the living in rural areas; improving the business environment in formatting and developing integrated business structures, creating the interregional agro-industrial clusters and realization the socio-economic projects in rural areas.
It should be noted that only the success of the rural development institutions on the territory is not enough for the sustainable development of this territory. This requires that all participants in rural development (local authorities, commercial companies, organizations and institutions) should act more cooperatively and effectively. The most effective institutions are those institutions that operate within the well-planned framework and coordinated system of rural development.

Institutional providing for rural development.

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Issue 4 (92), 2016