ISSN 0798 1015

Vol. 39 (Nº22) Year 2018. Page 35

Improving the mechanism of management of regional economy in agroindustrial complex

Mejorar el mecanismo de gestión de la economía regional en un complejo agroindustrial

Askar K. SHARIPOV 1; Sh.A. NAUBETOVA 2; S.S. KULSHENBAEVA 3; Sh.K. NURBEKOVA 4; A.E. DAIRBEKOVA 5; M. K. BAIMYRZAEVA 6

Received: 03/02/2018 • Approved: 02/03/2018

Contents

1. Introduction

2. Methodology

3. Results

4. Conclusions

Bibliographic references

1. Introduction

The agro-industrial complex, uniting all sectors of the economy on agricultural production, its processing and bringing to consumers, produce food to meet the needs of the population, ensuring food security of the country. However, agricultural production is directly dependent on industries that create for him the means of labor and providing the necessary resources. At the macro level, agricultural production does not fit the modern model of market economy and can thrive only in the presence of state support and integration of change (Kerry, Vernon, 2010).

The relevance of this topic stems from the fact that in many regions insufficiently developed system of management of agroindustrial complex, there is no adequate market relations organizational structure capable of accumulating material, labor and financial resources.

1.1. Unsolved research problems

All marked together constitute an objective need for scientific research to develop the optimal mechanism for regional management and Economics of agriculture. The main purpose of this study is the classical methods of state and market mechanism of economic regulation of agro-industrial complex, identifying the main problems of management of agroindustrial complex (hereinafter: AIC) of the region, development of the most optimal mechanism of agroindustrial complex AIC is (Wu D., 2014).

To achieve this goal is the following tasks:

1. The study of the structure of the state and market mechanism of economic management of agriculture in terms of industrial-innovative development of the country (Agrobusiness-2020);

2. Research the most important territorial factors that determine the formation of the effective mechanism of management of agroindustrial complex of the region;

 With the market transformation of the agricultural sector is undergoing profound changes in its economic mechanism, the increase in it the role of the economic interests of all subjects of market relations. In this regard, the reform of the agricultural sector important role belongs to state regulation of agriculture development with the purpose to support agricultural producers, ensure sufficient products food for residents of the Republic, the food security of the country.

The need for improving the management of agroindustrial complex of the region is due to the fact that the state is responsible before its citizens for the creation of normal living conditions, provision of food and other agricultural products. The lack of material and financial resources, low technical level, poor motivation, impaired inter-industry linkages, social backwardness of the village necessitate the best state support for the industry in the regions (Kerry, Vernon, 2010).

In his message to the people of Kazakhstan ""Kazakhstan's way-2050:" uniform purpose, uniform interests, uniform future"" the leader of the nation Nursultan Nazarbayev said: "we Need to develop farming, small and medium business in the village. To develop agriculture so that food products of Kazakhstan has become one of the main export products. And we have all the necessary" (Kazakhstan's way-2050).

Today Kazakhstan is among the 25 countries the main producers of agricultural raw materials (grain and other food products). Kazakhstan in the common area, area of agricultural land, grain crops and potatoes is among the top ten major producers of agricultural raw materials. According to experts, the resources of the Republic allow to make 3 times more food, than consumes its population. The mechanisms of state and market control of agrarian relations and agricultural practices provides organizations the choice of any form of organization of production, ownership, freedom of entrepreneurship, independence of management and disposal of agricultural products, as well as received from its sale revenues (Wu D., 2014).

In the context of a General crisis in the country, including in the agricultural sector, which initially had serious consequences not only for agriculture but for the country as a whole, state regulation of agrarian relations contributed to the deep transformations of the economic, legal and social nature. Measures of agrarian policy for the state and market regulation should be considered: the provision of budget funds to agricultural producers, agribusiness; application of special tax regimes in relation to producers AIC; procurement, storage, processing and supply of agricultural products, raw materials and foodstuffs for state needs; market regulation of agricultural products, raw materials and food, including customs tariff and nontariff regulation; information support of producers and other participants of the market of agricultural products, raw materials and food, as well as providing them with advice; antitrust regulation of product markets, raw materials and food; conducting purchasing interventions, commodity interventions in the market of agricultural products, raw materials and food, as well as mortgage operations. The management of the economy agro-industrial complex is a complex system of economic, legal, institutional and social events. The state mechanism of economic management of agriculture during the years of transition to market relations is in constant search. On the subject of many research works, especially on the theory and practice of public administration by economy of agro-industrial complex in transition to market (Ajila C. M., Satinder K. Brar, M. Verma, 2012).

