Instituto de Estudios Políticos y Derecho Público "Dr. Humberto J. La Roche"
de la Facultad de Ciencias Jurídicas y Políticas de la Universidad del Zulia
Maracaibo, Venezuela
Esta publicación cientíca en formato digital es continuidad de la revista impresa
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Vol. 41, Nº 76 (2023), 556-567
IEPDP-Facultad de Ciencias Jurídicas y Políticas - LUZ
State policy to support the promotion
of agricultural clusters as a factor for
sustainable development
DOI: https://doi.org/10.46398/cuestpol.4176.33
Inna Kovalchuk *
Anna Pakhomova **
Victoria Melnyk ***
Tamara Novak ****
Olesia Tymoshchuk *****
Abstract
The article examined the prospects of state support for
cluster support in the agrarian sphere and thus considers the
factors causing external changes, along with the readiness to
merge enterprises and the possibility of their stimulation by the
state. Likewise, this article determines the stability of economic
links of agro-industrial clusters and considers the impact of international
agro-industrial clusters as one of the forms of business organization
in the Ukrainian economy. Also, the legislative basis of the state policy
is considered, dierentiated by the degree of state participation and
functions in the cluster structures of the agrarian sphere. The theoretical
and methodological basis of the research was the dialectical method of
cognition and a systematic approach to the study of clustering in the
agrarian sector; in addition, a comparative analysis of cluster-type joint
agricultural enterprises and traditional integrated structures was carried
out. It is generally concluded that the lack of regulations of the creation of
a production cluster organization, as an autonomous economic association
of enterprises, makes it impossible for the time being to extend its existing
potential and develop new specialized programs of state support.
Keywords: cluster technologies; agrarian sphere of development; agro-
industrial policy; economic policies; sustainable development.
* PhD in Law, Associate Professor in Department of Public Law of Bila Tserkva National Agrarian
University, Ukraine. ORСID ID: https://orcid.org/0000-0002-1804-4189
** PhD in law, Associate Professor, Head of Department of Civil law disciplines of the Bila Tserkva
National Agrarian University, Ukraine. ORСID ID: https://orcid.org/0000-0003-2292-9315
*** PhD in Law, Senior lecturer in Civil law disciplines Bila Tserkva National Agrarian University, Ukraine.
ORСID ID: https://orcid.org/0000-0002-1287-8799
**** PhD in Law, Associate Professor in Department of Agricultural, Land and Environmental Law in
National University of Life and Environmental Sciences of Ukraine, Ukraine. ORСID ID: https://orcid.
org/0000-0003-2371-3014
***** PhD in Law, Associate Professor of the Department of Constitutional Law and Theoretical and
Legal Disciplines of the Faculty of Social and Human Sciences of Bila Tserkva National Agrarian
University. ORСID ID: https://orcid.org/0000-0003-1714-6957
557
CUESTIONES POLÍTICAS
Vol. 41 Nº 76 (2023): 556-567
Política estatal de apoyo al impulso de clúster en el
ámbito agrario como factor de desarrollo sostenible
Resumen
El artículo examinó las perspectivas de apoyo estatal al clúster en la esfera
agraria y, por lo tanto, considera los factores que provocan cambios externos,
junto a la disposición a fusionar empresas y la posibilidad de su estímulo
por parte del Estado. Igualmente, este artículo determina la estabilidad de
los vínculos económicos de las agrupaciones agroindustriales y considera
el impacto de las agrupaciones agroindustriales internacionales como
una de las formas de organización empresarial en la economía ucraniana.
Asimismo, se considera la base legislativa de la política estatal, diferenciada
por el grado de participación y funciones del Estado en las estructuras de
conglomerados del ámbito agrario. La base teórica y metodológica de la
investigación fue el método dialéctico de cognición y un enfoque sistemático
del estudio de la agrupación del sector agrario; además, se llevó a cabo un
análisis comparativo de las empresas agrícolas conjuntas de tipo clúster y
las estructuras integradas tradicionales. En líneas generales se concluye
que la falta de reglamentos de la creación de una organización de clúster
de producción, como una asociación económica autónoma de las empresas,
hace que sea imposible por el momento extender su potencial existente y
desarrollar nuevos programas especializados de apoyo estatal.
