A new life of village is in a new life of its enterprises
According to the current legislation the national and local budgets undertake the construction of countryside educational facilities, health care facilities, cultural and sport establishments, land improvements, crossovers, various types of utility systems, and also a housing construction in Ukraine. However, the central government budget deficit for 2015 is 63,7 billion UAH. Numerous statements of officials and analytical materials of mass media show that such branch as agriculture is, mildy speaking, not in its better condition, and it is required some supplement and dotation from the government. But the question is that even for sowing season 2015 there is a lack of 11 billion UAH as assured the Ministry of Agrarian Policy and Food. Local councils take the jealousy for their own well-being under such conditions, because public finance, as a rule, covers only the salary and utility bills of local budgets. In other words, villages are left alone with their problems, and if you are drowning you are on your own.
There are not so many ways to fill the local council budget in the current situation. Some of them are: payment for the rent of unclaimed shares and a flat agricultural tax. In such case it is supposed that lands under the administration of local government are rented and local budget is filled regularly with the rental payment. It is necessary to rent such lands and to have effective management capable to operate them in a good manner. It is not an easy thing.
By the way, there are some exceptions: agricultural enterprises, which bore losses in the past, become successful and prosperous and start brining positive results to the region with the change of property owner. The same situation happened with LLC “Agrofirma Ivanovka AG” Lands of the company are located within the territory of eleven village councils of Chernihiv district and the company had serious debts to shareholders – tenants. Local budgets also did not get the money.
The company was sold to the national agro industrial group Agricom Group in 2014. The situation changed greatly. Started working in region, the enterprise paid off debt for land lease and increased the fee by half to 4,5% . Besides, there were added 370 thousand UAH to Krasne local council, 103 thousand UAH to Mikhailo-Kotsybinsky local council, and 46 thousand UAH to Sloboda local council. It was payment for unsolicited land shares.
«It is very important for us to establish reliable partnership relations and, in our case, to establish such relations with communities, in which we work. In fact, we do not just do our work, we do not just use the land, we also provide employment opportunities, we look for qualified and motivated experts, who are able to follow and develop the efficiency of our business. That is why the development of local community is the important factor for the development of our enterprise. We are ready to support it entirely,” said Peter Melnyk, the CEO of Agricom Group.
Private sector undertakes a commitment on solving the social problems during such tense times for our country. Agrofirma Ivanovka AG and local councils entered into agreements for social and economic cooperation. Allocated costs, among other things, will be spent on primary needs of community: repair of school, transport services for schoolchildren, land improvements. A new educational center is started in Karhkovka with the financial support of Agroivanovka.
Attraction of investments, and as a result, efficient management for regional enterprises is the effective way for local councils to solve the problem of pumping up the local budget. Corporate responsibility is just the lifebelt for local communities, which helps not only to make both ends meet but also gives an opportunity to develop a social life.
The misery of Ukrainian village has been discussed for many years. Almost every government approved projects for its development, its renewal, involvement of young experts. However, the results of such discussions are invisible on the state level. While in many countries the private sector within the corporate social responsibility undertakes the difficult task of social modernization of village, the Ukrainian village still mistrusts the large agrarians.