The problem of state regulation of development of agriculture is not new to world and domestic science. It is enough to recall such names as Adam Smith, David Ricardo, John Keynes, V. Varga, etc. the Market can not arise by itself, it is created by the state for the legal basis, which is an essential element of its functioning. Their point of view on the problems of development of the market and its main purposes is G. Soros: "...the structure itself did not address the true issues of distribution; it takes a significant distribution of wealth for granted (Soros D., 2006). The market does not reflect the interests of society. The Corporation's goal is not to provide employment, they hire people (possibly smaller and cheaper) solely in order to profit". This statement becomes an additional argument in favor of state intervention in the economy so that revenues are equitably distributed between the members involved in the production process. As international experience shows, the most effective form of state support is the development and implementation of targeted programs. The importance of developing and implementing programs to achieve the goals noted by P. Samuelson: "That the state program helped US to keep the leading position in the field of science and technology" (Samuelson P. A., 2009).

In connection with the foregoing, the significance of the conducted research is to develop a number of theoretical and practical proposals for optimization of the state and market mechanisms of economic management of agro-industrial complex of regions in conditions of development of market relations and the formation of a mixed economy. At the present stage, the recovery of the agricultural sector is impossible without transition to an innovative path of development, which is the main factor of increase of efficiency in a market economy. In this regard, the main direction of state policy should be the creation of a complex of legislative and organizational measures aimed at the formation in the agricultural sector of the country "innovation climate" — favorable conditions for the development of different kinds of innovations (Kerry, Vernon, 2010).

Before the reforms of 90-ies of state planning and distribution system regulated financing of scientific researches and introduction of their results in life. Currently, the higher authorities took such obligations, and the necessity of enhancing the innovation capacity rests on the shoulders of local stakeholders in Kazakhstan (Gussenov B. S., 2015). Because the trend of development of innovative processes in agriculture are determined by the overall political situation in the country, its economic environment, and innovative climate the role of the state in the regulation of these processes is too big to be underestimated. And for the agricultural regions of Kazakhstan the implementation of their innovation policy agriculture, aimed at improving the competitiveness of agricultural production, is the only true way of development. Development and implementation of regional innovation policies demanded by the agricultural sector. One of the most versatile of the levers of increase of efficiency of innovative activity in agriculture of the RK is a rational use of potential of regions by strengthening existing research and development resources. Development of effective organizational-economic mechanism of formation of the innovative environment in agriculture of Almaty region, can enhance innovative activity, to ensure the economic security of agricultural producers, and, as a consequence, become a driving force of many other agricultural problems of the region, is an important scientific and practical task (Agrobusiness-2020).

To the conditions and factors that impede the development of innovation in regional agriculture include the following: compression of the internal demand for food, the reduction of state support of the agricultural sector and public funding of scientific-technical programs, lack of credit system, high interest rates on loans, absence of innovation infrastructure and state innovation policy and strategy, insufficient level of training of personnel of agricultural organizations in the field of innovation management. The formation mechanism of stimulation of innovative modernization of production and economic systems of regional agriculture suggests the following tasks of the state scientific-technical and innovation policy: creating a competitive sector of research and development and environment and resource reproduction; create an effective system of innovative modernization of the agricultural sector; the development of institutions of commercialization and protection of results of research and development; innovative modernization of the system of management of regional agriculture (Sidorin A., 2011).