Palabras clave: tecnologías de clúster; ámbito agrario de desarrollo;
política agroindustrial; políticas económicas; desarrollo
sostenible.
Introduction
The reforming Ukrainian land relations requires restructuring of the
entire system of the agricultural production organization. At the same
time, the development of the agricultural clusters is a great importance,
which will contribute to the creation of high-tech and knowledge-intensive
associations with a closed production cycle and a high level of added value
in the nal product. It also leads to the creation of new jobs of various
qualications, and the development of social and industrial infrastructure
in rural areas. It is important to note that this issue becomes particularly
acute in the analysis of ways to restore the Ukrainian economy in the post-
war period.
Currently, there is no denition of the concept of “cluster”, its types,
features of the creation and functioning in Ukrainian legislation. In
particular, the concept of “cluster” as a territorial association of enterprises
558
Inna Kovalchuk, Anna Pakhomova, Victoria Melnyk, Tamara Novak y Olesia Tymoshchuk
State policy to support the promotion of agricultural clusters as a factor for sustainable development
is absent in the Economic Code of Ukraine (Economic Code of Ukraine,
2003).
There are the drafts of the regulations on the foundations of state
policy formation in the eld of economic clustering, such as “Concept of
Creating Clusters in Ukrainе”, “National Strategy for the Formation and
Development of Cross-Border Clusters”, etc. These drafts are remained
developed, but not approved.
The current regulations regarding the principles of the state agrarian
policy do not provide the regulation of the agrarian clusters activities.
Only the Concept of Creating Clusters in Ukraine (Ministry of Economy of
Ukraine, 2008) determines that inter-farm organizational and management
structures can be formed in agriculture in the form of self-governing
economic associations of cooperative management and cluster regional
cooperation in the organizational and legal forms of societies, associations,
and economic interest grouping.
At the same time, supporting the development of the clusters, particularly
in the agricultural sector, is one of the priorities of the regional economic
policy. The development of the agricultural clusters is recognized as one
of the most important directions in the development strategies of many
regions.
1. Literature Review
The concept of a cluster was rst highlighted in the works of Marshall
(1890) and Porter (1979), where the main attention of the scholars is
devoted to researching the advantages and positive aspects of creating
clusters. Since then, this concept has been considered in various spheres of
production, including the agriculture sphere.
The theory and practice of analyzing various aspects of the creation and
activity of clusters as a promising form of economic development over the
past ten years has been thoroughly studied by both foreign and domestic
scholars. And this interest is due, rst of all, to the role and inuence that
clusters have recently gained in the economy of many countries of the world
after the devastating consequences of the global nancial crisis of 2008 and
the slowdown in the pace of globalization. Many scientists now consider
clustering as an alternative model for the future development of the world
economy, which can provide solutions to many problems of humanity
in the process of transition to the paradigm of sustainable development
(Recommendations of the International scientic and practical conference,
2014).
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CUESTIONES POLÍTICAS
Vol. 41 Nº 76 (2023): 556-567
Domestic scholars have recently paid considerable attention to the
problems of the agrarian reform and the development of various forms
of management, as well as they paid attention to the clusters’ formation
in the Ukrainian economy, in particular, the clusters in the agricultural
sector. The main aspects of the theory of agrarian clusters development
were reected in the works of the followings: Zhilkin et al. (2021); Mazneva
(2015); Shpykuliak and Tyvonchuk (2012); Popovych et al. (2021) and
other scholars. In most of the mentioned scholars’ works, they consider the
main theoretical and practical aspects on the formation of clusters in the
context of the activation of innovative activities in the agricultural sector.
At the same time, there remains the question of researching the essence
of clusters as a promising organizational and economic form of eective
agricultural production in the system of sustainable development, which
seems to be an urgent issue for the modern stage of solving the problems
faced by global and domestic agrarian science.
The founder of the agricultural holding UkrLandFarming, Oleg
Bakhmatyuk convinced that it is possible to develop the Ukrainian land
market by looking at dozens of models of market opening. However, when
choosing the nal option, it is not necessary to blindly adopt the experience
of implementing specic models in European countries. The same model
cannot work equally well, for example, in Estonia and Ukraine, because
these countries are characterized by signicant dierences in natural and
climatic conditions, soil types, and economic factors (Bakhmatyuk, 2022).
