State Policy of Rural Economy Diversification

Abstract

In Russia, 37 million people live in rural areas, which is a quarter of the country's population. At the same time, there is a steady decline in the rural population. At the present stage, agriculture cannot provide the entire rural population with jobs, because due to the implementation of modern technologies, the labor intensity of many production operations in agriculture is reduced. Only 19% of the Russian rural population are employed in agriculture, while the rest of the rural population are employed in non-agricultural sectors of the rural economy. Focusing on a single-profile structure of the rural economy, which is absolutely dominated by a single agricultural sector, cannot ensure sustainable development of rural areas. Because of this, the potential of rural areas should be unlocked through the integrated development of all sectors of the rural economy, including non-agricultural ones.