Integration of subjects of production-economic system of regional agriculture in the conditions of innovative modernization leads to the formation of new organizational and economic structures — virtual enterprise in which any entity located in the internal environment of the system will be able to communicate effectively with any other entity for the organization of collaborative innovation, trade, intellectual products, the exchange of ideas. Agribusiness in the region based on the principles: priority development of innovative processes as a basis for effective functioning of agro-industrial units of all levels; the validity of the decisions on the implementation of innovation policy in agricultural sector; integration of scientific, scientific - technical and educational activities (Bedelbayeva A.E., Lukhmanova G.K., 2016). It is necessary to develop institutional conditions of regionalization of government regulation of agriculture, aimed at overcoming the most important barriers for innovative development of the complex (marketing of innovations in agriculture, development of priority scientific- research, training, agriculture, investment attractiveness formation of agricultural innovation) and is based on direct methods (funding, payment of educational seminars, budget places in universities, organization of competitions, exhibitions, placement of information in mass media) and indirect stimulation (the formation of a regional stock system, providing the guarantee Fund, tax incentives, subsidization % of the loan) (Ilimjanova Z. A., Kaldiyarov D. A., Burnasheva V. R.,  2016);

The essence of agro innovation is a result of work obtained through the use of new scientific knowledge, transforming the process of functioning and development of a production economic system AIC in the direction of increasing efficiency, sustainability and systemic quality of the relationship, and at the same time aimed at further development of this knowledge (Kerry, Vernon, 2010).

Studies of cooperative-integrative processes occurring in the Almaty region in 2013-2015, has allowed establishing the following:

• the region marked trend towards expansion of large-scale commercial production due to additional mergers. In this regard, the actual becomes a question of optimization of the sizes of economic entities (particularly agricultural organizations) and their associations in order to ensure the most efficient agricultural production (Agrobusiness-2020);

• as integrators made earlier created enterprises that allows you to use the experience of building a system of cooperative and integration relations in new conditions of managing;

• carried out a complex organizational-economic measures helped to ensure the alignment of a uniform technological chain within the formed structures. This should help to obtain high-quality products with a high degree of processing and its effective promotion on the consumer market;

• the number of structures created and operate on the level of (AO "Zharkent krahmal-factory", etc.). It contributes to a coherent regional policy; improve the efficiency of regional agricultural production. The study and dissemination of best practices in the establishment and effective functioning of large integrated diversified agribusiness groups allows to significantly intensifying the integration processes in agriculture (The Message Of The President Of The Republic Of Kazakhstan N. Nazarbayev to people of Kazakhstan. 201). "New possibilities of development in the context of the fourth industrial revolution").

The implementation of proven organizational-economic mechanisms of integration allows ensuring the conduct of activity of subjects of agro-industrial production on the principles of sustainability and self-financing. In turn, this creates conditions for increasing the level of competitiveness of agro-industrial structures, both domestic and foreign food markets. The timely adoption of appropriate decisions when changes in the economic situation are the main issue in management. It is obvious that only the experience and intuition of the managers are not able to provide the right decisions at change of conditions of functioning of the integrated system of agriculture of the Republic of Kazakhstan. The most important assistant Manager becomes a computer information system to support management decisions that allow you to simulate the situation and choose the best indicative action plan. The use of methods of mathematical modeling and the adoption on the basis of their informed decisions on the management of agribusiness is an important competitive advantage in the contemporary economy. Modern process control is complicated by the fact that the increasingly innovative nature of the technological processes, resulting in the preparation and adoption of managerial decisions is becoming more difficult, requiring strategic thinking from the leaders. For example, biotechnology, energy and resource saving technologies in crop and livestock production, know-how, automation and robotic solutions, logistics, marketing and consulting, evaluation and certification of personnel. The increasing complexity of technical and technological problems leads to multilevel structures of management of enterprises, increase in the number of possible alternative solutions and their optimization (Wu D., 2014).

Analysis of the solution without the possibility of computer support for the process of adoption is very complicated, and the cost of failure can be very high. The situation is compounded by the fact that in some plants the whole production vertical AIC often change owners, and therefore management teams, among which there are those who are not familiar with the technological and economic specificity of the enterprise. Information technology management process, as a rule, allow to solve standard tasks of operational accounting and financial reporting, but do little in terms of improving the decision-making process. Complete or partial elimination of the above shortcomings in the management of enterprises could benefit from widespread use of computer systems to support decision-making (Gussenov B. S., 2015).

The basis of these systems are simulation models of decision-making, experimentation with which allows, firstly, to understand all the possible consequences of management decisions; second, to have the possibility of considering a large number of alternative variants of use of production and financial capabilities; third, guaranteed to give response about the most rational or optimal choice among the alternative solutions.