According to Bakhmatyuk (2022), it is optimal for the Ukrainian
agricultural sector to develop an economic model of the land market with
the division of the latter into three approximately equal clusters (the rst
is small plots of land, up to ve hectares, family farms. Medium-sized
landowners whose purpose is to saturate the domestic market of Ukraine
with its products should represent the second cluster. The third cluster is a
large producer whose work should be aimed at export).
2. Methodology of Research
The purpose of this research is to highlight the conceptual understanding
of the cluster as an innovative organizational in the system of sustainable
development on the example of the agricultural sector and to substantiate
the scientic principles of ensuring its implementation at the regional level.
The theoretical and methodological basis of the research is a dialectical
method of cognition and a systematic approach to the study of the clustering
of the agricultural sector.
When performing the research, we have applied a set of general scientic
methods and techniques:
560
Inna Kovalchuk, Anna Pakhomova, Victoria Melnyk, Tamara Novak y Olesia Tymoshchuk
State policy to support the promotion of agricultural clusters as a factor for sustainable development
• a monographic – in relation to domestic and foreign publications
on this issue;
• a system approach based on the principles of system analysis
and synthesis – to justify the interrelationship of sustainable
development, the eciency of agricultural production and the
cluster model;
• an abstract-logical – for theoretical generalization of research results
and determination of measures to ensure the implementation of the
cluster model of agrarian development;
• an economic analysis – studying the eciency of agricultural
production.
3. Results and Discussions
The need for economic protection of Ukraine’s national interests in
the agricultural sector and ensuring food security is possible through
the maximum use of national resources and the achievement of industry
competitiveness. However, the scientically based system of economic
growth of the agro-industrial complex, focused on solving national
problems, unfortunately has a purely declarative nature.
The investments in xed capital in agriculture are insucient for the
intensication of production and its dynamic development. The agrarian
sphere is characterized by low investment attractiveness (Law No. 1116-IX).
The restraining factors are the long-term nature of investment, the lack
of a full-edged competitive environment, the availability of alternative
options for investing nancial resources in attractive industries. Analysis
of the structure of investments in xed capital shows that this structure
has practically not changed in recent years: the share of investments in
agriculture is relatively small and signicantly inferior to other industries.
Cluster technologies can change the situation. Their use will add not
only the positive dynamics of the agro-industrial complex, but also give
the impetus for the development of the entire economic system, taking into
account national priorities and social responsibility.
The cluster form of the agricultural science organization determines the
possibility of creating a system in which all participants are interested in
the real success of both themselves and the entire association. At the same
time, authorities can act as coordinators; promote the implementation of
mechanisms for regulating complex periods of formation and development
thanks to legislative and material support.
561
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It is necessary to realize that sustainable economic growth cannot be
ensured only by market mechanisms. It must be based on three system-
forming elements: the market, state regulation and social stability. With
the support of the state, cluster technologies in the agrarian sphere will
enable the activation of market mechanisms and ensure the socio-economic
dynamics of the agricultural sector (Kovalchuk, 2019).
The agro-industrial cluster is a territorially localized, innovatively
oriented integrated structure based on an agreement on the cooperation
of independent business entities. The purpose of the structure is to form
a strategic platform for the development of agro-industrial production.
According to many economists, the regions where clusters are organized
become leaders in economic development.
The creation of agro-industrial clusters is especially relevant for those
regions where agro-industrial production provides a signicant share of
the gross regional product. Cluster structures are more in line with new
economic conditions, contribute to increasing the competitiveness of the
region’s agricultural industry, and ensure its innovative development.
The clusters activate entrepreneurship, as a high degree of specialization,
stimulates the creation of new rms focused on a certain market niche, and
due to the predominance of horizontal integrated connections, it reduces
the barriers to «entry» of new participants in cluster formations.
The economic stability of the organizations included in the cluster is
achieved due to access to resources, transfer of knowledge and technologies,
partnership relations, formation of a special conguration of ownership
rights to various objects, which ensures their more eective use. In turn,
increasing the stability of economic subjects of the region’s agro-industrial
complex creates a basis for its overall positive dynamics.
Tax revenues to the budgets of various levels are increasing, the material
and technical base is improving, and the investment attractiveness of
the region is increasing (Kovalchuk, 2021). It should also be noted the
importance of the comprehensive knowledge obtained due to the connection
in the cluster of fundamental science, research and development works,
production, sales and sale of nished products.
