Strategic Management of the Agrarian Sector of Economy based on the Analysis of Value Chains

Abstract

The agrarian sector of the economy is a core segment, which defines preconditions of the food security, well-being and the employment level of the rural population, sustainable development, provides great budget receipts of the State, etc. One of the main mechanisms of strategic management and public administration of the agrarian sector of the economy is using the concept of the analysis of value chains creation. The methodological basis for the analysis of value chains in the agrarian sector of the economy is investigated. The methodical approach to the calculation of multipliers of gross value-added is improved. Based upon the modified technique, we estimated losses in the gross value-added of the agrarian sector of Ukraine got due to its export-raw orientation and global economic integration, which in 2016 amounted to about 47.4 % of GDP. The analysis of intersectoral balances of Ukraine in 2001-2015 showed that the reason for most of the crisis phenomena in the agrarian sector of the economy is its systemic disintegration, which is accompanied by significant disproportions in the value-added. Sectoral redistribution of gross value-added takes place on the basis of permanent destruction of direct inter-sectoral production ties. At the same time, low rates of development of indirect ties of the agrarian sector show its de-industrialization and a significant decrease in production intensity, which would be sufficient for intermediate consumption of crop raw materials as the products of the first technological repartition. The concept of the strategic management of the agrarian sector of the economy under the conditions of deepening integration and new industrialization is suggested. In turn, the realization of this concept is possible in centralized and decentralized modes, which are very useful during current reforms and making decentralization of the government in Ukraine.