However, the theory development and the practical use of such systems on existing local enterprises is clearly insufficient, due primarily to the insufficient level of development of methodology of creation and usage in practice of automated control systems for enterprises.

During modernization all production activities AIC up the task of optimizing the development and use of computer tools predict future development of enterprises based on the use of multipurpose simulation models. Using the system simulation models of decision-making organizes the process of indicative planning, allowing, first, to compress in time the duration of the work on the plans, and secondly, to allow consideration of alternative options, and third, to make adjustments if necessary without significant downtime (The Message Of The President Of The Republic Of Kazakhstan N. Nazarbayev to people of Kazakhstan. 201). "New possibilities of development in the context of the fourth industrial revolution").

In the process of the study were used General methods of research: methods of analysis of financial statements: horizontal, vertical, ratio, comparison, and other.

To study the agrarian system of Kazakhstan were used General scientific and special research methods:

- review of the regulatory framework;

- analytical method;

- economic-mathematical calculations.

2.1. Domestic policy

The transition of processing industries of agro-industrial complex on local raw materials still does not solve fully the problem of loss of production. There are many other aspects that require special attention when solving the problem of getting out of the crisis. These include, in particular, include the following.

An important task is implementation of complex of measures on improvement of organization of retail trade, flexible change of specialization of existing commercial enterprises, forms of realization of goods and services.

For the formation of a range of goods in stores and the further development of trade must provide a primary supply of goods produced in the Republic, enterprises of the Republic, the export of food products and consumer goods from the Republic to produce only after the saturation of the local market (Agrobusiness-2020).

Among the important issues include the tax in the food industry. Providing tax benefits to individual companies and local bodies of Executive power reduces budget revenues, and therefore, the concentration and centralization of investment for the implementation of the program of development of regional agro-industrial complex this will also contribute to:

- increase of profitability of enterprises by reducing wastage and more efficient use of production capacity;

- reducing the rate of decline in industrial production , increased production of consumer goods;

- elimination of loss-making enterprises and reduction of subsidies to cover losses.

Requires the development and implementation of a complex antitrust action against processing plants. The consequences of the monopolism of the processing enterprises and intermediaries appropriate development mechanism of the formation of a guaranteed minimum purchase prices for these products, as well as encourage the establishment of processing plants by producers,

To perspective directions of development of agroindustrial complex of the Republic are:

- increase of agricultural production;

- the introduction of advanced production lines of the optimum sizes for the processing of organic products of agricultural origin with an approximation of their resource base;

- creating a powerful resource zones in areas with the most favorable soil-climatic and economic conditions;

- wide development of the financial (stock) market, which includes the securities market and the market of Bank credits and loans this in turn will give impetus to the development of investment;

- improving the competitiveness of enterprises;

- creation of preconditions for greater use by enterprises of objects of subsidiary production;

- maximum use of secondary resources of food raw materials.

Increasingly important the need for thorough market research, use of modern methods of computer analysis.

On completion of the transition period, the system of economic management of the agricultural sector efficiently converted, amplified by its social dimension, the role of strategy, focus on safety and sustainability, most fully use market mechanisms and state regulation. Manifest ability to provide significant efficiency gains in the medium and long term, in a timely manner to formulate goals that meet the interests of most of the population, to use new and traditional methods and factors. The mechanism of management of AIC of the region is manifested in its ability to revive the socially oriented real sector of the economy based on market relations and liberalization; to carry out reproduction on the principles of self-sufficiency and self-development (with the most complete use of the benefits of regions and cities), to ensure the sustainability of life support systems, the strengthening of economic federalism (Wu D., 2014).