The traditional management due to the division of the regional economy
into industries is losing its eectiveness, as interrelationships of rms
and organizations that have an inter-industry nature come to the fore.
Therefore, it is necessary to manage connections, which allows us to provide
a cluster approach. At the same time, the eciency of interaction, of not
only technologically related organizations increases, but also partnership
relations between business, the state, trade associative structures, research
and educational institutions arise (Law No. 2404-VI, 2010).
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Inna Kovalchuk, Anna Pakhomova, Victoria Melnyk, Tamara Novak y Olesia Tymoshchuk
State policy to support the promotion of agricultural clusters as a factor for sustainable development
The approach to the development of regional agriculture, based on
clusters, is gaining more and more recognition in our country. Awareness
of the need for innovative development of the agricultural sector, the
desire to ensure the balance of the regional economic system based on
the restoration of industrial and economic ties, to maximize the use of the
economic potential of the territories, are intensifying the eorts of local
authorities to form various types of regional agrarian clusters.
However, currently in domestic legislation there is no denition of
the concept of “cluster”, its types, features of creation and functioning. In
particular, the concept of “cluster” as a territorial association of enterprises
is absent in the Commercial Code of Ukraine.
There are the drafts regulations on the formation of the foundations of
state policy in the eld of economic clustering, such as “Concept of Creating
Clusters in Ukraine” (Ministry of Economy of Ukraine, 2008), “National
Strategy for the Formation and Development of Cross-Border Clusters”
(Ministry of Regional Development and Construction of Ukraine, 2009).
These drafts are remained developed, but not approved.
The current regulations regarding the principles of the state agrarian
policy do not provide the regulation of agrarian clusters activities. In
particular, in the Law of Ukraine “On State Support of the Agriculture of
Ukraine” (Law No. 1877-IV, 2004) and in the Concept of the Development
of Rural Territories (eective until 2025), approved by the Cabinet of
Ministers of Ukraine No. 995 dated September 23, 2015, the concept of
“cluster” is absent in principle, there is no normative – a system basis for the
development of clustering in the agricultural sector (Cabinet of Ministers of
Ukraine, 2015).
Only the Concept of Creating Clusters in Ukraine (Ministry of Economy
of Ukraine, 2008) determines that inter-farm organizational and
management structures can be formed in agriculture in the form of self-
governing economic associations of cooperative management and cluster
regional cooperation in the organizational, and legal forms of societies,
associations, and economic interest grouping.
At the same time, support for the development of clusters, including
in the agricultural sector is one of the priorities of the regional economic
policy. The development of agricultural clusters is recognized as one of the
most important directions in the development strategies of many regions.
Unfortunately, cluster technologies in the agro-industrial complex
of the regions are not used on the scale that could ensure the dynamic
development of this vital branch of the economy.
The economic stability of the regional agro-industrial complex is
possible only on the basis of innovative development of all spheres included
563
CUESTIONES POLÍTICAS
Vol. 41 Nº 76 (2023): 556-567
in the complex, modernization of the processing and agrarian sector of
the agro-industrial complex, introduction of energy-saving equipment
and technology, activation of intellectual resources, optimal combination
of market mechanisms and state regulation of the economy. All these
factors can be used within the framework of the cluster approach to the
development of the agro-industrial complex.
One of the most important stages of the development of the international
economy is the formation of sectoral and inter-sectoral integration. The
Agrarians see integration as an opportunity to form a strong market-stable
structure capable of resisting interregional and international competition,
the basis of which should be scientic and industrial integration.
The cluster form of the agricultural science organization determines the
possibility of creating a system in which all participants are interested in
the real success of both themselves and the entire association. At the same
time, authorities can act as coordinators; promote the implementation of
mechanisms for regulating complex periods of formation and development
thanks to legislative and material support.
The cluster form of agricultural science is especially relevant for high-
risk areas of agriculture, the products of which are more elastic and seasonal
in nature. The agricultural research and production cluster should dene
such a network of interrelated organizations that would concentrate in
one geographical area research centers, agricultural institutes, production
companies, suppliers of equipment, technologies, raw materials, materials
and other organizations that complement each other in achieving economic
and scientic eect, and strengthen the competitive advantages of individual
companies and, therefore, the cluster as a whole by combining horizontal
and vertical integration.
