Cluster formation as a sustainable rural development tool in Ukraine

Abstract

The difficult situation in Ukraine in general and in the agricultural sector in particular, caused by the war: destruction of settlements with infrastructure, property damage to business entities, impossibility of conducting economic activity in the temporarily occupied territories and territories where active hostilities are taking place, relocation of business, massive displacement of the population to more peaceful regions – necessitates a rethinking of pre-war approaches to the development of rural areas. This study focuses on one of the most promising tools – clusters. Since proper legal regulation is crucial for the effective development of clustering processes, the purpose of the study is to analyse the state of legal support for clustering in rural areas, considering the requirements of smart specialisation, to identify the main problems and to develop proposals for their solution. This goal was achieved through the use of several methods of scientific knowledge: dialectical (philosophical), analysis, formal legal, hermeneutical, abstract logical, and historical and legal. As a result, the author formulates a definition of the concept of “cluster”, which enshrines its features (voluntary association of entities with the status of entrepreneurs, sectoral or intersectoral nature). The purpose of the cluster activity is substantiated: creation of products and/or provision of services, promotion of sustainable development of rural areas. It is established that clusters combining agricultural production with other, in particular non-agricultural, activities are promising for rural areas. The necessity to consider the provisions of smart specialisation of regions in the formation of clusters is proved. Proposals have been developed regarding the formation of the legal framework for the formation and functioning of clusters by supplementing the normative acts of economic legislation with provisions on the form of organisation of cluster formations; defining clustering as a promising task in the national and agrariansectoral strategic planning documents; basic directions of state support for the creation and functioning of clusters in the field of agriculture/in rural areas. The results obtained are of theoretical importance for the development of the science of agrarian and commercial law. The conclusions of the work are also of practical value since they can be considered in the content of the improved legislation on clusters and smart specialisation of regions