In order to accelerate the formation of the system of management of economy of agroindustrial complex of the region in the public consciousness is necessary to form an idea about management and its quality as a leading development resource, to implement legal protection for the innovations in the system of management, scientific and information support, social care professionals, increase their responsibility before the law and the population, employees of enterprises and organizations. This has main objective and subjective conditions. Active regulation of processes of formation of adaptive model of management of agriculture in the region under the increasing influence of the concept and domestic practice of construction of a Federal state, the systemic changes of the territorial organization of the country and regions, the market model of social and economic relations. It does not occur immediately and universally, acquires a stable form and system properties as a result of achieving the minimum required changes in the principles, practices and technologies that meet the specific socio-economic and socio-political organization of the country, General trends in management and the active support of their managers and specialists of management bodies and economic structures. In managing the economy of the agroindustrial complex of the region delineated the main features of the model of typological series based on state regulation and the active use of cost categories and market mechanisms, the unity of diversity in application of the principles, forms and tools. The functioning and development of agricultural production of the region is the result of finding, establishing and maintaining optimum proportions between the elements of the management system and structures in the economy of agribusiness in the region, necessitating a radical change in the practice of medium - and long-term forecasting and indicative planning, modernization of methods of complex socio-economic development of the region. One of the conditions for dynamic development of the economy of the region is the use of the internal sources of accumulation, in production of food, goods and services, housing, and entrepreneurship in the real sector of the economy (Agrobusiness-2020).

Sustainable and sufficient to carry out active management activities of economic and financial database management can be established through identification of new functions of the regions in country economic space, the development of economic turnover, increase the tax base and municipal property, and improve the efficiency of its use, the output of the shadow economic structures and de-monopolization in local markets, especially of consumer goods, food and utilities, the use of budget as a tool of operation, but also the means of development of the territory. The process of management of agriculture necessitates the development of appropriate strategies. Efficient conversion is possible only on the basis of a phased systematic approach, involving the restructuring of the organizational-management information system at the regional and local level in the complex (The Message Of The President Of The Republic Of Kazakhstan N. Nazarbayev to people of Kazakhstan. 201). "New possibilities of development in the context of the fourth industrial revolution").

Table 1
SWOT analysis of the system of management of regional economy of the agroindustrial
complex in the Republic of Kazakhstan taking into account internal and external factors

3.1. Analytical aspect

Agriculture has traditionally played an important role in Kazakhstan. Lives in rural areas and about 43% of the population. About 18% of the total economically active population employed in agriculture, forestry and fisheries (RFCARATINGS Rating Agency, 2018).

The share of agriculture in GDP of the Republic of Kazakhstan in the last five years is in the range of 6-8%.

The export of agricultural products from Kazakhstan shows a positive trend. So, due to the devaluation in 2015, the share of agriculture in total exports rose to 27% (Gussenov B. S., 2015).

Kazakhstan makes a significant contribution to ensuring global food security. The country occupies the leading position in the world in production and export of wheat. According to international estimates, in 2016 - 2017 the production of grain crops in the country is estimated at 18.5 million tons (The Committee on statistics of the Ministry of national economy of the Republic of Kazakhstan, 2018).

Unique geographical location and availability of different climatic zones create favorable conditions for comprehensive development of the agro-industrial complex of the country.

Sown area of agricultural crops in the country is 21022,9 thousand hectares at the end of 2017. Kazakhstan ranks ninth in the world in area (2 724 902 km2) (RFCARATINGS Rating Agency, 2018).

Strategic plan of the Ministry of agriculture of the Republic of Kazakhstan for 2014 - 2018. According to the plan, Kazakhstan is creating conditions for improving the competitiveness of agriculture, sustainable development, water, forestry and wildlife through the effective formation and implementation of public policy.

Implements the program on development of agriculture in the Republic of Kazakhstan for 2013-2020 (Agribusiness 2020).

Within total gross output in Kazakhstan's regions the positive dynamics (Table 2.)

Table 2
Gross output of agricultural products by regions of the Republic of Kazakhstan

Based on data from table:

Increase in agricultural output. Gross output of products (services) of agriculture in the end of 2017 in the whole country amounted to 3 684, 393 2 billion tenge, which is above the level of the corresponding period of the previous year by 2.7%. The growth of volume of production of agriculture is due to the increase in the value of crop production by 1.5% and animal products - by 2.7% (Gussenov B. S., 2015).

The growth of investment in fixed capital for agriculture. For the 12 months of the year in the fixed capital of agriculture was sent to 96 284 453 thousand tenge, or almost 50% more compared to the same period last year(RFCARATINGS Rating Agency, 2018).

However, in the agricultural sector of Kazakhstan, there is an outflow of foreign investment. So, during the analyzed period the outflow of foreign direct investment (FDI) from the agricultural sector amounted to $ 3.3 million. USA (The Committee on statistics of the Ministry of national economy of the Republic of Kazakhstan, 2018).