As a result of such integration, agricultural science has the opportunity
to have scientic laboratory sites on the territory of specic producers of
products and to build relations with both producers and other participants
of the cluster based on the principles of continuous search for improving
the quality and quantity of produced products.
The role of regional authorities in the success of the cluster form of
agricultural science organization is signicantly large. The authorities
should stimulate the formation of such cluster systems, rst of all, through
their preferential lending, taxation, legal support and support (Kovalchuk,
2020).
The experience of using clusters in foreign countries shows that this
approach is the basis for a constructive dialogue between representatives
of the business sector and the state. It allows to increase the eectiveness of
the interaction of the private sector, the state, trade associations, research
and educational institutions in the innovation process.
564
Inna Kovalchuk, Anna Pakhomova, Victoria Melnyk, Tamara Novak y Olesia Tymoshchuk
State policy to support the promotion of agricultural clusters as a factor for sustainable development
In Canada, considerable attention is paid to the cluster approach to
the organization of scientic research. In the agri-food sector, one of the
most famous regional innovation clusters is the cluster of agricultural
biotechnology in the Canadian province of Saskatchewan. At the initial stage
of the development of the cluster in the 80s of the last century, research
and implementation work related to issues of genetics and plant selection
(grains, oilseeds, legumes, forage grasses), as well as animal health and
nutrition.
Currently, there is work on the use of biotechnology in the eld of
bioenergy, environmental protection, and improving the health of the
population, which has become widespread. The cluster began to serve as a
basis for the development of the bioeconomy of the province and increase
the competitiveness of this region.
Ukraine’s European integration aspirations actualize the appeal to the
eective experience of state support for the principles of cluster development
of European Union (EU) countries, in particular, the EU’s Common Policy
“On the Development of Regional Clusters”. Currently, all EU countries
are implementing the decisions of the Lisbon Summit in 2000 “On the
Widespread Implementation of Programs for the Development of Regional
Innovation Systems (RIS)” based on the cluster model of production.
The main goal of this decision was the intention to reduce Europe’s lag
behind its main competitors on world markets – the USA and Japan – by
2010 by implementing the strategy for the development of the knowledge
economy, as well as the implementation of the innovative development
model in the participating countries through the creation of the European
Research Area (ERA). In addition, in February 2007, the European
Clustering Manifesto was approved at the summit in Brussels, and on
January 21, 2008, the European Cluster Memorandum was adopted at the
summit in Stockholm - Europe’s action plan for ensuring the growth of
competitiveness (Food and Agriculture Organization of the United Nations,
2017).
It should be noted that, although there is no unied model of state
support for cluster development in European countries, all countries have
their own state programs for cluster development.
Conclusions
The lack of regulations of the creation of a cluster organization production
of a cluster as a self-governing economic association of enterprises makes it
impossible to spread to its existing and develop new, specialized programs
of state support.
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As a result, there are only isolated examples of the practical creation
and functioning of agricultural clusters in Ukraine, which are mainly
the initiative of commodity producers and are based on the experience
borrowed by them from the global practice of cluster development.
The development of agricultural clusters in Ukraine is complicated by
the following factors:
• military actions on the territory of Ukraine, in particular in the most
developed agrarian regions;
• the imperfection of the legislative framework for the functioning of
clusters and, as a result, the lack of support for cluster initiatives of
agricultural enterprises from the state;
• lack of trust between state authorities and business, as well as
between individual companies, reluctance of companies to disclose
and share internal information due to the possibility of abuse and
dependence on more powerful partners;
• the weakness of the existing agricultural clusters due to the low level
of competition in the domestic market, the absence of «aggressive»
suppliers and demanding consumers;
• the possibility of losing the right to receive benets and subsidies by
an agricultural enterprise in case of any organizational or production
changes (including when joining a cluster);
• lack of connection between science and education from agricultural
production: agricultural enterprises do not act as customers for
scientic and innovative products, and the products of research
institutions do not nd their buyers among commodity producers;
• lack of foreign investments and venture capital, which are an
important source of cluster development in developed countries.
The formation of agrarian clusters in Ukraine in the post-war period
will give impetus to the development of new approaches in the organization
of production, and the improvement of the qualications of workers in the
sector.
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Esta revista fue editada en formato digital y publicada
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