Foreign Experience in Relation to Unshadowing of Activity of Population in the Field of Agricultural Production Cover Image

Зарубіжний досвід щодо детінізації діяльності населення у сфері сільськогосподарського виробництва
Foreign Experience in Relation to Unshadowing of Activity of Population in the Field of Agricultural Production

Author(s): Tatiana Reshitko, Ivan Mytsenko
Subject(s): Economy, National Economy, Micro-Economics, Agriculture, Labor relations, Human Resources in Economy, Socio-Economic Research
Published by: Кіровоградський національний технічний університет
Keywords: engaged in informal activity; "shadow" employment; legal employment; regulation of employment and income of the rural population;

Summary/Abstract: The article highlights that the issue of unshadowing of activity of population in the field of agricultural production is difficult and complex. It needs new research. A significant part of the world, including highly developed countries, could not escape the informal economy in its various manifestations. According to experts, "informal employment" is the labour law permitted by the legislation, which is not calculated by official statistics, and the received income is not declared and taxed. Due to the huge scale of distribution, this kind of activity negatively affects the formation of the labour market. Although it contributes to mitigating the problem of unemployment, it negatively affects the formation of labour morality, leads to the loss of skills of workers, and in some cases has signs of a shadow and even a criminal economy. For Ukraine the issue of legalization of activity of population in the field of agricultural production is extremely actual as taking into account the data of experts almost 45 % of the Ukrainian economy is in „shade”.The article shows that in the economically developed countries, a complex system of state support of the activities of agricultural producers is functioning and is constantly being improved to prevent them from entering the shadow, which includes: payments from the budget and compensation of expenses to producers; measures to support prices, establish export and import quotas, tariffs, as well as subsidies, subsidies, tax breaks, insurance payments, etc. Forms and methods of government control are determined the features of economic and social development of every concrete country.The necessity of applying such positive experience on legalization of employment and incomes of the population for agricultural producers in Ukraine is emphasized. In fact today unsolved are problems of legalization of activity and state social security of domestic population, busy in the informal sector of rural economy. Presently most members of OSG do not pay ESV, that in the future will deprive their rights of social protection (pension and other social support). With the purpose of creation of favourable terms for the output of rural economy of Ukraine from „shade” and stimulation of rural population of Ukraine to legal productive employment, it is suggested in a legislative order to inculcate the complex of instruments and measures on support of prices on an agricultural produce, grants and subsidies the producers of this products; favourable crediting and taxation of their activity.