Indicators of livestock generally demonstrated a stable trend. At the end of 2017, compared to the same period last year in all categories of farms the number of horses increased by 7.1% and amounted to 2 474,5 thousand heads of cattle, respectively, 2.7% and 7 617,5 thousand heads, camels – by 2.6% and 195,5 thousand heads, sheep – by 1.2% and 20.9 million heads; pigs – by 2.8% and 1 017,8 goals. The number of goats decreased by 2.1% and amounted to 3 112,7 thousand heads, poultry – respectively 4.6% and 38.5 million heads (The Committee on statistics of the Ministry of national economy of the Republic of Kazakhstan, 2018).

The increase in agricultural output observed in most regions of Kazakhstan. So, the volume of agricultural production in late 2017, compared to the same period in 2016, increased in 12 regions of the Republic. Leaders for this indicator are East - Kazakhstan, West-Kazakhstan and Almaty region. However, the decline in agricultural production was observed in Pavlodar (-0.9%) and Mangistau (at 22.1%) areas (The Committee on statistics of the Ministry of national economy of the Republic of Kazakhstan, 2018).

In this regard, the paper presents the methodological bases of development of scientific basis of integrated planning of agriculture in the specific conditions of the region. They are based on a phased approach to solving the problem. In the first stage are developed the theoretical basis for the creation of a methodology for integrated planning of the region based on thorough analysis of the socio-economic status, the layout structure of the most important sectors of the agricultural sector, to identify apparent imbalances in the region, defining the prospects for further economic growth. The next step is the creation of new organizational-economic system of management of agroindustrial complex of the Republic, based on the creation of a new four-level system of integrated planning and budgeting methodology for determining the level of profitability of production and thresholding break even for the branches of agriculture. The emphasis in these calculations is a fundamental change in the structure of the cost of manufactured food products, namely its reduction due to the transition of processing industries of the Republic for the production of food products from local raw materials instead of imported on the territory of the Republic from other regions.

4.1. Brief description

Agriculture remains one of the most promising and important sectors of Kazakhstan's economy. Increases in the country the gross output of the agricultural sector (+7% compared to 2016).

A growing share of agricultural products in total exports of the country (+25% in 2016). It is expected that due to the devaluation, and the growing quality of agricultural products in Kazakhstan will continue to enjoy growing demand in foreign markets (The Committee on statistics of the Ministry of national economy of the Republic of Kazakhstan, 2018).

Due to its fertile soil and the availability of different climatic zones of Kazakhstan has great potential for diversified development of agriculture.

The growth of world population and a General increase in world millet for food without GMO (genetically modified organism), create a promising niche for environmentally friendly products of agribusiness complex of Kazakhstan.

Amid uncertainty in the global economy in the domestic agricultural sector there is an outflow of foreign investment (-3,3 million tenge in comparison with the same period in 2016) (The Committee on statistics of the Ministry of national economy of the Republic of Kazakhstan, 2018).

Remoteness from markets, insufficient development of transport infrastructure, technological backwardness, as well as seasonal water scarcity are major constraints to the development of domestic agriculture.

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1. Management in agriculture. Doctor of Economics, Professor. Academy of economics and law n.a. U. A. Dzholdasbekov. Taldykorgan. Republic of Kazakhstan. king_bara@mail.ru

2. Management in agriculture. C.ph.-m.s. Professor. Academy of economics and law n.a. U. A. Dzholdasbekov. Taldykorgan. Republic of Kazakhstan. king_bara@mail.ru

3. Problems of agricultural market. Associate professor. Academy of economics and law n.a. U. A. Dzholdasbekov. Taldykorgan. Republic of Kazakhstan. king_bara@mail.ru

4. Problems of agricultural market. Master, senior lecturer. Academy of economics and law n.a. U. A. Dzholdasbekov. Taldykorgan. Republic of Kazakhstan. king_bara@mail.ru

5. Management of economy of Kazakhstan. Master, senior lecturer. Academy of economics and law n.a. U. A. Dzholdasbekov. Taldykorgan. Republic of Kazakhstan. king_bara@mail.ru

6. Management of economy of Kazakhstan.C.e.s., associate professor. Academy of economics and law n.a. U. A. Dzholdasbekov. Taldykorgan. Republic of Kazakhstan. king_bara@mail.ru