DETERMINANTS OF RURAL ECONOMICS DEVELOPMENT

The article touches upon the definitions of "rural territories", "rural areas", "rural development" and "rural economics". The foreign experience of the methodology of identification of rural areas is studied. An overview of the criteria for classification of rural areas is reviewed and theirs main approaches are identified, such as demographic, geographic, economic and geographical and statistical. The EU policy on rural development is considered and the main vectors of rural development in the member states are outlined, in particular competitiveness, the environment, land management, economic diversification and quality of life of the rural population. The determinants of rural economy development are identified. The main ones are: natural resource potential, ecological and economic equilibrium, multifunctionality of the economy, economic and geographical situation, demographic situation and socio and cultural development. It is established that rural economy should be diversified and multifunctional, increase resource efficiency, high employment rate and profitability of rural population, and comfortable living conditions, as it is closely connected with natural, biological and climatic resources. The main problems of the crisis situation of the rural economy in Ukraine are defined, such as: agrocentric model of rural development, low employment rate, high mortality rate and social infrastructure. The authors identify the main advantages of the development of rural economy, the main of which are: satisfaction of needs of the rural population in goods and services, their involvement in productive employment, social protection of vulnerable groups of population, accumulation of social capital, increase of economic stability of rural communities, harmonization of ecological and economic development of the village , increase of economic activity efficiency, development of alternative business spheres