FOREST RESOURCES IN THE SYSTEM OF SOCIO-ECONOMIC DEVELOPMENT OF RURAL AREAS

Keywords: forest resources, rent for special use of forest resources, rural areas, rural territorial communities, fiscal regulation, public budgets, social and economic development

Abstract

It is found that due to the absence of powerful centres of industrial production in most rural areas and the presence of chronic problems of ensuring a critical level of employment of the local population, natural resources, provided that the institutional framework for their involvement in the reproduction process is improved, can become a key factor in the socio-economic development of these areas. It is substantiated that rural areas are the main area of concentration of forest resource benefits in Ukraine. This gives grounds to consider forest resources as one of the main factors in accelerating the pace of socio-economic development of the rural settlement network. It is proved that the armed Russian aggression has led to the destruction of integral property complexes of industrial production in the temporarily occupied territories of Ukraine, which has increased the importance of forest resources for ensuring economic self-sufficiency of the national economy and strengthening the country's defence capability. It has been established that the implementation of several stages of reforming the forest management system in Ukraine (consolidation of forestry enterprises and their further corporatisation) requires improvement of the system of fiscal regulation of the expanded reproduction and economic development of forest resource potential in order to increase the effectiveness of the impact of the forest component of the national wealth on the socio-economic development of rural areas by increasing the share of rent payments for special use of forest resources to the budgets of rural areas. It has been found that in 2013-2023, the vertical distribution of rent for special use of forest resources meets the basic principles of reimbursement of the costs of past generations and the embodied costs of the State for the creation of forest plantations and the challenges of fiscal decentralisation, which is confirmed by the dominance of the local focus of the budget redistribution of this fiscal instrument. It is substantiated that increasing the level of efficiency of using the instrument of rent for special use of forest resources in the context of increasing its revenues to the budgets of rural and settlement territorial communities depends on eliminating systemic distortions in identifying the basis for charging this fiscal instrument.

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Published
2025-01-27
How to Cite
Holian, V., Bardas, V., & Demydiuk, S. (2025). FOREST RESOURCES IN THE SYSTEM OF SOCIO-ECONOMIC DEVELOPMENT OF RURAL AREAS. Economy and Society, (71). https://doi.org/10.32782/2524-0072/2025-71-38
Section
ECONOMICS